AFRICANEWS
ZimbabweDollars for war veteransPoliticsFred Katerere (890 wrds)
After dilly-dallying for close to two decades, the government of Zimbabwe has finally succumbed to pressure and started compensating the country�s war veterans. However, the strategy for raising the money has unleashed a chain of reaction with far reaching consequences. The government had realised it did not have the money to pay the war veterans so the idea of increasing taxes was mooted. Following the announcement, the country's currency dropped to an all-time low last November on a Friday that was subsequently dubbed "the black Friday". Zimbabwean dollar exchanged at the rate of 45 to US$1. Undeterred by the unprecedented slump and its effects on the on the already over-taxed masses, the government went ahead with its plans, insisting that the war veterans did a national duty and a promise of payment to them had to be fulfilled. The former combatants had demanded US$11,111 per person but the government scaled it down to US$1,111 for gratuities and US$44 monthly life-long pension, education and hospital fee for the recipients and their dependants. Minister of State responsible for war veterans, Witness Mangwende, said last December the government had released US$55,555 to pay the registered war veterans their gratuities and was looking for US$44,444 for the payment of the monthly pensions. At the end of last November, the-government tried to push through a finance bill (No.2) to seek the establishment of a five percent war veterans� levy, hike sales tax charges and increase fuel prices in order to raise money to pay the veterans. The government�s action did not augur well for the country�s workers and employers, who were then mobilised by the Zimbabwe Congress of Trade Unions (ZCTU), a labour movement, to stage countrywide mass protests against the government. The demonstrations, described by political observers as the first to severely shake President Robert Mugabe�s government since independence, resulted in mass destruction of property after riot police fired tear gas at demonstrators before they even assembled where they were supposed to be addressed by the ZCTU leaders. The demonstrations were effective as the government lost a lot of revenue due to closure of most businesses. A lot of private and public property was destroyed in the melee which turned violent in the capital, Harare. Police fired teargas on peaceful demonstrators to block them from entering the city centre. Delegates to the ruling ZANU PF party�s conference held in Mutare, east of Harare, last December, just before the mass protest, urged the government to rescind its decision on sales tax. President Mugabe told his Finance Minister, Herbet Murerwa, in front of the delegates that alternatives had to be found to raise the money. "Hatidi", Shona for we do not want, came from the delegates when the President asked them if it was necessary to raise the money through further taxation. With the war veterans now paid their gratuities at the expense of the masses, Zimbabwe�s economy is sailing on an uncontrolled ship. Not much of the money is being put to good use as there are reports of much extravagance by the veterans, majority of whom have lived in abject poverty since Zimbabwe�s independence in 1980. The idea to compensate the war veterans came to the limelight when it was exposed through the press that some senior government officials and their friends had looted more than US$40 million war victims� compensation funds through exaggerated compensation claims. Senior government officials were paid several thousands of dollars in claims for injuries assessed by doctors of each individual�s choice. Cases of mental lapses and hallucinations dominated the list of sicknesses suffered by the claimants. Even cabinet ministers queued for compensation, with an assortment of claims. The exorbitant claims infuriated the war veterans, most of whom had only received paltry allowances upon demolibilisation from the army in 1980. President Mugabe, amid pressure from the veterans, set up a commission of inquiry headed by a high court judge to investigate how influential government officials benefited so immensely. By the time of going to press, nothing had been disclosed on the findings of the commission. The payment of the veterans� gratuities was made just before the Christmas holiday with calls from their leaders that the money be put to good use. We need to reflect on our past and think about the future and plan for it, said Gift Moyo, chairman of the Bulawayo Province War Veterans Association. His calls seem not to have been heeded by some of the former combatants. The government, at the end of December last year, announced that it would lower charges on oil. However, no guarantee was made that the public transport operators would also drop their charges. James Hondo, a resident of Mutare, said the payments to the war veterans had brought more problems to Zimbabweans already bearing the brunt of Structural Adjustment Programme. The business community has also taken a swipe at the government for failing to consult them on how the money to pay the veterans would be raised. Zimbabwe National Chamber of Commerce vice-president Nhlanhla Masuku said the government should have introduced taxes on luxury goods instead of further hurting the ordinary people.. "If consulted, I would recommend that government introduce a vehicle levy of, maybe US$2, for a small vehicle and US$11 for commercial vehicles. This could result in a few dollars going into the government�s kit," said Masuku. Zimbabwe becomes one of the first countries in the southern part of Africa to pay their war veterans. South Africa indicated they were not going to pay them because the country did not have the money.
| CONTENTS | AFRICANEWS HOMEPAGE |
USAGE/ACKNOWLED Contents can be freely reproduced with acknowledgements. The by-line should read: author/AFRICANEWS. Send a copy of the reproduced article to AFRICANEWS.
AFRICANEWS - Koinonia Media Centre, P.O. Box 8034, Nairobi, Kenya
|