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The crackdown on parastatal boards that are fleecing the state enterprises is most welcome. The state enterprises are failing to contribute money to the fiscus because of corruption, gross abuse of financial resources and poor corporate governance.

Board members of several parastatals face imminent dismissal as the government flexes its muscles to stem corruption through the National Code on Corporate Governance.

Last week alone the government fired the board members for the Civil Aviation Authority of Zimbabwe (CAAZ), Traffic Safety Council of Zimbabwe (TSCZ) and the Postal and Telecommunication Regulatory Authority (Potraz) whose board members gobbled about $249,000 in travel expenses and per diems within nine months.

The National Code on Corporate Governance came into effect in April and provides a framework for corporate conduct for both public and the private sectors. It was shocking that the Potraz board in just nine months had gobbled more than $249,000 on travel expenses and per diems attending meetings, most of which were not relevant.

What was happening at Potraz could be a tip of the iceberg of how parastatals are being run.

The Auditor General, Mildred Chiri’s audit report released recently showed gross financial mismanagement at most state enterprises. Among the parastatals that were found to be grossly abusing public funds is the Zimbabwe National Road Administration (Zinara).

According to Chiri’s audit report, Zinara could have prejudiced the government of more than $11 million after it failed to deduct $7,5 million being 10 percent withholding tax to 23 suppliers that had no tax clearance and went on to make a payment of $4,1 million to creditors without authorised payment vouchers.

The parastatal’s senior managers were paying themselves hefty monthly allowances including $9,000 holiday allowance per individual outside the payroll, thereby prejudicing Zimbabwe Revenue Authority of tax revenue.

Parastatals are supposed to play a critical role in turning around the economy but as long as they continue to be mismanaged as is the case now, they will continue to bleed the fiscus.

There is therefore urgent need to clean the rot within parastatals if the state enterprises are to contribute to the country’s Gross Domestic Product as they should.

The Auditor General’s audit report which had adverse reports for seven state entities that include Zinara, should be followed up with a view to bringing the culprits to book.

Board members that are involved in corruption and mismanagement of parastatals funds should not just be fired but should be sent to jail. Chief executives of the same parastatals should also face the music for gross incompetence. It is these chief executives who should ensure good corporate governance.

The government should therefore continue to crack the whip in order to get rid of all corrupt board members. Those found guilty should be punished severely to deter would be offenders. There is probably a need for government to recover some of the lost money from board members guilty of looting public funds.