adminBusiness Correspondent
THE business community has called for a comprehensive audit of the 10 parastatals earmarked for resuscitation in 2015 before injecting new capital.Government is this year expected to prioritise the restructuring of 10 parastatals as part of the implementation of the economic blueprint, Zimbabwe Agenda for Sustainable Socio-Economic Transformation.
Last year, in his 2015 National Budget presentation, Finance and Economic Development Minister, Cde Patrick Chinamasa, said focus would be given on 10 parastatals as part of the implementation of Zim-Asset. To facilitate this, Cde Chinamasa proposed to avail resources amounting to $2.6 million to the Office of the Auditor-General for coordinating audits of the targeted parastatals in a bid to determine the challenges which the entities are facing for resuscitation.
The parastatals to be restructured include Cold Storage Company, Grain Marketing Board, Agricultural and Rural Development Authority, Air Zimbabwe, National Railways of Zimbabwe, Industrial Development Corporation of Zimbabwe, Tel-One, Civil Aviation Authority of Zimbabwe, Zimbabwe National Water Authority and Zimbabwe Power Company.
Zimbabwe National Chamber of Commerce national president, Mr Hlanganiso Matangaidze, applauded Cde Chinamasa’s move of having audits done at the parastatals.
He, however, said the audit should be comprehensive and transparent to determine the viability of the parastatals.
“Government has no money, so dead wood needs to be cut off. This ultimately means that from the audit we expect thoroughness to determine whether among the parastatals some should be privatised or remain operational as a going concern or even be enlisted as a commercial entity on the stock exchange.
“Adequate research will have to be done in the audit. I for that reason applaud Cde Chinamasa’s proposal to invest money in audits.“We definitely need those parastatals to push national targets, but above all we need their full overhaul,” said Mr Matangaidze. Confederation of Zimbabwe Industries national president, Mr Charles Msipa, concurred and said all the earmarked entities had a crucial role to play in economic development.
“We look at ARDA in agriculture, Tel-One in telecommunications and NRZ in transport. All these have a critical role in driving the economy.
“I agree that an audit will be important to view the financial worth of the entities. Some can be privatised where Government feels the capital boost will be too high.“Privatisation of some parastatals is definitely an option that Government should not run away from in its endeavours to breathe new life in parastatals,” said Mr Msipa.
Africa University business lecturer and economist, Mr Thomas Masese, added that parastatals were beyond doubt needed as vehicles that drive Government projects.
He, however, urged Government to hasten the audit process and get the ball rolling on the revival of the country’s manufacturing sector which is currently on its knees.
“There is need to draft a new policy on administering all of the country’s parastatals where performance contracts will be the main measure for all chief executive officers and management.
“The salaries and benefits of top management should also be made public for transparency in a bid to renew public trust on good governance of the entities,” said Mr Masese.
Online Reporter