Corporate governance key in the growth of public entities

By Tichaona Kurewa

GOVERNMENT says parastatals should uphold corporate governance as a priority for them to contribute meaningfully to the economic development of the country.

The Second Republic has recognised the importance of corporate governance, by putting in place an appropriate policy framework for implementation.

A corporate governance meeting for parastatals under the purview of the Ministry of Transport and Infrastructural Development held in Victoria Falls this Thursday saw the responsible Minister, Honourable Felix Mhona highlighting that transparency and accountability in financial matters is cardinal as it marshals the growth trajectory of public entities.

“The phenomenon of corporate governance has become a buzzword in all sectors including in the governance of transport and transport infrastructure. I urge you today, to willingly harness the utility of corporate governance through its implementation. This guidance comes against a backdrop of a clarion call for you to implement corporate governance, where year-in year-out the media has been awash with worrying reports of flouting corporate governance principles. Deriving from the targets prescribed in the NDS 1, we should adopt measures to ensure optimal implementation of corporate governance principles to turn around the performance of our Public Entities. With well-oiled Public Entities, we have no doubt that on-going transport and transport infrastructure upgrading in our country will proceed according to our various strategic plans as crafted and agreed to in Mutare during our Strategic Planning Workshop,” he said.

Deputy Minister of Transport and Infrastructural Development Honourable Mike Madiro outlined the objectives of the two-day meeting.

“Deriving from the foregoing, it is clear that the principal objective of today’s meeting is to assess the extent of compliance by Public Entities with various corporate governance legislative and policy frameworks. Accordingly, the meeting will assess the milestones so far achieved as a way of implementing corporate governance by Public Entities and the gaps which exist. Stakeholders will also be free to advise on the same ,with the view to ensure that the gaps are acknowledged and where possible addressed. If the gaps cannot be bridged, then it should be acknowledged with the view to ensure that the respective Boards shall, with the strategic policy direction from the Minister and of course assistance by stakeholders, work on such gaps to strengthen the attendant corporate governance regimes,” said Madiro.

The Ministry of Transport and Infrastructural Development has nine parastatals under its purview.