Harare - The National Incomes and Pricing Commission ignored pleas from the two media houses' executives for a review of the newspaper cover prices, despite evidence of loses from regulated prices. However, the state-owned Zimbabwe Newspapers group's newspapers have been allowed to make regular prices reviews in line with escalating production costs.
These source their fuel from the government at a hugely discounted price, besides enjoying discounts for certain key procurements.
An executive at one of the independent media houses indicated that it costs Z$1 million to produce a single copy of any of the two newspapers; advertising rates had also been regulated and the newspapers were unable to meet escalating printing and newsprint costs at current prices.
Mutare Board and Paper Mills, the only domestic producer of newsprint, was allowed to review its prices upward, but the government agent has refused to allow a review of prices for consumers of the newsprint who are now faced with higher input costs.
Moreover, rates, including those for water administered by the Ministry of Water Resources, had gone up more than 5,000% in the last month, putting pressure on margins.
“We're under assault,” a newspaper executive told Bizcommunity.com, preferring to remain anonymous for fear of reprisals.
Last week, Raphael Khumalo, CEO of the Zimbabwe Independent, which also publishes a Sunday newspaper, The Standard, was called to the police charge office together with The Financial Gazette CEO, Jacob Chisese. Both escaped detention after signing statements undertaking to comply with the NIPC directive.
Apparently, the NIPC's price assault came after a scathing attack on the NIPC boss, Goodwills Masimirembwa by The Financial Gazette, which charged in an editorial that it was “suicidal to attempt to drive an economic revival program from Masimirembwa's pedestal” and indicated he would be thrown into Zanu PF's “political dustbin” after the 2008 elections.
The Zimbabwe Independent this week charged in an editorial that government wanted to close it down.
“For, make no mistake, that is the intention here. If a company cannot recover the cost of production, it will go under,” the Zimbabwe Independent said, alleging Masimirembwa had “advertised his hostile view” on the newspaper in his column in the state-owned daily, The Herald.
