Share

Zimbabwe puts off paying army as dollar shortages bite

Harare- Zimbabwe has postponed paying June's salaries for its army and security services by two weeks and some civil servants will not be paid until next month, as the government struggles to raise money for wages, a ministry of finance official said on Friday.

Zimbabwe spends more than 80% of its budget on salaries, which the finance minister has previously said needed to be halved under proposed reforms aimed at winning financing from the International Monetary Fund.

Willard Manungo, a senior official in the finance ministry, said in a letter to the army, air force, police and civil service that soldiers, who are paid on the 12th of each month, would now receive salaries on June 27. The average salary is $475 a month.

In 2008, at the height of an economic crisis that saw hyperinflation reach 500bn percent, some soldiers went on a rampage in the capital, looting shops because they were unable to get their salaries.

Teachers, doctors and nurses, who are paid by the 20th of every month will be paid on July 7 and 14 respectively, Manungo said.

The government has previously put off paying salaries for civil servants by no more than seven days, and this is the first time it has shifted pay dates for soldiers and the air force.

Without balance of payment support or foreign credit, Zimbabwe runs a hand-to-mouth budget, leaving it with virtually no money for infrastructure.

Its tax agency said last month it had failed to meet revenue targets for the first quarter of the year because of a depressed economy, company closures and job losses.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
19.08
+0.4%
Rand - Pound
23.61
+0.9%
Rand - Euro
20.33
+0.3%
Rand - Aus dollar
12.24
+0.5%
Rand - Yen
0.12
+0.4%
Platinum
943.30
-0.8%
Palladium
1,031.00
+0.2%
Gold
2,386.98
+0.3%
Silver
28.65
+1.5%
Brent Crude
87.11
-0.2%
Top 40
67,314
+0.2%
All Share
73,364
+0.1%
Resource 10
63,285
-0.0%
Industrial 25
98,701
+0.3%
Financial 15
15,499
+0.1%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders