Queues as fuel dries up, price cut law announced

Queues as fuel dries up, price cut law announced

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By Angus Shaw

ZIMBABWE'S government announced a new law Saturday making it an offence to defy steep price cuts ordered in an effort to control runaway inflation and a growing economic crisis.

Police and government inspectors have raided businesses to force them to slash prices.

The price of gasoline was also halved, creating long lines at stations — most of which were out of supplies Saturday.

On Friday, police arrested 17 business leaders for flouting the order, police spokesman Oliver Mandipaka said.

Mandipaka said some managers had gone into hiding or taken vacation to avoid police action.

At least 200 businesses have already been charged with price violations, and 40 market vendors were arrested for hoarding goods.

The veterans and youth militias, known as Green Bombers for their green denim uniforms, were the main participants in the chaotic and bloody seizures of thousands of white-owned commercial farms that began in 2000.

Earlier, police warned goods would be seized and offenders arrested, but gave no indication of penalties price-cut violators could face.

The mandated price cuts are a desperate attempt to confront inflation that has spun out of control during Zimbabwe's economic crisis. The falling prices have caused stampedes, panic buying and near-riots by impoverished Zimbabweans.

Among those arrested in the latest sweep were the directors of Edgars, a leading clothing and fashion retailer, and supermarket and gas station owners.

Also taken into custody were Michael Fowler and Zed Koudanaris, directors of the main food distributor and fast food chain, and Gavin Sainsbury, chief executive of the country's biggest producer of pork products, the state Sunday Mail reported.

Fowler and Koudanaris pioneered popular branded bakery, pizza and take out franchises in Zimbabwe, including Nando's, known for its chicken dishes across Africa.

No information was immediately available on specific allegations against the business leaders or where they were being held. Police holding cells are notorious for filthy and harsh conditions.

The country's economic crisis, the worst since independence from Britain in 1980, began with the seizure of thousands of white-owned commercial farms for redistribution to blacks in 2000. The country's agriculture-based economy collapsed as a result.

Official inflation is running at 4,500 percent, the highest in the world, though independent financial institutions estimate real inflation is closer to 9,000 percent.

Business executives argue the price cuts threaten to force them to shut down. The government accuses them of being part of a political and economic campaign of "regime change" to bring down longtime ruler President Robert Mugabe.

On Saturday, two weeks after ordering sweeping price cuts, the government announced a new law enabling it to enforce the reductions. - AP

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