Bethel Bayanai and Tipei Kamunga
MINISTER of Finance and Economic Development, Professor Mthuli Ncube, yesterday officially launched the Public Entities Corporate Governance Act (PECG Act) at the Harare International Conference Centre.
Prof Ncube said the launch came at a crucial time when it is widely acknowledged that the traditional way of running State Enterprises and Parastatals (SEP’s) was no longer an option as there was increasing evidence that better governance of SEPs was central to the development of successful nations.
Mthuli Ncube said SEPs were assets managed by the government on behalf of the public, as such, they were expected to perform and meet expectation.
“The government needs to ensure that these entities create value for society and are managed professionally and transparently.
“SEPs are being used more than ever as agents of developmental strategies as they are key drivers of social and economic prosperity and they help sustain political stability.
“Our economic prosperity is, to a large extent, dependent on the capacity of our SEPs,” Prof Mthuli said.
He assured the nation of a well-defined and functioning corporate governance system which helps entities to attract investment, raise funds and strengthen foundation of their performance.
“The SEPs therefore need to operate in an environment which requires compliance with good corporate governance practices,” Prof Mthuli said.