State throws back loss making firms

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BULAWAYO—The government has thrown back the privatisation of loss-making parastatals to parent ministries presiding over the running of the parastatals’ affairs.
Industry and Commerce minister, Welshman Ncube, told NewsDay yesterday that cabinet had resolved ministries should come up with privatisation plans.
He also said the ministries are expected to draw up proposed structures to assist in turning around fortunes of parastatals that fall under them.
According to Ncube, 18 companies will be commercialised, 15 shed off government funding and management while 38 would be restructured.
“Cabinet tasked the cabinet committee on parastatals to come up with a categorisation programme for parastatals,” Ncube said.
“After that committee tabled its report to cabinet, it was agreed each ministry would now have to deal with its own parastatals,” said Ncube.
He added: “This means that a ministry can now draw up a plan for privatising its own parastatals and the table these plans with cabinet for approval.”
Ncube said cabinet was trying to avoid pushing parastatals into drawing up plans that were not sustainable.
“We need the ministries to come up with realistic and sustainable plans that will take these parastatals forward,” he said.
He said it would not make sense for ministries to draw up privatisation plans while excluding the authorities that have been at the helm of the parastatals.
“Everyone has to be involved in the recovery process of these parastatals. It is clear there are some people that cannot be avoided in this whole exercise. Ministries and parastatal heads will have to sit together and come up with sustainable plans before they come to cabinet,” said Ncube.