State enterprises and parastatal bosses who illegally awarded themselves salary increments ranging between US$15 000 and US$20 000 have taken a pay cut and are now taking home a monthly pay of US$5 000. Speaking during an induction guidelines seminar for State enterprises and parastatals' board secretaries held in Harare yesterday, State Enterprises and Parastatals Minister Gorden Moyo said the salaries were not sustainable.

He said line ministries did not approve the criteria used to effect the hefty salaries.

Minister Moyo said Government had since moved in to regularise the situation.

Out of the 30 major parastatals in the country, Minister Moyo said, only two were yet to comply with Government set standards.

"Those salary increments were illegal and outrageous and were not approved by the line ministries. We have regularised that anomaly and for the past two months they have been complying with Government set standards of between US$3 000 and US$5 000," he said.

He said they would constantly monitor the situation as Government had crafted a remuneration policy for all State enterprises and parastatals.

Minister Moyo said the policy would spell out a salary framework for all people working in State enterprises and parastatals.

"We are now developing a comprehensive remuneration policy, not just for the chief executives but it will apply in the entire sector. We want proper consultations with the State enterprises and this will take some time," said Minister Moyo.

He said parastatals were key drivers of the economy and should maintain high levels of good corporate governance.

He said Government was restructuring parastatals and monitoring implementation of the results-based management programme as a way of revamping the institutions.

He bemoaned political interference in operations of public institutions, which he said was hampering the work of board secretaries.

Deputy Chief Secretary to the President and Cabinet Dr Ray Ndhlukula said State enterprises had the capacity to contribute 40 percent to the country's Gross Domestic Product.

He, however, said the success of the institutions hinged on the governance framework.

"In this regard, the Government of Zimbabwe launched the Corporate Governance Framework for State Enterprises and Parastatals which addresses issues of reporting lines, responsibilities and relationships among key stakeholders in the management and administration of State enterprises and parastatals," he said.

Dr Ndhlukula said service delivery by State enterprises and parastatals was a key issue that needed to be addressed.