Mugabe slams Biti over economy

President Mugabe last week attacked Finance Minister Tendai Biti for contributing to the slow growth of the country's economy by making questionable decisions that do not promote productivity.

In an exclusive interview with The Sunday Mail at State House last Friday, Mugabe said although Western-imposed sanctions were largely to blame for economic stagnation, Biti appeared negative about addressing challenges stemming from diminished economic performance.

He said the minister failed to pump into production the more than US$500 million in Special Drawing Rights (SDRs) that Zimbabwe received from the International Monetary Fund in 2009.

Biti, said the President, continued to neglect agriculture, a key sector, and also erred in the manner he handled civil servants' demands for a salary hike.

Mugabe was nonetheless optimistic that diamond and platinum trade, coupled with improved investment, would stimulate economic prosperity within the next two years.

"We have sanctions, as you know, and we are affected by what has happened in the international arena. It is mainly the sanctions that have affected us," he said.

"But with the discovery of dia
monds and platinum and a gradual improvement in investment, we are optimistic that given one year or two, an improvement would have taken place.

"Of course, this global political agreement; this Government has also been obstructive. You have the Minister of Finance and you give the Minister of Finance some autonomy. He makes some decisions and those decisions are not always of a nature that is promotive, economically.

"You take the fact that, for example, we had over US$500 million in SDRs. He just sat on them. Instead of using that money to bolster up the economy, inject it into companies that needed finance for raw materials or spare parts so that they could be more productive, he just sat on them."

"He said they were for balance of payment, but balance of payment is the battle between exports and imports. If imports dominate exports, then you are in trouble and you do not hope that by using SDRs you are curing the problem; the deficit in an effective way, no.

"Inject what money you have into production. Boost your exports and then you are taking care of your imports. You can do both, of course, if you are able to."

The Head of State and Government and Commander-in-Chief of the Zimbabwe Defence Forces said Biti was paying little attention to agriculture, a key sector of the economy.

He said farmers were constantly frustrated because they were not being paid for grain deliveries.

"Farmers are always ready, raring to go. But we fail them. They do not have inputs, even where they have the money. Just imagine - they could not get fertiliser for two reasons: fertiliser was scarce and where it was available, they did not have money to purchase it. Why? Because their money was locked up in deliveries of maize and wheat that have not been paid for by the Minister of Finance.

"You have maize that was grown last year that was paid for partially (and we are going into another harvest). All the wheat of last year has not been paid for. We do not proceed like that in Zanu-PF."

Turning to civil servant demands for increased earnings, Mugabe said the Finance Minister appeared negative about the issue.

"Well, sure, we do not have adequate resources to meet the demands of civil servants in full. . . . Just to say 'no' would be too negative. You cannot say 'no' when these people are working; the input that they make; that is what builds up Government performance.

"The teachers, for example, teach and so on. They are productive in that way. We should look into that.

" They have a really good case and Government, a bad one. We can plead weakness on our part and say we do not have resources, but you cannot be negative. Do not be negative.

"Tell them the truth, but do your best . . . It is always negative: 'No, I cannot do this. No, I cannot do this.' But have you tried?"