[QODLink]
Africa
Zimbabwe arrests over price curbs
Basic goods disappear as businesses defy government price controls.
Last Modified: 09 Jul 2007 18:03 GMT
Goods such as cooking oil, maize meal, salt and sugar have vanished from shop shelves in Harare [AFP]
More than 1,300 shop owners, managers and company executives have been arrested for defying a price cut ordered by the Zimbabwe government, police say. 

On Monday, 33 executives appeared in court charged with a range of offences including failing to display prices and ignoring the government order.
Most of them pleaded guilty to violating price control regulations and were ordered to pay fines of three million Zimbabwe dollars - $23 at the black market exchange rate or $200 on the official market.

Hundreds of businesses have been fined since the controls were introduced on June 25.
Obert Mpofu, Zimbabwe's industry minister, ordered businesses to halve the prices of goods and services in a bid to curb inflation which is sprialling above 4,500 per cent, but the announcement has been widely ignored.
  
Production stopped

Many manufacturers say the government-set prices mean they cannot cover their costs and have stopped production, leading to wide-spread shortages of basic goods such as cooking oil, maize meal, sugar and salt.

Economic analysts have predicted that the items will resurface on the black market at even higher prices.

Oliver Mandipaka, police spokeman, told the official Herald newspaper on Monday that a wider crackdown on business people and black market vendors was planned.

"We will continue to arrest anyone who will defy the government imposed controls on basic food comodities. We will not stop until there is order in the business community," he said.

On Saturday, Morgan Tsvangirai, the leader of the Movement for Democratic Change opposition party, called the price controls and subsequent crackdown "crooked economics" and "an election gimmick" ahead polls due to be held next year.
Source:
Agencies
Topics in this article
Country
Organisation
Featured on Al Jazeera
An unflinching portrait of physical labour in the 21st century.
The stark choice between a fascist or an imperialist course in Syria should be discarded for a third and better course.
Israel's propaganda machine carefully chooses its words to assert illegal ownership over Jerusalem and Palestine.
As Western fears grow over Iran's continuing nuclear programme, we ask how a military strike could impact the region.
<  > 
join our mailing list

Enter Zip Code
Go