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Government, concerned about the prevailing price madness that has seen some retailers increasing prices by in some cases more than 50 percent, has said it is taking measures to flush out economic saboteurs that are profiteering through charging exorbitant prices.

Cabinet resolved on Tuesday that manufacturers and suppliers of basic commodities and medical drugs should revert to reasonable pricing systems that recognise the guaranteed convertibility of bond notes and RTGS balances to the US dollar on a 1:1 ratio.

Information, Publicity and Broadcasting Services Minister Monica Mutsvangwa said on Tuesday that action will be taken against the saboteurs who are unjustifiably profiteering from basic commodities. “Cabinet resolved that action be taken against those value chain players found to be fuelling unjustified price increases thereby imposing hardship on the citizens for wanton profiteering,” said Minister Mutsvangwa.

Industry and Commerce Minister Mangaliso Ndlovu said those who are profiteering risk withdrawal of the central bank’s foreign currency support among other penalties. He said The Reserve Bank of Zimbabwe is allocating foreign currency to manufacturers to enable them to import raw materials and as such there was no justification in charging exorbitant prices for medication and other basic commodities.

“We are monitoring prices, especially those entities that have received foreign currency support,” said Minister Ndlovu.

The major culprits fuelling the price madness are the retailers as most manufacturers have maintained the old prices. Some of the retailers have gone to the extent of rejecting bond notes or electronic payments insisting on payment in either US$ or rand.

Last week Government directed that prices of basic commodities increased without justification should be reduced immediately but it seems most retailers have defied the directive. Government has also directed that no business should reject bond notes or electronic payments when transacting but some businesses are still rejecting bond notes and electronic payments.

We want to once again appeal to businesses to uphold business ethics and stop charging exorbitant prices. The retailers should not take advantage of the panic buying that has created artificial shortages of some commodities to fleece consumers.

There is urgent need to put measures in place to protect consumers from unscrupulous businesspersons that want to profiteer through charging exorbitant prices. Government should not hesitate to punish these defiant retailers.