adminState Enterprises and Parastatals Permanent Secretary Mr Eliah Mutowo told a Parliamentary Portfolio Committee that the government was still formulating guidelines for remuneration packages for State-owned companies.
Many parastatals, the majority of which are struggling financially, were widely criticised after it emerged that some chief executive officers were earning as much as $20 000 when the majority Zimbabweans earn less than $500 per month.
Mr Mutowo told the Parliamentary Portfolio Committee on State Enterprises and Parastatals that the entities had been asked to review their remuneration packages.
“The highest salary that we have seen is about $12 000 gross which includes allowances. The average salary is about $5 000,” he said.
He said the highest salaries in the parastatals sector were for executives running commercial enterprises while the Public Service Commission pegged for those who ran social service institutions.
Mr Mutowo said the government would soon introduce performance contracts for both boards of directors and chief executives of parastatals to ensure that they improved the fortunes of the institutions that they managed.
“We want to see reduced fiscus support for the State enterprises particularly commercial enterprises,” he said.
He said the measures would be contained in the State Enterprises Bill which would be presented before Parliament soon.
Reserve Bank governor Dr Gideon Gono once described parastatals as an “albatross around the economy’s neck”.
Most parastatals, which are critical service providers, continue to rely on financial support from central government as they fail to make profit.
These include power utility Zesa Holdings, national airline Air Zimbabwe and meat processor Cold Storage Company.
Meanwhile, Mr Mutowo said the government was pushing for State enterprises to hold annual general meetings and publishing audited financial statements as a way of improving corporate governance.
The veil of secrecy which has covered operations of most State enterprises has fuelled mismanagement and corruption which have impacted on their performance. — New Ziana
Online Reporter