Govt bans business-class travel for CEOs of loss making parastatals

Secretary to Cabinet Roland Msiska during Youth Day celebration-Picture by Tenson Mkhala

Government has ordered all chief executive officers of loss making state owned companies to stop travelling business class as part of austerity measures.

And government has abolished personal to holder motor vehicles for all employees in state owned institutions.

In the Cabinet Office circular minute of 2018 disbursed on July 24, Secretary to the Cabinet Dr Rowland Msiska stated that CEOs of loss making state owned companies were only allowed to travel business class if the flights were more than six hours to the destination country.

“Reduce expenditure to both local and foreign travel and workshops to cut down on the cost of running government. Henceforth, chief executive officers of loss making state owned companies and statutory bodies shall travel economy class on flights not more than six hours to the destination country, and business class on flights of more than six hours to the destination country. All their subordinates will travel economy class. The maximum size of the delegation accompanying the chief executive officer shall not be more than five officers,” Msiska stated in the circular which was addressed to the board chairman of the Industrial Development Commission and copied to the Office of the Vice-President, deputy secretaries to the Cabinet, Secretary to the Treasury, State House principal private secretary, the Auditor General and all permanent secretaries.

“Only chairpersons of boards and chief executive officers of profit making state owned companies and statutory bodies shall travel business class; the Industrial Development Corporation shall institute strict cost cutting measures for the state owned companies, statutory bodies which are non-revenue generating institutions will be required to demonstrate efficient financial management to reduce wasteful expenditure as key performance indicator. Chief Executives of institutions registering high wasteful expenditure and audit queries shall not be allowed to travel business class when undertaking any foreign trips.”

And government abolished personal to holder motor vehicles for all employees in state owned institutions.

“Reduce expenditure on maintaining the motor vehicle fleet by disposing off excess vehicles and abolishing personal-to-holder motor vehicles for all employees in all state owned companies and statutory bodies in line with the government policy to be advised by the Ministry of Works and Supply…the Industrial Development Corporation to immediately implement the directive to relook at the portfolios with a view to attract equity participation for the ones that are viable,” stated Msiska.

Meanwhile, Msiska also stated that government would halt the contraction of all pipeline debt as well as cancel some contracted loans which had not yet been disbursed, to reduce the debt burden.

He stated that the Ministry of Finance would only finance projects which were 80 per cent complete.

         

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