TREASURY continues to inject funds into ailing parastatals to keep them afloat despite the slow restructuring processes meant to turn around their fortunes, it has emerged.
Business Reporter
According to the Accountant-General Department’s consolidated statement of financial position for the month ending October 31, 2012, the National Railways of Zimbabwe and the Zimbabwe Electricity Supply Authority (Zesa)were recent beneficiaries of government funds.
During the period under review, Treasury extended a $1 million loan to NRZ. The power utility, Zesa got an injection of $3,1 million. Air Zimbabwe received $42 000.
The development comes at a time 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.
According to a 2012 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.
NRZ has of late been struggling to pay salaries to its 7 000 employees.
The railway company requires close to $400 million to upgrade its infrastructure.
- Chamisa under fire over US$120K donation
- Mavhunga puts DeMbare into Chibuku quarterfinals
- Pension funds bet on Cabora Bassa oilfields
- Councils defy govt fire tender directive
Keep Reading
The government is also considering setting up a railway regulatory authority to formulate, monitor and evaluate the railways industry and restructure the struggling railway company.
Moyo said SEPs boards should always be properly constituted, timeously appointed and the selection process based on competency, reliability, appropriate knowledge and experience.
The ministry is in the process of setting up a State Enterprises Advisory Council which will act as a think-tank. It will advise on State enterprises management and reforms. It will be composed of CEOs and board chairpersons of identified SEPs.
On other developments, the government also made a payment of $2,2 million meant to cover debt and interest to the Africa-Export-Import Bank.
The statement of accounts also show that during the month under review, the government collected $11,5 million in mining royalties as compared to the projected $10,5 million.
