It is believed the latest increase, that started reflecting in government workers' bank accounts on Tuesday, was raised from the Zimbabwe Mining Development Corporation. A top government source said the raise was bankrolled by diamonds cash.
The lowest-paid government worker, previously on US$128 pay, got US$253 on Tuesday. Biti said he had sent the regular pay schedule and did not know anything about the increase or where the money came from.
Biti has said the government wage bill takes up 60 percent of total revenue and that limited resources available made it difficult for the state to award significant wage increases The latest increase means the entire government budget will be allocated to cover the increases, which takes effect immediately.
The increasse is being touted as culmination of a pledge made by President Mugabe two months amid spirited remonstrations by Biti that the economy was underperfoming.
It is not clear if Mugabe's pay rise would win over government workers, who insist that Mugabe should go at the next elections to
unlock more cash. Now the increase has cast Biti as the bad guy who refuses to increase salaries.
Tinashe Moyo, a teacher, said he was happy President Mugabe has fulfilled his pledge and that their key demand was met. "Its surprising that Biti says there is no money in the Treasury and yet the President has given us the money. What is going on here?"
Attempts by Zanu PF to portray Biti as the bad guy has clearly won over a significant number of government workers, who don't want to get caught up in the politics and simply want a living wage for their families.
"Honestly, I dont care where the money is coming from, as long as I get it," said Memory Kurasha, a nurse. "I dont think Biti is doing the MDC any good by withholding money from struggling workers. Of course we understand government has no money, but surely he has to find it."
Political commentator Ronald Shumba said: "This is blatant vote buying by Mugabe. He is a sly despot and he has clearly beat the MDC hands down on this one. This could be a game changer for most civil servants. To most government workers, Biti is now the bad guy."
Zimbabwe's unity government has managed to stabilise the economy, a feat achieved by abandoning a worthless currency battered by hyperinflation which peaked at 500 billion percent in December 2008 and adopting the use of multiple currencies.
The country's economy grew for the first time in a decade in 2009 – by a better than expected 4.7 percent – and tamed hyperinflation, but analysts say the economy will only take off on the back foreign investment and Western aid.
Western funders are holding out for more political reforms before pumping more aid into the ailing economy.
Post published in: News