Huge increase in war vets pension

By Tichaona Sibanda
25 June 2007

The weekly Zimbabwe Standard reports that government has increased monthly pensions for war veterans from Z$250 000 to Z$3,5 million a month, raising speculation this will trigger yet another economic crisis.
This is also a move seen by analysts as a ruling party ploy to secure war veterans’ loyalty ahead of next year’s elections.

A decade ago war veterans, under the leadership of Chenjerai Hunzvi, demanded hefty pensions and gratuities. Mugabe reached a compromise with them and paid each of the 40 000 former fighters a one off payment of Z$50 000, plus a smaller monthly pension.

The old soldiers got their money and Mugabe got a private army, but at a cost. The hefty unbudgeted cost of buying the war veterans off was one of the factors that triggered the country’s ongoing economic crisis.

War vets now join civil servants who were last week granted allowances ranging from Z$2 million to Z$4 million. Economic analyst Isaac Dziya deplored the move and said it will prove catastrophic if the regime continues printing money.

‘We all know it’s a way to try and stem revolt but the regime must not assume every war veteran will support its activities by rewarding them financially,’ Dziya said.

Vice-chairperson of the war veterans’ board, Dumiso Dabengwa, defended the payments saying the amount was nothing compared to the minimum wages.

‘These are pensions allowances, not salaries, and they are far below the poverty datum line,’ Dabengwa said. The Consumer Council of Zimbabwe reports that a family of five requires Z$5.5 million a month to meet basic requirements.

Farm workers currently receive Z$32,000 a month and government has offered them just Z$96,000 as an increase.