A government-appointed investigation team has accused Zimbabwe’s main labour body — which is planning protests later this month — of flouting exchange-control regulations and other gross financial irregularities, the state-controlled Herald reported on Friday.
President Robert Mugabe’s government ordered a team to begin investigating the affairs of the Zimbabwe Congress of Trade Unions (ZCTU) back in January, the paper said.
The authorities are deeply suspicious of the ZCTU, which is closely linked to the opposition Movement for Democratic Change (MDC) party.
According to the findings of the team, the ZCTU bought two houses after selling foreign currency on the illegal and much more lucrative parallel market.
Two of the properties, one in Masvingo and another in Gweru, were found to have been purchased. This amount includes a portion financed by the foreign currency illegally exchanged by ZCTU on the black market in violation of the Exchange Control Act, the paper said.
Management is also said to have abused free funds by selling foreign currency to unauthorised dealers, the report said.
Foreign currency is scarce and tightly controlled by the authorities in Zimbabwe, who have set the exchange rate. It currently stands at roughly one-third of the rate offered on the parallel market, which is widely, though controversially, used by businesses in Zimbabwe.
The ZCTU has threatened to stage protests later this month over the poor salaries paid to many workers in the private sector.
Although the government recently awarded big salary increases to nurses, teachers, soldiers and other civil servants, they have quickly been eroded by Zimbabwe’s record inflation rate, which currently stands at more than 1 000. — Sapa-dpa