Business / Companies
State enterprises cited a the missing link
03 Nov 2015 at 03:27hrs | Views
Zimbabwe's 78 state enterprises and parastatals have been cited as the missing link in fostering economic growth as they are riddled with huge debts.
The enterprises continue to bleed the fiscus and have failed to register profits for over 15 years with the Auditor General continuously citing poor service delivery.
The government has so far inherited over US$5 billion of parastatals' debt but nothing has changed as the state enterprises continue to make losses.
At their peak during the 1990s, state enterprises used to contribute 40 percent to the gross domestic product GDP, but something appears to have changed.
Parastatals are grappling with high overheads and inter-parastatal debts with the chief cause being identified as mal-administration, corruption and lack of good corporate governance.
The enterprises continue to bleed the fiscus and have failed to register profits for over 15 years with the Auditor General continuously citing poor service delivery.
At their peak during the 1990s, state enterprises used to contribute 40 percent to the gross domestic product GDP, but something appears to have changed.
Parastatals are grappling with high overheads and inter-parastatal debts with the chief cause being identified as mal-administration, corruption and lack of good corporate governance.
Source - zbc
