Govt welcomes salary cap lawsuits


FINANCE minister Patrick Chinamasa has said the government would welcome lawsuits on the $6 000 salary cap for heads of local authorities, parastatals and State enterprises saying they would provide a public platform to discuss the matter.


Addressing journalists at a press briefing on Wednesday evening, Chinamasa said there were companies that would be reviewing upwards and downwards after the remuneration audit.

“The $6 000 is an interim measure merely so that we stop the haemorrhaging that was taking place and this will be the case until we have done the remuneration audit entity by entity. When we have done the remuneration audit and we are clear about the entity’s capacity to pay for it, then we come up with recommendations which Cabinet will adopt,” he said.

“And then you will find that we would make adjustments upwards and downwards. There are already companies which I will be adjusting upwards given their capacity; given also the complexity of their work and their size. There are already companies that clearly qualify for upward adjustment.

“There are also entities which will clearly, if we temporarily put them at $6 000, may actually fall below because you must pay your way. We want the parastatals to pay their way. They used to contribute 40% to the gross domestic product, now they are an albatross around my neck which is why I challenge any of them to go to court.”

Chinamasa said he would not be surprised that those who go to court are actually the big entities which are an albatross around his neck.

“I will very much welcome anyone taking us to court because it will give us a clear public platform to discuss these issues. If it is me who has been misled I will make the apologies, but we must be honest when discussing these issues. We have not been honest to each other,” he said.

Chinamasa said the government had come up with a governance framework “which basically says this is how we are going to run the company”.