Mugabe reins in loss-making SEP bosses

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GOVERNMENT will introduce performance-based contracts for heads of State enterprises and parastatals (SEP) as it begins a major overhaul of the entities that have posted perennial losses.

BY BERNARD MPOFU AND VICTORIA MTOMBA

Officially opening the First Session of the 8th Parliament of Zimbabwe in the capital Harare yesterday, President Robert Mugabe said the new contracts would ensure more accountability and efficiency of parastatals.

“Heads of all parastatals and local authorities will henceforth be required to sign performance contracts and to adopt results-based management approach in order to engender accountability for results and ensure efficient service delivery,” he said.

Critics say the majority of SEPs were underperforming as heads have no performance-based contracts arguing that their performance depended on the whims of the line minister.

There is no leadership renewal at most parastatals and State-owned enterprises, continue in the old way of doing things.

They have also failed to produce audited financial accounts.

In the last four years, government had earmarked some entities for privatisation and commercialisation, but the programme was moving at a snail’s pace.

Some of the loss-making parastatals that have been earmarked for privatisation included the National Railways of Zimbabwe, Agribank, Zesa Holdings, TelOne and Cold Storage Commission.

Yesterday, Mugabe said his government would take steps to review wages and salaries of civil servants that continued to “discharge duties under difficult working conditions and low remuneration”.

He said the new Parliament was also expected to debate a raft of pro-poor economic measures as well as Bills including the Banking Act and Insurance and Provident Act to tackle economic problems.

He said the new laws would dovetail from the country’s indigenisation and empowerment regulations compelling foreign-owned companies to sell 51% stakes to locals.

Zimbabwe’s economic growth was this year expected to slow down due to underperformance in mining, agriculture and manufacturing.

Capacity utilisation for the sector last year plunged to 44% from 57% in prior month due to a myriad of problems.

“The economy continues to face numerous challenges, high cost of production and high unemployment. The pursuit of economic growth is on government priority list. We will mobilise funding for distressed and closed companies,” he said.

Mugabe said the government would put in place pro-poor initiatives and key sectors were agriculture, mining, tourism and manufacturing.

“As part of this thrust, the Banking Act will be strengthened and new forms of banking will be put in place,” he said.

The country has a $10,7 billion external debt that has largely affected access to long-term capital.

Mugabe said the Public-Private Partnerships Bill and the Sovereign Fund Bill would be debated and put for consideration in Parliament.

He said the mining sector was poised to play a catalytic role in driving the economy despite a downward revision on projected output.

25 COMMENTS

  1. Even if you bring s rocket scientist to man those parastatals, the biggest liability to Zimbabwes economic recovery still is RGM himself.
    Resign
    Retire and
    let go old man.

  2. mareporter emuzimbabwe, pliz pliz critic some of these magabe claims. dont just REOPRT. How can a fool and brainless mugabe rein in loss making SEP today after 30 something yrs? Yu seem to want to help him try o fool some guallible zimboz. Tibverei apa

  3. Start a performance-based system for yourself, then your ministers. It has to start from the top, Comrade President. Lead by example

  4. Never trust a word that Mugabe says unless you are insane . As long as the useless head of a parastatal or state is a committed ZANU cadre he will never fire him . That explains why the deadwood are the proverbial cats with nine lives each .

  5. Go ahead aMugabe woyeeee we are waiting to see. You know you as a talker but not a walker. Kkkkkkk. If not proof us wrong. the whole country is waiting to see you swimming against the tide. The words coming from your mouths are good but we all know that you don’t have the power to implement any of your words.

  6. Thats right yet the nu knights have to find a solution SIR. Perhaps if approved the whole round table can be carried across to the UN for a protest to ban ahh zidera.

  7. Please mR President put your house in order we all know that it starts from the top down, stop corruption implement these policies, talk and walk. We need you to lead and to set things right for all zimbabweans not just the ministers

  8. So which evaluation system were they using in the ‘SEPs’ from 1980 to 2008? wish to use that as my final year research topic.

  9. I believe that Mr Mugabe has what it takes to put us back on the map. Dont let us down father, baba vanochengetedza vana vavo dont forget us only you mR President can make a choice to change things, we are born free yes but why should we suffer for timely differences, we need you to forcus on the future not only for ur kids but for our childrens children, you have the power in ur hands God did not put you there for nothing. Please Mr. President take back Zimbabwe on the map, become the sweet heart you once were, change the lives of zimbabweans
    u can do it if you choose to do so the power is in ur hands, God has given u another chance to make a difference. when u talk like this people actually admire u and are proud of you, talk life not death, win the hearts of zimbabweans by putting ur house in order

  10. Papera makore mangani sekuru woye , inga takamirira zvamakataura , maiti kurima inyore , muchiti mombe munadzo , in the next 2yrz i wil sing again ths Dr Thomas Mapfumo line……

  11. from 1980 to1998 our country was okay. the britons and their mdc thought they would recolonise us again by setting a neocolonial government and derailed all our progressing programmes. Tinochema nemi machinja, maifunga kuti muchandogara britain here? hamungati vamwe vachivaka imi munoteverera muchiputsa. Makalooter kubva muna 1998 kusvika zvino, ndezvipi zvingadzi idevelopment zvamakamboitawoapa,nxaaaaa munotibhowa. ndimi murikunonotsa nyika kubudirira imi muchiri kuda kuramba muchipukuta bhutsu dzevadzvinyiriri nerurimi, hamunyari.

  12. It can only happen in zim where an aircraft engine can diappear or the goverment is asked t insure aircraft at inflated prices without anyone raising a wink.batai vanhu.we ar waiting fo th audit vanwe vachazvisungirira.

  13. its true selina. everything rises and falls on leadership. mugabe is the problem. the fish rots from the head. how i wish the president can honestly look and check himself. its not what he says to the people but what he says to himself when he is alone. maybe he does not have much of that time. check, check check yourself mr president. there is a lot wrong about you. dont let those numbers you see singing praises to you deceive you. or the 2 million who voted for you. your conscience is the best.

  14. Mugabe look at yourself and your wife’s lifestyle she and your children lives a life like no one in Zimbabwe, how much money have you taken from this country??? Mujuru is on record for her part stealing billions with her daughter who lives in Spain, the list is unbelievable you people are just rotten with corruption, the best thing for you to do, is take what you have stolen nd just GO!! Let a true leader come and run this country, you are just the worst leader ever,nothing but a thief.

  15. Maxwell Tongai better u don’t comment on e ppl’s paper cos u show e whole world to ignorance. Its better vanhu vafungidzire kuti hauzive pane kuti vaone nekuziva kuti for sure hautozive. The economic prblms started long back b4 mdc was formed. In fact mdc is a product of economic prblms that started to manifest in e mid 90s. Ask yourself why e zpf gvt introduced ESAP if all was well.

  16. The truth is our leaders have no freaking idea what the nation needs to revive it self. I tell u keep watching. The central intelligent thinks crushing opposition is the only way to indicate their performance, what a shame. Instead of safe guarding the development interests of this country for every being be it zanu or mdc and perform intelligent enquiries on the productivity of the nation they rush more on silly party politics. As much as zanu won the election it is the unfortunate scenario of fear set within unscrupulous businesses allowed to exist by this regime that has contributed to the victory. Look at it this way if 80% of the existing employment is not formal employment and mainly is operated by Zanu loyalties what message do you think the worker listens to all the tym. We may call it election rigging but I personally define it as mind rigging. As much as Tsvangirai was in that government he never influenced a decision beyond what Zanu already wanted to happen. This is why it is easy for SADC to endorse they think MDC was part of the government, however they were just shadow members as good as their shadow cabinet recently announced. Now on what is being regarded as the subject of matter all the appointed ministers are clueless on what first step to take, this is why only Kasukuwere is making noise in press because basically his is the easiest of all which I would like to categorise as the ” Head boy” work kunongesa vana mapepa uku. The same way we saw things changing after independence due to lack of focus and future plans for what was obviously a growing nation is the same way we will see things getting worst with this regime. indications are already there, we have “one ethanol” plant that has made too many interests and already we want the whole supply of petrol blended if the plant fails the whole country is dry and demand is increasing do we really think we can blend every supply 5% welcome back to fuel queues in a short time. And if we still rely on power generation from plants done by Smith without our own since independence, do we really think we can have this regime build one?. Im neither zanu nor mdc but the issue here was not only bhora mughedhi we need real leadership with knowledge of what is required to perform. Otherwise like any poorly managed plant it does not take a day after commissioning for it to collapse it will take time, similarly as it took us from independence to crumble, the same issue is not far from happening if our intelligence fails to focus on the real issues and advice mudhara uyu as is.

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