Parastatals challenged on corporate governance

02 Dec, 2021 - 00:12 0 Views
Parastatals challenged on corporate governance Minister Mhona

The Herald

Michael Tome  Business Reporter

PARASTATALS should adhere to good corporate governance principles and practice scrupulous dedication to duty in order to attain competitiveness, Transport and Infrastructural Development Minister, Felix Mhona has said.

Minister Mhona made the remarks while inducting additional board members for the Traffic Safety Council of Zimbabwe (TSCZ), National Handling Services (NHS), Airports Company of Zimbabwe (ACZ), National Railways of Zimbabwe (NRZ), and the Civil Aviation Authority of Zimbabwe (CAAZ).

Minister Mhona indicated that it was not business as usual in his ministry, which seeks to develop methods that will stimulate the competitiveness of parastatals that fall under the purview of his portfolio.

Cottco head of marketing and ginning, Maxmore Njanji was appointed a board member of CAAZ while Dr James Tsabora and Ms Faith Chiwunge were appointed to the ACZ board.

Three board appointments were made to the NHS where Ms Theresa Rovodza will become deputy chairperson while Ms Caroline Mudenda and Ms Margaret Mantiziba come in as ordinary board members.

Mr Kura Sibanda was appointed the TSCZ chairperson where he will be deputised by Mrs Felie Chikowero-Mjanga whereas Ms Zvichanzii Venacia Mugota will assume board membership.

Ms Loveness Dumwa has been transferred from CAAZ to the TSCZ board with immediate effect while Ms Molly Dingani was appointed to the NRZ board.

Minister Mhona said it was not business as usual for the new board appointments as their new offices would require devotion to duty making sure that the served companies are developed for the better.

He emphasised the need to weed out errant behaviour that has lately characterised a number of parastatal operations from corruption to nepotism.

“Allow me to focus on the new board members we have just appointed. Esteemed members, it is not business as usual in the Second Republic, good corporate governance principles are a cardinal pillar of your practice going forward.

 “As you may be aware public entities have of late been singled out as nursery beds of corruption, with nepotism, rent-seeking behaviours, and outrageous executive compensation as some of the attendant notorious transgressions associated with them. Let us be warned that the Second Republic does not brook any acts of corruption as it has adopted a zero-tolerance to corruption,” said Minister Mhona.

He urged the newly appointed members of the boards to chain out work ethic that would improve parastatals stature, attractiveness and move off from past indiscretions which encompassed rampant flouting of procurement procedures in the parastatals.

“Section 195 talks of competitiveness as a business unit whereby we are departing from the norm of saying parastatals are just cash cows that do not compete with the private sector, which is now a thing of the past, we should go further,” said Mister Mhona.

These boards have been operating without full quorums, while some of the boards had remained with only half of the stipulated number, such that it was difficult for them to execute their statutory mandate due to difficulties in constituting a quorum at board meetings.

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