Cash-hoarding firms dragged to court

Three companies that deal in building materials have appeared in court accused of harvesting cash and not banking it.

The three - Take and Tile (Pvt) Ltd trading as Bathroon Boutique, Candover trading as the Builders Home and Stochack trading as Eurostar Electrical Company Limited -appeared before Harare magistrate Mr Lazini Ncube for violating the Reserve Bank of Zimbabwe regulations.

They are alleged to have committed the offence since July last year.

The companies were represented by their managers – Faith Chumbu, Charles Mutseka and Paul Muyengi – respectively.

Prosecutor Mr Michael Reza said only the companies were being charged.

He said in his view companies were not legal persons.

"There was a human element that made the conscious decision of not banking the companies' daily proceeds," said Mr Reza. "There is need for the human being to come and explain why they made a decision not to comply with RBZ regulation that money should be banked into a financial institution."

Mr Ncube postponed the matters to March 19, 20 and 24 for trial.

The companies' representatives had already pleaded guilty to contravening the Bank Use Promotion Act.

Mr Reza told the court that Bathroom Boutique and Builders Home are in the business of selling building material, while Stochack sells electrical gadgets on a cash basis.

The court heard that on July 17, 2016 Bathroom Boutique was served with a disclosure order by a representative of the RBZ, Mr Tongesayi Murape.

The order required the companies to submit returns cash sales and deposits on daily basis as provided by the RBZ Act.

Its director, Mr Petker, acknowledged receipt of the order and signed it.

It is alleged that Builders Home received the order on January 14 this year and its director, Mr Shi Haiyan, signed for it.

At Stochack, bookkeeper Adele Gous signed the order on June 30, 2016.

It is alleged that after being served with the orders none of the companies submitted returns to RBZ as required by the Act.