Sunday July 8, 6:19 am ET
By Angus Shaw, Associated Press Writer
The mandated price cuts are a desperate attempt to confront inflation that has spun out of control during Zimbabwe's economic crisis. The falling prices have caused stampedes, panic buying and near-riots by impoverished Zimbabweans.
Among those arrested in the latest sweep were the directors of Edgars, a leading clothing and fashion retailer, and supermarket and gas station owners.
Also taken into custody were Michael Fowler and Zed Koudanaris, directors of the main food distributor and fast food chain, and Gavin Sainsbury, chief executive of the country's biggest producer of pork products, the state Sunday Mail reported.
Fowler and Koudanaris pioneered popular branded bakery, pizza and take out franchises in Zimbabwe, including Nando's, known for its chicken dishes across Africa.
No information was immediately available on specific allegations against the business leaders or where they were being held. Police holding cells are notorious for filthy and harsh conditions.
The country's economic crisis, the worst since independence from Britain in 1980, began with the seizure of thousands of white-owned commercial farms for redistribution to blacks in 2000. The country's agriculture-based economy collapsed as a result.
Official inflation is running at 4,500 percent, the highest in the world, though independent financial institutions estimate real inflation is closer to 9,000 percent.
Business executives argue the price cuts threaten to force them to shut down. The government accuses them of being part of a political and economic campaign of "regime change" to bring down longtime ruler President Robert Mugabe.
On Saturday, two weeks after ordering sweeping price cuts, the government announced a new law enabling it to enforce the reductions.
The Sunday Mail, a government mouthpiece, said police and price inspectors raided gas stations still selling scarce fuel Saturday, ordering them to reduce the price by up to two-thirds.
It said they thwarted an attempt by one gas station manager to shut off his pumps by claiming a power outage. Another gas station was caught disconnecting its power supply.
The newspaper said Industry Minister Obert Mpofu ordered commuter bus owners to reduce fares, some by four-fifths, as gasoline prices were being lowered.
Private minibus owners routinely ignore such orders, or take their vehicles off the road, also citing viability problems.
Store shelves remained empty of corn meal, bread, meat and other basic foods Sunday as police and government inspectors continued raiding shops and businesses to force them obey the new price controls.
Police on Friday arrested 17 business leaders.
At least 200 businesses already have been charged for alleged price violations and 40 market vendors were arrested for hoarding goods.
State radio on Sunday quoted police spokesman Andrew Phiri as saying the raids were not a temporary measure but were a permanent enforcement of government efforts to curb inflation and fight profiteering by businesses.
In a speech to supporters Friday, Mugabe warned manufacturers not to defy the government-ordered price cuts by cutting production or their businesses would be seized.
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