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Garrison Shops get 2.5% civil servant slave wage subsidy - wafer-thin differential to fool poverty stricken soldiers

29 Feb 2020 at 10:43hrs | Views
"Public Service Commission (PSC) Secretary Ambassador Jonathan Wutawunashe said that the scheme which is voluntary mobilises savings by Government employees for the purpose of wealth creation adding that Civil Servants can benefit through concessional loans to assist them with wealth creation projects and other requirements. He said that those who opt to join the scheme will contribute 2.5 percent of their basic salary," reported Bulawayo24.

"Wutawunashe said that members of the fund will withdraw the totality of their contribution with accrued interest upon termination of employment."

This is just nonsense, the civil servants are on slave wages already and therefore are living from hand to mouth. These people should be receiving welfare support and not be expected to save.

My gut feeling is the scheme will not be voluntary.

Unless the interest rate paid on the savings in variable and above the hyperinflation rate at all times. At present Bank interest rates are double digit and yet inflation is top end of the three digit, at least. The interest accrued is likely to be pegged on the Bank rates. In this case, it will be unwise to join the scheme because you will pay in a cow and get back a goat, a chicken, an egg or one single grain of maize; the long you stay in the scheme the worse you will be!

The only reason why one would join the scheme is so that you borrow as much as possible up front and pay back as late as possible. The skewed interest rate charged on the loan and the bloated hyperinflation rate will work in your favour then. Be warned, everyone would want to do the same and in Zimbabwe's corrupt system the ruling elite will benefit and the poor will lose big time!

"Wutawunashe said that Cabinet also initiated the operationalization of Garrison Shops for the Uniformed Services, namely Zimbabwe Defence Forces, Zimbabwe Police Service and the Zimbabwe Prisons and Correctional Service to ensure convenient access to reasonably priced commodities," continued the report.

"He said that the Garrison Shops are based on a self-financing model as they entail selling of goods to customers."

If these Garrison Shops source their goods from the same suppliers as the other shops then it hard to see where Garrison Shops will be making their savings to justify charging their uniformed service customers lower prices. Some reports said Garrison Shops prices will be subsidised by an addition 2.5% tax on civil servant wages.

Most civil servants are on slave wages already and whilst they will feel the 2.5% additional tax it is doubtful uniformed service personal will note a great deal of price difference.

The only advantage to having the Garrison Shop will be when there are shortages. The Garrison Shops will be well supplied!

The Garrison Shops are meant to make those in the uniformed service feel they are favoured about the rest of the civil servants who, by virtue of having a job, are luckier than the millions unemployed, pensioners, vendors and right at the bottom of the packing order the rural peasants.

In a video that has gone viral, Hopewell Chinono rightly asked if there is going to be a Garrison School, Garrison Hospital, Garrison Bank, etc. for the uniformed services personal. Even if government was to added one or two of these things, there is a limit. Sooner or later the soldier, Police officer or whoever will have to step outside the Garrison bubble and come face to face the ever rising tide of abject poverty sweep the land.

So the true purpose of the Garrison Shops is to all these in the uniformed services feel they are a cut above the masses or being it by this wafer-thin 2.5% differential. The most cynical part, cabinet is cocksure the soldiers, Police officers, etc. will not notice they are sliding down the greasy pole into abject poverty, same as everyone else, as long as the wafer-thin differential is maintained!

Source - zimbabwelight.blogspot.com
All articles and letters published on Bulawayo24 have been independently written by members of Bulawayo24's community. The views of users published on Bulawayo24 are therefore their own and do not necessarily represent the views of Bulawayo24. Bulawayo24 editors also reserve the right to edit or delete any and all comments received.

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