Public corporations/ Parastatals

Features

• Established by an act of parliament.
• Provides essential goods and services e.g. transport (NRZ)
• The main aim is to provide essential services at affordable prices.
• Have no profit motive.
• Are separate legal entities which can sue or be sued in their own name.
• Are owned by the government on behalf of the public.
• Are controlled by the government through a minister.
• Are run by a Board of Management appointed by the government or relevant minister.
• Chairman of the board of management runs the affairs of the parastatal on a day to day basis.
• The government provides the initial capital by selling stocks and bonds or gilt-edged securities
• Policy decisions are made by the government.
• Subsidised and given grants by the government.
• Surpluses made can be re-invested.
• Audited financial results are debated in parliament and published annually in the public media.

Public utility corporations.

• Provide essential goods and services.
• They provide transport (NRZ and ZUPCO), water (ZINWA) and electricity (ZESA) cheaply.

To access more topics go to the Commerce Notes page.