... businesses fined, 33 executives arrested for defying government order
July 10, 2007
Police said more than 1,300 businesses have been charged and fined over the past two weeks for defying orders to slash prices in half, part of the government's attempts to reel in Zimbabwe's spiraling economic crisis.
State radio reported that 33 top company executives have been arrested since Friday and were expected to appear in court on charges of violating the order to cut prices and hoarding goods.
Shelves in stores across the country were bare of cornmeal, bread, meat and other staples Monday as police and government inspectors continued raiding shops and businesses.
Beef, a traditional favourite in the diet of Zimbabweans, disappeared from shops more than a week ago.
Police said 1,328 businesses charged with failing to heed government orders to cut prices of goods by 50 per cent were fined between Z$70 million and Z$100 million (US$4,600-US$6,600; €3,380 - €4,850).
The price cuts, ordered June 26, are seen as a desperate attempt to deal with inflation that has spun out of control. The sudden drop in prices has sparked panic buying, stampedes and near-riots by impoverished Zimbabweans.
Business closure
Business owners say the price cuts prevent their operations from being viable. Some stores have been forced to close their doors with no deliveries of basic foods.
Police Spokesman Oliver Man-dipaka said Monday the crackdown was "not a gimmick and will be sustained at all costs to stop consumers being ripped off".
Mandipaka appealed to rural villagers and farmers "to compliment government efforts by reducing prices of cattle so butcheries can operate viably".
Cattle herds already have shrunk drastically since the often-violent seizures and thousands of white-owned farms disrupted the agri-culture-based economy in 2000.
Cattle are a status symbol in impoverished rural communities and often are used as a dowry in marriages. It was unlikely villagers and black farmers who have re-settled on former white-owned land would heed Mandipaka's appeal.
Live goats were being sold in Harare but goat meat has not appeared in butcheries and supermarkets.
Women snapped up cabbages as they were delivered to one open-air market, Monday.
"It's something to put on the table anyway," said one woman who only gave her name as Olivia. She said two large cabbages of about 10 kilogrammes (20 pounds) could be made to last about a week.
Those arrested
Among businessmen arrested during the weekend were top executives of Edgars, a leading clothing and fashion retailer and super-market and gas station managers.
Also taken into custody were Michael Fowler and Zed Kou-danaris, directors of the main food distributor and fast food chain in Zimbabwe, and Gavin Sainsbury, chief executive of the country's biggest producer of pork products.
Fowler and Koudanaris pioneered popular branded bakery, pizza and takeout franchises in Zimbabwe, including Nando's, known for its chicken dishes.
Official inflation is running at 4,500 per cent, the highest in the world, though independent financial institutions estimate real inflation is closer to 9,000 per cent.
The government accuses business leaders of being part of a political and economic campaign of 'regime change' to bring down long-time ruler President Robert Mugabe.
In a speech to supporters Friday, Mugabe warned manufacturers not to defy the government-ordered price cuts by cutting production or their businesses would be seized.
Author: Gleaner Reporter
Source: Jamaica Gleaner
