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Performance contracts for parastatal CEOs

Gamma Mudarikiri
GOVERNMENT  is planning to offer parastatal and state enterprises chief executive officers performance- based  contracts in a bid  to improve  service delivery, public accountability and  efficiency  at the institutions, a cabinet minister has said.
State Enterprises minister Gorden Moyo said a performance-based contract template has already been distributed to all state enterprises and parastatals through a cabinet circular instructing respective boards to implement the new development this year.

Moyo said performance contracts would lay down the board’s expectations, targets and modalities for the evaluation of the performance of each public entity.

He also said his ministry was also working in conjunction with the department of modernisation and administration in the office of the president and cabinet, on finalising a performance agreement template that line ministries would also use to evaluate boards of respective state enterprises.

“The agreements between boards and respective ministries are intended to provide a broad understanding and commitment between the parties of what is to be achieved annually and during the tenure of office of each board,” Moyo said in a statement.

“A circular to this effect will be dispatched to all state enterprises and parastatals through their respective line ministries in due course.”
The abject performance of most parastatals has largely been blamed on management inefficiencies, poor governance systems and limited funding.

Government in 2009 earmarked 10 parastatals for  privatisation including  Air Zimbabwe, NetOne, TelOne, POSB, GMB, CSC, Agribank, Zesa, NRZ and Ziscosteel to address poor performance of these  debt-ridden institutions.

However, little has been done to restructure state enterprises, which has seen the entities continue to be choked by debts. In his mid-term policy review statement recently, Finance minister Tendai  Biti said the  restructuring  of public enterprises would  continue  to drag  owing  to lack of urgency, commitment and action on the part of respective line ministries.

Biti said the parastatals’ financial position continued to worsen, compromising performance and service delivery.

He said he would approach the respective line ministries with the support of the office of the president and cabinet to address the problem.



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