By Correspondent.
Harare, Zimbabwe. (News of The South) – Assembly Speaker Jacob Mudenda has criticized the
country’s parastatals accusing them of lacking basic business orientations thereby weighing the state fiscus due to unprofitability.
Speaking recently to fellow Parliamentarians Mudenda said it was high time the parastatals and state owned enterprises were restructured to make them profitable.
“We have to call to account all the boards that run these parastatals and to look at their qualifications before they are allowed in”, he said.
Mudenda lamented the cronyism that has crippled many state owned enterprises as Ministers do away with the educational qualifications in selecting boards focusing on personal relations.
“New Ministers bring their own boards and take out the predecessors irrespective of their performance and this has hampered the efficiency of these companies”, he added.
Parastatals and state owned enterprises have come to be a weight around the neck of the government monthly draining state fiscus through salaries as many of them cannot sustain their own existence.
The reduced profitability and downright collapse of many of them has been partially blamed on a number of challenges such as politicization of their functions and lack of a string work ethic.
Other economist have called for their privatisation in an effort to bring competitiveness to their operations and spur the country back to economic stability.
However the moves have not received ample governmental support as they appear not in sync with the larger indigenisation policies.
Harare, Zimbabwe. 9News of The South) – Assembly Speaker Jacob Mudenda has criticized the
country’s parastatals accusing them of lacking basic business orientations thereby weighing the state fiscus due to unprofitability.
Speaking recently to fellow Parliamentarians Mudenda said it was high time the parastatals and state owned enterprises were restructured to make them profitable.
“We have to call to account all the boards that run these parastatals and to look at their qualifications before they are allowed in”, he said.
Mudenda lamented the cronyism that has crippled many state owned enterprises as Ministers do away with the educational qualifications in selecting boards focusing on personal relations.
“New Ministers bring their own boards and take out the predecessors irrespective of their performance and this has hampered the efficiency of these companies”, he added.
Parastatals and state owned enterprises have come to be a weight around the neck of the government monthly draining state fiscus through salaries as many of them cannot sustain their own existence.
The reduced profitability and downright collapse of many of them has been partially blamed on a number of challenges such as politicization of their functions and lack of a string work ethic.
Other economist have called for their privatisation in an effort to bring competitiveness to their operations and spur the country back to economic stability.
However the moves have not received ample governmental support as they appear not in sync with the larger indigenisation policies.
Comments
About Author
