PDP warns Mnangagwa over price controls

By Daniel Chigundu
PEOPLES Democratic Party (PDP) has warned government against controlling prices of goods adding that it will take the country back to a 2007 situation where shops were empty.
Alarmed by the recent wave of price increases of basic goods in the country, Zanu PF politburo has since set up an Ad Hoc committee led by Vice President Constantino Chiwenga to deal with issues.
In a statement, PDP spokesperson Jacob Mafume said if government continues on this path, Mnangagwa will be taking the country down the abyss adding that the price increase are being caused by multiple exchange rates obtaining in the country.
“Chinamasa of all the people knows that the multiple exchange rates crossing the bond notes, RTGS transfers, Ecocash and the US dollars results in price hikes.
“The price of the United States dollars is the major driver of inflation coupled with government’s ill informed decision to introduce the bond notes which for all interns and purposes was meant to monetise the government raids at the RBZ however causing serious distortions in the market.
“We therefore find the noise around sabotage and the introduction of a price control crack team shocking, this only serves to dig the economy further down a bottomless abyss, the guy ignorantly referred to as ED and his team will not be able to dig us out of it,” he said.
Mafume added that basic modern economics entails addressing the fundamentals as opposed to the use of coercion and intimidation tactics, arguing that “this is especially contrary to the language that the administration pretended to adopt after the swearing in of Mnangagwa, it however suits well their command thrust.
“We urge the government to stop tinkering with the deck while the titanic is sinking,” said the PDP spokesperson.
According to PDP, to address the inflationary crisis government must do the following:
.1-Demonetise the bond note to reduce exchange distortions in the economy as well as dealing with the cyclical driving out of good money.
2-Ensure the patronage premiums of corruption at the borders, these are increasing the cost of importing.
3-Deal with the general fiscal hygiene which is the root cause of the crisis
4-The government must pay back the money they stole from NOSTRO accounts kept at the RBZ, these accounts are key for smooth processing of external transactions.
5-A holistic monetary reformation thrust must be adopted which includes the ring fencing of accounts with a view to join the rand monetary union in the future.

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