Govt to fast-track Public Sector Corporate Governance Bill

The Government has resolved to fast-track the Public Sector Corporate Governance Bill, which will guide the service conditions and remuneration of heads of parastatals, State enterprises and local authorities who have been resisting moves to rationalise employment terms and to cap monthly salaries at US$6 000.
Last week, Cabinet approved the principles of the Bill, which, among other issues, seeks to facilitate the prosecution of top executives who do not abide by the law.

The Bill also seeks to regulate the appointment, performance appraisal and remuneration of heads of public entities as provided for under the Zimbabwe Corporate Governance and Remuneration Policy Framework (Zimcode).

Justice, Legal and Parliamentary Affairs Deputy Minister Fortune Chasi said the Bill would be tabled when Parliament resumes sitting next week.

Mr Chasi said the Bill was on Government’s top priority list.
“We are hopeful the Bill will be presented in the current session of Parliament. We hope Members of Parliament will consider it appropriately before it is passed into law.

“The work is already under way following the Cabinet decision. The Bill will be on the high priority list and we do not expect any hassles. Although I am unable to give a specific time frame, I am sure everything will be done in quick time so that Parliamentarians will have the opportunity to consider it before it becomes law.”

Last week, Finance and Economic Development Minister Patrick Chinamasa presented the principles of the Bill to Cabinet in line with plans to transform Zimcode into an Act.

According to the draft principles, boards should be selected on merit under a clearly defined capability matrix and skills mix. Among the key areas of expertise are law, finance, marketing, auditing, technical, human resources as well as strategic and economic planning.

The boards will also be selected based on a 50:50 gender representation and regional spread. In addition, a Corporate Governance and Delivery Agency is expected to be established within the Office of President and Cabinet to co-ordinate and monitor compliance with Zimcode.

Board members will be required to declare their assets and sign a code of conduct upon appointment and to declare their interests before the start of discussions on any agenda item in which they have an interest.

No Permanent Secretary shall be a member of a Public Enterprise Board.