treasury department said many civil servants got their old salaries last month and government would find it difficult to get all the money required to pay the increased salary bill.
“The majority are likely to go for some months without getting the increased salary because of a number of factors, the main one being that there just isn’t the money to meet the huge salary bill,” a source said.
Finance minister, Samuel Mumbengegwi dispelled the fears. “There could have been some technical problems here and there but government has the money to pay workers,” he said and declined to comment on reports that the Zanu (PF) regime was printing money to pay the increases.
Sources at the Reserve Bank of Zimbabwe say it is now a habit of government to print money for its requirements, amid reports that more than Z$10 trillion dollars worth of new bearer cheques printed recently to cater for the salary increases as well as preparations for next year’s elections.
This printing of money at will by the regime has worsened the hyperinflation situation feared by economists to continue unabated. – Itai Dzamara
14.6.2007
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No money to pay salaries
HARARE
Some civil servants last month didn't get the salary increases awarded by government recently and say they were told it was as result of technical problems. Government awarded its workers an increase of more than 600% to avoid threatened strikes.
But sources within the government
Some civil servants last month didn't get the salary increases awarded by government recently and say they were told it was as result of technical problems. Government awarded its workers an increase of more than 600% to avoid threatened strikes.
But sources within the government