Govt to restructure 10 parastatals

via Govt to restructure 10 parastatals – NewsDay Zimbabwe December 4, 2014

GOVERNMENT will next year prioritise the restructuring of parastatals in 2015 after failing to do so in the past three years due to bureaucratic issues.

In the 2015 National Budget presentation, Finance minister Patrick Chinamasa said focus will be given on 10 parastatals as part of the implementation of Zimbabwe Agenda for Sustainable Socio-Economic Transformation.

“To facilitate this, I propose to avail resources amounting to $2,6 million to the Office of the Auditor-general
“The Auditor-General’s Office will be co-ordinating audits of the targeted entities to determine the challenges which the entities are facing.”

Chinamasa said there was need to have a full appreciation of the current status and challenges that faced by State entities. The situational analysis will help government to make informed restructuring policy decisions.

The parastatals to be restructured include Agricultural and Rural Development Authority, Cold Storage Company, Grain Marketing Board, Air Zimbabwe, Tel One, Civil Aviation Authority of Zimbabwe, National Railways of Zimbabwe, Industrial Development Corporation of Zimbabwe, Zimbabwe National Water Authority and Zimbabwe Power Company.

The country has 78 parastatals and most of them currently do not have fully constituted boards.
Meanwhile, the Public Finance Management Act is being amended to incorporate public enterprises and local authorities.

Most parastatals are loss makers and are severely affected by poor corporate governance, with many others badly performing en resulting in them draining fiscus.