The Ministry of Finance has directed all State-owned Enterprises to observe austerity Measures and to resolve their tax liabilities to the Zambia Revenue Authority ZRA as pointed out by the Auditor General.
Finance Minister Margaret Mwanakatwe has also directed that all SOEs not making profits must downgrade their travel class, adding that there is need for Performance Contracts and benchmarks between IDC and Boards.
She has further directed that No board chairpersons are to be accorded offices and personal to holder vehicles among other directives.
The Minister made the directives to ensure the success of the reforms made by the government for state owned enterprises and has threatened that boards and Chief executive officers that resist the reforms will be gotten rid of.
Hon. Mwanakatwe has expressed concern that some SOEs still depend on the government for protection and not taking their own steps to compete with the private sector and has commended those that have declared dividends for the year 2017.
She has named them as Indo Zambia Bank, ZANACO, Mulungushi Village Complex, Indeni and ZAFFICO and has congratulated the Zambia Consolidated copper mines investment Holdings ZCCM-IH and Zambia Railways for paying out dividends for profits made in previous years.
Some of the reforms that implemented are; for Ministers to let go of the power to appoint Boards and CEOs of SOEs and a change of mindset among others.
Ms. Mwanakatwe was speaking at the second Industrial Development Corporation Annual Group conference under the theme ‘driving reforms from within’