The government on Friday gazetted The Public Entities Corporate Governance Bill which seeks among g other things to introduce salary caps for workers of public entities. Under the bill, heads of parastatals, State enterprises and local authorities will sign per4fomance related contracts and will be liable to prosecution and seizure of assets if they contravene conditions in their contracts. The bill is proposing the creation of a Corporate Governance Unit in the Office of the President and Cabinet.
Part of the Gazette reads:
Similarly, it will regulate the conditions of service of chief executive officers and other senior staff members of public entities and will allow their remuneration to be limited.
It will give effect to the National Code on Corporate Governance Zimbabwe (ZimCode) to the extent that it applies to public entities.
Section 25 (6) reads, “If a person, having entered into a performance contract in terms of this section, contravenes a condition referred to in subsection (3) or any other condition of the contract – (a) notwithstanding anything to the contrary in the enabling instrument of the public entity concerned, the contravention shall be a ground for removing the member from office;
(b) whether or not the member has been removed from office, the line minister or the public entity concerned may by proceedings in a competent court recover from him or her, as a debt due to the entity –
(i) the amount or value of any damage or loss suffered by the entity as a result of the contravention; and (ii) the amount or value of any profit or advantage that accrued to him or her or to any other person he or she intended to benefit through the contravention.
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