Munyaradzi Huni
Finance Minister Tendai Biti is set to announce in his forthcoming Mid-Term Fiscal Policy statement set for next month the freezing of salaries and recruitments for civil servants “until there is economic improvement.”

The move is likely to be met with stiff resistance from the already disgruntled Government workers.
It is understood that Minister Biti has clashed several times with top officials responsible for policy formulation in his ministry, who are arguing that the review of civil servants’ salaries is long overdue and a freeze could lead to the paralysis of Government work due to strikes.

Contacted for comment yesterday, Mr Biti would not commit himself. He, however, said the economy was “in a bad shape”.
“The economy is in a bad shape. We are failing to pay civil servants right now,” he said.

“Our domestic debt is in excess of US$300 million.”

Government is believed to owe local authorities and utilities a cumulative US$45 million and foreign missions US$24 million.
Highly-placed sources in the ministry said the minister was insisting that Government has to maintain the current wage bill levels which will only be reviewed upon economic improvement.

“We have held many long sessions discussing the issue of civil servants’ salaries with the minister over the past few months, but he is not taking our policy advice.
“Due to his busy schedule, the minister has failed to attend some of the meetings, but we have even written policy advice detailing the need to review upwards the salaries of the civil servants, but it seems the minister is not prepared to move even an inch. Some of us even think that he is not reading the policy papers we have written for him.

“In one of the meetings, he told us that the revenue flows into Government coffers for Treasury to increase the salaries were too low, but now he has shifted, saying the salaries will remain frozen until the economy improves.
“Now we hear from some diplomats with close relations to the minister that he intends to announce the salary freeze in the forthcoming Mid-Term Fiscal Policy. While we understand the concerns that revenue inflows are not that good, we feel Government workers have suffered  for too long because of the low salaries and an increase, even a few dollars in their salaries, would be welcome.

“It’s unfortunate that all we can do is to advise the minister. He can either take our advice or ignore it.
“It’s really his choice,” said one official from the ministry.

At the end of last month, civil servants’ unions wrote to President Mugabe asking him to intervene and help improve their salaries and working conditions by July. The unions writing under the Apex Council representing Zimbabwe Teachers Association, Progressive Teachers Union of Zimbabwe, Teachers’ Union of Zimbabwe and the Public Service Association said Government had failed to convene a meeting under the National Joint Negotiating Council.

“They also said their appeal to Prime Minister Tsvangirai had yielded nothing.
Another official from the Ministry said Minister Biti was also planning to announce the freezing of the recruitment exercise in the public service, raise personal income tax and raise duty on imports including vehicles.

“We are wondering why he is trying to raise tax and raise duty when the economy is shrinking.
“The economy is shrinking precisely because we are not addressing the supply side yet we are rushing to the other end to wait for revenue inflows.
“It’s like the Minister has gone further than killing the goose that lays the golden egg. He now wants to milk it and we all know that is not possible,” said the official.

Some economists have said Minister Biti is “clearly out of depth” on how to turnaround the economy and is fast running out of steam that was started by the introduction of the multicurrency.

“He is charging against the economy like a bull in a China shop,” said an economist who spoke on condition of anonymity. University of Zimbabwe economics Professor Tony Hawkins last week wrote an article in The Sunday Times saying the MDC should not take credit for the fall in inflation in the country as this was brought about by dollarisation. He said in terms of turning around the economy; “The MDC is pretty much out of its depth.”