Friday 28 February 2020

Garrison Shops get 2.5% civil servant slave wage subsidy - wafer-thin differential to fool poverty stricken soldiers P Guramatunhu

“Public Service Commission (PSC) Secretary Ambassador Jonathan Wutawunashe said that the scheme which is voluntary mobilises savings by Government employees for the purpose of wealth creation adding that Civil Servants can benefit through concessional loans to assist them with wealth creation projects and other requirements. He said that those who opt to join the scheme will contribute 2.5 percent of their basic salary,” reported Bulawayo 24.

“Wutawunashe said that members of the fund will withdraw the totality of their contribution with accrued interest upon termination of employment.”

This is just nonsense, the civil servants are on slave wages already and therefore are living from hand to mouth. These people should be receiving welfare support and not be expected to save. 

My gut feeling is the scheme will not be voluntary.

Unless the interest rate paid on the savings in variable and above the hyperinflation rate at all times. At present Bank interest rates are double digit and yet inflation is top end of the three digit, at least. The interest accrued is likely to be pegged on the Bank rates. In this case, it will be unwise to join the scheme because you will pay in a cow and get back a goat, a chicken, an egg or one single grain of maize; the long you stay in the scheme the worse you will be! 

The only reason why one would join the scheme is so that you borrow as much as possible up front and pay back as late as possible. The skewed interest rate charged on the loan and the bloated hyperinflation rate will work in your favour then. Be warned, everyone would want to do the same and in Zimbabwe’s corrupt system the ruling elite will benefit and the poor will lose big time!

“Wutawunashe said that Cabinet also initiated the operationalization of Garrison Shops for the Uniformed Services, namely Zimbabwe Defence Forces, Zimbabwe Police Service and the Zimbabwe Prisons and Correctional Service to ensure convenient access to reasonably priced commodities,” continued the report.

“He said that the Garrison Shops are based on a self-financing model as they entail selling of goods to customers.”

If these Garrison Shops source their goods from the same suppliers as the other shops then it hard to see where Garrison Shops will be making their savings to justify charging their uniformed service customers lower prices. Some reports said Garrison Shops prices will be subsidised by an addition 2.5% tax on civil servant wages. 

Most civil servants are on slave wages already and whilst they will feel the 2.5% additional tax it is doubtful uniformed service personal will note a great deal of price difference. 

The only advantage to having the Garrison Shop will be when there are shortages. The Garrison Shops will be well supplied!

The Garrison Shops are meant to make those in the uniformed service feel they are favoured about the rest of the civil servants who, by virtue of having a job, are luckier than the millions unemployed, pensioners, vendors and right at the bottom of the packing order the rural peasants. 

In a video that has gone viral, Hopewell Chinono rightly asked if there is going to be a Garrison School, Garrison Hospital, Garrison Bank, etc. for the uniformed services personal. Even if government was to added one or two of these things, there is a limit. Sooner or later the soldier, Police officer or whoever will have to step outside the Garrison bubble and come face to face the ever rising tide of abject poverty sweep the land. 

So the true purpose of the Garrison Shops is to all these in the uniformed services feel they are a cut above the masses or being it by this wafer-thin 2.5% differential. The most cynical part, cabinet is cocksure the soldiers, Police officers, etc. will not mind they are sliding down the greasy pole into abject same as everyone else as long as the wafer-thin differential is maintained! 

3 comments:

  1. Barbourfields Stadium in Bulawayo and Zvishavane's Mandava Stadium were condemned after failing to make improvements recommended by Caf following stadium inspections last November.

    Barbourfields Stadium is a stone throw away from Mpilo Hospital and from from the National Stadium in Harare one can see Parerenyatwa Hospital, two minutes away as the crow flies, the Zvishavane Hospital is not far from the Mandaza Stadium. All those calling for the repair of the stadia, including Minister Coventry who have lived in Zimbabwe all her life but has never set foot in any of these hospitals since 1980, should visit the three hospitals. I would want to hear who would still want the stadia repair after the visit!

    Minister Coventry should know by now that this Zanu PF government is bankrupt, no money, no ideas and certainly no democratic values and morals. She knew Zanu PF rigged the July 2018 elections making Zimbabwe a pariah state. She agreed to work for the regime out of greed and she should not add insult to injury by patronising the victim of the Banana Republic she is propping up!

    ReplyDelete
  2. Mnangagwa had the chance to end Zimbabwe’s pariah state status which is the root cause of the country’s isolation and economic meltdown. All he needed to do was honour his promise to hold free, fair and credible elections. He blatantly rigged the July 2018 elections because his love for absolute power and the looted wealth it has brought got the better of him and his fellow Zanu PF cronies.

    He rigged the elections and was confident he would rig economic recovery too. The latter has proven to be a bridge too far!

    As long as Zimbabwe remains a pariah state there will be no meaningful economic recovery. None!

    Zimbabwe’s economic meltdown has reached dizzying height; unemployment has risen to 90%, the country’s basic services such as education and health services have all but collapse and 34% of our people now live in extreme poverty. Mnangagwa is the one stopping the economic recovery by stoping the implementation of democratic reforms which will result in the holding of free, fair and credible elections and the end of the pariah state curse. Mnangagwa is holding the nation to ransom!

    The people themselves are to blame for allowing Zanu PF to frog march them into this hell-on-earth. The overwhelming majority of Zimbabweans have never lifted a finger to object Zanu PF's corrupt and tyrannical rule and the nation is paying dearly for the folly! The people are only helpless because they choose to be helpless!

    ReplyDelete
  3. The Zimbabwe Anti-Corruption Commission (ZACC) has identified some of the culprits that are hoarding and selling grain and mealie-meal on the black market, and arrests are expected soon.

    There are reports shortages of mealie-meal are being compounded by unscrupulous millers and retailers who are funnelling the commodity to the parallel market.

    Prices of subsided mealie-meal are pegged at $70 for a 10kg bag, but the staple is selling for over $120 on the alternative market.

    We have all heard all this nonsense before, corruption is rampant in Zimbabwe because we have people who talk about ending corruption and do nothing. The high profile arrests, if they happen at all, will be followed by the undercover releases!

    ReplyDelete