Maravi

(NEWZIMBABWE) 1500 RBZ workers face the sack

1500 RBZ workers face the sack
by Staff reporter
01/06/2010 00:00:00

THE cash-strapped Reserve Bank of Zimbabwe (RBZ) which teeters on the bring of collapse due to massive debts and its inability to print money is reportedly planning to sack up to 1500 employees in a bid to survive.

RBZ’s staff numbers bloated to more than 2000 in the last decade as the central bank printed money to fund so-called quasi-fiscal operations. A senior RBZ official told Radio VOP on Monday the institution would send home 1500 people as part of efforts to reduce an unsustainable US$400000 wage bill.

“(We are presently) trying to figure where we can get the huge amounts needed to retrench the 1500 people because that is the only way out of this crisis. Gono is now working full time to try and make sure that the retrenchment is smooth otherwise we will face more litigation.

“The quasi-fiscal activities the bank engaged in are coming back to haunt us. The bank is over staffed and we don’t know how we have been surviving. Workers are disgruntled because we are only getting US$150 a month.

Bank governor, Gideon Gono argues that the quasi fiscal operations saved the country from complete economic implosion in the last decade.

But critics say the governor’s penchant for throwing money at any problem was behind the hyperinflationary mayhem the country experienced over the last few years.

The move by government to ditch the virtually worthless Zimbabwe dollar in favour foreign currencies such as the US Dollar, the Botswana Pula and the South African rand has nearly snuffed the life out of the RBZ.

Unable to print money because of the currency switch the RBZ has found itself unable to pay contractors engaged to supply agricultural equipment as part of the quasi fiscal operations.

Some of the bank's property was recently auctioned as those owed money lost patience.
The central bank says its problems have been worsened by Finance Minister Tendai Biti’s failure to recapitalize the institution.

However Biti insists that with government's revenue inflows remaining constrained and donors holding onto their purses, he has little room to manoeuvre.

Labels: JOBLOSSES, RBZ

posted by MrK @ 1:11 AM