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Mugabe orders price cuts
19/03/2008 22:05 - (SA)
Harare - Zimbabwe President Robert Mugabe has ordered retailers to revert to prices prevailing a week ago when he hiked teachers' wages, state radio said on Wednesday.
A similar order in June last year resulted in police and price inspectors enforcing a 50% price slash that emptied stores and factories of goods and led to chronic shortages of most basics.
Last week, Mugabe - who is seeking re-election in March 29 polls - hiked salaries of teachers, who form the bulk of the civil service, to Zim$3.4bn from Zim$300m.
Mugabe told ruling party supporters at a rally in Chinhoyi in Mashonaland West province that retailers and manufacturers should reduce prices to what they were before the pay hike.
"President Mugabe noted that businesses had developed a tendency of effecting price increases on goods and services each time civil servants are awarded salary increases," the radio report said.
"He said such a move is intended at creating dissent among civil servants whose incomes are immediately eroded," it added.
Prices of many goods go up on a daily basis, and few storekeepers adhere to price controls. During last year's price blitz, more than 23 000 company officials and business owners were arrested for flouting the controls. - Sapa-dpa
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