Govt to regulate salaries for parastatal bosses

Minister Chinamasa

Minister Chinamasa

Lloyd Gumbo Herald Reporter—
GOVERNMENT is developing a framework that will regulate salaries, especially for top management in parastatals and local authorities as a way of reducing employment costs in those entities. This is contained in the proposed 2014 national budget presented by Finance Minister Patrick Chinamasa in Parliament on Thursday.

There are indications that top management at some entities were paid salaries and allowances that were too high, in the process suffocating the entities.

The development is likely to see pay cuts of top management at loss-making entities.
Minister Chinamasa said Government was concerned by employment costs that were higher than what these entities generated.
Some of them resorted to bank overdrafts and loans to sustain the salaries.

“Sadly, the unsustainable employment costs are largely on account of the huge salaries, allowances, and perks and being paid to top management-contrary to the Corporate Governance Framework for State Enterprises and Parastatals over principles of affordability and sustainability,” said Minister Chinamasa.

He said salaries of some of the top management were financed from commercial borrowings as they did not have the capacity to generate the salaries.

As a result, he said, Government ended up bailing out such entities through debt assumption and budget appropriations.
“In this regard, the Office of the President and Cabinet is spearheading the development of the guiding Remuneration Framework for all entities that make or are likely to make a charge on the Consolidated Revenue Fund with effect from early 2014.

“The framework will tighten governance oversight structures over remuneration, giving consideration to ability to pay, taking account of service delivery targets, as well as rewarding corporate performance that is above targets,” he said.

Minister Chinamasa said there was also a need for Government to expedite the reformation of Public Enterprises that were expected to spur economic growth.

He said there would be a need to identify and separate entities that required restructuring and those that needed capital injection.
In an interview after the budget presentation on Thursday, Zanu-PF legislator for Hurungwe West Cde Themba Mliswa, said there was a need for the executive to consistently change boards on state entities to curb corruption.

“The President has been clear in terms of corruption.
“There has got to be zero tolerance on corruption.

“We must have new people. New boards set up.
“We cannot have the same people being on these boards because that clearly is where corruption starts.

“Why don’t we have people being changed in the boards? Why don’t we have new people coming in so that we can curb corruption?
“If we can curb corruption, a lot more will happen because the new people who come on board clearly would want to advocate whatever the minister preaches.

“The background of having old people sitting on these boards is bad. All these parastatals have got to be changed.
“I am very excited about Minister Walter Chidhakwa (Mines and Mining Development) having to restructure the mining boards.

“That is a clear indication of someone who wants to see change,” said Cde Mliswa who is chairperson of the Parliamentary Portfolio Committee on Education, Sport, Arts and Culture.

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  • punungwe

    Thank you for taking a step foward. Can government please follow up by regulating the salaries of ministers and MPs as well.

    • Jotham

      How much do Ministers & MPS get. Publicise these figures so that we can comment on specific issues rather than speculations.

    • Philip Mpofu

      Punungwe and others like you be advised that Parliamentarians get far much less that you think. Parliamentarians get about $1400 monthly inclusive. Each Parliementarian has to pay a percent towards the purchase of the cars. Being a parliamentarian is more for prestige. Of course for some unemployable and uneducated political adventurers they thank their political parties for the unbelievable salarie. This also goes for anambuyas from rural areas this salary is mana from heaven as they do not have to open their mouths.

      • punungwe

        How come they mostly manage to get rich so quickly if they earn poor salaries.

        Are you saying steal and cheat their way to the rest of the wealth.

    • Zizi

      The wage bill should always be 30 % of revenue as per International Labour Standards. It was only in Zimbabwe where hefty salaries are paid to loss making organisation and one wonders what kind of management this can be. Chinamasa should go further to demand recovery of the money paid to such irresponsible people so that it is used to to develop the country.

  • macemike

    I read that we will be told amounts of what the top earners are being paid. I look forward to that! Are the salaries of parastatal employees taxed? Do the parastatals remit that tax?

  • Tongoona

    Lots of key phrases repeated here by Ministers and legislators.
    “unsustainable employment costs”, “financed from commercial borrowings”, “Zero tolerance on corruption”, “executive to consistently change…. to curb corruption”, “We must have new people”, “old people sitting on these boards is bad”.
    We wonder if Ministers and Politburo members have looked in a mirror recently?

    • Clem Afro

      Thank you! It seems they are immune to what they say!!!!

  • Mimi

    Right @Punungwe, those who live in glass houses should not throw stones! Zimbabwe’s Ministers, MP’s, Permanent Secretaries, Directors of Ministries are having life so good that they should not even start pointing fingers because WE SHALL TALK and highlight what is really going on on the ground, hazvisikuita. For an example them being allowed to buy CMED vehicles at book value after every 2 years has been abused to an extent that most Permanent Secretaries, Ministers have got fleets of vehicles just lying at their many farms. Our talking or shouting will not help, we know but let’s talk because one day someone shall pay and pay big time.

  • zesasucks

    Please can you start by regulating the salaries of ZESA top brass, coz they really suck and they should not be paid anything.

  • Thumani

    All organisations (including NGOs, Charities, Churches and companies) should be required to define or regulate salaries of their executives. If an NGO is using more than 50% of funds received on salaries then there is a problem. If remuneration for a Pastor or the money received for ministry is not defined then there is a problem as well.

  • Skomola

    This is not a step forward vanhu vaMwari.,,,,,all this information is being reviewed today but THESE ceo’s have already harvested, ministers have already harvested even if the salaries are slashed today there is no use because the difference between the rich and the poor is going to be the same. High salaries should be given to those hu have worked hard for it, kwete Munhu Asina kana o-level Motomuti gara mu parliament Tokupa 1500US a month that is ridiculous