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ZESCO Limited has reportedly secured two major legal victories, including the recovery of more than K9.7 million in a dispute involving a performance bond.
According to ZESCO, in one case, the Lusaka High Court on March 7, 2025, dismissed a K292.8 million lawsuit filed by Mapompo Investments Limited, which had accused ZESCO of trespassing on its mining area in Lusaka South by constructing 330kV powerlines.
Mapompo had sought the removal of ZESCO’s infrastructure, compensation for alleged trespass, damages for lost income, and legal costs.
However, the court ruled that mining rights do not confer land ownership, noting that Mapompo lacked lawful title to the area.
The court found that the consent granted by a local headman was irregular, and that Mapompo failed to obtain necessary approvals from the Local Authority—rendering the claim invalid.
Reacting to the judgment, ZESCO’s Senior Manager for Litigation, Kevin Mweemba, said the ruling affirms the company’s commitment to protecting public resources and enforcing legal and contractual obligations.
“These landmark rulings set a crucial precedent for ZESCO’s future operations, reinforcing the importance of lawful land acquisition processes and the effectiveness of contractual safeguards,” he said.
He further stated that the decision clarified that possession of a mining license alone is insufficient to support a trespass claim.
In a separate ruling, the Lusaka High Court granted ZESCO summary judgment against A-Plus Insurance, ordering the insurer to pay K9,727,956, plus interest and legal costs.
This case stemmed from a 2023 fuel supply contract between ZESCO and Mukhalabweka General Dealers Limited, which ZESCO terminated in January 2024 after the supplier allegedly failed to fulfil its contractual obligations. ZESCO subsequently called in a performance bond issued by A-Plus Insurance to recover the guaranteed amount.
The court reportedly dismissed A-Plus Insurance’s defense as lacking legal merit, and upheld ZESCO’s right to enforce the bond.
“These victories exemplify ZESCO’s resolve to defend against unsubstantiated claims, recover owed funds and uphold the rule of law,” he said.
“By safeguarding millions in public resources, ZESCO ensures that funds remain dedicated to delivering reliable electricity services and advancing national development,” he added.
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