Zimbabwe’s government has slashed the salaries and benefits for the heads of state companies after they surged to as much as $535,000 a month.
With immediate effect the salaries of heads of state-owned enterprises have been capped at $6,000 per month including allowances, Finance Minister Patrick Chinamasa said at a news conference yesterday. The move is an interim measure, pending finalization of the pay structure, he said in Harare, the capital.
Information provided by the ministry shows that Cuthbert Dube, the head of Premier Medical Aid Society, was earning $535,499 a month, with $230,000 of that coming in the form of salary and the rest in benefits before his suspension in January. At the same time the government has had to delay a pay rise promised to government workers in January because it doesn’t have the money. Most state workers earn less than $500 a month.
“These figures show how obscene, outrageous, morally outrageous amounts were being paid,” Chinamasa said.
This year Zimbabwe’s state-controlled newspapers have exposed alleged fraud and inflated salaries at a series of government-owned companies including Air Zimbabwe and the Zimbabwe Broadcasting Corp.
Pay and benefits for the heads of 28 other state companies ranged between $7,388 at Air Zimbabwe, the state airline, to $43,693 at NetOne, a telecommunications company.