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IN the wake of the salarygate scandal and continued poor performance by parastatals, the ongoing appointment of new boards has again brought attention to these critical entities.The ailing and loss-making state-owned entities have over the years performed dismally as a result of corruption, poor corporate governance and huge executive salaries that do not correspond with their output.
Parastatal bosses, despite their non-delivery, still found it necessary to award themselves high salaries — some over $200,000 — an amount most people will never earn in an entire working life.
Each time parastatals have found themselves in trouble, they have turned to government for a bailout, further bleeding the treasury.
It can no longer be business as usual. This way of operating must come to an end if we entertain any hopes of turning around the fortunes of the country.
President Mugabe has been at the forefront of condemning the huge salary perks of parastatal bosses at the expense of hardworking shop floor workers and service delivery to the masses.
Following the resounding victory by Zanu-PF in the July 31 polls, ministers have been appointing new boards to head the parastatals with a view to chart a fresh path in light of an expectant nation.
Energy and Power Development Minister Dzikamai Mavhaire on Thursday announced 10 boards of directors for parastatals under his ministry, urging them to improve the energy and power situation in the country.
Mavhaire, who in February this year dismissed the former boards over non-performance, appointed boards for Zesa Holdings, Zimbabwe Power Company (ZPC), Zimbabwe Electricity Distribution and Transmission Company (ZETDC) and Kariba Hydro Power Company (KHPC).
He also appointed boards to Zesa Enterprises, National Oil Infrastructure Company of Zimbabwe, Powertel, Zimbabwe Energy Regulatory Authority, Petrotrade and the Rural Electrification Agency.
Mavhaire appointed former Finance Minister and Senator for Goromonzi, Dr Herbert Murerwa, to chair the Zesa Holdings board.
Murerwa will be deputised by former Zesa chief executive Engineer Ben Rafemoyo.
ZPC will be chaired by Stanley Kazhanje who is deputised by former Science and Technology Deputy Minister, Patrick Zhuwao.
Engineer James Chiuta chairs the KHPC board with Dr Cleopatra Shingirai as his deputy.
The ZETDC board is led by Dr John Mvundura, deputised by former Reserve Bank deputy governor Nicholas Ncube.
The Powertel board will be chaired by Tsitsi Makova, deputised by Archibald Ndoro.
Earlier in the week, Transport and Infrastructure Development Minister Obert Mpofu appointed CMED and NRZ boards to be chaired by Goodwills Masimirembwa and Alvord Mabena respectively.
Parastatals in their nature provide diverse services to both public and corporate institutions thereby laying a platform upon which other economic activities can ride and grow.
The new boards have a Herculean task before them to deal with issues of corruption, lack of customer confidence and attracting investors.
It is critical that those that have been appointed to head these critical institutions provide direction for the various organisations given that a board has a strategic function in providing the vision, mission and goals of the institution.
In addition, the boards have a duty to put in place proper governance systems, protect the organisation’s assets and investment.
It is our hope that those that have been re-appointed to the boards have been retained for their track record and nothing else.
Annual General Meetings (AGMs) are critical in keeping company performance under scrutiny and in defining strategic issues covering, among others, further development of the business. The AGMs create an opportunity for shareholders to interrogate the performance of the entity and approve new projects.
What is required going forward is to have the right skills mix, professionalism, the introduction of public accountability and self- monitoring mechanisms in these institutions.
The public expects no excuses from those that have been tasked with leading a turnaround as they have been deemed to be the best brains to tackle the task ahead.
The new people that have been appointed to the boards must prove why they have been appointed.
Failure is by no means an option.
We implore the appointing authorities to keep a close eye and wield the axe on non-performers.
Online Reporter