Chronicle Editor
Zvamaida Murwira Mr Speaker Sir
The tabling of the Public Entities and Corporation Bill in the National Assembly last week is an opportunity being presented to legislators to, as part of their oversight, representative and legislative role, assert their authority in terms of ensuring good corporate governance in parastatals, local authorities and other state entities.
The Bill seeks to provide for the governance of public entities in compliance with the Constitution as well as provide a uniform mechanism for regulating conditions of service of members of public entities and their senior employees. Mr Speaker Sir, one of the major issues that Zimbabwe has been grappling with and that has been cited as an impediment to achieving economic turnaround and fulfilment of Government’s economic blueprint, Zim-Asset and the 10-Point Plan, are the outrageous salaries that heads of parastatals, state entities and some local authorities are earning.
It is ironic, Mr Speaker Sir, that while these heads of state entities were the highest earners, in some cases, drawing salaries and perks that surpassed those in the private sector, there was no corresponding service to warrant the mega salaries. There is a lot of rot in local authorities with poor service delivery the order of the day yet heads of these institutions continue to draw obscene salaries and perks. In fact, Mr Speaker Sir, there is nothing to show in terms of service delivery for the high salaries they earn in these institutions, which are technically insolvent. Therefore, the coming of the Public Entities and Corporation Bill must be viewed, Mr Speaker Sir, as a relief as it is a legal instrument to curb abuse of public resources.
Mr Speaker Sir, it is high time that policy makers pay salaries that are commensurate with service delivery. It is also time to enforce Government policy to have at least 70 percent of revenue going towards service delivery, unlike the prevailing situation where heads of State entities spend most of their time attending workshops so as to draw per diems and fuel allowances. Finance and Economic Development Minister Patrick Chinamasa tabled the Bill last week in the National Assembly, before you, as presiding officer, referred it to the Parliamentary Legal Committee in terms of Parliamentary procedures and the Constitution.
The good intention of the Bill need not be spoilt by dragging heels in bringing it for debate so that it could be promulgated at the earliest possible time. On Tuesday, Mr Speaker Sir, Chiefs Council President Fortune Charumbira weighed in during Senate debate when he commended Government for drafting the Bill.
“We are happy with the Public Entities and Corporation Bill. For a long time we have been moaning about corporate governance in parastatals, corruption during tendering processes. This is an opportunity to put things right with the coming of this Bill,” said Chief Charumbira.
He was making a contribution on the President’ speech that the Head of State and Government and Commander in Chief of the Zimbabwe Defence Forces delivered when he officially opened the Fifth Session of the Eighth Parliament a fortnight ago. A perusal of the Bill, Mr Speaker Sir, will no doubt indicate that it was well thought out legislation. The role and obligation of legislators, Mr Speaker Sir, is primarily in two parts. The first one is to ensure the expeditious passage of the Bill and the second one to play an oversight role so that the objectives of the Bill are realised to the latter. This entails bringing relevant entities to account.
The features, Mr Speaker Sir, in the Bill which we find encouraging and refreshing include the establishment of a Corporate Governance Unit in the Office of the President and Cabinet. While the line Minister retains his overall supervisory role, the unit will play a centralised advisory, oversight and support system role for line Ministries with regard to the enforcement of the proposed law. Mr Speaker Sir, it is equally refreshing that the Bill seeks to introduce consistency in the conditions of service for members of boards of public entities.
“In particular, it will require members to enter into performance contracts with the Government and will allow their salaries and allowances to be limited. Similarly, it will regulate the conditions of service of chief executive officers and other senior staff members of public entities and will allow their remuneration to be limited,” read the Bill.
Legislators might also regard as food for thought a provision in the Bill which excludes interrogation of private companies as it is restricted to playing oversight only over public bodies.
In terms of the Bill, only public entities are subject to scrutiny. Mr Speaker Sir, what the legislators might need to do is to satisfy themselves if there are adequate legal instruments and safety nets to achieve good corporate governance in privately owned entities given that in the past, the tendency by shareholders was to hide under the corporate veil to conceal their transgressions.
This has seen shareholders trying to escape criminal prosecution arguing that they were not personally liable for acts of commission or omission that affected the smooth operations of their firms. The relevant clause reads as follows: “The Bill will apply only to public entities, not to organisations in the private sector. The management of private companies, which are usually small organisations, is the concern of their shareholders. Public companies, which are listed on exchanges such as the Zimbabwe Stock Exchange, are governed by exchange listing rules and by codes of corporate governance laid down by the Securities and Exchange Commission of Zimbabwe.”
After everything has been said and done, Mr Speaker Sir, the ball remains in the court of legislators to ensure good corporate governance across all sectors for the benefit of ordinary citizens.
Online Reporter
dyton mupawaenda