Government sends out ‘green bombers’ to monitor prices cuts

By Tichaona Sibanda
26 June 2007

Government has directed manufacturers, retailers and wholesalers to reduce prices of basic commodities, including transport and newspapers, by up to 50 percent with immediate effect, according to the state media.

Reports received by Newsreel said the regime sent out its brutal green bombers to enforce the new rule as hordes of them were seen visiting retailers and wholesalers ordering them to cut their prices.

Economic analysts believe the futile effort by the government to rein in runaway inflation might lead to shortages as loss-making manufacturers stop or scale down production. Among some of the products whose prices have been halved are bread, reduced from Z$45 000 to Z$22 000, 10kg refined maize meal from Z$130 000 to Z$85 000.

2kg white sugar which had gone up to Z$70 000 comes down to Z$33 940 and Mazoe orange crush from $600 000 to $120 000. The price of fuel, which had reached an all time high of $180 000 per litre, was slashed to $60 000.

Industry and International Trade minister Obert Mpofu told journalists in Harare Monday night that the business sector should revert to the prices as at June 18 2007 while its justifications for increases are being looked into by the national incomes and pricing commission.

Renowned Bulawayo businessman Eddie Cross said the move by the government would push businesses into liquidation. He said most companies would rather close doors and lay off their workers until sanity prevails in the country.

‘Compliance would be impossible as many of them will go out of business within a few days. Rather than comply they will simply close their businesses for the time being,’ Cross said.

Cross, who is also a policy co-ordinator for the Tsvangirai MDC said in the short term the government order will not be successful because the rate of inflation will continue to accelerate.