More company executives arrested in price blitz

By Lance Guma
19 March 2008

David Muchinguri, the general manager of Bakers Inn, was arrested and detained at Southerton police station in Harare on Tuesday. The Wednesday edition of the state owned Herald newspaper carried an interview with National Incomes and Pricing Commission Chairman Godwills Masimirembwa, boasting that they had also ‘caused’ the arrest of Asian businessman Mr Shaazard Shaukat of Kevaree Investments. Shaukat's company was accused of selling cement at Z$300 million a bag instead of the stipulated Z$120 million. The arrests follow a countrywide crackdown on the business community who are struggling to keep their companies afloat in the hyper-inflationary environment.

The pricing commission is accusing Lobels Bread and Bakers Inn of over-charging for bread. It says the companies are supposed to use 80 percent of their flour to bake standard loaves and 20 percent on confectionary and fancy loaves. Instead the companies are alleged to be using most of their flour for fancy loaves. Masimirembwa warned they would de-classify bread categories so that all bread will be sold at uniform prices. Acting Attorney General Bharat Patel threw his weight behind a tightening of the controversial pricing laws. He recommended that mandatory jail terms be imposed on businesspeople found guilty of over-charging.

Behind the big talk however is an attempt to divert blame for the economic crisis in the country. The government has been accused of creating a political climate that has destroyed the economy and in lashing out at the business community Mugabe is said to be hunting for scapegoats. Images of business leaders being arrested are being used on TV to whip up sentiment against them as the cause of the high prices and inflation. Only this month the Joint Operations Command, a grouping of security chiefs, summoned business leaders and accused them of supporting the presidential bid of Simba Makoni while also creating artificial shortages in their shops. National Foods Managing Director Jeremy Brook was arrested later in that week.