PRESS
BRIEFING ON PERFORMANCE AGREEMENTS BY THE MINISTER OF STATE ENTERPRISES AND
PARASTATALS, HONOURABLE GORDEN MOYO
Pursuant to the need to
ensure improved service delivery, public accountability and improved performance
in our Parastatals and State Enterprises, the Ministry of State Enterprises and
Parastatals is urging all Boards of State Enterprises and Parastatals to enter
into Performance Agreements with the Chief Executive Officers of the State
Enterprises and Parastatals they preside over and these must cover the current
year.
The Government as the
majority shareholder in State Enterprises and Parastatals would like to see
improved service delivery by SEPs. Boards of State Enterprises are key agents
of transformation of our state enterprises. They have the mandate to ensure
that an effective management team is in place for the respective entities they
lead. Boards also have the duty to monitor and evaluate the management team’s
performance on a regular basis.
In this regard, a Performance
Based Contract (PBC) template for CEOs of State Enterprises and Parastatals, has
been distributed through a Cabinet Circular to all State Enterprises and Parastatals
for implementation.
The objective of these Performance
Agreements is to clearly lay down the Board’s expectations from the outset,
agree on performance targets and indicators as well as modalities for the
evaluation of the performance of each public entity with the ultimate intention
of performance improvement and delivery of quality goods and services to the
people of Zimbabwe.
The Performance Agreements
are informed by the respective mandates, strategic plans of the entities as
well as work plans for an agreed period usually a financial year or budget year.
In addition, the Ministry of
State Enterprises and Parastatals, in conjunction with the Department of Modernization and
Administration in the Office of the President and Cabinet, is in the process of
finalising a Performance Agreement template that Line Ministries will use to
enter into performance agreements with the Boards that fall under their
respective jurisdictions. The agreements between Boards and the respective
Ministers are intended to provide for a broad understanding and commitment between the parties of what is to be achieved
annually and during the tenure of office of each Board.
A circular to this effect
will be dispatched to all State Enterprises and Parastatals through their
respective line Ministries in due course.
I would like to urge all
SEPs to review their Strategic Plans with the view to re-energize themselves
for the wider agreed targets consistent with the Government Medium Term Plan,
Restructuring Policy and Corporate Governance Framework.
Management of our public enterprises
competently, with integrity and with due regard to the interests of all the
citizens of this country is a key priority for Government.
Honourable Gorden
Moyo, (MP)
Minister
of State Enterprises and Parastatals
