Mozambique scales back price hikes after riots

MAPUTO, MOZAMBIQUE - Sep 07 2010 15:37

Mozambique will reverse an increase in the price of bread that sparked deadly rioting last week, and restore some subsidies for electricity and water, the planning minister said on Tuesday.

After an emergency Cabinet meeting, Planning Minister Aiuba Cuereneia read out a statement saying the government would "maintain the previous price of bread through the introduction of a subsidy".

Cabinet agreed to scale back an increase in the electricity prices charged to most consumers, and will also withdraw increases in water prices, he added.

Five days earlier, the government had proclaimed that the price increases were "irreversible".

Mozambique's state utility imposed a 13,4% rate increase on Wednesday -- the day the protests began -- while the state water supplier has also raised prices around the capital, Maputo.

Police broke up the crowds using rubber bullets but sometimes also live fire. Over three days, 13 people were killed, about 400 injured, and 286 arrested, according to the government.

Cuereneia also announced a series of austerity measures, freezing salaries for the heads of state firms and trimming travel budgets of government officials, who the minister said would be bumped from business to coach on flights.

He also insisted that government would investigate allegations of excessive force by police in breaking up the protests.

"The government will do that, is doing that, and whenever there is a perception of excessive use [of force] by the police, the government has done the appropriate investigation," he said. -- AFP

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