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Govt Halts Payments To Its Contractors To Curb Inflation

Govt Halts Payments To Its Contractors To Curb Inflation

The government has suspended payments to its contractors as part of efforts to rescue the depreciating Zimbabwe dollar that is fueling hyperinflation.

The Permanent Secretary of Finance and Economic Development George Guvamatanga directed government ministries, departments and agencies to suspend the payments.

This comes after the Treasury noticed that the contractors were submitting invoices of cash for goods and services using parallel market rates.

Guvamatanga said Ministries, Departments and Agencies (MDAs) are required to seek approval from Treasury for current and future contract pricing and share with it their due diligence on existing charges. He said:

Such a pricing framework by the suppliers of goods and services has not only been causing inflationary pressures but also parallel market activities.

This has resultantly caused instability in the foreign exchange market characterized by unnecessary movements in the rate resulting in exorbitant prices being charged.

In July, the government announced measures to deal with contractors who were allegedly channelling funds to the black foreign currency exchange market.

Finance Minister Mthuli Ncube warned that the suppliers concerned, their directors and related companies will be blacklisted with the Procurement and Regulatory Authority of Zimbabwe and will be banned from participating in any government tenders.

Meanwhile, the move to suspend payments to government contractors adds to others announced this year to stabilize the currency and curb inflation.

These include lifting the key interest rate to 200% from 80% in June, reintroducing the US dollar as legal currency, selling gold coins and potentially setting up a currency board.

More: Bloomberg

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Maparamuro 1 month ago

Madness on steroids ­čĄú­čĄú­čĄú­čĄú­čĄú­čĄúpeople must be paid for services rendered, how do you halt payment. It's the same as stopping banks from giving loans it's all madness

Daniel mbanje 1 month ago

total madness , ipai vanhu Mari dzavo munoti vanorarama nei haaa

dispenser 1 month ago

It is not e payment of contractor wc fuel inflation. The source is major contributor .(when e gvt is printing money wantonly to pay it's dates).

citizen 1 month ago

to pay its 'dates' for sure. They will have been due and we print to pay the dates that are due.

vagora 1 month ago

Better tell me that I didn't read well or I didn't understand what you are trying to say

Sabhuku 1 month ago

Izvohhhhh!!!!! Zvimatsotsi

Gafa 1 month ago

Iro Guva rakabva nepi bate chino tsvee bate chino tsvee ko ma gold coin ave papi zvaainzi achapedza inflation kkkkkk

aika 1 month ago

ukaona nyika inoita chikwereti nemaordinary people like zvayakaita kuzec nezimstat inenge yarakidza kupererwa­čĄú­čĄú­čĄú­čĄú


dispenser 1 month ago

e gvt suspended payment to its contractors .etc vanogadzira maroad ,vanovaka miduri 'skyscrapers' eg godhini Byo.nemamwe maprojects .vachiti tikavabhadhara ndiyo mari inopedzisira yava kuBlack market hence facilitating inflation. Saka ndipo patiri kuti haisi nyaya ye kubhadhara ma contractor inokonzera depreciation of value of money . but it's source .Nyika ine ma laws e economics anoshanda Haiti kana yava Kuda kubadara zvikwereti voprinter mari .this cause loss of value

Contractor 1 month ago

When no one wants to do business with you, you will know why.

dispenser 1 month ago

kuna Vagora

O 1 month ago

Guvamatanga mwana wa July 'Pomona' Moyo. Musandipikise nekuti vakafanana kumeso nemoyo.

Dred 1 month ago

Failed policies New despensation

g 1 month ago

hapana chozikanwa

prm 1 month ago

Pamuromo chete . Vanema contracts acho ishamwari dzavo ( The elite) Hapana action inombotorwa apa..

Nimrod 1 month ago

Very silly policy. Then the so called projects will be at stand still. ko ve Zimstats neZec movanyimirei Mari? Yavo it's peanuts compared to the billions for the cobtactors

pk 1 month ago

macontractors ngaaite basa mobhadhara nema gold coins chete. ipapo munenge mavhara black market

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