By Rungano Dzikira

Government has launched the Public Entities Corporate Governance Act in the capital in a move meant to strengthen the governance framework of State owned Enterprises and improve their contribution to the fiscus.

Speaking during the launch, Minister of Information, Publicity and Broadcasting Services, Monica Mutsvangwa said that this move would see an improvement in the conduct of State Enterprises and Parastatals.

“This new act removes opaqueness of State owned Enterprises and Parastatal operations in order to promote transparency. It also democratises the appointment of boards by promoting gender balance,” she said.

Speaking on the same juncture, Secretary for State Enterprises, Corporate Governance and Procurement, Mr Willard Manungo said State owned Enterprises used to contribute more than 40% to Zimbabwe’s Gross Domestic Product (GDP) soon after independence but has over the years fallen to way below 10%.

The new act also dissuades the appointment of an entire board from one geographical region, regulates the conditions of service of members of public entities and senior employees. It forbids an individual from serving for more than two-four year terms or serving more than two boards of State Enterprises; and requires the President’s consent for appointment or dismissal of board members.

Also in attendance was European Union (EU) ambassador Timo Olkkonen, several Government Officials, Managers and Parastatal Board Chairpersons.