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More arrests after price freeze
07/07/2007 14:14 - (SA)
Harare - Zimbabwe police arrested 17 more
business executives for defying an official price freeze, as the
ruling party endorsed the government's tough stance on
businesses, state media reported on Saturday.
President Robert Mugabe's government last week ordered
prices of basic goods and services slashed by half and deployed
a crack enforcement unit, which has arrested more than 200
business people for breaching the price controls.
The move, which sparked panic buying from shoppers who
rapidly emptied shop shelves, was taken after prices of many
goods tripled within a week.
Inflation, the highest in the world, has rocketed above
4 500% while four in five adult Zimbabweans are jobless.
The official Herald newspaper reported on Saturday that 17
more top company executives were arrested on Friday in Harare
and Bulawayo for offences ranging from failing to display prices
to overcharging.
Warning of broader crackdown
Those arrested include managers at fuel
stations, who were also ordered to cut prices.
Police spokesperson Oliver Mandipaka warned of a broader
crackdown on more business people and black market vendors, who
are enjoying roaring trade as consumer goods have become scarce
in formal shops.
"As law enforcement agents, we are committed to dealing with
insensitive business people and such elements bent on fuelling
the parallel market," Mandipaka said.
"Those people who work in cahoots with economic saboteurs
will have themselves to blame because our crack teams will be
conducting sporadic raids on all individuals who sell basic
commodities in front of shops and in their backyards at
exorbitant prices."
Tigher measures
Industry and International Trade Minister Obert Mpofu, who
ordered the price freeze last week, told the Herald the ZANU-PF
central committee - the ruling party's policy-making body - had adopted plans for tighter price measures.
On Friday, the government formally issued a legal instrument
for the price freeze, which requires businesses to seek the
industry minister's approval before raising prices.
Most shops have run out of basic goods such as sugar, salt,
bread and beef as shoppers rushed to stock up, fearing shortages
as the price freeze takes effect.
With most shops virtually emptied of basic goods, the
attention of bargain-hunters has turned to clothing shops, which
have also been ordered to cut their prices.
The country's leading clothing retailer, South African-owned
Edgars Stores Limited, announced on Saturday it had cut all
prices by 50%, triggering a stampede at its outlets.
'Economy sabotaged'
Mugabe, facing growing pressure from the crisis, has accused
firms of raising prices as part of a plot to unseat him.
The 83-year-old leader has threatened to seize and
nationalise foreign companies, including mines, he accuses of
working to sabotage the economy as a means to unseat him.
Mugabe, Zimbabwe's sole ruler since independence from
Britain in 1980 who says he will seek re-election in 2008, has
charged that the economy has been sabotaged by his Western foes,
led by Britain.
- Reuters
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Zimbabwe Special Report
