Zimbabwean State Enterprises Minister Gorden Moyo said Tuesday that the government has decided to stop financing all state enterprises and parastatals that do not adopt more reasonable pay scales for top executives earning at least US$10,000 a month.
Moyo said parastatals and state companies without audited books and annual plans will be deprived of funding to force them to slash big salaries earned by top executives.
The minister said the Cabinet agreed recently that the salaries of the top executives must be reduced from US$10,000 to between US$3,000 to US$5,000 a month.
Moyo said salaries earned by top executives are unjustifiable. “The majority of private firms making profits are not paying their executives such huge sums of money,” he said.