Zimbabwe: Dollar crashes as government buys support from armed forces

9 December, 2008 in Zimbabwe

source: SW Radio Africa
By Alex Bell
08 December 2008

Days after Zimbabwe’s soldiers caused havoc in Harare last week over not being able to access their money from the city’s banks, the government on Friday forked out millions of dollars to pacify its armed forces – partly causing a spectacular crash of the local currency over the weekend.

A large group of disgruntled soldiers went on a rampage in the capital a week ago, attacking foreign currency dealers, traders, breaking windows and looting shops. The attack, which saw the uniformed group clash with military police officers, led to the arrest of at least 16 soldiers.

But by the end of the week, the government moved in to pacify the growing unrest among its once dependable and loyal group of uniformed thugs, and paid out cash sums to both soldiers and police officials – with police members each receiving Z$100 million and soldiers receiving half of that.

The government’s reckless spending to [continue reading]

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