MORE than half of State-owned enterprises (SEPs) have failed to submit corporate governance compliance reports, a move described as going against efforts to turn around operations of the ailing entities. Report by Mernat Mafirakurewa
The State Enterprises and Parastatals ministry prepares two corporate governance compliance reports annually and this is dependent on the submission of reports by SEPs.
According to a progress report on State enterprises and parastatals (SEPs) reform programme compiled by State Enterprises minister Gorden Moyo, the response rate was down to 39,5% from 65% the prior year.
“It should be noted that out of the 76 SEPs, only 30 submitted compliance reports for the first half of 2012.
“The reporting guidelines clearly highlight that reports should be submitted not later than 30 days after the closing date,” said Moyo in his report.
“This 39,5% response rate for the half year period (January to June 2012) is a step down from the 65,8% for the preceding period ( July to December 2011).
“This is unwelcome and militates against government efforts to see SEPs turn around their fortunes through efficient and effective governance and reporting systems in line with the principles of transparency and accountability”.
Moyo said it could give a positive business picture if SEPs could mainstream accountability and transparency into their business and operational strategies.
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“This can best be done when they make it a point to submit their biannual corporate governance reports to the State Enterprises and Parastatals ministry.”
He said SEPs boards should always be properly constituted, timeously appointed, and the selection process based on competency, reliability, appropriate knowledge and experience.
Moyo said it was pleasing to note that some line ministries had appointed boards for SEPs under their portfolio, including TelOne, National Railways of Zimbabwe and Zimbabwe Power Company.
“At the same time, it is still of concern that some SEPs are operating without properly constituted boards such as Potraz, Zimpost, Traffic Safety Council of Zimbabwe and Zimbabwe Family Planning Council,” reads part of the report.
According to the report, the Grain Marketing Board held its first annual general meeting (AGM) in 81 years.
Moyo added that AGMs constituted an important legal platform for the renewal, confirmation, regulation and/or authorisation by shareholder/s of a cocktail of governance arrangements as well as future programmes of the entity.
“Failure to hold AGMs denies government, as shareholder, the opportunity to exercise its ownership functions as provided for under the Companies Act,” he said.
