Mugabe warns company seizure threats 'no joke'

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By MacDonald Dzirutwe

ZIMBABWE President Robert Mugabe on Friday told manufacturers to carry on with normal production despite an official price freeze, warning that his government would seize firms that stopped producing basic goods.

Mugabe was addressing thousands of ruling Zanu PF party supporters in Harare, some who had earlier marched through Zimbabwe's capital in support of the freeze introduced to curb the world's highest inflation rate of over 4,500 percent.

The march came ahead of a Zanu PF party meeting to adopt tougher measures against firms defying the freeze, which was introduced last week when the government ordered businesses to put prices back to June 18 levels.

The move, which sparked frenzied buying from shoppers, came after prices of some goods tripled within a week.

"This is no joke ... there are some people who think this (freeze) will not succeed because they say there are empty shelves," Mugabe told supporters at the Zanu PF national headquarters in Harare.

"We are saying to all factory owners you must produce. If you don't produce we certainly will seize the factories," Mugabe said to loud cheers from supporters.

Spiralling prices and soaring inflation are part of an eight-year economic crisis that has caused foreign currency, fuel and food shortages. Economists say the price freeze would decimate what remains of Zimbabwe's struggling industry as manufacturers will not be able to produce goods at a loss.

The veteran Zimbabwe leader said his government was still not satisfied with current price levels, adding that he wanted even lower prices to cushion people from inflation.

Mugabe again accused businesses of raising prices as part of a wider plot by former colonial power Britain to remove him from power and rejected suggestions that the price freeze was illegal.

He said Zimbabweans should alert a special unit of police, army and intelligence operatives formed to enforce price controls of businesses hoarding or unfairly increasing prices.

More than 200 business people, including a Zanu PF senator, have been arrested for ignoring the ban on price hikes.

Mugabe supporters had earlier marched from Zanu PF's Harare provincial office to its national headquarters where the 83-year-old leader was to preside over a meeting of the party's powerful central committee.

Carrying placards and clad in party regalia, the marchers chanted songs extolling Mugabe and denouncing firms for profiteering, temporarily bringing downtown business to a halt.

"Mugabe is right, down with economic saboteurs" read one placard while another said "No to profiteering".

The central committee meeting on Friday is expected to adopt tougher measures to crack down on defiant businesses and extend products covered by the freeze.

The price controls cover basic goods such as maize meal, sugar, salt, bread, beef, rentals and were on Friday extended to fuel. -- Reuters

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