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REVELATIONS of the virtual collapse of good corporate governance in some key State institutions and the subsequent unearthing of obscene salaries and perks some executives of these organisations paid themselves calls for a holistic approach to revamping these companies in the face of efforts to grow the economy.
It is immoral and borders on the criminal that some top managers awarded themselves humongous salaries and benefits some of which are jaw-dropping on a massive scale at a time when the country’s economy was gasping for air and struggling to recover from years of debilitating sanctions. We also find it shocking that these executives covered their tracks by seemingly conniving with their principals in government by developing a corrupt relationship to the extent that senior officials turned a blind eye to their orgy of plunder which has left some parastatals on their knees.
Zimbabweans are still reeling from the shock of discovering that top management at institutions like the Public Service Medical Aid Society earned upward of $500,000 per month while their counterparts at the Zimbabwe Broadcasting Corporation pocketed almost $40,000 monthly in salaries and allowances. Air Zimbabwe has also been rocked by allegations of impropriety with a massive insurance fraud involving millions of dollars under probe. A financial audit company, BCA Forensic Audit Services, hired by new management at Air Zimbabwe, uncovered an insurance scam that netted about $10 million for senior staff.
Yesterday, we published in these pages, a report which alleged that Marange Resources Diamond Company lost millions of dollars as management raised inflated procurement receipts and pocketed the difference. An audit carried out on the wholly State-owned company revealed that the firm bought heavy duty equipment which cost millions of dollars but management would generate receipts inflating the figures to alarming levels.
Mines and Mining Development Minister Walter Chidhakwa last month ordered a probe into the firm’s operations following allegations of malpractices, poor corporate governance and non-compliance with laid down procedures. The audit was expected to focus on diamond sales, production, technical and operational management. Top management at the firm was sent on leave to necessitate investigations.
It appears the rot in State institutions is deep-rooted and has been going on for years, bleeding the economy and depriving Zimbabweans of basic services. While corporate governance is virtually non-existent in some institutions, it is the revelation that executives embarked on this orgy of looting with the tacit approval of their board of directors and senior government officials higher up that is staggering. It seems there was a well-calculated scheme to fleece these companies dry and government must not rest until it gets to the bottom of the issue.
We are glad that government has come out clearly and declared that it would not allow any cover-ups or attempts to downplay the abuse of public funds.
In a statement released at the weekend, the Minister of Media, Information and Broadcasting Services, Professor Jonathan Moyo, said institutions fingered in “salarygate” were not only blighted by corruption, but were also riddled with murky procurement and pricing procedures and a scourge of “quadruple corruption” had to be confronted head-on.
“In other words, we have obscene salaries, crooked allowances, fraudulent procurement procedures and distorted prices. This syndrome of quadruple corruption, which has become the ugly face of dollarisation, must be dealt with in a comprehensive manner in accordance with the due process of the law.
“It cannot be swept under the carpet without systematic resolution because it has very dire consequences on the national economy, particularly on the welfare and wellbeing of ordinary people whose livelihoods are facing grave risks because parastatals and local authorities are required in terms of the law to provide frontline goods and services to the ordinary people.
As Zimbabweans, we have a duty to resist the quadruple corruption of obscene salaries, crooked allowances, fraudulent procurement procedures and distorted prices not only because we owe it to ourselves but also others, especially our continental brothers and sisters as well as others in the progressive world who have been inspired by President Mugabe’s iconic leadership on matters of principle. These brothers and sisters expect us to lead by example,” said Minister Moyo.
We totally agree with Prof Moyo and urge government to remain resolute in its fight against corruption at all levels and in all its facets. Government needs to rid itself of this evil vice if it is to give the economy a fighting chance of recovering and there should be no sacred cows.
Online Reporter