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Golden Sibanda Business Reporter—
CABINET has ordered an audit of the remuneration systems of all parastatals, State enterprises and local authorities. Delivering his address as the reviewing officer at a passout parade at Morris Police Training Depot in Harare yesterday, Finance and Economic Development Minister Patrick Chinamasa said the Comptroller and Auditor-General would oversee the audit.
“Cabinet, through its Cabinet Committee on State Enterprises and Parastatals, has taken huge steps to root out corruption in State enterprises, parastatals and local authorities.
“Cabinet has taken a decision directing that a remuneration audit be undertaken, under the auspices of the Comptroller and Auditor-General into each and every State enterprise, parastatal and local authority,” Minister Chinamasa said.
The audit of remuneration in the targeted institutions will cover February 2009 to February 2014.
Normally, when an audit identifies acts bordering on – or of outright – criminality, the evidence can be used for purposes of criminal prosecution.
The audit will, among other objectives, examine and report on the approval procedures in awarding the packages, validate information on remuneration by Cabinet on perks for chief executives of public entities, examine and report the criteria for benefits, and report on board fees for parastatals, State enterprises and local authorities.
This comes as the media continue to expose “obscene” salaries and benefits given to CEOs and other top executives at State-linked firms while the economy declines, the companies in question struggle and service delivery levels remain low.
The companies paid huge packages but mostly relied on Government bail-outs and were saddled with huge debts.
Such entities include Zimbabwe Broadcasting Corporation where the suspended CEO earned over US$40 000 monthly; Premier Service Medical Aid Society, which paid its former boss more than US$6.4 million annually; and Powertel, where a consultant received a minimum of US$40 000 per month.
Preliminary investigations have already indicated that the salaries and benefits awarded to bosses at State-linked entities were corruptly determined.
In order to stop the haemorrhaging of State enterprises, parastatals and local authorities, Government has capped total packages at US$6 000 per month until a results and performance-based remuneration framework is in place.
Minister Chinamasa has pointed out that ordinarily, State enterprises, parastatals and local authorities could contribute about 40 percent of the gross domestic product.
Online Reporter