ENERGY and Water Development Permanent Secretary Teddy Kasonso has said Zesco owes the Water Board K175 billion for water use at Kafue Gorge Dam.

Speaking when he appeared before the Public Accounts Committee in Lusaka on Monday, Mr Kasonso said Zesco had, however, indicated that it was ready to pay K600 million per year, and that the stakeholders were discussing the best way of clearing the debt.

Mr Kasonso appeared before the parliamentary committee to explain the financial irregularities as highlighted in the auditor general's report for the financial year ending December 2008.

Mbabala Member of Parliament (MP) Emmanuel Hachipuka chaired the session.

Mr Kasonso said the K600 million proposed by the Zesco board was seen to be insufficient and the stakeholders were in the process of discussing a possible debt offset.

He said this when he responded to concerns raised by Nchelenge MP Ben Mwila and Isoka West MP Paul Sichamba who wanted to know whether there were any plans to ensure that the money was recovered from the power utility company.

Mr Kasonso also agreed with the observations by the auditor general that by September last year, Lunyati Dam in Kaoma had not been completed despite the Government releasing K750 million.

Commerce, Trade and Industry Permanent Secretary Buleti Nsemukila told the committee that the unconstitutional expenditure of K71, 592,873,832 as highlighted in the report was due to funds released by the treasury to the Citizens Economic Empowerment Commission (CEEC).

Dr Nsemukila said the Ministry of Finance and National Planning did not allow the funds to the CEEC to pass through the Ministry of Commerce, thereby letting the funds appear as though they were unconstitutional expenditure.