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Lloyd Gumbo recently in Victoria Falls—
GOVERNMENT will get rid of or institute radical reforms in parastatals and State enterprises that continue to be a drain on the fiscus, Finance and Economic Development Minister Patrick Chinamasa has said. He made the remarks in an address to Members of Parliament who attended a pre-Budget seminar for MPs in Victoria Falls last this week.
The seminar ran under the theme, “Growing the national cake for national socio-economic development”. Legislators across the political divide hailed Minister Chinamasa for his stance in dealing with State enterprises and parastatals that have become a drain on the fiscus.
“This is our headache and it is an area we have not been addressing as attentively as we should have because we have many other things equally pressing,” said Minister Chinamasa. “They (parastatals) used to contribute 40 percent to GDP. Right now, every day, we are being called upon as Treasury to support them. We need to get our act right in terms of State enterprises reform,” he said.
“It is in this area that we are going to need the support of all of you. We need to revamp our State enterprises and to do it in a very bold and sometimes ruthless manner.
“We should not hesitate to put under those parastatals we think are no good to us. That is where we have been lacking some degree of boldness. Tirikunyarana, we should be able to say, ‘you are not performing, please get away, we are closing shop, enda kumba kwenyu’”.
Minister Chinamasa said a similar approach would be adopted to local authorities that failed to adhere to the 30 percent ceiling of revenue going towards sal- aries.
He hailed Local Government, Public Works and National Housing Minister Saviour Kasukuwere for insisting on this position.
Minister Chinamasa said as part of State parastatals and enterprises reform, these institutions would be required to hold annual general meetings from next year, where non-performing boards or management could be sacked through a resolution. He said the meetings would be attended by line ministries and Treasury.
“It is the platform where we can dismiss boards of directors through a resolution. We can also use that platform, if there is no performance by management, we pass a resolution to dismiss them.
“Once they know we can dismiss them, they will certainly be on the ball and that is what I think we need all of us,” he said. Transport and Infrastructural Development Minister Dr Jorum Gumbo told the legislators that his ministry was in discussions with various airlines to find one that can partner Air Zimbabwe.
He said as part of enhancing revenue flows into the country, they signed a Bilateral Air Services Agreement with Qatar Airways to allow the airline to fly into Zimbabwe. “The implication of the above is that we need to continue to improve our services to guarantee total safety of our skies and improve the quality of service offered to airlines operating through our airports,” he said.
National Assembly Speaker Advocate Jacob Mudenda said it was important for State parastatals and enterprises to have clean balance sheets if they were to attract private investors to partner them. “We cannot get a partner with Air Zimbabwe as long as Government does not disinvest in terms of shareholding,” he said.
“You cannot keep 100 percent shareholding as Government when you have nothing else to offer. Ethiopian Airlines and Kenyan Airways, just to mention two, are at 35 percent shareholding and in that way they have attracted code-sharing with very prominent airlines,” said Adv Mudenda.
He said it was also important for Harare to recapture the market as S)a regional hub for refuelling. MDC-T MP for Southerton Mr Gift Chimanikire and Zanu-PF legislator for Gutu South Cde Paul Chimedza said there was serious need to reform parastatals.
Mr Chimanikire said Government must privatise some parastatals and State enterprises as a way of attracting investors. Cde Chimedza said: “We have seen perennial non-performers in some parastatals. We really need to look ourselves in the eye and ask ourselves, do we need to have these parastatals draining money from the fiscus year in and year out?
“We need to be bold about it and dispose of most of these so that we move with a lean and mean Government and make the cake grow for others.
“These are the money drainers and we continue to retain them. I propose that we dispose of most of them and save our money from that.” The seminar ended on Monday evening with Minister Chinamasa pledging to consider the recommendations by the MPs.
Online Reporter