Source: ‘Weak governance breeding corruption’ | The Herald June 14, 2016
The Office of the President and Cabinet has said weak corporate governance structures in state enterprises were breeding grounds for rampant corruption in the institutions. The country has nearly 100 state enterprises spanning across the economy, and virtually all are struggling. They have for years been criticised for being a drag on the fiscus for being habitual bailout seekers.Secretary for Corporate Governance and Delivery Unit in the Office of the President and Cabinet, Ambassador Stuart Comberbach told heads of parastatals and state enterprises that it was critical that awareness and compliance with tenets of good corporate governance principles be intensified.
“Corporate governance weaknesses and the corruption which breeds and thrives within such weakness have also impacted heavily upon the overall image of the country and have contributed to negative perception and poor ratings accorded Zimbabwe,” he said at a workshop on data collection and corporate governance reform.
Ambassador Comberbach lauded the Auditor and Comptroller General’s Office for its unceasing efforts in pointing out such weaknesses in governance structures as the root of all shenanigans bedevilling state companies.
“The Auditor General has bemoaned the frequency with which line ministries fail to exercise, adequately, the corporate governance oversight responsibilities with regard to state entities under their purview,” he said.
Permanent Secretary for the Ministry of Finance and Economic Development Willard Manungo said it was critical that state enterprises stop burdening Government.
“It is always Government’s top priority that state enterprises boost their performance so that they contribute to the turnaround of our economy and stop being a drain to the fiscus,” he said.
The data collection exercise is meant to give authorities a picture on the state of government agencies and measure their contribution to the economy.
Mr Manungo said the exercise would also allow treasury to quantify fiscal risks, contingent liabilities and other budget implications arising from the sector. — New Ziana.