|Minister blasts parastatal bosses|
|Monday, 07 May 2012 00:00|
Martin Kadzere Senior Business Reporter
craft a framework that will guide management of State-owned entities on their restructuring plans.
Notable progress has only been made on the sale of the Zimbabwe Iron and Steel Company’s 54 percent stake to Indian firm Essar Global and the unbundling into two companies of the National Oil Company of Zimbabwe.
“Some did not even know where to start due to lack of expertise and this has slowed the restructuring of State enterprises to the point of frustration,” Minister Moyo said in an interview last Friday.
“The restructuring manual will be launched next week and it will contain ‘verses and chapters’ that should be followed by State entities.”
Zimbabwe has 78 State enterprises with capacity to contribute 40 percent to the Gross Domestic Product but most of them have been underperforming due to excessive debts and mismanagement.
“We no longer have adequate skills to craft pathfinder documents that articulate real issues affecting companies . . . it then becomes difficult to bring in investors,” said Mr Hofisi whose company is involved in raising capital and turning around distressed companies.
Air Zimbabwe, which is 100 percent owned by the Government, suspended flights in January after a strike by pilots to press for outstanding salaries.
He said issues to be discussed include how to deal with inter-parastatal debt.
Of this figure, cross areas for State firms stood at US$240,2 million. Inter-parastatal debt for the 10 entities prioritised for restructuring was US$32,6 million.