PLEASE NOTE:

MyNews24 is a user-generated section of News24.com. The stories here come from users.

 
Donald Henderson
 
Comments: 3
Article views: 1137
 
 
Latest Badges:

 
View all Donald Henderson's badges.
 

Dark days ahead in the north

06 February 2014, 16:00

While the economic woes of South Africa continue to frustrate, the troubles to the north have reached a critical stage in its most recent continuing economic downward spiral.

Since Mugabe's ZANU(PF) party stepped into full control in the general elections of last year they have reintroduced all their party faithfuls into top positions. These same fairweather politicians were responsible for overseeing the economy's demise when inflation reached an unbelievable 231 000 000 percent and the Zimbabwe dollar was scrapped in favour of a basket of currencies - the US dollar, the SA rand and Botswana's pula - which worked for a while.

Now, however, the country is in deep economic trouble again. Industry has all but collapsed and the commercial sector is suffering which means that exports are down. This all adversely affects the government's tax income. And with a huge civil service and no money coming in the Zimbabwe Government cannot pay its massive wage bill. Add to that rampant corruption and the picture darkens.

In a desperate move recently the government added three more currencies to its legal tender basket – the Chinese yuan, the Japanese yen and the Indian rupee. None of this, however, will make one iota of difference as it doesn't address the core of the problem. Government is already borrowing in a frantic effort to make ends meet but that debt will have to be repaid. And as the country cannot produce the currencies of their legal tender basket fears are that the Zimbabwe dollar may have to be reintroduced. That is not a pleasant thought for anyone concerned but it seems at this stage to be inevitable. The opportunity to print money will be too great to resist for this government in dire straits.

There are many causes for this economic stalemate, but high on the list is the fact that the country is not being ruled. Mugabe, by all recent accounts, has serious health problems. The government ministers are vying for positions for the eventuality of life without Mugabe. And senior servants are ripping everyone off by claiming astronomical salaries.

For years Mugabe has sidelined professionals in the civil service and employed cronies or relatives. Now all the parastatals are on their knees. This, however, has not stopped individuals from benefitting: Cuthbert Dube, head of the Public Service Medical Aid Society, has a US320 000 basic monthly salary – R3 520 000 - is entitled to US$ 500 000 long service award every five years, $50 000 travel allowance per trip and another $20 000 for his partner, unlimited fuel and free medical aid.  

Harare City officials jumped on the bandwagon when a contract to refurbish water and sewage plants was awarded to a Chinese company. The money was loaned by the Chinese Government and the council officials have inflated equipment prices and benefitted to the tune of $100million. This from a council whose town clerk and 18 managers were earning $500 000 a month.

The Zimbabwe Government is in deep economic trouble and, despite the praises by other African leaders in the African Union, Mugabe is the heart of the problem. His illness has weakened whatever control he had over the blatant opportunist thieves he has placed in government departments and parastatals.

The huge debts run up are now crippling the economy and, without a revitalised industry sector and export benefits, there is little hope of a turn around in fortunes.

The former chancellor, Tendai Biti, commenting recently on the state of the country's finances, said that “there is no government as it is clueless, impotent, sterile and indifferent”. This appears to be close to the truth and with little hope of investors coming to the rescue the immediate future looks bleak.

It looks like a case of “watch this space”.

Disclaimer: All articles and letters published on MyNews24 have been independently written by members of News24's community. The views of users published on News24 are therefore their own and do not necessarily represent the views of News24. News24 editors also reserve the right to edit or delete any and all comments received.
 

Read News24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
3 comments
Add your comment
Comment 0 characters remaining

Read more from our Users

Submitted by
A Groovy Trooper
3 Every Hour

I would just like to highlight the fact that, according to the latest murder stats, we lose 47 South Africans to murder EVERY SINGLE DAY. That's 329 per week. 1,316 per month. Read more...

10 comments 712 views
South African can crime can still...

The crime stats (2013/2014) have been released today and it is shocking. I am not going to consider the figures as they are not reliable because the stats are based only on reported figures. Read more...

13 comments 403 views
Submitted by
Manthole Morwa Kgwedi
“The forgotten transport infrastr...

The problems resulting from transport externalities have become a world-wide contested concern.  Read more...

3 comments 425 views
Submitted by
hzcummi
The Truth of Genesis: Another App...

Over 244 million years ago, Yehovah created the first known birds, other flying creatures, and the dinosaurs of the sea, which Moses called “sea monsters”.  Read more...

54 comments 989 views
Submitted by
Siiphamandlah
Open Letter to “OUR” Politicians ...

It comes with great sadness and distaste to realize that our institution(s) have become a platform for releasing personal frustrations and settling old scores. Read more...

2 comments 385 views
Submitted by
ohomen171
Before Sending Human Colonists To...

It's about three groups of people who decided to forsake normal civilized life and got to live on the island of Floreana in the Galapagos Islands. Read more...

11 comments 719 views

Jobs in Cape Town [change area]

Property [change area]

Travel - Look, Book, Go!

Magical Massinga

Spend 5 nights at the gorgeous Massinga Beach Lodge in Mozambique and only pay for 4 from R13 220 per person sharing. Includes return flights, accommodation, transfers and romantic turndown. Book now!

Kalahari.com - shop online today

Pre-order your iPhone 6 at kalahari.com

Hurry and pre-order your own iPhone 6 now at SA’s favourite online store!

Bargain box – 60% off

Reduced prices, very limited stock. While stocks last. Hurry and shop now!

Mind blow low prices on electronics

Get either the Prestigio multiphone or Proline tablet 7” tablet for only R699. Offers valid while stocks last. Shop now!

30% off Barbie toys

Save 30% on all Barbie toys and accessories. Offer valid while stocks last. Shop now!

Baby extravanganza month at kalahari.com

Celebrate baby month with a wide range of awesome baby products. Offers valid while stocks last. Shop now.

OLX Free Classifieds [change area]

Samsung Galaxy s4

Mobile, Cell Phones in South Africa, Western Cape, Cape Town. Date October 24

Best bargain in big bay

Real Estate, Houses - Apartments for Sale in South Africa, Western Cape, Cape Town. Date October 25

VW Golf 6, 1.6 Trendline (Excellent condition)

Vehicles, Cars in South Africa, Western Cape, Cape Town. Date October 25

 

services

E-mail Alerts The latest headlines in your inbox

RSS feeds News delivered really simply.

Mobile News24 on your mobile or PDA

E-mail Newsletters You choose what you want

News24 on your iPhone Get News24 headlines on your iPhone.

SMS Alerts Get breaking news stories via SMS.

Blogs Your opinion on you, me and everyone.

Calais Website keywords automated by OpenCalais.

 
Interactive Advertising Bureau
 
© 2014 24.com. All rights reserved.
There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.








Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.