HARARE - Cabinet has restructured the People’s Own Savings Bank (POSB), with government retaining a 51 percent stake, while private players will get a 49 percent share, a Cabinet minister has said.

Gorden Moyo, the State Enterprises and Parastatals minister, yesterday told journalists that government had decided to modernise the bank and improve its services.

“After a memorandum from the inter-ministerial committee on parastatals, government is shaving off 40 percent of POSB shareholding and taking on board other partners,” he said.

Moyo said the bank will retain its original mandate, which is serving the grassroots to boost banking services in the country.

He said plans are underway to restructure the Zimbabwe Grain Bank (ZGB). Moyo said Tredger Holdings will get first preference in partnering government in ZGB since it already has ties with the entity.

The National Oil Company of Zimbabwe has already been restructured while Agribank’s restructuring is still in the pipeline.

Arda Chisumbanje is also on the restructuring list.

Moyo said parastatal board reshuffling is necessary.

Government will with effect from January 2013, implement stiffer conditions concerning the funding of state-owned enterprises following a series of misappropriation of funds by parastatals.

Moyo said the decision resonates with good corporate governance standards.

“From January 2013 onwards, requests for financial support by state-owned enterprises and parastatals will only be considered by Treasury after compliance with statutory obligations, provisions of the corporate governance framework and the public finance management Act,” he said.

Moyo said recommendations from line ministries should be accompanied by an annual budget and strategic plan. Audited financial reports and audited annual reports are also needed.

Performance agreements between boards and chief executive officers and approved restructuring proposals are also a necessity, he said.