via Zim civil servants wait for salaries | IOL.co.za March 30 2014 By Peta Thornycroft.
Many Zimbabwe civil servants are holding their breath this weekend, hoping their delayed salaries will show up in their bank accounts tomorrow.
While teachers and soldiers have been paid, many other lower level civil servants found no salary payments in their bank accounts on Friday.
Civil service salary payments are staggered from about the 15th of each month. There are credible reports that some soldiers, living in barracks in the country’s second city Bulawayo, are short of food as the defence budget is so strained.
Most of Zimbabwe’s domestic banks are critically short of funds after massive withdrawals following Zanu-PF’s election victory last year.
Meanwhile, the International Monetary Fund (IMF), warned this week of tough economic times and decreasing export prices, while encouraging the government to pursue reforms, including slashing the state wage bill.
An IMF staff mission, lead by Alfredo Guevas, was in Zimbabwe to hold discussions on the 2014 Article IV Consultation and the first and second review under the reformist Staff-Monitored Programme.
“The macroeconomic environment is expected to remain challenging in 2014, and the outlook is for continued moderate growth,” the team said in a statement released at the end of the one-week visit.
“Achieving Zimbabwe’s fuller growth potential over the medium term depends on pursuing strong macroeconomic policies, including building up fiscal and external buffers and increasing budgetary resources going to non-personnel related spending, and implementing structural reforms to foster investment, improve the business climate and strengthen governance and institutions, including increasing transparency of the minerals regime.”
The IMF team noted that it would also be necessary for Zimbabwe to engage with its creditors to work towards a solution to the long-standing debt arrears problem.
“Downside risks to the outlook include the possibility of further weakening of export prices, a tightening of external financing conditions, as well as risks related to policy implementation delays. Should these risks materialise, they would adversely impact output growth and fiscal revenue.
“To mitigate these risks, it is important to strengthen fiscal policy, identify potential sources of domestic and foreign financing and address financial sector vulnerabilities,” the IMF said.
The Zanu-PF administration has so far failed to revive the economy, which slipped considerably since the end of the inclusive government at the time of the elections.
The inclusive government did revive some sections of the economy, which had stalled under the previous Zanu-PF-only administration. Some financial stability followed Zimbabwe’s abandonment of the local currency late in 2008.
IMF statistics reveal that the real gross domestic product (GDP) last year was estimated at just above 3 percent, sharply down from 10.5 percent in 2012.
The annual inflation rate decelerated from 2.9 percent in 2012 to 0.3 percent at the end of last year (and further minus 0.5 percent last month), reflecting weak domestic demand, or deflation, and the depreciating value of the rand.
The government’s economic blueprint, the Zimbabwe Agenda for Sustainable Socio-Economic Transformation has failed to excite the market.
The blueprint, which requires R270 billion to implement is, so far, still-born.
Finance minister Patrick Chinamasa has failed to find external funding or loans to pay off the huge foreign debt or finance reconstruction of the country’s shattered and ever shrinking economy.
The big crash is imminent
Yep! t sure looks like it is coming
Civil servants should be last ones to be paid because private companies have to generate income before paying taxes to the government for it to pay its employees.This government failed to support private companies for a long time thus why the economy is in this terrible state with so-called government owned parastatals looting the resources they get from the public with total impunity.
Civil servants were naive and shortsighted when they demanded increases during this period of no income to the government from neglected private companies for many years.In all fairness the people behind the indigenisation policy are mainly civil servants so they should not complain when they do not get salaries.The government cannot pay you if they have no money.Its high time these civil servants learn a bit of economics and respect these private companies who pay their salaries and allowances through the taxes they pay to the government.No government can operate effectively without a strong economy supported by the private companies.If you are responsible civil servants you would start now to advise our government properly not to waste time holding luncheons for the leaders and singing praise songs with no constructive advice to offer.
I would have not said it better than this Mixed Race.That’s the reality.No taxes are being paid by the private companies because they are undercapitalized thus operating way below capacity.
If the defense (sic) budget is strained make the army smaller. The army is after all only part of ZANU private security. It certainly is not the defense force of all Zimbabweans.
Reducing the civil service and keeping on only those who actually do their jobs would be another positive move.
Unfortunately , the will be no uproar from civil servants who do not rely on their meagre salaries but instead on deals and grease payments of them bearing office. Try and get a passport and you will see want I mean.
Last year I got my wife and my passports within 7 days because during our applications I told them that I do not entertain funny moves ,otherwise I will not hesitate to involve higher authorities through the press complaints and direct complaint to home affairs ministry.They told me that they would let me know by phone when they arrive from Hre but when I phoned them I was told that they were not ready which made me suspicious,so I went to the passport office to find out and one careless guy tried to get a bribe from me, I just told him thanks I have the information that they are now available so I approached the counter ladies and I just said to them that somebody from here phoned me at home to advise me that our passports are ready for collection.They looked at me and they saw a face determined to collect their passports ,so they gave us without further delays.Stand up for your rights Zimbabweans-you can do it peacefully.I did it so you can do it.
!00%. Stand up for your rights. Well shared Mr Mixed race. Some years ago in Chinoyi they tried to take my ID away and give me an alien one. I stood my ground and guess what. I had the correct and new ID in about 30 minutes
Zimbabweans must take this opportunity to take out all thier money from the banks. Hard times are back, banks will have no cash soon
Well said Mr MIXED RACE ,on top of that there are share holders in those companies they do not want to pay taxes.
Did people actually vote for that bunch of lies that ZPF toted as election promises last year? No one I have asked did.
The biggest shareholders in private companies are ZIMRA, NSSA, ZIMDEF etc. Monies collected, offer no tangible benefits to business owners / investors from these dubious entities. So the bloated civil service will have to wait their turn for handouts.
If the civil servants have no pay….. this means we are about to reach at the end of the road.