Friday, 6 May 2016

MNANGAGWA : WE WILL CRACK THE WHIP

The government will soon crack the whip on ineffective boards of directors of state enterprises in line with the new National Code of Corporate Governance aimed at stopping the rot which has almost paralysed some state-owned companies. 

This was revealed by Vice President Emmerson Mnangagwa in his presentation on the code of corporate governance for parastatals and state enterprises at the National Defence College. 
In his presentation to the fourth intake of army officers at National Defence College Vice President Mnangagwa said government has crafted a number of new rules and regulations to bring sanity to parastatals so that they contribute at least 40 percent of gross domestic product to the national economy.

Cde Mnangagwa said a new Corporate Governance Bill is on the cards to ensure compliance by parastatals to government’s new vision of curbing gross mismanagement and corruption by state enterprises management and boards.

He said in addition to preparation of the new code of corporate governance, government is amending several existing laws to address constraints impacting on the ease of doing business.

Vice President Mnangagwa's presentation revealed that out of an estimated 97 state enterprises, the bulk of them are under performing, some are folding while government has identified 10 parastatals to be audited, chief among them NRZ, ZINWA, ZPC, Ziscosteel and the Industrial Development Corporation.  
Audits have been completed at other state-owned companies such as the GMB and CSC and three turn-around strategies have been submitted for approval to cabinet for TelOne, ZINWA and IDCZ.   

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