Msika warns of Mugabe's wrath over prices

SHOPS have been ordered to slash prices

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By Lebo Nkatazo

VICE President Joseph Msika says he occasionally restrains President Robert Mugabe against dealing harshly with perceived opponents, but warned that he might be forced to step back if the current price
hikes persist.

The Zimbabwe government ordered businesses to freeze prices last week. Retailers and manufacturers have been jacking up prices, sometimes more than once a day, as they grapple with the impact of the world's highest inflation rate, which economists believe has surpassed 5 000 percent.

Msika, standing in for President Mugabe at the National Heroes Acre for the burial of Rtd Major General Gideon Lifa, also issued a thinly-veiled attack on central bank governor Gideon Gono over his monetary policy.

Msika also repeated threats made last week by Mugabe at the same venue during the burial of another fallen soldier, saying government would seize businesses that do not comply with a government directive to slash prices by 50 percent.

In a direct address to businesses, Msika said: “We say to him (Mugabe) 'no chef, no chef'. But if you continue, we will tell him to uproot you…murukutumwa na Blair. Tirikuzviziva (You are being sent by Blair. We know that)."

Msika said the government has set up three committees tasked with ensuring that all shops revert to prices that they were charging on June 18.

Msika said some of those who are "profiteering" set up their businesses through the government’s policy of black empowerment, but now they are “kicking
the ball into the bush.”

On Sunday, state media reported that more that 20 people, including a Zanu PF senator, were arrested for “price distortions”.

The country’s Parliament is set to debate the Empowerment Bill which seeks to ensure that 51 percent shareholding in every company is held by locals.

Msika said the government would close all business that are going to defy it.

“We are going to take your licence. There is no going back,” Msika said.

In apparent reference to Gono, Msika said sometimes it is the officials who force
people to engage in illegal activities through unrealistic policies.

He said it was illogical for people to be required to withdraw a maximum of $3
million when some of their day-to-day transactions require up to $30 million.

He ordered State Security Minister Didymus Mutasa and Rural Housing Minister
Emmerson Mnangagwa to look into the issue of cash withdrawals.

Many retailers have been reluctant to lower their prices, arguing that their suppliers had not lowered their prices.

The United States ambassador to Zimbabwe Christopher Dell last week claimed that President Robert Mugabe would be toppled by the country's predicted economic collapse before the year end.

Mugabe, 83, accuses the American and British governments of imposing economic sanctions against the country in an attempt to force a "regime change". He has vowed to stay in power and contest elections in 2008.
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