president mugabe 25.08.10.jpgThe Head of State and Government and the Commander-in-Chief of the Zimbabwe Defence Forces, President Robert Mugabe, has called on workers of state enterprises and parastatals to transform their work ethics and emulate the private sector.

 

Officially launching the Corporate Governance Framework in Harare on Thursday, President Mugabe said some leaders of the parastatals think they have protection from the appointing authority, seeking financial bailout from government each and every year.

“That sense of ownership is lost, they they just say this is for the government. What is in parastatals, I do not know whether the culture itself and discipline will improve after this framework. That is something that need to be incalculated in our service, it does not matter whether you are in the private sector or in the public sector,” President Mugabe said.

Cde Mugabe said state enterprises should split into two; those that make profit or are engaged in commercial activity and those that are more of service providers to either industry or the people.

He added that it is common practice that state enterprises have played a key role in the economic development of the country, during pre and post independent Zimbabwe.

prime minister tsvangirai 25-11-10 ed.jpgPrime Minister Morgan Tsvangirai said the fundamental objective of corporate governance provides government with a platform to promote efficient use of public resources that needs accountability.

“Not all parastatals and state enterprises that contribute to the growth of this economy, so we have the rationalise these parastatals because there are some that need to be privatised, some need to be rationalised and commercialised,” he said.

Deputy Prime Minister Arthur Mutambara said corporate governance is critical to the performance and viability of state enterprises, contributing to above 40% of the Gross Domestic Product.