News / National
'Pay cuts for parastatal bosses'
21 Dec 2013 at 00:55hrs | Views
GOVERNMENT is developing a framework that will regulate salaries, especially for top management in parastatals and local authorities as a way of reducing employment costs in those entities.
This is contained in the proposed 2014 national budget presented by Finance Minister Patrick Chinamasa in Parliament on Thursday.
There are indications that top management at some entities were paid salaries and allowances that were too high, in the process suffocating the entities.
The development is likely to see pay cuts of top management at loss-making entities.
Minister Chinamasa said Government was concerned by employment costs that were higher than what these entities generated.
Some of them resorted to bank overdrafts and loans to sustain the salaries.
He said salaries of some of the top management were financed from commercial borrowings as they did not have the capacity to generate the salaries.
As a result, he said, Government ended up bailing out such entities through debt assumption and budget appropriations.
This is contained in the proposed 2014 national budget presented by Finance Minister Patrick Chinamasa in Parliament on Thursday.
There are indications that top management at some entities were paid salaries and allowances that were too high, in the process suffocating the entities.
The development is likely to see pay cuts of top management at loss-making entities.
Minister Chinamasa said Government was concerned by employment costs that were higher than what these entities generated.
Some of them resorted to bank overdrafts and loans to sustain the salaries.
He said salaries of some of the top management were financed from commercial borrowings as they did not have the capacity to generate the salaries.
As a result, he said, Government ended up bailing out such entities through debt assumption and budget appropriations.
Source - herald
