Lobels bosses jailed for increasing prices

By Violet Gonda
1 December 2006

Two senior Lobels officials have paid a heavy price for trying to keep their company functioning in Zimbabwe. A Harare magistrate slapped company chief executive officer Burombo Mudumo and his operations manager Lemmy John Chikomo with a four month jail term each, for increasing the price of bread. The company was separately fined Z$10 000 for breaching the ‘Pricing of Goods Act’ by increasing the controlled price of bread from Z$185 to Z$300 without approval.

The news comes at a time when government companies and parastatals have been allowed to increase rates, water, railways, postage, phones, electricity by 1000% or more.

According to the state controlled Herald newspaper magistrate Faith Mushure said; "The court is of the view that, for a large corporation like Lobels to openly defy and flout the laws of the land as happened in the present case, is totally unforgivable. For the accused persons to state that the Minister of Industry and International Trade (Cde Obert Mpofu) himself should be in the dock for not responding to the bakers’ proposals, just goes to show that they are not contrite.”

This ruling will send shock waves to the business community, battling to survive in a country with over 1,000% inflation. The magistrate was even quoted as saying: "A correct message should, therefore, be sent to other would-be offenders, lest they get attracted to this fast-becoming notorious practice of overcharging."
Defence lawyer, Advocate Eric Matinenga was making an urgent High Court application in Harare and we were not able to get an update by late Friday.