Cash crisis hits Mugabe's govt

HARARE - The festive season has become a ginormous nightmare for the majority of civil servants as President Robert Mugabe’s stone-broke administration is failing to pay them not just their promised end-of-year bonuses, but their December salaries as well.

Under-pressure Finance minister Patrick Chinamasa, had the unenviable task of announcing on Christmas Day, of all days, that most public servants would only receive their December pay — which was supposed to have been deposited into their accounts before the onset of the holidays — in January.

To make the situation worse desperate State pensioners have been queuing at banks around the country for their money in vain for the past few weeks.

In that light, there are growing fears that violent demonstrations could erupt early next year as hard-pressed civil servants and pensioners, who include war veterans, agitate for their money.

Economic analysts who spoke to the Daily News on Sunday yesterday warned that the cash crunch  ravaging the government was likely to worsen in 2016 as the country’s comatose economy

deteriorate, resulting in ever dwindling revenues for the Treasury.

They also bemoaned Mugabe’s “folly” earlier this year when he ill-advisedly quashed plans by Chinamasa to suspend civil servants’ bonuses for two years, given the State’s plummeting revenues.

According to the Finance minister, the current civil service wage bill, which chews more than 80 percent of government’s revenues, stands at a staggering $260 million.  Bonus obligations for civil servants in 2014 stood at $172,6 million — a large part of which was only paid mid this year.

Pensioners who spoke to the Daily News on Sunday yesterday said they felt betrayed by the government as they were having to spend the festive season with no money.

A retired police force member said his pension was all that stood between his family and starvation as he had no other means to look after himself and his loved ones.

“I can no longer compete with the young people for work. All I do is wait for my meagre pension, which I fully earned and is not charity from the government.

“They should therefore not tell us that the money is not available or that it was used at the Zanu PF conference because this trend of late payments has been going on since May, and is getting worse,” he said.

Teachers who make up the bulk of the civil service have also savaged the delay by the government to pay their salaries and promised bonuses, and are threatening to take drastic action to have their money released.

The Rural Teachers Union in Zimbabwe (RTUZ) said yesterday that if the Zanu PF government could afford “endless foreign trips for the president, Vice President Phelekezela Mphoko’s hotel bill and a week-long party conference in Victoria Falls, there should be enough money for salaries”.

It also said the ever-changing pay dates for civil servants underlined the “cruelty of government towards its own employees”.

It further threatened to take its protest against government’s inadequacies to the streets on January 4, saying its members would only return to work once their demands had been met in full.

“Chinamasa’s zeal to impress international creditors at the expense of civil servants will drag his party into a legitimacy crisis. A government that lies to its citizens deserves no recognition at all and must be pushed out of government.

“We call upon the working class of this country to join hands and confront the anti-workers ruling party and demand salaries and bonuses for civil servants,” the union said.

“Retrenchments and other anti-worker policies that we have witnessed this year are a clear message on the need of solidarity among the working people.

“As a union, we stand ready to fight for our dues and fight against those who deny us our dues. Zanu PF must either deliver or ship out of government,” the union added.

In its own statement, the Zimbabwe Teachers Association (Zimta) said it would not be held responsible for any riotous action its members may take.

It said come January, teachers could resort to mass demonstrations as the inability by the government to pay their 13th cheque was a clear violation of Mugabe’s directive to pay bonuses.

In previous interviews with the Daily News on Sunday’s sister paper, the Daily News, Zimta president Richard Gundani also slammed the re-deduction by the government of student teachers’ allowances, saying they could end up pocketing less than $50 when this was implemented.

“Furthermore educators are dejected that for the first time in many years, they shall spend the Christmas holiday without receiving salaries … they are also demoralised by the employer’s processes and promises made without any defined time frames. The workers’ rights have been infringed upon” he said.

 

Comments (46)

tinonyarirepi nhai hama? nyika yaenda kumawere takatarisa. isu vezanu toshayiwa pekupinda nenyadzi. please our leaders, pay these workers we don't want jambanja paharare.

taurai - 27 December 2015

iyesu mazimba tisu tinojaidza vanhu ve politics nekuvaudza kuti there is no one like them in the whole country. that is what happened at zanu pf. they all sang songs about baba mugabe. now they are stack with the same leader for too long. leadership should change hands especially in a democracy. tsvagison had started well but grew too big headed when he tasted power. now he is exactly the same like zanu pf if not even worse. ngati regei kuita kuti vanhu vafunge kuti nyika haina kwainoenda without ngana and ngana. that is self-destructive. of all the countries in our region we are the worst when it comes to governance. too much boot-licking. machinja, chinjai morgan. munhu anokoniwa just like you and I. Nelson Chamisa will carry your party forward much better than morgan. have courage and retire this old man.

zvirozviyedzwa - 27 December 2015

It is a shame that even if this is a clear testimony of the government's failure the people in leadership will take it as a failure. I only lament those gone years when we used to have leaders in workers organizations who were brave, the likes of Tsvangirai, Nondo of the nurses association etc, those guys would not hesitate to call it to the streets but now eish.

jeshuwa - 27 December 2015

It is a shame that even if this is a clear testimony of the government's failure the people in leadership will not take it as a failure but a challenge, challenge my a....... I only lament those gone years when we used to have leaders in workers organizations who were brave, the likes of Tsvangirai, Nondo of the nurses association etc, those guys would not hesitate to call it to the streets but now eish.

jeshuwa - 27 December 2015

Failure to pay civil servants their salaries before xmas was the worst thing Mugabe's gvt could do.Smith paid his civil servants well and on time.Now no pay for civil servants before xmas and most of them will be paid their December salaries next year.It is also a pity that civil servants will have pension contributions deducted from their meagre December salaries the salaries of which were last increased heaven knows when,How much are they going to take home after the pension deductions?Mugabe naGrace vauraya nyika.Companies are closing by the day and workers are being thrown onto the streets, out of their homes by the landlords and their children are not going back to school.Zanu is like hell.

Cde Dokora - 27 December 2015

PROUD ZIMBABWEANS defecate in the open more than any other country in the world

Fartalot - 27 December 2015

Mugabe irombe

dous - 27 December 2015

am sure you speaking for yourself Mr Zvirozviroto, you sound typical zanu pf thug, you are dead scared of Morgan and you want us believe you like mdc and Chamisa, you don,t deserve respect from mdc supporters go back your zanu masters, leave us alone. Morgan still still have a duty to liberate zim from zanu thugs, Chamisa and Morgan are in mdc fighting the corrupt zanu, see the light foolish Zvirozviyedwa.

Cheenzyabula - 27 December 2015

Ndokurwadziwa kurikuita mavendors zvimwe chete ne90%yevanhu vasingasevenzi mugovernment vachiti zvinhu hazvina kumira zvakanaka ask muchivarova

jojo - 27 December 2015

no need to describe me as less human than you just respond to the points i raised. 1) morgan promised not to go beyond three terms in 1999. he siad he would not do the zanu pf handiende style. 2) he has now become as ruthless to perceived enemies just like it is in zanu pf. my argument is that we don't need person centered politics. that has been our mistake for the past 35yrs. going forward, we want the kind of politics in which the party is bigger than individuals. its time for morgan to pass the baton to another even chamisa. he will do much better than tsvangirai.

zvirozviyedzwa - 27 December 2015

As predicted Chinamasa is now facing a cash crisis. With revenue collection continuously falling and with no scope for domestic and offshore borrowing where will Chinamasa find this money?He cant print the yusa and he cant repay the $10.8 million external debt and let alone ballooning domestic debt. Chinamasa is fighting a war which he will not win!

Tichaona - 27 December 2015

Zanu pf GVT should liquidate and the country be put under curatorship.. This is one big mess.

X-MAN IV - 27 December 2015

Zvirozviyedzwa, the country is in this crisis because of mugabe and zanu, not Tsvangirai.

Jackson - 27 December 2015

@zvirozviyedzwa, how can you dare bring MT into this? Civil servants have not been paid since November and are now being promised to be paid in January. What has the opposition to do with this? In the meantime the emperor Mugabe has just flown to an exotic holiday in the Far East where he will be staying in an expensive presidential suite eating and dining in exclusive jaunts with all his attendant staff allowances paid for in advance. His whole entourage of more than 50 people has been paid in advance and will be getting daily allowances too. Meanwhile back home the teachers are wallowing in abject poverty and Mugabe himself declared a bonus will be paid. Remember a bonus is traditionally paid together with the November salary but there is no money. Get real people our problem is the geriatric Mugabe who would never be employed in any other job today than just telling stories.

Inyika - 27 December 2015

I really believe that China-messy sponsored the zany pf conference. I also believe that the wanton holding of elections to replace biti and gammatox was a waste of money. Worse the expenditure used by zany pf to fly mugabe every week to some SADC/AU functions and the money used to buy vehicles for ED and Mphboko an the whole cabinet was money for two months salaries. What of Grace rallies? Zim is rich but has greedy leaders.

Pfende - 27 December 2015

it is the similarities that morgan has with mugabe that caused me to bring the opposition into this discourse. if we are to plan for a future without current ills affecting our country we have to confront tendencies that expose us to things like these. the fact that morgan manipulates the mdc constitution is an indicator of how he will treat us once he is given free reign. many people warned about mugabe but no one paid attention to them. the same will happen with an opposition leader who has no regard for set terms. when one promises, one has to respect their word.

zvirozviyedzwa - 27 December 2015

@Zvirozviyedzwa, the opposition party has nothing to do with this crisis but I certainly agree with you. People were warned when Mugabe was about to take over prior to indipendence . Now we are paying a hard time for allowing Mugabe to rule rather than lead us

Mentalist - 28 December 2015

Zvirozviyedwa you don't think the issue here is about civil servants not getting their salaries and bonuses where is the MDC T coming in from uri chituta, okay why you don't talk of Ncube, Biti, and Mai Mujuru, Don't try to educate us and mislead people face the facts, After all Tsvangirai said he won't exceed 3 terms as a head of state as President of Zimbabwe not as leader of of his Party he can continue to be a leader of his party until he dies , and you what contribution have you put in this country wakamborohwa here ne Zanu zvakaita Mr Tsvangirai wakaurairwa mukadzi here zvakaitirwa Mr Tsvangirai,tsek go to he'll and please your masters there,Tsvangirai is ours until we take back what is rightfully ours,Right now you are quiet when Robert is busy selling the country to the Chinese,

Humphrey - 28 December 2015

We all know where money is going... how about corruption that has even become to big to be ignored by Herald, ZTV where individual fat cats are building empires from our money. The same corrupt are being reshuffled around strategic parastatals that should contribute to economy and they loot and destroy them - Obvious case in point Goodwills Masimirembwa was boss at ZMDC when Obert Mpofu was minister of mines, fell down on +$10m corruption allegation when Minister was moved, but resurrected as boss at CMED when Mpofu was Minister there again. Now he has fallen on mega dollar scandal after Minister was moved. Trust me, he will rise up again somewhere in the Mpofu's new ministry. Everywhere he goes, its reports of multi $million scandal after scandal and the companie are left dead like ZMDC, CMED. This is just one example of where our money is going but nothing being done because such people are runner boys for big chiefs. So we will not make it convenient for looters. We want our money period. No need to comment on the Presidential endless foreign trips, that has been over discussed already but again no mercy.

Carlos - 28 December 2015

@Zvirozviyedwa, you may have a point but unfortunately this is not the place for it because it sounds diversionary. The issue here is about the cash crisis that has been caused by the Mugabe regime through its recklessness, carelessness and corruption and now the innocent civil servants are being affected. Not only that Mugabe himself continues to live large as evidenced by his expensive holiday in the Far East whilst the civil servants have been denied a Christmas that they will never be able to recover. Also what kind of leader is that who overrules the Finance minister who has got the details and then when the crunch comes he flies off to an exotic jaunt to entertain himself.

Inyika - 28 December 2015

zanu pf has already failed that everyone knows. the sad thing is that collectively, we allowed mugabe to grow beyond a human figure by idolising him in songs, bootlicking and praises such that he felt that there is no one capable of ruling this country other than him. we are now doing the same thing with morgan. my argument is that going forward we do not want to repeat the same mistake. morgan promised himself that he would not lead the mdc as its president beyond three terms. that was enshrined in the mdc constitution. when the three terms lapsed what did he do? he manipulated it, doctored it so he can carry on. this is a good indicator of dictatorship. the man cannot be bigger that the party. its a recipe for disaster. we will do well to let him know that no one is indispensable. as long as we allow person centered politics we will suffer in our homeland. yes he was persecuted but that doesn't warrant him free reign. he sacrificed for the good of the country not his personal gain. we need fresh thinking zimbabweans. let's liberate ourselves from person centered politics and uphold party politics. the mdc should be bigger than morgan not the other way!

zvirozviyedzwa - 28 December 2015

@zvirozviyedzwa there is some sense of great value in your views of what would be best true ideal political democracy in our country. Around 2050 it might be achieved. But here is the twist? Zanu and Mugabe are the biggest stumbling block in the quest to attain an ideal democracy as such it renders Morgan's issue to a cold case. Morgan's issue is not urgent and lacks merit. I just don't like Morgan forming a unity pact with Mujuru. The country is just broke because of bad zanu pf government policies, corruption and gross looting.

X-MAN IV - 28 December 2015

ZPF have skimmed the cream, then taken the milk and then killed the whole Zimbabwean cow (read grand sale THEFT in God's eyes) for 35 years and so what do they expect? REPENT!

TruthBTold - 28 December 2015

Chinamasa is under tremendous pressure to find the money to pay civil servants their wages,bonuses and pensions. Chinamasa is equally to blame. To keep his job Chinamasa has been forced to borrow left and right and in some cases he robbed Peter to pay Paul. Chinamasa ever since he became Finance Minister he has give Bob whatever money he needed to travel abroad even when the Treasury could not afford it. Under his watch Chinamasa has increased import duties, fines etc and borrowed excessively domestically to raise money from the camatose economy. Now he has milked the dairy cow dry. As we stand Chinamasa was able to find money for Bob to go on holiday abroad but failed to find money to pay wages,bonuses and pensions for civil servants. Chinamasa's priorities in allocating scarce financial resources is reckless.

Zulu - 28 December 2015

Theft brings a curse of the house of the thief. Work it out Zimbabwe

TruthBTold - 28 December 2015

Chinamasa's secret and selective payment of salaries,bonuses and pensions is bad practice. We hear security forces were paid their salaries b4 xmas while the rest of the civil service did not get their salaries. Jonso the Minister of Higher Education says there was no reason not to pay civil servants their salaries and bonuses b4 xmas. Which means Ministers were paid their salaries b4 xmas. To make matters worse Chinamasa finds money for Bob to go holidaying with his family to the far east leaving the rest of the civil service with no salary and bonus payments. We thought this govt has a collective responsibility of paying civil servants their salaries and bonuses but one Minister thinks it is Chinamasa's faulty. Chinamasa is now the problem and not shortage of money. Chinamasa is now being blame for all this. Good luck Chinamasa in the New Year. May the Chinese Yuan give u a respite in the New Year!

William - 28 December 2015

I have forever tried to convince many tht Mugabe was never the right man to lead Zim.Firstly,the coup against Ndabaningi Sithole,the founding president of ZANU,Tongogara's still to be explained death,the not-so-to believe death of Herbert Chitepo,Matebeleland & Midlands massacres,uneven growth & development.Opposition being crushed in the early 80's.There was and stil is nothing to celebrate about Mugabe

jerenyenje - 28 December 2015

How about all the "Big Wigs" and Ministers and the leader himself, donating a few millions of their "hard earned" cash, to the population? We know where all the countries money is-overseas banks and stashed under their mattresses. When will our weak willed population wake up? Come on "guys" do something practical about this situation. YOU CAN.

Vanessa - 29 December 2015

Zimbabwe is in need of a complete overhaul,we were too rich such that it took 35 years for our wealth to be squandered but we still live on without war.This is like a punishment for our peace loving nature.Selfish thieves are the pillars of the government and with them,Zim will never see light

oJENDE oCHEBE - 29 December 2015

@Zvirozviyedzwa, every time and in every article you always bring the issue of Morgan being a handiende, to me it now seems you have a personal vendetta against Morgan, either you are part of the Bitis and Mangomas or you are a Zanoid.

Big Meech Larry Hoover - 29 December 2015

if you listen to Zhuwao, then you will certainly know that Zimbabwe is a condemned country cursed with people who are bent on destroying it to the core.

Big Meech Larry Hoover - 29 December 2015

its only my small effort meant to remind us of the danger of person-centered politics. zanu has already failed that everyone knows. mdc is on the path to failure too. as long as we see it as a party sustained by one individual then we are bound to fall into the same pit that we have endured for the past 35yrs. better to nip the person-centered politics in the bud before it grows too big for our strength. i do not belong to the Bitis, mangoma. I am just unhappy that we zimbabweans make these monsters and cry leta. let's put a stop to person-centered politics. the party should be bigger than a person not the other way.

zvirozviyedzwa - 29 December 2015

In one of the courses I did mugore rezvidzidzo, ndakadzidza kuti our leaders are now clueless on how to turn this economy around. I also leant kuti the 2million jobs they promised Zimbabwe must have been motivated by a false prophet. I got a distinction mucourse yacho.

virgo - 29 December 2015

government cannot be broke when the old man travels with his family abroad to the East for Festivities -something fishy the Oppostion are too soft with these people

Fish Eagle - 29 December 2015

Not broke -Just a bunch of Thieves looting from coffers

Human - 29 December 2015

Mr MP give answers to wasted young lives through thuggery senseless violence in villages of Tsholotsho. Remember these people gave you their precious votes that not only benefit you but the entire Zanu-Pf propaganda system. Tsholotsho is the epicenter of Zimbabwe's political mediocrity and ruling party factionalism. The Tsholotsho youth violence must be the subject of embarrassment and shame to their legislative representative in parliament. Mr Jonathan is only proactive to preach propaganda and collect cheap votes from people of Tsholotsho together with his counterpart MP of the parallel constituency. When are the jobs coming to Tsholotsho so that our youth stop living thuggery lives. When is vocational institutes coming to Thsolotsho so that our youth can train in skills and empowerment for self sustainability. If I was a Tsholotsho MP I will read this story and be ashamed because that is a significant dominant narrative that somehow there is a failure by political leadership. Jonathan Moyo should stop meddling and putting his nose in every other ministerial business except his own constituency problems. That is another provoaction to call for total devolution so that local authorities can solve local problems. The last thing is that villagers should desist from unnecessary ignorance of calling at a police station with a severely injured man instead seeking medical help as a first concern. The police and hospital are two different functions. Happy New Year Tsholotsho 2016! Next time vote sparingly!

Grace Lorcadia Marufu - 29 December 2015

They will just keep printing the money to keep up their lavish life styles

Chongololo - 30 December 2015

Zvirozviedzwa you do not know about Zim politics.Where were you when Tsvangirai brought real change to Zim economy.Zim was almost destroyed until Tsvangirai and MDC came in.Humphrey you said it right.People like Zvirozviedzwa are the ones who give us the trouble we have now because they fail to notice like the uneducated who are lied to thousand times by the same people and still believe the lies.We having families and homes broken and our educated moving to other counties in pursuit of greener pastures .Men are going to SA leaving their wives and marrying the foreigners and families are breaking because of these movements.What has Tsvangirai done to deserve the criticism you put on him.Did we not have a refreshed Zim when MT got into unity govt.Where were people like you?Where you asleep or you are not able to judge the political developments.If so then don just write on this site if you don't understand.Ask if you don understand then you can be told.MT brought financial support from USA,Germany etc and the money was used to purchase textbooks for all the students in Zim.Now we have a situation were the govt cannot even pay its workers salarieis.What a shame. Anywhere you are entitled to your own views.Zimbas lets pray to God and thank Him for the New Year

midlands patriot - 1 January 2016

Vana Zvirozviedzwa,how a party be formed witout a leader? Tsvangirai is a leader and has a team.Obama is a leader of the most powerful nation,he is an individual,just like Tsvangirai.Do you mean people should not have parties with the Presidency what do you mean by person centred politics? Don't the people refer to the Obama administration? It is and administration led by Obama.So whats wrong with Tsvangirai administration.The person of Tsvangirai is a personality with the leadership qualities loved by Zimbas,Thats why they continuously vote for him.Its a question of choice and he is the people's choice coz he represents people.What have you done for Zim yourself?May be just commenting.

midlands patriot - 1 January 2016

You can rig the election for you to remain in power for life but you can`t rig the economy, go and get cash money from NIKUV you heartless people.....!!!!

Joe Rugg - 2 January 2016

Mavekupedzera shungu pana zviedzwa.he is merely pointing out the dangers of party ownership by an individual.from reading all thats all he is saying.that wht hapened in zanu is reaping itself in mdc.ofcoz any stupid person wil see this is true.zviyedzwa doent even sound zanu nor mdc,judging by his comments bt instead of responding to what he said yu just insulting n labeling him mdc or zanu.just deal wth his points n no insults.resorting to insults means yu hav reached yo thinking ceiling.zvirozviyedzwa yu very correct in yo analysis.I cant see any point whr I can pik an argument on yo points.

viola gwena - 2 January 2016

A party is formed by a group of people whr yu ellect a leader for a given time period.if yu wr ellected in the begining ,without yu beating up anyone,it shuld remain so for future party elections,without resorting to intimidations,which we now see in zanu n mdc,perges,violence to remain in power.

viola gwena - 2 January 2016

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