Zim govt accused of theft as worker’s US$5k payment shrinks to US$0.041

A former Chitungwiza Municipality worker’s nine-year wait for a US$5,156.95 payment has ended in devastating loss, shrinking to just ZiG 2.06, equivalent to approximately US$0.0412, highlighting the catastrophic consequences of Zimbabwe’s currency manipulation.

· Nehanda Radio

In 2015, the worker was owed US$5,156.95 when his contract was terminated. However, Zimbabwe’s government introduced currency changes, converting the USD to RTGS at a 1:1 rate in 2019, and then to ZiG in April 2024 with an exchange rate of 1:2498.7242.

This resulted in significant devaluation.

“Reference is made to your letter dated 15 October 2024.

“You were owed US$5 156.95 when your contract with Council was terminated in August 2015.

“Please be advised that in February 2019, there was a transition from USD to RTGs at a rate of 1: 1, which meant that US$5156.95 became RTGS 5156.95.

“The RTGS 5156.95 was then converted to ZIG on 5 April 2024 at a rate of 1:2498.7242, and it became 2.06 ZIG.

“Council now owes you ZIG 2.06,” read part of the letter addressed to the employee.

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Critics argue that the Zimbabwean government’s actions amount to theft, citing corruption and manipulation of currency values.

The government’s decision to declare the Zimbabwean dollar equivalent to the US dollar without market logic has led to devastating losses for individuals and businesses.

Hopewell Chin’ono, a prominent journalist, highlighted the devastating impact of corruption and currency manipulation in Zimbabwe under President Emmerson Mnangagwa’s rule.

Chin’ono emphasised that this is not an isolated incident but rather a symptom of a broader systemic issue.

He said Zimbabwe has been labelled the most corrupt country in Africa, with Mnangagwa and his Zanu-PF party accused of using the central bank to loot public and personal funds.

“This is what we mean when we say that Emmerson Mnangagwa and his Zanu-PF political elites have impoverished Zimbabweans through corruption, using the central bank to loot not only public funds but also your personal funds. It is straightforward theft,” Chin’ono posted on his X handle.

“This is why trusting Zanu-PF or any of Mnangagwa’s crooked antics and policies would be foolish. If this man was a business, it would have lost everything and literally destroyed. This is why Zimbabwe has been labelled the most corrupt country in Africa.

“It is literally run by a mafia godfather and his crooks, who can wake up one day and simply declare the US Dollar is now worth a certain amount without any market logic, causing you to lose everything—just like this man did.”

Opposition Citizens Coalition for Change spokesperson Promise Mkwananzi said Chitungwiza “must be closed and placed under curatorship”.

“Chitungwiza Municipality must be closed and placed under curatorship. The madness there is beyond what is humanely acceptable. Seven months without tape water and they have the audacity to write this,” he said.