Corporate Governance Bill at draft stage — minister
GOVERNMENT is finalising drafting of the Corporate Governance Bill for Public Enterprises which is expected to be presented in Parliament before July this year, Finance and Economic Development Minister Patrick Chinamasa said yesterday.
He was reacting to recommendations by the Public Accounts Committee on the findings of the Auditor General on the 2013 Appropriation Funds and State Enterprises and Parastatals Accounts.
“The executive is finalising a draft Corporate Governance Bill for Public Enterprises that will govern the appointment of board members and senior managers, clarify roles and responsibilities and provide for the declaration of assets by each public enterprise board member,” said Minister Chinamasa.
“The Bill should be presented to parliament during the first half of 2017 as the drafting is at an advanced stage,” he said.
Minister Chinamasa said they were also crafting public finance management regulations and would be available for the Auditor General’s comment before the end of April.
He said Government had directed accounting officers of various public enterprises at the beginning of the year to appoint audit committees as required under the Public Finance Management Act.
“All emoluments to executives and senior managers are now fully reflected on the payroll. In addition these, as well as payments to board members, are now subject to appropriate taxation,” he added.
Minister Chinamasa also said there had been an improvement in remittances of statutory and contractual obligations by public enterprises following concerns raised by the committee on failure to remit these.
He said Government would continue investing in training of accounting officers to ensure executives and management met set guidelines and timelines.
“I agree with the committee’s recommendations on compliance, timelines and the need for disciplinary measures to be taken where there are transgressions. There has been some improvement, achieved mostly through considerable investment in training at the processing as well as the supervisory level,” he said.