Prosper Ndlovu, Business Editor
GOVERNMENT will not appoint new boards for Zesa subsidiaries after the expiry of their terms today (June 11, 2018) in line with reforms taking place in State-owned enterprises and parastatals, a Cabinet Minister has said.
The parastatal reform process is set to result in dissolution, liquidation, absorption or mergers of State-owned entities as President Mnangagwa moves to cut expenditure by enhancing operational efficiency.
Speaking on Friday during the 12th Zesa Annual General Meeting in Harare, Energy and Power Development Minister, Simon Khaya Moyo, said there was no going back on the reforms, which have been agreed upon by Cabinet.
As such, he said, Zesa, which has been plagued by negative publicity due to inefficiencies in its operations as well as allegations of corruption in the selection and awarding of tenders, will be restructured.
The minister expressed dismay over the insolvent position of the sole power utility, which has made losses of more than $100 million.
He hinted that incompetent and corrupt officials would be offloaded from the entity as he directed the parastatal staff to work hard and transform the organisation’s image.
“Cabinet resolved that your organisation be restructured. As per the Cabinet decision, we are not going to appoint new boards for your subsidiaries after the expiry of their terms on 11 June 2018,” he said.
Under the new regulations, Zesa will now have one board to run the affairs of the entire organisation. Other subsidiaries include Zimbabwe Electricity Transmission and Distribution Company (ZETDC), Zimbabwe Power Company (ZPC) and Powertel.
Minister Khaya Moyo said he was discussing with his officials on the way forward about the matter and would make an announcement this week after consulting Cabinet.
“A team has been put in place to recommend a new structure to Cabinet. The team is chaired by the ministry and has been working tirelessly to map the way forward and should conclude their work in the next few weeks,” he said.
As such, the minister clarified that it was inevitable that there would be casualties because of the given changes, but said the effect will be minimal on operations.
“I announce that commercial aspects of Powertel are separating from the group and merging with Zarnet and Africom to become one big telecoms entity, which can hopefully hold its own against the stiff competition in that sector,” said Min Khaya Moyo.