Compliance monitoring for State owned firms

By ZBC Reporter
GOVERNMENT will with effect from next year continuously monitor state-owned enterprises’ compliance with the Public Entities and Corporate Governance Act to facilitate transparency in operations.
According to a treasury report, State-owned Enterprises (SEP) used to account for more than 40 percent of the country’s gross domestic product but that has over the years fallen to below 10 percent.
The government has therefore introduced reforms to restore confidence, with the new Public Entities and Corporate Governance Act expected to create transparency.
Permanent Secretary for State Enterprise Reform and Corporate Governance Unit in the Office of the President and Cabinet, Willard Manungo says with effect from next year the utilities will be regularly monitored.
“We really expect compliance with the new act as we seek to increase profitability for these entities,” said Manungo.
The Act seeks to, among other things, set up the requirements for good governance of SEPs and ensure that they operate optimally to fulfil their mandates.