Govt crafts Parastatals Management Act

Business Reporter
THE Government is working on crafting the State Enterprises and Parastatals Management Act that seeks to empower the State Enterprises and Parastatals (SEPs) ministry to effectively carry out its mandate.
Officially launching the Restructuring Procedures Manual in Harare recently, State Enterprises and Parastatals Minister Gorden Moyo said:
“In addition to this Restructuring Procedures Manual initiative, Government would also be required to empower SEPs oversight body which is the Ministry of State Enterprises and Parastatal through a SEP Management Bill so that it can effectively carry out its mandates.
“It is from this background that my ministry is crafting the State Enterprises and Parastatals (SEPs) Management Act that will strengthen the SEPs sector institutional capacity so that SEPs will perform effectively and efficiently.”
A restructuring procedures manual is a working document guiding the implementation of the commercialisation, privatisation and other restructuring strategies of SEPs by Government.
The manual sets out the procedures associated with the public entities reform processes.
Minister Moyo said his ministry was also drafting the State Enterprises and Parastatals Agency (SERA) Bill that would compel transparency and discipline in the public entities restructuring process.
He said the envisaged Acts shall also speed up the restructuring process in order for the economy to enjoy full benefits of restructuring by reducing restructuring-lag losses, among other shortcomings.
“Subsequently, it is my expectation that this Restructuring Procedures Manual will in the interim enlighten all stakeholders about the implementation of the restructuring programme by the Government,” he said.
The manual shall also be used as a restructuring process monitoring tool on whether the processes have been done in line with the procedures as guidelines will be available to all the stakeholders.
The restructuring of public entities is crucial as the firms have the potential to contribute 40 percent to the economy when given adequate support for recapitalisation.
As a result of the adverse economic conditions Zimbabwe suffered over the years, SEPs have been hamstrung by huge debt overhang and dilapidated infrastructure that have prevented them from fulfilling their mandate.