The honeymoon for under-performing state enterprises’ bosses might be over if the government goes ahead with reforms being spearheaded by the Office of the President and Cabinet.
The ongoing parastatal reforms have been instituted after realising that most state entities have become a liability to the government which has no fiscal space to finance organisations which are being mismanaged.
The Minister of Information, Media and Broadcasting Services, Dr Christopher Mushowe told the ZBC News that all parastatals must not expect government support, adding that there is no need to continue financing inefficient entities.
“We don’t expect companies to rely on government support, government does not have a duty to tax its citizens to fund inefficient institutions. Under the parastatal reforms being spearheaded by the Office of the President and Cabinet, those who can compete as business must continue. If parastatal bosses have done it in the past to rely on government support and fail to perform, they must give others a chance,” he said.
Zimbabwe has over 80 state institutions which at their peak would contribute 40 percent to the Gross Domestic Product (GDP).
However, most of them have failed to compete with even small to medium enterprises though their bosses lead flamboyant lifestyles due to large perks.
Late last year, Finance Minister, Patrick Chinamasa, revealed that a vetting process will be undertaken and parastatals that have become irrelevant will be dissolved.