Parliamentarians have endorsed recommendations for parastatals to justify their existence and to submit plans to Treasury by March 2018 to show they intend to cover their costs and return to profitability.

Outcomes from the public consultations conducted by the Parliamentary Portfolio Committee on Finance and Economic Development show that the public is concerned about the dismal performance of state owned entities.

Parliamentarians who graced the 2018 pre-budget seminar highlighted the need to curb the rot in parastatals which is hindering domestic resource mobilisation efforts.

Proposals were also put forward for the setting up of a new state owned entities regulator.

With revelations that 38 of the 93 state owned enterprises audited in 2016 incurred a combined loss of $270 million there is need for serious parastatals reforms said speaker of the national assembly Advocate Jacob Mudenda.

Southern Africa Parliamentary Support Network executive director Mr John Makamure said government cannot afford to continue bailing out these underperforming entities.

During his meeting with the business and the private sector on the 7th of September, President Robert Mugabe expressed his frustration on the parastatals’ dismal performance.