The appointment of Dr Sydney Gata as executive chairman of
Zesa Holdings (Pvt) Ltd, continues to draw criticism with the country’s
development and technical partners in crafting the Public Entities Corporate
Governance Act becoming the latest to express their displeasure.
Energy and Power Development Minister Fortune Chasi in
November announced a new board of directors for the power utility to be chaired
by Dr Gata in an executive capacity with the minister justifying the
appointment as compelling.
The move has quickly been received with sharp criticism
from human resources experts as well as good corporate governance proponents.
Now, a World Bank consultant and a retired judge has joined
the critics and bemourned the appointment of an executive chairperson at the
utility.
Speaking at the official launch of the Act in Harare
yesterday, World Bank consultant in public financial management and State
entities reforms, Mr Sonny Mabheju, said while the Act provides for specific
roles for State entities’ board of directors and management separately, it,
however, does not provide for both combined.
“There is really no specific provision for that (executive
chairman appointment) . . . it (the Act) sets the board members separately from
executive management,” said Mr Mabheju.
“Specific terms for the chief executive and his team are
specifically provided for in the Act, and also terms for the board members and
the board chair are also specifically provided for in the Act.
“There is no section anywhere in the Act where there is
provision that there can be an executive chairperson and in any case, in most
cases that scenario is being discouraged,” he said.
Former High Court judge, Justice Moses Chinhengo who spoke
after Mr Mabhengu, concurred with the World Bank consultant and added that the
undesirability of an executive chairman in state entities is self-evident.
The arrangement, he said, was fertile ground for conflict
between management already in situ and the incoming executive chairman.
“The undesirability of it is self-evident. You have an
executive chairman coming into a parastatal, I am very certain the first thing
he will say is he wants the biggest office,” said Justice Chinhengo.
“Now the CEO who must be head of the organisation — you
start off with a conflict immediately. Where is he going to sit? Will he accept
the executive chairman and sit in some corner office,” he queried.
The Public Entities Corporate Governance Act was enacted
into law last year as Government moved in to foster accountability and
effective management of state-owned entities many of which had been rundown due
to management inefficiencies and corruption.
In the case of Zesa, Minister Chasi has, however, insisted
that the creation of an executive chairman’s post was in the best interest of
the power utility.
“I also needed somebody who will break the barriers, who is
not bureaucratic, who understands and is current regarding what Government is
looking at with regards to Zesa,”
“ . . . requires that you have somebody who is in situ on a
day to day basis and if you have somebody who has the experience and knowledge
of the organisation, why should we double the expenses by having a CEO and a
chairman who will be doing basically the same thing except chairing the
meeting,” argued the Minister.
The Act will also see the end of “career CEOs” as the it
stipulates that one can only serve for a maximum of two, five year terms. Herald
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