Zimbabwe

Zim diamonds to pay raises - report

2011-07-25 14:47

Special Report

Mugabe shrugs off concerns over AU-West relations
Mugabe shrugs off concerns over AU-West relations

Zimbabwean President Robert Mugabe has shrugged off concerns that his appointment as new African Union chairman will harm relations between the pan-African bloc and the West.

Harare - Zimbabwe's state media has reported that the state mining corporation says it is paying government employee raises this month with revenues from controversy-mired diamond fields in eastern Zimbabwe.

The Finance Ministry, controlled by the prime minister's party in the troubled coalition, has said it didn't have the money from taxes to pay wage hikes.

But media loyal to President Robert Mugabe reported on Monday that the head of Mining Development Corp, Goodwills Masimirembwa, said it was paying raises to some 200 000 state employees. The raises add an estimated $40m to the monthly salaries tab.

Mugabe has called for early elections to end the coalition and in April promised raises to teachers and other civil servants who had threatened strike action.

- SAPA

Read more on:    robert mugabe  |  zimbabwe  |  southern africa  |  blood diamonds
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