By Gift Mawire
- Troubled Zimbabwe freeze jobs and promotions as the country set to reject proposed bond notes
- No signs of calm as economic and political turmoil spirals out of control
- 80 % of government revenue goes to wage bills
Zimbabwe’s continued economic and political volatility has forced the over-stretched Mugabe administration to freeze hiring and promotions in its civil service ranks , according to newswire bloomberg.com.
- Zim Wages to Be Paid Partly in Bond Notes : Central Bank Governor
- Bond notes split church:Prophets Makandiwa, Magaya attacked
- Zimbabwe’s bond notes spark anger
- Bond notes are toilet paper : Mujuru
- Governor Mangudya sets Bond notes launch date
The report is an indication that the cash -strapped Southern African nation is struggling to meet a wage bill that accounts for more than 80 percent of its revenue .
“The Public Service Commission has frozen the filling of all vacant critical and non-critical entry and promotional posts with immediate effect,” according to the notice signed by the PSC Secretary Pretty Sunguro and obtained by Bloomberg.
Business in Zimbabwe has been brought to a standstill since July 6th as residents embark on mass action in protest against the government amid worsening economic conditions.
While Zimbabwe’s central bank chief has admitted last week that people will be paid partly in bond notes, despite earlier claims the notes were to be an incentive for exporters, the move by the Finance Ministry shows an otherwise deeper problem for a regime that failed to pay bonuses in 2015 and this year had to delay payments to workers as imports went up against falling revenues.
The bond notes are likely to be introduced around October. They are supposed to be at 1:1 parity with the US dollar