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Chaos in Zim price crackdown
01/07/2007 15:14 - (SA)
Angus Shaw
Harare - Government inspectors and plain clothes police raided shops and supermarkets on Sunday to enforce price cuts. Hundreds of shoppers swarmed over shelves grabbing "bargains" in growing price chaos across the country.
Store managers tried to limit shoppers to two items of soap, foodstuffs, milk and other goods, but inspectors yelled at till operators to clear the chaotic crowds.
"I've got bargains here," said Aenias Mativenga, a Harare cook, his arms laden with packs of tea, frozen chicken and cartons of cookies, jostling at the checkout.
The official media reported on Sunday at least 20 business executives were arrested in the weekend crackdown against overpricing, hoarding of goods and violations of price-reduction orders.
Bread and the corn meal staple disappeared from most shelves on Saturday as stores complied with a government directive to halve the prices of basic commodities.
But state price inspectors ordered stores they raided on Sunday to slash the prices of all perishable goods, said one exasperated store manager.
"There'll soon be nothing left and we'll be closing," he told people converging on the store. Bargain seekers streamed across the nearby highway as word of the new reductions spread.
Inspectors and police forced their way into store rooms and demanded additional stocks be put on sale, some still in cartons, accusing managers of hoarding price-controlled products, possibly to sell on the illegal black market.
A Harare bakery reduced its loaves, rolls and cakes to handwritten prices displayed on scraps of receipt paper.
On Saturday, private security guards averted a riot at a downtown Harare store that was forced to put scarce sugar on sale at a third of the black market price.
In the crumbling economy, sugar and cooking oil have mainly been available only from illegal black market dealers for several months.
Crowds fought for sugar in Harare on Saturday, tearing open many of the packs and spilling the contents underfoot.
Police were also called to a cash and carry business in western Harare after a bread delivery truck was seen driving into the yard.
It brought 80 loaves of the company's regular 2 000-loaf order.
"We gave it away to our staff rather than have an invasion," said a manager who asked not to be identified, fearing the premises would be targeted by angry shoppers.
The state Sunday Mail, a government mouthpiece, said those arrested included a senator in the legislature and 20 others accused of ignoring price cuts.
A near stampede occurred at one store where a computerised pricing system crashed as its pricing program was adjusted.
"We want retailers to know that we are serious and committed to carrying out the directive on prices. We are continuing the crackdown," the newspaper quoted an unidentified government spokesperson saying.
On Tuesday, the government began a program to halt runaway prices, ordering the highest reduction of 70% on scarce gasoline. When fuel ran out, gas stations did not receive more supplies. Most other prices were cut by around 50% to the levels they had been on June 18. The government said any adjusted prices would now need to be approved.
In the worst economic crisis since independence in 1980, Zimbabwe faces official inflation of 4&Nbsp;500%, the highest in the world, though real inflation is estimated at closer to 9 000%.
Industry Minister Obert Mpofu on Thursday extended price reductions to rents and almost all manufactured products.
"Reports are that some businesses are resisting this order. We are going to deal with them accordingly. We are going to arrest them," he told The Sunday Mail.
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