ED to second accountants to parastatal boards 

Source: ED to second accountants to parastatal boards – DailyNews Live

Mugove Tafirenyika      6 August 2018

HARARE – Government is seriously considering a request by the Institute of
Chartered Accountants of Zimbabwe (Icaz) to have its members considered
for appointment on different boards of State-owned enterprises.

Newly-appointed Icaz president, Tapiwa Chizana recently made the request,
assuring government of the institute’s commitment to contribute to the
country’s economic recovery while stressing the need for the consolidation
of the accounting profession.

Responding to the request in a speech read on his behalf during the Icaz
centennial gala dinner in Victoria Falls this week, Mnangagwa said his
government appreciates the significant role being played by the accounting
institution in developing the accounting profession and supporting
government’s fight against corruption, fraud and money laundering.

“I am aware that Icaz members have offered to serve on these boards. Going
forward, Icaz members should be appointed to serve on the boards of
State-owned enterprises in order to assist in strengthening and turning
around of the entities,” he said.

Mnangagwa reminded the chartered accountants that unethical business
practices such as promoting transfer pricing and tax evasion will derail
the country’s economic recovery.

“I wish to assure this gathering that we will work tirelessly to ensure
that we make positive contributions to the development of the local
economy,” said Chizana.

Icaz was celebrating 100 years of existence under the theme: Celebrating
Our First 100 Years, A Stepping to the Next 100 Years.

This comes as Vice President Constantino Chiwenga recently said it was
time non-performing State Enterprises and Parastatals (SEPs) were shut
down if efforts to revive them have failed.

Chiwenga said this while presenting a paper at the National Defence
University in Harare on “corporate governance of State enterprises and
parastatals in Zimbabwe as a national security issue”.

Chiwenga said in 1980, the country inherited 20 SEPs thinly spread across
sectors and contributing around 40 percent of the Gross Domestic Product

He said the number of SEPs increased over the years to 107, but the
contribution to GDP fell to 13,4 percent in 2014 with the contribution of
commercial SEPs standing at 7,7 percent.

Chiwenga said government was determined to ensure that SEPs reform was a
success, for the good of the economy.

“A robust SEP sector is key to the country’s efficient allocation of
resources, competitiveness, economic development, and poverty
alleviation,” he said.

“Against this background, it is common cause that the economic performance
of some SEPs in Zimbabwe has deteriorated to unacceptable levels where
decisive action to turn them around or close them down if they are of no
strategic significance has become necessary.”

“The SEPs therefore need to operate in an environment where good corporate
governance practices prevail. SEPs should be subjected to effective
oversight and enforcement in order to maximise their contribution to the
competitiveness and development of the Zimbabwean economy.”

He said poor performance of the SEPs risk triggering political instability
as envisaged by the Arab Spring that affected Tunisia, Libya and Egypt.

“The supervision of SEPs by the government will be strengthened to ensure
that their performance enhances rather than undermines national security,”
he said.

“When one considers the human security conception of national security, it
should not be difficult to see why the poor performance of SEPs, as a
result of bad corporate governance practices, becomes a national security
concern which can easily develop into a formidable non-traditional

Cabinet last month approved the consolidation and dissolving of some
underperforming SEPs as they had become a liability to the State.

Chiwenga said a memorandum for merging the parastatals involved in
handling investments was submitted to Cabinet and approved on May 2, 2018.

He said line ministries were expected to develop case-by-case “reform
memoranda” for submission to Cabinet through its committee on State
Enterprises and Parastatals Development (SEPD).

“To redress the situation, the Government is pursuing a programme of SEPs
reform designed to enhance performance, to improve service delivery and to
bring more order, discipline and rationality to the sector as a whole,” he