Published by the government of Zimbabwe
Peter Matambanadzo
27 October 2007
Harare — THE National Incomes and Pricing Commission is working on modalities to strengthen its compliance teams to stabilise prices of goods and services, foster economic growth, social harmony and bridge ever widening inequalities in society, the commission chairman has said.
NIPC chairman Mr Godwills Masimirembwa, who was addressing a Press conference on the role, functions, vision and mission of the commission, said the commission would descend on all errant businesses that continue to charge prices above those stipulated by the Government.
"The commission is strengthening its enforcement compliance team and will not hesitate to deal with errant manufacturers, wholesalers and retailers," Mr Masimirembwa said.
He said the commission's inspectorate department was going to intensify its operations against the sale of goods on the illegal parallel market.
This, he said, was going to be done through the setting up of agencies in all provinces, which would operate with the commission in collaboration with the Ministry of Industry and International Trade, the Cabinet Taskforce on Price Monitoring and Stabilisation and the Zimbabwe Republic Police.
He said the officers would be deployed in all the provinces and report to the commission.
Mr Masimirembwa added that the commission was currently incapacitated in terms of the inspectorate officers but would soon recruit more officers so that it can effectively discharge its duties.
He said the commission continues to expeditiously vet applications for price reviews but was dismayed that some companies were still overcharging.
"The commission notes with concern that despite being awarded price increases some companies are still not manufacturing or are manufacturing and hoarding the goods, then apply for fresh price increases within two or three weeks of initial approval or charge a price higher than the approved one," Mr Masimirembwa said.
In certain instances, he said companies were manufacturing but the goods were finding their way onto the parallel market where they are sold at way above the approved prices.
The commission noted with concern the indexing of manufacturing costs on imported items on the basis of the parallel market foreign currency exchange rates.
"This is not permissible and any such cost build-up mechanism will not be accepted by the commission," he said.
Mr Masimirembwa said the commission was fully aware of the challenges faced by the business community and challenged the business sector to submit their proposals to enable the commission to come up with policy recommendations and approvals that balance business viability and affordability of goods and services.
Mr Masimirembwa outlined the functions of the commission and its role and the mandate that was established at the height of the price madness that had gripped the nation during the first half of the year.
This led Government to freeze prices of all goods and services at their June 18 levels.
Mr Masimirembwa said the public should understand that the commission would always strive to ensure that it undertakes research, analyses pricing and production costs and develops pricing models, frameworks and strategies to put an end to profiteering.
The commission will also monitor price trends of goods and services and safeguard the public from unscrupulous business practices.
It would also look into pricing violations, establish the determinants of wages and salaries in all sectors as well as assessing the impact of remuneration packages on prices of goods.
Since September 13, the commission has received over 300 applications for price reviews and some price increases have been awarded while others are still under consideration.
The increases approved include three basic controlled products -- maize-meal, flour and bread -- and 15 monitored goods.
These are milk, beef, sugar, salt, cooking oil, maize seed, stockfeeds, fertilizer, agricultural implements, tyres, cement, packaging, coal, medical preparations and yeast.
Although it has held meetings with the industry, the commission is still to review prices of agricultural chemicals.
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