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needs $100 million to undertake its function of promoting efficiency and good corporate governance in public entities.
State Enterprises and Parastatals Minister Gorden Moyo told Business Chronicle he expected the money to be disbursed by Treasury this year.
“The Government was supposed to put $100 million last month towards this project but it did not have money because of payment of civil servants’ bonuses and salaries.
“We are hoping that that this month there could be something for that project,” said Minister Moyo.
He said the advisory council would implement the Inter-Parastatal Debt Strategy. The inter-parastatal debt, money which SEPs owe each other, stands at more than $1 billion.
“There has not been much traction from our SEPs in implementing the inter-parastatal debt strategy.
“This is why the SEPs Advisory Council is important so that they begin to share their experiences, best practices and problems between and among themselves,” he said.
The advisory council will facilitate a platform to enhance business ideas and resolve some of the challenges facing the institutions before bringing them to the ministry.
The advisory council is expected to be put in place at an annual retreat to be held next month where chief executive officers and general managers from Zimbabwe’s 78 parastatals will deliberate on various issues affecting their operations and efficiency as well as seeking solutions to improve the same.
He said the inter-parastatal debt was a major challenge to most SEPs and this had led to cashflow problems, inability to attract investors and access to lines of credit due to unattractive balance sheets.
Online Reporter