Two hundred and seventeen US dollars ($217) - that is all that remains in the public account of the Zimbabwean government, a bewildered finance minister has announced.
The paltry amount cast doubt over claims of a slow economic recovery and raised questions about the fate of the country's diamond revenue - officials say almost $US685 million worth were sold last year.
''Last week when we paid civil servants there was $US217 [left] in government coffers,'' the Finance Minster, Tendai Biti, told journalists in Harare, on Tuesday, noting that some of them had healthier bank balances than the state.
''The government finances are in a paralysis state at the present moment. We are failing to meet our targets.''
Zimbabwe's elections agency has said it needs $US104 million to organise polls this year.
Mr Biti said: ''The government has no money for elections … We will be approaching the international community to assist us in this regard, but it's important that government should also do something.''
Zimbabwe's economy boomed after independence in 1980 but took a hit in 1997 when the President, Robert Mugabe, gave in to pressure from war veterans waging violent protests for pensions. From 2000 the seizure of white-owned farms led to chaos in the agriculture sector and the economy shrank by half. In 2008 hyperinflation of 231 million per cent broke the national currency and left millions of people hungry.
But the adoption of the US dollar and South African rand have brought a measure of stability. The government's national budget for this year stands at $US3.8 billion and the economy is projected to grow 5 per cent, but the headline figures are not necessarily reflected on the ground.
The Movement for Democratic Change alleges income from diamond sales is being expropriated by Mr Mugabe's Zanu-PF party to boost its campaign for votes. Mr Biti, who is also the secretary-general of the MDC, has claimed the treasury received only $US40 million from diamonds last year.
The MDC spokesman, Douglas Mwonzora, said: ''The government has no money. The most important thing is that money from diamonds is not being remitted to government coffers.
''As a result, after payments were made last week, there was only $US217 left. The diamond wealth is going to Zanu-PF machinery and its war chest. There is likely to be an economic crash because of the uncertainty of the elections and the possibility of a Zanu-PF victory. Investors really have to pray for an MDC victory.''
The watchdog Partnership Africa Canada said last November that at least $US2 billion of diamonds from the Marange fields had been stolen by Mr Mugabe's ruling elite, international dealers and criminals in ''perhaps the biggest single plunder of diamonds the world has seen since Cecil Rhodes''.
A referendum on a new constitution is set to be held next month after which Mr Mugabe is expected to name a date for the election. The latest draft of the constitution curbs presidential powers and strengthens the cabinet and parliament.
The paltry amount cast doubt over claims of a slow economic recovery and raised questions about the fate of the country's diamond revenue - officials say almost $US685 million worth were sold last year.
''Last week when we paid civil servants there was $US217 [left] in government coffers,'' the Finance Minster, Tendai Biti, told journalists in Harare, on Tuesday, noting that some of them had healthier bank balances than the state.
''The government finances are in a paralysis state at the present moment. We are failing to meet our targets.''
Zimbabwe's elections agency has said it needs $US104 million to organise polls this year.
Mr Biti said: ''The government has no money for elections … We will be approaching the international community to assist us in this regard, but it's important that government should also do something.''
Zimbabwe's economy boomed after independence in 1980 but took a hit in 1997 when the President, Robert Mugabe, gave in to pressure from war veterans waging violent protests for pensions. From 2000 the seizure of white-owned farms led to chaos in the agriculture sector and the economy shrank by half. In 2008 hyperinflation of 231 million per cent broke the national currency and left millions of people hungry.
But the adoption of the US dollar and South African rand have brought a measure of stability. The government's national budget for this year stands at $US3.8 billion and the economy is projected to grow 5 per cent, but the headline figures are not necessarily reflected on the ground.
The Movement for Democratic Change alleges income from diamond sales is being expropriated by Mr Mugabe's Zanu-PF party to boost its campaign for votes. Mr Biti, who is also the secretary-general of the MDC, has claimed the treasury received only $US40 million from diamonds last year.
The MDC spokesman, Douglas Mwonzora, said: ''The government has no money. The most important thing is that money from diamonds is not being remitted to government coffers.
''As a result, after payments were made last week, there was only $US217 left. The diamond wealth is going to Zanu-PF machinery and its war chest. There is likely to be an economic crash because of the uncertainty of the elections and the possibility of a Zanu-PF victory. Investors really have to pray for an MDC victory.''
The watchdog Partnership Africa Canada said last November that at least $US2 billion of diamonds from the Marange fields had been stolen by Mr Mugabe's ruling elite, international dealers and criminals in ''perhaps the biggest single plunder of diamonds the world has seen since Cecil Rhodes''.
A referendum on a new constitution is set to be held next month after which Mr Mugabe is expected to name a date for the election. The latest draft of the constitution curbs presidential powers and strengthens the cabinet and parliament.
Source : SMH
Facebook : http://www.facebook.com/patryn.worldlatestnews
Facebook : http://www.facebook.com/patryn.worldlatestnews
Comments
Post a Comment