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Peter Matambanadzo Harare Bureau
Parastatal and local authority bosses implicated in the salarygate scandal cannot be arrested because their salaries were approved by boards, Home Affairs Deputy Minister Ziyambi Ziyambi has said. In an interview yesterday, deputy Minister Ziyambi said those implicated in the salarygate scandal have employment contracts outlining their benefits.
“They have contracts so if the boards approved the salaries then it does not translate to be a criminal offence. It is purely a labour issue whereby you go and negotiate,” deputy Minister Ziyambi said.
He said the boards that approved the mega salaries would be liable as they were entrusted to protect the interests of shareholders. “The boards can be liable to stakeholders, shareholders or owners of the companies to show cause why they breached their fiduciary duty to hold the company’s good faith and do things that do not jeopardise stakeholders interests because if somebody gives someone a salary to do a job, which is not commensurate with what is coming out, that person is liable,” he said.
Deputy Minister Ziyambi said shareholders could pursue the cases by either firing the executives and senior managers or requesting them to compensate for the loss.
Executives in State linked firms cost government $600 million in salaries and allowances since 2009.
Last year alone 3,000 individuals sitting on company boards of 78 parastatals pocketed $133 million.
Online Reporter