State entities defy govt directive
PHILLIMON MHLANGA
Government is mulling coming up with legislation that compels State entities to submit audited financial statements amid revelations a number have defied a directive to submit accounts, deputy chief secretary for Policy Analysis, coordination and development Planning in the office of the President and Cabinet, Willard Manungo has said.
Manungo made the revelation on Tuesday this week at the Chartered Governance and Accountancy Institute in Zimbabwe awards ceremony held in the capital Harare.
He said State entities are failing to comply with regulations to submit annual audited financial statements which is against the tenets of good corporate governance.
“In response to some of these ills, as a government, we may come up with laws and regulations, like we did for example with the Zimbabwe national code on Corporate governance (Zimcode) and the public entities corporate governance Act.
State entities have been struggling to keep their books of accounts up to date, resulting in the government continuing to lose billions of dollars of public funds due to weak implementation of the Public Finance Management Act.
It comes at a time when there are widespread acts of corruption and mismanagement of resources at State entities.
Manungo said corporate governance scholars have argued that regulations are not the best monitor in corporate governance. This is because sound and effective corporate governance cannot rely solely on the legislative framework, but rather requires self- discipline and the proper execution of duties by directors, checks and balances and the promotion of a clean corporate culture, he said.
Manungo said corporate governance was not only beneficial for individual entities, but was also of vital importance to maintaining the credibility, stability and competitiveness of the economy.
He said: “As we march towards realising vision 2030 good corporate governance is not an optional extra, but an essential element as it will serve to attract and retain investment and thus stimulate economic growth.
“Good corporate governance is vital for sustainable economic development as the theme aptly puts it, because it holds the key to building stable and secure societies and to driving inclusive growth.”
