Mugabe bonus decision scuttles recovery prospects

Local economists and financial experts have warned that President Robert Mugabe's decision to override Finance Minister Patrick Chinamasa's recent suspension of civil service bonuses would scuttle any prospects of early economic recovery given the country's squeezed revenue base.

Mugabe took government and Zanu-PF officials by surprise on Independence Day last Saturday when he reversed Chinamasa's decision to suspend government employees' 13th cheque saying his government could not afford to withdraw workers legal benefits.

Independent Economist John Robertson said the awarding of bonuses should be based on State revenue levels.