HomePoliticsParastatal salaries probe hits brick wall

Ministers clash over policies

A PROBE instituted by the Ministry of State Enterprises and Parastatals to determine how much chief executive officers of parastatals earn has failed to yield any results as the majority of the quasi-government firms are reluctant to provide the ministry with the information.

So far less than 10 companies out of about 85 have subjected themselves to scrutiny by furnishing the ministry with the required information.

Government instituted the probe to rectify anomalies in the salaries of bosses of state-controlled companies.

The investigation was instituted following allegations that some chief executive officers were earning over US$10 000 monthly, when parastatals they are leading are struggling financially.

Gabuza Joel Gabbuza, State Enterprises and Parastatals minister, told the Zimbabwe Independent yesterday that his ministry was not happy with the response from the parastatals.

“The response we have got from the parastatals is not positive as less than 10 parastatals have provided us with the information we need out,” he said. “The probe is meant to rationalise salaries of all the chief executive officers and at the same time rectify anomalies where the top brass is earning unrealistic salaries while their companies are constantly applying for government bail outs.”

He said some of the parastatals had furnished his ministry with false information on salaries.

“We have some instances where some boards are colluding with their chief executive officers to supply false information, but we are in the process of doing our own independent investigations to establish how much people leading parastatals are earning,” Gabbuza said.

Sources in the Ministry of State Enterprises and Parastatals said some parastatal bosses were taking home as much as US$12 000 monthly in salaries and perks.

“Parastatal bosses enjoy many perks; apart from the salaries some have entertainment allowances running into thousands of dollars, they have domestic workers who are paid by the parastatals while their children attend the most expensive private schools in the country,” said one official who preferred not to be named.

The official said some of the parastatal heads have annual paid holidays, unlimited access to company resources, fuel and high retention allowances.

Questioned on the action to be taken on parastatals that have not complied, Gabbuza said a deadline to enforce compliance would be set soon.

He, however, said some parastatal heads were not complying as they have political protection.

Loughty Dube

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