$6 000 salary ceiling for parastatal bosses

HARARE - Cabinet yesterday declared that chief executive officers in parastatals should not receive a salary of more than $6 000.

This comes at a time when the government has initiated an audit of all parastatals, warning those who awarded themselves remuneration unprocedurally and illegally will be forced to pay back the cash.

Patrick Chinamasa, Finance minister and chair of the Cabinet Committee on State Enterprises and Parastatals Development, told a news conference at Munhumutapa Building - the citadel of governmenmt power in Harare - that Cabinet has resolved to slash parastatal bosses’ salaries.

“Accordingly and with immediate effect, Cabinet has decided as an interim measure, that no chief executive officer of any state enterprise, parastatals or local authority should receive a total pay package  (salary plus benefits) which is above $6 000,” Chinamasa said.

“Accordingly therefore salaries should be immediately cascaded downwards in each organisation. However, the lowest paid employee should not fall below the poverty datum line.”

Cuthbert Dube, former Premier Service Medical Aid Society was the highest earning executive taking home $535 499 per month.

Chinamasa said government will also instigate investigation on parastatal board fees.

“In the same vein, Cabinet has resolved that investigation be carried out to ascertain the extent of board fees and other emoluments paid to chairpersons and members of the boards of state enterprises and parastatals and member of the local authorities so that on the basis of information received, corrective action can be taken,” he said.

The Finance minister said if the audit reveals remuneration awarded illegally and unprocedurally, those responsible will pay.

“When the results come to the committee, we will take appropriate decisions on remuneration that was awarded unprocedurally, illegally and immorally," he said. "The audit will throw up information and all the remuneration that was awarded illegally and unprocedurally will be paid back.

“The direction we are taking requires us to clean up these institutions and to clean up we have to take the appropriate action. We will not hesitate, as the cabinet and the committee, to deal with these elements that awarded themselves immoral and illegal remuneration.”

Asked to explain whether any of the CEOs will be charged, Chinamasa said: "A crime is a crime. Where it is clearly stated that a CEO’s salary should be awarded by the board and you have the CEO and the chairman conniving, then that is corruption. It can be taken to the court. We can actual charge them under the Prevention of Corruption Act.”

Comments (25)

the damage has already been done....

juicy - 19 March 2014

This is impossible Chinamasa! Put on your thinking cap first before ranting emotionally like what you doing. Which CEO will stay in Zimbabwe inorder to earn $6000? We surely going to see a massive brain drain once this is effected.The cream of Managers,Engineers and Technicians will go back to the diaspora leaving us with mediocre managers. A good salary attracts quality brains.Zimbabwe was starting to fill up posts with quality managers until this new directive came about.It will soon be back to 2006- 2008 era where we had no Engineers to talk of, no Technicians and who will do the work nhai Chinamasa?

Mupfana weBikini - 19 March 2014

Dai ari Headmaster,Teacher, Police Officer or any other simple evil slavery angadai akatovharirwa aizobuda ne bail after a lot of embarrassment. Action should be taken now.

maromo - 19 March 2014

Iwe Mupfana weBikini if u think YOU deserve to earn that much then GET away from public institutions and form your own company. How are other well educated Zimbos (University Lecturers, Medical Doctors Teachers, Nurses) if not better than these CEOs, surviving. Some of these remember were getting all that much when the workers had nothing to take home. Unenge uri Baba rudzii anoto vana havadye mazai ndeababachete

MAROMO - 19 March 2014

There is nothing on the ground to show why those executives were earning so much money. All organisations led by all those executives are teetering on the brink of collapse and the little revenue realised was being gobbled up by the ineffective and spineless bosses sometimes leaving workers without salaries for months on end. Although the $6000.00 is still too much under our prevailing economic situation, at least it is reasonable. We now want results and all the contracts must be results oriented other than bootlicking and nepotism.

Samurayi - 19 March 2014

Bikini hauna kukwana, if you think you do not deserve $6000 un this economy then fambai muende. Kana wakainda kuchikoro womboverenga animal farm kuda zvingakusvinudza.

vonai - 19 March 2014

@Maromo, Im only stating facts as they are. Dont cry again tomorrow after the country has lost quality manpower. A civil servant haana production yaanoita and you cannot equate teachers and nurses to employees in industry. Aya mabasa akatosiyana uye anobhadhara zvakasiyana zvichienda nesector yacho.Currently muTelecoms sector mune mari asi hatingati tese toda kubhadharwa sezvinoitwa kuEconet.Salaries dzinoenderana ne sector yauri.Kuindustry kuno shandiwa varume jealousy down,teacher anemazororo(leave) mangani pagore mushandi wekuindustry asina? pliz put on thinking cap!!!!!!!!!!!!!!!!

Mupfana weBikini - 19 March 2014

isu takadzidza tinemaPhD but tinopiwa $400, avo vanonzi vapiwe $6000 vambokoshei. to be honest 6000 is too much paeconomy yakaita seye zimbabwe. Ngavapiwe $1200. Anemwana asingadi kudzidza pagood school ndiani? Murimboko dzevanhu maCEO.

gabarinocheka - 19 March 2014

Stop displaying your ignorance ati Econet iparastatal ndiyani? Thats why ndati form yo own ENCHONET AND EARN THAT much or even $1 000000/MONTH who cares. remember every employee is a product of teachers what kind of production are u talking about? Go back to School Bikini Grade one vacancies are still available usati kana mapoliticians achiti havana basa ivewoti ndizvo if all schools & hospitals are to close today what will happen. Do u have yo thinking cap on now?

MAROMO - 19 March 2014

Bikini chitipa parastatal irirkuita zvakanaka for the head to earn zvauri kutaura. You are a theoretical person out of touch with ground facts. Yes we are also in private sector, proper commercial but if you spend money on stupid salaries you will not grow the company and the result is company closures which is what's happening now. You grow the business through capitalisation proportionate to market conditions and not through paying rediculous salaries not matching production and market growth. People like you are looting companies getting rediculously huge perks, hzviite fambai muende, all corruption

Vonai - 19 March 2014

Some people are just good at critisizing. Suggest how much you think CEO should earn kwete kungogwauta.

razemba mutobvu - 19 March 2014

maromo i dont know know your profession but we all know these jobs were advertised minimum qualifications were set and people were appointed this does not bore down to CEOs obviously there will be domino effect meaning salaries will go down for each and every employee inthe sectors so dont think we lose CEOs only we will lose engineers, Even Doctors, Accountants, Economists coz we value what we offer and basically they took those jobs based on valuing them selves with the offers if i doesnt tally anymore whats next we leave and dont even fool your self that they are many graduates to fill in coz as soon as tthey get their experience they shall leave too some will even leave soon after school thats why you have children without teachers kumaruwa uko it doesnt mean they are no qualified teachers to teach but its the condition eventually if conditions aint right people leave you remain with none or incompetent worst than the incompetent you think is there now just revisit 2006-2008 when power utilities had no engineers and state universities had handful lecturers. it doesnt need rocket scientist to see is gonna happen again.

tawa - 19 March 2014


cde chaperachapera - 19 March 2014

Handina Econet iparastatal ini iwe MAROMO! I know what a parastatal is. Kunditi ndidzoke kugrade one is only a joke because ndakafunda kukudarika judging by your poor command of the english language.I did my grade one in 1969 tisingasundidzirwe zvamava kuitwa mazuva ano izvi!!!!!!!!!!!!!!!

Mupfana weBikini - 19 March 2014

Tawa you are beating the bush, we are talking non productive CEOs in parastatals. Is it logical to earn salaries not matching production. Please form own company and you will understand what i am talking about. The problem is you have a worker mentality and no sense of ownership in you at all. You wreck companies as you chase these fancy perks.

tongai - 19 March 2014

Nhai bikini mwanangu...Brain drain yaunotaura ndeipiko? Ko zvavanga vachitambira mazakwatira chavagona chiiko? Remember govt haina kubata private sector , which is where the production is anyway. Ma face auri kuchemera aya ngaaende hatinei navo. There are many qualified and experienced people who are ready to take over.

mhofela - 19 March 2014

I think it is not all parastatals that deserve this ceiling. The stupidity is on equeting salaries of institutions like EMA zimpost, Kingstons ceos and those of NSSA, RBZ IDC and other technical progressive instituitions. Obviously those leading Universities are under paid considering theresponsibilities they cary on their sholders.

Chokwadi - 20 March 2014

these pipo shud have their assets expropriated and be given performance based contracts $6000 for an incompetent manager yakawandisa futi review again Mr Minister

protestor - 20 March 2014

@Bikini- Isu takange tave mu grade 4 muna 69 tanga tave kuto sairirwa forward as far back as 68..so apa manyeba mbijana. Para bosses have not done anything to warrant what they are earning . Some of them are not even worth the 6 000 given that teachers who according to the Patterson grading system are more or less equivalent to sales reps or someone in an equivalent industrial grade this means the MD would be three to four notches above this. Now if a teacher in a private schools is getting around USD 1 200 what should the MD get given the teacher is supposed to be 3- 4 notches down. I think the government has done the correct thing this once.

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this is not realistic gentlemen. these parastatals do not perform the same. uniform salary haiiti. this is like everyone is doing the same duties look at the difference. PDL 540.00 AND CEO 6000.00. TOO COMPRESSED

robinsen - 20 March 2014

I agree that salaries should be slashed but i disagree with the method. While it is a general fact that the salaries where outragouesly high the method will have a ripple effect on everyone in the said public sector organisation. The salaries scale will be difficult to impliment if you have a minimum salary of $590 ( Assuming PDL) and CEO at 6000 over say 15 grades in a sector from the shop floor to CEO (15 is and example). The reason why we have certain organisations getting more is to do with risk (pilot, zesa,health etc), HR turnover(training for doctors,egineers,pilots,judges,lecturers etc) and core business (telone/NRZ is optional compared to ZESA/ Council/Health etc).In these parastatals salaries should be indicative of performance. No performance no bonuses and certain allowances. In short there cannot be a blanket approach to all parastals but salaries have to go down in favour of service delivery.

onlooker - 20 March 2014

Kana vanhu vachihora ma 40k a month hanzi Gvt must act....When Gvt acts hanzi Gvt is wrong.. Even if Mugabe&ZANU(PF) Gvt had taken Jesus down from the cross others would have critisized.

wezhira wezhara - 20 March 2014

what will change now because of these cuts?, mouraya economy and now you set what people should earn because of what you have done. Sure for some one who makes hundreds of thousands on big farms and bribes some of these ministers should not talk too much. They want to benefit alone like the whites did then but only these blacks are now worst because havatodi kuti muzoita kana chinhu. They recommends $60 per month for farm workers, wanna know why? because they own big farms and more farm workers don't ever think they do this for the nation you will be a fool to think that. After these salary cuts they are going to interfere with operations of these state enterprises tune them to benefit their interests. why do you think they are failing, If you follow media before bills were cut they was an article which was showing bills owed by these people, next thing they propose they be cut kkkkk and iwewe wabvisirwa ka $300 you celebrate Mr they have had $20 000 – $30 000 removed from their bills on multiple owned properties. Now check the herald they want to amend labor laws for whose benefit hint ” THEM” they have moved to own industries now so what do they need to do put harsh laws for employees and kill that stumbling block Employees shall suffer hence the nation will suffer. imagine hama dzedu in those industries. These guys really are they better of than Whites maybe better then you could manage a house in glenview, mbare, high field, Kambuzuma now you cant even dream on owning one working for these guys. OPEN eyes lets not celebrate too quickly otherwise these parastatal workers who will be obviously affected down to the lowest employee can just be victims like us tomorrow, yesterday and today.

tawa - 20 March 2014

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