The Minister of State Enterprises and Parastatals, Mr Gorden Moyo, says state enterprises and parastatals (SEPs) can once again become engines of economic growth if ongoing reforms in the sector are completed.
Loss making state enterprises and parastatals which are draining the fiscus can be crucial to the countryâ€™s economic turn-around if current programmes which have been approved by cabinet are completed.
Cabinet recently approved a programme under which line ministries will consider categories for restructuring, privatisation and commercialisation, while noting the need to consider the circumstances of each state enterprise or parastatal on a case by case basis.
Briefing journalists for the first time since his appointment, the new Minister of State Enterprises and Parastatals, Mr. Gorden Moyo, said his ministry remains committed to a serious reform agenda in the management of public enterprises and consultations are currently underway.
â€œThe ministry will be working towards banishing the notion that parastatals are loss making firms.
â€œMost of them did not perform well last year,â€ said Mr. Moyo.
Several frameworks have been drafted to promote good corporate governance and to monitor and evaluate performance of SEPs.
SEPs are now required to present quarterly, half yearly and annual reports accompanying audited financial statements although only a few have been complying.
State enterprises have the potential to contribute an estimated 40 percent to the Gross Domestic Product, but most of the entities are presently insolvent amid complaints of inefficiency and poor service delivery.