HARARE - Cabinet yesterday declared that chief executive officers in parastatals should not receive a salary of more than $6 000.
This comes at a time when the government has initiated an audit of all parastatals, warning those who awarded themselves remuneration unprocedurally and illegally will be forced to pay back the cash.
Patrick Chinamasa, Finance minister and chair of the Cabinet Committee on State Enterprises and Parastatals Development, told a news conference at Munhumutapa Building - the citadel of governmenmt power in Harare - that Cabinet has resolved to slash parastatal bosses’ salaries.
“Accordingly and with immediate effect, Cabinet has decided as an interim measure, that no chief executive officer of any state enterprise, parastatals or local authority should receive a total pay package (salary plus benefits) which is above $6 000,” Chinamasa said.
“Accordingly therefore salaries should be immediately cascaded downwards in each organisation. However, the lowest paid employee should not fall below the poverty datum line.”
Cuthbert Dube, former Premier Service Medical Aid Society was the highest earning executive taking home $535 499 per month.
Chinamasa said government will also instigate investigation on parastatal board fees.
“In the same vein, Cabinet has resolved that investigation be carried out to ascertain the extent of board fees and other emoluments paid to chairpersons and members of the boards of state enterprises and parastatals and member of the local authorities so that on the basis of information received, corrective action can be taken,” he said.
The Finance minister said if the audit reveals remuneration awarded illegally and unprocedurally, those responsible will pay.
“When the results come to the committee, we will take appropriate decisions on remuneration that was awarded unprocedurally, illegally and immorally," he said. "The audit will throw up information and all the remuneration that was awarded illegally and unprocedurally will be paid back.
“The direction we are taking requires us to clean up these institutions and to clean up we have to take the appropriate action. We will not hesitate, as the cabinet and the committee, to deal with these elements that awarded themselves immoral and illegal remuneration.”
Asked to explain whether any of the CEOs will be charged, Chinamasa said: "A crime is a crime. Where it is clearly stated that a CEO’s salary should be awarded by the board and you have the CEO and the chairman conniving, then that is corruption. It can be taken to the court. We can actual charge them under the Prevention of Corruption Act.”