admin
Chief executive officers of parastatals and State-owned enterprises and their senior managers are still paying themselves salaries and benefits way above what has been pegged by the government.
The government last year prescribed salaries and allowances of $6,000 and below a month for all chief executives of parastatals, State enterprises and councils but according to the Auditor General, Mildred Chiri, nothing has changed as CEOs and their senior managers continue to pay themselves hefty salaries which are way above those prescribed by the government.
Chiri said State enterprises and parastatals continue to pay unauthorised board fees and management salaries as well as allowances. In March last year, the Chief Secretary to the President and Cabinet Misheck Sibanda wrote to all ministries directing them to implement the corporate governance and remuneration policy framework for CEOs of State enterprises and parastatals as well as CEOs of local authorities as directed by Cabinet.
The parastatals, State enterprises and councils were supposed to pay the new salaries starting in April last year but up to now the CEOs and their senior managers are still paying themselves hefty salaries. The government came up with an interim remuneration package pending finalisation of work on permanent remuneration structures but what is obtaining on the ground is that the government directive on salaries and allowances was completely ignored.
The government hoped to save at least more than $1,2 million monthly from reduced salaries of CEOs that were earning more than $6,000 a month and the saving was enough to pay at least 3,000 civil servants. What is clear is that the CEOs who were directed to reduce salaries have refused to accept the obtaining reality that the prevailing economy cannot sustain the “obscene” salaries they are paying themselves.
What is worsening the situation is that the same State enterprises and parastatals that are paying CEOs hefty salaries are flouting procurement procedures resulting in them losing millions of dollars, according to Chiri. Surprisingly, after the CEOs ignored the government directive, no action was taken against them.
Cabinet last year resolved to implement an interim remuneration package because it wanted to immediately address an anomaly which continues to impact negatively on the operations of State enterprises and parastatals.
It is time the government puts a stop to this looting at parastatals and State enterprises by CEOs and management boards before it is too late. The CEOs that are refusing to accept a pay cut should just be shown the exit because they are sabotaging the economy by clinging onto unrealistic salaries.
Those that have continued to pay themselves salaries above those prescribed by the government should infact be made to pay back the difference with effect from April 2014.
We want to once again implore the government to always ensure its directives are implemented in order to restore public confidence in the leadership.
Online Reporter