Sack corrupt parastatal bosses!

via Sack corrupt parastatal bosses — Moyo – DailyNews Live by Ndakaziva Majaka  13 APRIL 2014

Zimbabwe will not run any loss if indicted corrupt parastatal CEOs left their offices because the country has abundant talent to take up those positions, a Cabinet minister has said.

Information Media and Broadcasting Services minister Jonathan Moyo on Thursday told a Zimbabwe Accountants of Zimbabwe conference that corruption is criminal and all those found guilty should be “honourable” and leave.

The minister’s call comes as President Robert Mugabe has openly called for the arrest of corrupt individuals saying that the cancer had destroyed Africa.

“Some have argued that obscene and corrupt salaries and allowances paid by parastatals and State enterprises were necessary for skills retention…

“In any event, the claim that there would be a flight of skills if the corrupt salaries and allowances are reduced, as they have been capped at $6 000, is self-indulgent. What skill in God’s name will be lost; if Cuthbert Dube leaves Premier Service Medical Aid Society (Psmas), as he has hopefully done to concentrate on doomed Zifa affairs?” Moyo said.

His sentiments come in the wake of blistering media revelations of mega salaries earned by executives in parastatals most of which were practically insolvent with ordinary workers going for months without pay.

The Mugabe-led government is baying for blood against the CEOs enriching themselves in State enterprises following reports that the likes of Zimbabwe Broadcasting Corporation (ZBC) boss Happison Muchechetere, now suspended, was earning $44 000 per month.

Cuthbert Dube’s $535 000 salary left Zimbabweans stunned, with government officials admitting the practice was widespread in nearly all State enterprises.

Government has since declared a $6 000 cap for top earners in the State-owned enterprises and local authorities, a development the parastatal chiefs have received with a lot of disgruntlement. Some have even threatened to hand in their resignation letters.

“Zimbabwe is a highly literate country, with the highest literacy rate in Africa, due to the extensive investment in education championed by president Mugabe over the past three decades since the nation’s  historic independence in 1980.

“In fact, the one comparative advantage that Zimbabwe has is the existence of a critical core of professional skills possessed by young people in the country and the Diaspora who are ready to take their professional places but who are currently frustrated by the lack of opportunities,” he told the conference.

Moyo said the country has not been able to fully utilise its skilled human resource endowment in light of the high unemployment rate and poor job creation.

“In this regard, there are sufficient skills at the right salary levels that the country can call upon to make parastatals and state enterprises succeed in accordance with their mandates,” Moyo told the accountants.

According to figures released by Moyo at the conference, government spent $600 million paying hefty salaries and benefits to senior management and fees to boards of parastatals between 2009 and 2013.

“Had these salaries been capped at $6 000 per month and board allowance fees at $10 000 per annum since 2009, we would have lowered the wage bills of CEOs, senior management and board members to $78 million which would have translated to a $55 million annual reduction in the current wage bill,” he said.

Effectively, this would have saved the country approximately $220 million and it would have amounted to 5,7 percent of 2013 government expenditure.

“When compared to the wage bills of similar entities in the region, the current salaries paid by parastatals and State enterprises are far too high and unsustainable” Moyo told the accountants who he accused of letting the country down as they are responsible for the disbursement of funds at the parastatals.

The total 2013 wage bill for senior management and boards was approximately $133 million. This translates to 3,5 percent of government expenditure.

“The beneficiaries of this bounty are a paltry 3 000 individuals (made up of board members and executive management of parastatals and State enterprises) spending as much as 3,5 percent of government expenditure to the detriment of some 13 million Zimbabweans  who have a right to expect the government to support,” the minister fumed.

In the period between 2009 and 2013, the average monthly salary for CEOs and senior management of parastatals and State enterprises was $9 040 which translates to a 2,752 percent premium above the $317 monthly salary level for ordinary civil servants, well below the Poverty Datum Line of $500.

“This income inequality has constrained labour productivity by eroding individual self-motivation thereby risking social unrest emanating from the workplace.

“Indeed, the wide income gap may be an important explanatory factor why the ongoing economic recovery does not feel like a recovery at all to many ordinary Zimbabweans” said Moyo.

At the same conference, Moyo said government is in the process of enacting a legislative piece on the governance of parastatals, State enterprises and local authorities targeted at public service chiefs who did not comply with the $6 000 salary cap.



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    Tjingababili 8 years ago


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    Ruramai 8 years ago

    Who exactly would do the firing? The equally corrupt ministers who authorized the rot in the first place?

    Moyo himself is not clean either. He is a wanted man in Kenya over the missing Ford Foundation funds.

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    Prof Moyo said“Zimbabwe is a highly corrupt country, with the highest corruption rate in Africa, due to the extensive investment in corruption championed by president Mugabe over the past three decades since the nation’s  historic independence in 1980″

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      What position might Prof JM be gunning for I wonder. It is sad that so much potential has been squandered. Is he trying to redeem himself. may I suggest that only Christ Jesus can redeem anyone. And then there must be true repentance!

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    Isu Zvedu 8 years ago

    Nobody has questioned the wisdom behind Chinamasa for coming up with a $6000 monthly salary. And I ask, what exactly are these people doing to earn such a very high salary in such a very poor country like Zimbabwe? How does anybody justify such a salary when the average middle income salary is less than $1000 per month? Chimamasa should bring back the Z$ if he wants to see huge salary figures. Vakajaidzwa naGono!

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    Rwendo 8 years ago

    When Moyo starts talking of hitting corruption at its source, the cabinet he Is part of and the leaders he follows, be it faction or party, then perhaps we might all take this campaign more seriously.

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      Isu-zvedu 8 years ago

      Yes Rwendo, even if its Chinoz or Mliswa or any one of these zanoids, as long as they expose the rot, however minuscule, we the people must rally behind every opportunity to support every effort to expose evil.

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    munzwa 8 years ago

    How much of these inflated salaries was, is, going back to party funding? Maybe $ 6000.00 was all they were getting the rest to the party….

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    Manyongori 8 years ago

    Is the Prof for real or what??But I guess whether it is their factional fights or whatever ,I am really enjoying this .

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    Mukanya 8 years ago

    Talking/discussing about corruption, I recommend really concerned citizens of this country to read; ESSENTIAL READING by Yanamoto published on the 10th of April 2014 by this same website(ZimSitution).

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    Mseyamwa 8 years ago

    Mr Moyo, do you remember Toni Namate’s depiction of you running into the hill, out of track, with the baton stick? Seems like you are finally finding your way abck to the track. Only problem is, this is still a talk show. We want to see the peoples’ returned to the people. We want to seethe corrupt face some music to discourage those watching andnwaiting with their own schemes. Government must deliver a lesson and this I its opportunity, if indeed, it is not entirely tainted already. Going forward your current actions shall determine whether we will grow or blow corruption out of ourmidst. Keep the pressure high on offenders and would be offenders.

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    Che'guevara 8 years ago

    @ruramai. I always see some logic in your postings but on Jonso you might be getting of the track or derailing. They say to air is human. Yes he has made his mistakes: Ford Fountation and blah blah but muroyi akaroyera kureka uyu. In any case people can correct their mistakes. Inga pfambi inoroorwa ikagara mumba zvakanaka wani. Lets support him. He is minister of news and he is exercising his mandate- exposing the rot. Vana Chinamasa, chihuri, tomana and others ngavachiita ravowo rokusunga.

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    $6000 is still too much for a country like Zimababwe, other minsters in developed countries UK, france USA etc don`t even make that much a month . Zimbabwean economy simply can not sustain such pay 90 % unemployment rate.

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    Chamunoda Nyamakate 8 years ago

    Emotion is what makes Zimbos fail to imlpement a lot of strategies that rot on shelves. Most contibutors here are busy pouring out their emotions and ‘pull him down’ syndrome instead of getting to the bottom of this issue of salaries. Are you sure that these ministers who are pretending to be shocked by these salaries did not know of these salaries? How come auditors have not picking this up if it was an anomally.First things first; who gave these CEOs these salaries and why? If they are given these salaries are these huge salaries responsible for parastatals poor performance? In what way? So ZUPCO collapsed because of these huge salaries? And did the power black outs come as a result of the salaries? Think maZimbos. Don’t just pour emotions like Oscar Pistorious.

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    […] signaled a softening of stance, and a willingness to engage. Equally the purge of corrupt parastatals and their officials led by Jonathan Moyo was clearly aimed at an international audience, with a […]

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    […] signaled a softening of stance and a willingness to engage. Equally, the purge of corrupt parastatals and their officials led by Jonathan Moyo was clearly aimed at an international audience, with a […]

  • comment-avatar

    […] signaled a softening of stance and a willingness to engage. Equally, the purge of corrupt parastatals and their officials led by Jonathan Moyo was clearly aimed at an international audience, with a […]