The Sunday Mail
The Government has resolved to fast-track the Public Sector Corporate Governance Bill, which will guide the service conditions and remuneration of heads of parastatals, State enterprises and local authorities who have been resisting moves to rationalise employment terms and to cap monthly salaries at US$6 000.
Last week, Cabinet approved the principles of the Bill, which, among other issues, seeks to facilitate the prosecution of top executives who do not abide by the law.
The Bill also seeks to regulate the appointment, performance appraisal and remuneration of heads of public entities as provided for under the Zimbabwe Corporate Governance and Remuneration Policy Framework (Zimcode).
Justice, Legal and Parliamentary Affairs Deputy Minister Fortune Chasi told The Sunday Mail that the Bill will be tabled when Parliament resumes sitting next week.
Mr Chasi said the Bill was on Government’s top priority list.
“We are hopeful the Bill will be presented in the current session of Parliament.
“We hope Members of Parliament will consider it appropriately before it is passed into law.
“The work is already underway following the Cabinet decision. The Bill will be on the high priority list and we do not expect any hassles.
“Although I am unable to give a specific time frame, I am sure everything will be done in quick time so that Parliamentarians will have the opportunity to consider it before it becomes law.”
Last week, Finance and Economic Development Minister Patrick Chinamasa presented the principles of the Bill to Cabinet in line with plans to transform Zimcode into an Act.
According to the draft principles, boards should be selected on merit under a clearly defined capability matrix and skills mix. Among the key areas of expertise are law, finance, marketing, auditing, technical, human resources as well as strategic and economic planning.
In addition, a Corporate Governance and Delivery Agency is expected to be established within the Office of the President and Cabinet to co-ordinate and monitor compliance with Zimcode.
Board members will be required to declare their assets and sign a code of conduct upon appointment and to declare their interests before the start of discussions on any agenda item in which they have an interest.
No Permanent Secretary shall be a member of a Public Enterprise Board. Human resources management expert Mr Memory Nguwi said the eventual Act will facilitate State enterprise and council revitalisation.
“From the outset, it’s clear that the proposals lead to better performance. The framework is very good, but there are some sections that need to be tightened. For example, I do not think the chief executive officer alone needs to be put on a performance-based contract. It should be for all the top executives of an institution and not just the CEO. Then on the aspect of the terminal package, I do not believe that there should be a terminal package when a CEO fails to perform.”
Mr Nhamo Kwaramba, another HR expert, said: “I think the proposed Bill is a good piece of legislation to cut out corruption.
“But aspects such as motivation and standards need to be maintained
“The time limit of four years is good. One can actually measure the ability of a person.”
Draft Bill key principles
- Board members to be selected based on merit, capability and skill
- Corporate Governance and Delivery Agency to be established in the Office of the President and Cabinet
- Board members to declare assets and sign code of conduct
- No permanent secretary to be member of public enterprise board
- No person to sit on more than two public enterprise boards
- Boards to be appointed for four-year term
- Extraordinary meetings to be cleared by relevant permanent secretary
- Board resolutions to be submitted to the minister and signed by board chair, chief executive and corporate secretary
- Performance contracts for CEOs, other senior management in State enterprises, parastatals as well as council heads
- CEOs to report to permanent secretary regularly
