Broke govt fails to pay pensions – again

No money to pay pensions … Patrick Chinamasa

The development was confirmed by finance minister Patrick Chinamasa.

The minister said payment of the benefits, due on Thursday, would be delayed to June 14 “to allow for the mobilisation of requisite resources”.

“Treasury sincerely regrets all inconveniences caused,” Chinamasa said in a statement.

The development comes after treasury, last week, also delayed payment of the 2015 bonus to sections of the civil service, again citing the lack of funds.

Chinamasa, last year, tried to do away with the annual bonus saying the cash-strapped government could not afford to pay the gratuity.

He was overruled and publicly reprimanded by President Robert Mugabe, resulting in the payments being staggered this year.

The administration also failed to pay pensions last December, resulting in many people spending days queuing at banks around the country.

Zimbabwe is struggling with serious cash shortages which have seen banks limiting withdrawals.

Plans by the central bank to introduce so-called “bond notes” panicking locals into fears of a return to the economic chaos of 2008.

The ruling Zanu PF party’s politburo discussed the crisis at its meeting in Harare Wednesday with national spokesman Simon Khaya Moyo, later, telling journalists that the situation “would soon be under control”.

“The secretary for legal affairs, Cde Patrick Chinamasa, in his capacity as the Minister of Finance and Economic Development updated the Politburo on the implementation of Zim-Asset with emphasis on measures to address the cash crisis,” said Khaya Moyo.

“These include use of plastic money, charges and fees on the of point of sale machines, Real Time Gross Settlement and mobile banking platforms, cash withdrawal limits, export bonus scheme and enhanced interbank market foreign exchange management.

“He (Chinamasa) gave a very clear detail on this but I am sure you will be hearing more from the Reserve Bank of Zimbabwe on these matters. He has already addressed them but certainly the situation will soon be under control.”