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Gono warns against price blitz
13/07/2007 14:09 - (SA)
Harare - Zimbabwe's central bank chief has warned a crackdown on breaches of price controls could blow up in the government's face, comparing it to the US invasion of Iraq, a private newspaper reported Friday.
"Let's avoid the law of unintended consequeces in the action government has taken which will leave the country in a worse-off position than now," the Zimbabwe Independent quoted Reserve Bank of Zimbabwe governor Gideon Gono as saying in a leaked letter to the government.
Supermarkets are running empty, scores of commuter buses have been impounded and more than 2 700 bosses arrested in the past fortnight after the government deployed inspectors to ensure compliance with an order to slash prices.
Launching the crackdown, Industry Minister Obert Mpofu accused some firms of profiteering and colluding with President Robert Mugabe's foes in the west to plot his downfall by igniting popular revolts by hungry Zimbabweans.
But Gono, seen as one of Mugabe's closest lieutenants, said the government should "avoid the trap of temporary victory and instant gratification that backfires with consuming return-fire from both the business community and consumers alike".
"Let's avoid what in contemporary strategy has become known as the US/Iraq syndrome where the US, backed by its allies went into Iraq without an exit strategy," he added.
Mugabe has warned his government would seize and nationalise firms which refuse to toe the line and received the backing of his ruling party top brass.
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Zimbabwe Special Report
