HomeBusiness DigestQuasi-govt reforms gather pace-Acting finmin

Quasi-govt reforms gather pace-Acting finmin

GOVERNMENT has begun to gather baseline data as a step towards reforming the distressed state-owned enterprises and parastatals, acting Finance minister Walter Chidhakwa said on Wednesday.

Quasi-government institutions which used contribute 40% to the Gross Domestic Product in the 1990s, have become an albatross to treasury due to poor corporate governance and underfunding that has resulted in them becoming perennial loss-makers.

“Getting the baseline data is an essential first step. We have of course developed Corporate Governance Framework for State Enterprises and Parastatals (CGF) and the ZIMCODE, our own National Code for Corporate Governance, which is closely in line with best practice.

Bringing together this data is therefore another important step in giving reality to CGF and ZIMCODE,” said Chidhakwa while addressing parastatal heads at a meeting.

“Removing their debts from your books might also be attractive. There are challenges to change, but we also know that the present system is not working. Our reflections on that balance will be important in the coming year,” he said.

Government identified ten major public entities and prioritised for initial reform.

They are Grain Marketing Board , Cold Storage Company limited, Air Zimbabwe, Telone, Agriculture and Rural Development Authority, Civil Authority of Zimbabwe ,National Railways of Zimbabwe, Zimbabwe National Water Authority , Zimbabwe Power company and Industrial Development Corporation of Zimbabwe.-Fidelity Mhlanga

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