CHIEF secretary to the President and Cabinet Misheck Sibanda yesterday said State enterprises are next month expected to start submitting proposals on how they intend to implement the Zimbabwe Agenda for Sustainable Socio Economic Transformation (Zimasset) programmes.
VICTORIA MTOMBA BUSINESS REPORTER
Speaking at the official opening of a taxation workshop attended by heads of parastatals, State enterprises and local authorities in Harare, Sibanda said heads of ministries had been told to inform chief executive officers to submit the turnaround strategies that they would implement in the development of the economic recovery blueprint.
“Cabinet has already resolved to look at all State enterprises and parastatals on a case-by-case basis to ensure that the entities are reformed and refocused in order to contribute significantly to the country’s Gross Domestic Product.”
“It is in this context that I have called on heads of State enterprises and parastatals through your parent ministries to submit for Cabinet’s consideration the proposed turnaround strategies for your respective organisations,” Sibanda said.
“A few of you have responded positively to this request. I therefore call upon those that are still to respond to do so as a matter of urgency,” Sibanda said.
Sibanda called upon heads of State enterprises and parastatals to adopt a paradigm shift in the way they discharge their duties to ensure the turnaround programme was a success.
Sibanda said the workshop was necessitated by investigations made by the Zimbabwe Revenue Authority that showed that a number of State enterprises, parastatals and local authorities had irregularities in the areas of income tax, Pay As You Earn and withholding tax.
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He said Cabinet has approved the Corporate Governance and Remuneration Policy Framework for designated posts in State enterprises, parastatals and local authorities and this would stipulate that the total pay packages should comprise basic salary of 60% and benefits of 40%.
Sibanda said the benefits should be determined by the relevant boards with the concurrence with the line ministers.
The framework also stipulats that all heads of public institutions be put on performance contracts and that the payment of bonuses be performance-based.
Sibanda added that chief executive officers and heads of local authorities would be appointed for a four-year term that would be renewable once on the basis of satisfactory performance.
Government was made to adopt the corporate governance framework when it realised that State-owned enterprises had been spending $600 million in salaries and allowances since 2009.
