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NewsDay

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‘We have failed to run parastatals’

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State Enterprises and Parastatals minister Gorden Moyo yesterday admitted that government had failed to run parastatals and urged Chinese investors to dilute its shareholding. The country has about 78 parastatals, the majority of which are performing badly due to a myriad of problems. Speaking at the ongoing Zimbabwe-China Fair matchmaking symposium in Harare, Moyo said […]

State Enterprises and Parastatals minister Gorden Moyo yesterday admitted that government had failed to run parastatals and urged Chinese investors to dilute its shareholding.

The country has about 78 parastatals, the majority of which are performing badly due to a myriad of problems.

Speaking at the ongoing Zimbabwe-China Fair matchmaking symposium in Harare, Moyo said the parastatals were in such a critical state that government had agreed to restructure the institutions.

“If investors are worried about indigenisation, the ministry is ready to give up more than 50% as the government has agreed to dilute its 100% shareholding in State enterprises,” Moyo said.

“We are aware of the disadvantages and we are alive to the dangers of restructuring the State parastatals. Surely Zimbabwe cannot run it alone, we have failed.”

He said the government, which owns 100% of the parastatals was ready to be diluted by investors as has happened with Ziscosteel.

Moyo said the government was also working towards reforms with regards to a corporate governance framework to ensure the parastatals were viable.

“We have dealt with the issue of people who just do what they want when they want,” he said. “We are saying to CEOs and board members it’s time to work.”

The government has already identified the National Railways of Zimbabwe (NRZ), Civil Aviation Authority of Zimbabwe, Air Zimbabwe, Zesa Holdings, Zimbabwe Power Company, Zimbabwe Electricity Transmission and Distribution Company, TelOne, NetOne and Zimbabwe National Water Authority for possible privatisation or commercialisation.

As of June 2010, AirZim recorded a $14, 6 million loss, Noczim $11,9 million, Grain Marketing Board $4,5 million, NRZ $9,6 million, Cold Storage Company $3 million and Agribank $2,8 million.

The government recently finalised the Corporate Governance manual for public enterprises that seeks to guide the operations of parastatals going forward.