Energy parastatals board salaries on hold

HARARE - Government has put on hold salaries for newly-appointed boards for parastatals in the energy and power development sector until the corporate governance and remuneration policy is effected.

Energy minister Dzikamai Mavhaire said government has to first approve the policy, expected to clearly stipulate remuneration parameters for State enterprises.

“Until then, we… leave it up to government to give a go ahead on the remuneration of the boards,” he said.

He added that the “salary drought” was being effected to “keep the new boards in check and avoid abuse of taxpayers’ money”.

“We will publish the remuneration packages thereafter, as soon as the policy is launched by President Mugabe,” he added.

Last week, Mavhaire appointed new boards for 10 parastatals under his portfolio, with former Finance minister Herbert Murerwa nominated as Zesa Holdings (Zesa) chairman.

The board appointments were for Kariba Hydro Power Company (KHPC), Zesa, Zimbabwe Power Company (ZPC), Zimbabwe Electricity Transmission Distribution Company (ZETDC), Powertel, Zesa Enterprises (ZE), National Oil Infrastructure Company (Noic), Petrotrade, Zimbabwe Energy Regulatory Authority (Zera) and the Rural Electrification Agency (Rea).

The appointments come on the back of Cabinet recently
approving the remuneration policy that will help monitor packages of heads of parastatals, State enterprises and local authorities.

The policy also targets to deal with the restoration of accountability in parastatals, after an exposé of hefty salaries earned by management at practically insolvent entities while ordinary workers went for months without pay.

The framework was drafted in March. It will be implemented through the Corporate Governance and Delivery Agency, which will be working with the Zimbabwe Revenue Authority to ensure compliance.

Under the new policy, board members will now be required to declare their assets before taking office.

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