No takers for parastatal boards, Parly told

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Most members appointed to head parastatal boards have reportedly turned down the offers, citing undercapitalisation of the entities.

State Enterprises Restructuring Agency (Sera) executive director Edgar Nyoni made the revelations yesterday when he appeared before the Parliamentary Portfolio Committee on State Enterprises and Parastatals chaired by Zvishavane-Runde MP Lawrence Mavima.

“Some potential board members have refused to be appointed because of lack of recapitalisation of these parastatals by government,” Nyoni said.

“Names have been identified and forwarded to line ministries, but the people have refused to take on board the appointments because of the challenges facing the parastatals.”

Ministry of State Enterprises and Parastatals permanent secretary Eliah Mutowo said through their corporate governance compliance report, they had informed Cabinet of State enterprises that did not have substantive boards.

Nyoni also told the committee that the government had identified 10 parastatals as potential candidates for restructuring.