HARARE - Harare City Council, another organisation grappling with dollarisation of the economy, has sold part of its 5000 herd of cattle to the Democratic Republic of Congo in return for US dollars.Hearing of the sale the Reserve Bank of Zimbabwe quickly moved in and
took 10 percent of the profit in foreign currency, claiming the
transaction was illegal.
When asked why the bank hadn't taken all the money if it was illegal,
Harare mayor and lawyer Muchadeyi Masunda said: "They realised they
could also make some money out of the deal."
He added, however, that Town House was in the process of regulating how
goods and services belonging to the city are paid for in foreign
currency, in order to prevent a recurrence.
The sale money, which Masunda confirmed ran into thousands of US
dollars, is to be used to fund the city council's cash-strapped
operations, which have virtually ground to a halt because of its
incapacity to bankroll its costs. The city has as yet not been given
the go ahead by central bank governor Gideon Gono to collect revenue in
hard currency.
The council’s move to sell a portion of its herd comes at a time when
staff have stopped going to work because they cannot afford transport
costs. Commuter omnibuses are charging US$1 a trip when workers are
earning the equivalent of just US$3 a month in worthless Zimbabwean
dollars.
Nor do these people have access to their money at banks due to a
shortage of notes. Thanks to Mugabe's attacks on Europe and the West,
Germany has refused to supply the paper needed to print money.
Many Harare residents believe widespread civil disturbance could result if Mugabe does not act soon.
Local Charles Mudzi said: "If Mugabe continues on this path, it could
prove disastrous for him. People are getting restless because it is now
impossible to survive in Zimbabwe. Everything has been dollarised and
where does he (Mugabe) think we will get the money from? People are
tired of his arrogance."
BY SPECIAL CORRESPONDENT
Post published in: News