Chronicle Editor
Leonard Ncube, Victoria Falls Reporter
PARASTATALS should adhere to good corporate governance and comply with the law to be able to execute their mandates to contribute to national socio-economic development.
There are 107 State entities in the country and concern has been raised about their performance as they contribute less than 10 percent to the Gross Domestic Product, from about 40 percent in the 1980s to the early 1990s.
Corruption, nepotism on appointment of management, uncontrolled serving periods and remuneration for chief executives and board chairs, staff getting loans clandestinely, board holding too many meetings for the sake of getting sitting allowances, failing to hold annual general meetings and submitting audited financial reports are some of the issues causing poor performance of parastatals, according to authorities.
This came out during the first two days of a corporate governance training workshop for public entities and professional associations being held by the Ministry of Health and Child Care in Victoria Falls, for public entities within its ambit.
The workshop was aimed at enhancing relationships among the ministry’s parastatals, deliberate on conditions of service, strategise on national health issues, promote ethical conduct, strengthen the institutions, improve understanding of national health strategy and promote cooperation.
The Health Service Board, National Aids Council, National Pharmaceutical Company of Zimbabwe, Medical Research Council of Zimbabwe, Health Professions Authority of Zimbabwe, Traditional Medical Practitioners Council of Zimbabwe, Medicines Control Authority of Zimbabwe and Zimbabwe National Family Planning Council as well as professional councils in the ministry are attending the workshop which ends on Friday.
The Ministry of Health invited the Corporate Governance Unit (CGU) in the Office of the President and Cabinet, Public Service Commission, Procurement Regulatory Authority of Zimbabwe, Zimbabwe Anti-Corruption Commission, and Auditor General Office to facilitate at the training workshop and remind the parastatals of their mandates.
State entities generally play a pivotal role in growth and economic development and social transformation towards Vision 2030.
Vice-President General (Retired) Dr Constantino Chiwenga who officially opened the workshop on Monday said the Government under President Mnangagwa is seized with a robust socio-economic reform agenda to make the country a prosperous and empowered upper middle income society by 2030, and corporate governance is key.
“The State enterprises and parastatals have a pivotal role in this grand strategic thrust and they need to anchor their operational effectiveness and efficiency on the fundamentals of good corporate governance as well as shunning corruption in all its forms.
“To this end, full implementation of corporate governance frameworks must be prioritised. I challenge you all to be transformative and responsive to drive your organisations towards achievement of the Ministry’s strategic direction of improving a high quality of life for all Zimbabweans,” said Dr Chiwenga.
Chief Director in the Office of the President and Cabinet Mrs Anna Tinarwo challenged parastatals to comply with the Public Entities Corporate Governance Act which oversees and promotes compliance to good conduct by all public entities.
She said this will improve and stabilise the economy.
“State entities have a role to play in development of the economy but are contributing about six percent to GDP. Many have forgotten their mandate and a lot of mischief happens along the way. We need to bring our entities back to their former glory days where they would contribute about 40 percent to GDP,” said Mrs Tinarwo.
“We need to play our part so as to feed into the national vision. This is the reason why we have performance contracts. We should be guided by the Constitution, Corporate Governance Act, and international statues for accountability, transparency and disclosure.”
CGU deputy director Mrs Susan Sakala implored public officers to familiarise themselves with the Public Entities and Corporate Governance Act, its provisions and penalties to remain relevant and play their role.
Permanent Secretary for State Enterprises Reform, Corporate Governance and Procurement, Mr Willard Manungo said Government is concerned about contribution of State entities.
“A number of them are critical enablers to realising economic growth and provisions of the Corporate Governance Act that enhanced transparency and accountability are key to be followed,” he said.
— @ncubeleon
Online Reporter