Zimbabwe News and Internet Radio

ED admits rampant corruption in govt departments causing inflation

President Emmerson Mnangagwa has admitted there is rampant corruption coupled by dubious procurement systems in government parastatals which in turn is worsening inflation in Zimbabwe.

Treasury secretary, George Guvamatanga, in his preliminary remarks before Mnangagwa’s official opening of the Zimbabwe Economic Development Conference (ZEDCON) lamented that business players were responsible for unjustified pricing models which are also supported by procurement by government ministry departments.

“The pricing models in the economy have actually created some of the inflation. And some of the pricing models have unfortunately, your Excellency, been supported by procurement by government ministry departments and agencies,” he said.

These departments are accused of pegging prices of goods and services using illegal and speculative parallel market rates fuelling inflation.

In his official remarks, Mnangagwa warned the perpetrators telling them if it was in China they were going to be candidates of execution.

“Your statement was loud and clear and we shouldn’t be having people doing this in our society. We don’t want our society as a nation to be constituted by such characters,” Mnangagwa said.

“We have a duty as citizens of our nation to play fair and be remembered for building our country and not destroying it.

“It’s unfortunate that what he said is happening in Zimbabwe, if he said it in China we’ll be having candidates for execution. But in Zimbabwe I as the President don’t want death penalty and we need to find other means of punishment.”

Authorities are trying so hard to save the embattled Zimbabwean dollar which is constantly falling against the US dollar.

Last week, government suspended payment for goods supplied to government ministries, departments and agencies and possibly priced using black market exchange rates.

“Such pricing framework by the suppliers of goods and services, have not only been causing inflationary pressures but also parallel market activities,” Guvamatanga said.

“This has resultantly caused instability in the foreign exchange market characterised by unnecessary movements on the rate resulting in exorbitant prices being charged,” he added.