Critical aid distribution blocked by govt blitz on business
By Tererai Karimakwenda
25 July, 2007

Confusion appears to be the key word affecting everything to do with Zimbabwe these days, and the ongoing price blitz by government has complicated matters, not just for business, but for organisations that distribute critically needed aid to remote areas. The National Association of Non-Governmental Organisations (NANGO) spokesperson, Fambai Ngirande, said the ban on fuel coupons last week caused an administrative nightmare and the distribution of life saving anti-retroviral drugs and food was disrupted.

Ngirande described how warehouses used as storage were raided by price monitoring teams. Food, medicine and other items for distribution around the country were confiscated by officials who accused the groups of hoarding in order to affect regime change. Ngirande laughed at this suggestion, saying the whole price control exercise was a populist initiative that is being used ahead of an election.
The ban on fuel coupons was taken so seriously by non-governmental organisations, that all United Nations agencies threatened to leave last week. According to the Institute for War and Peace Reporting, Reserve Bank Governor Gideon Gono intervened and organised a meeting between the UN agencies and Robert Mugabe. In the end they were assured access to fuel through one particular international company, and decided to stay.

There was even more confusion for private abattoirs whose licenses were revoked when government gave monopoly to the Cold Storage Commission last week. Now there are reports of a reversal of this policy. According to VOA, government asked the private Surrey Abattoirs to resume operations and prepare to supply sides of beef to the market. It is not clear whether all other privately owned abattoirs will now be allowed to resume operations. Some abattoirs did not shut down, claiming no official information had reached them.

Earlier this week government relaxed price controls on some items, including bread and cooking oil. Experts described the move as a sign that the authorities realised they were wrong. But just a day later Robert Mugabe told manufacturers he met with that he would not end the price blitz. Government says it is working on a new pricing structure while monitoring of compliance by business continues.
Meanwhile serious shortages of basic items continues, and thousands of business directors and owners accused of overcharging await their trial dates. Lawyer Eric Matinenga described the whole exercise as “irrational” and said: “Since when has government to decide on what basis such luxury items as perfume should be charged. Government has no business doing that, and when they have done so, they’ve got to explain to us why.”