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THE Zimbabwe government withdrew the licences of all private slaughterhouses on Wednesday, accusing them of defying orders to reduce meat prices by 50 percent in the state's attempts to rein in rampant inflation.

Industry Minister Obert Mpofu said the Cold Storage Company, part owned by the government, was given sole responsibility for slaughtering livestock, state radio reported.

Private abattoirs dotted around the country served small-scale local pig and cattle producers unable to transport livestock to Cold Storage Company facilities in regional centres. Their closure was expected to worsen already severe meat shortages.

"Abattoirs were granted licenses to provide a service to the public which they are no longer providing," Mpofu said.

Some had stopped buying animals from local producers, he said.

But in an earlier statement, the Cold Storage Company reported its production was down because farmers were reluctant to sell livestock at prices reduced by at least half ordered in a government June 26 edict affecting all goods.

Farmers said CSC buyers offered as little as 3 million Zimbabwe dollars -which at the official exchange rate is worth $200 (about R1 300), but at dominant black-market rates is worth $25 (about R174) - for cattle valued at up to Z$12-million (about R342 000) a head used for meat packs known as "economy beef".

Bigger reductions were demanded on pedigree beef cattle.

"They are telling me I'm worth a huge amount less than I thought I was worth. Hard work, feedstock problems and everything else, I am insulted," one farmer said.

He said he was told it was his "national duty" to sell his livestock. He asked not to be identified for fear of incrimination. "They must think I'm crazy."

Police and government inspectors continued to arrest traders and businessmen accused of selling goods at above stipulated prices.

At least five second-hand car dealers joined scores of executives and company directors arrested since Friday. Most have been released after being fined both as individuals in their private capacity with their companies also paying penalties.

State radio said Wednesday a senior magistrate in the second city of Bulawayo warned businesses that courts would impose jail terms for offenders and profiteers who could easily afford fines.

Shelves in stores across the country remained bare of cornmeal, bread, meat and other staples.

Factories, stores and gas stations were unable to replace materials sold at below the original cost since June 26. The sudden drop in prices has sparked panic buying, stampedes and near-riots by impoverished Zimbabweans.

In Harare, gasoline shortages worsened and commuter bus operators ignored orders to slash their fares and abandoned some routes. But as the cold winter dusk fell, buses cruised past crowded downtown bus stops demanding fares even higher than those before the price cuts from commuters who managed to get to work and were anxious to go home to the capital's satellite townships.

"Don't pay, don't go," said a fares tout, speaking in the local Shona language and keeping a watchful eye for police.

Mpofu said the government would cancel the licenses of bus owners flouting its rules on fares. Gasoline, subsidised to half the importation cost, was being made available to transporters, he said.

Police said Monday more than 1 300 businesses were charged and fined over the previous two weeks for defying orders to slash prices in half or hoarding goods. Police spokesman Oliver Mandipaka said the crackdown was "not a gimmick and will be sustained at all costs to stop consumers being ripped off".

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.

The government accuses business leaders of being part of a political and economic campaign of "regime change" to bring down longtime ruler President Robert Mugabe. - Sapa-AP

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