News / Local
More contractors blacklisted over illegal foreign currency deals
04 Apr 2023 at 01:21hrs | Views
The crackdown on companies that channel funds to the illegal foreign currency market has been widened, with 13 more firms being blacklisted for their involvement.
In November last year, 19 companies were blacklisted after they were found to have been fuelling the illegal forex market, thereby disturbing the price stability that had been prevailing in the market.
In a statement yesterday, Finance and Economic Development Minister Professor Mthuli Ncube said the Government was concerned that some contractors continue to destabilise the market.
"Following the blacklisting of some companies through my statement dated November 9, 2022, Government is concerned and disturbed to note the continuation of indecorous behaviour by some companies who continue to fuel illegal parallel market activities," said Prof Ncube.
"This waters down Government efforts towards the stabilisation of the local currency and containment of inflation, thereby pervading the economy at the expense of the generality of citizens of Zimbabwe. Such behaviour cannot be condoned."
Prof Ncube said 13 companies have been identified by the Financial Intelligence Unit (FIU) as being involved in the channelling of funds to the illegal forex market.
The companies are Casha Designs (Pvt) Ltd, Re-net Technology (Pvt) Ltd, Malfran Investments (Pvt) Ltd, Difflock Construction (Pvt) Ltd, Staman Investments Pvt) Ltd, Guide Marketing (Pvt) Ltd, Nodship Investments (Pvt) Ltd, Infinity Hire (Pvt) Ltd, Nomalanga Marketing (Pvt) Ltd, Gift Mwayera t/a Mwayera Transport Pvt Ltd, Mukota Haulage and Buses (Pvt) Ltd, Ofixmore Marketing (Pvt) Ltd and Blecia Investments.
Prof Ncube said having monitored various financial transactions with a view to plug parallel market dealings, the FIU has observed that these companies are siphoning their proceeds to the parallel market, thus, triggering domestic inflationary pressures.
"Resultantly, Government has blacklisted the aforementioned companies so as to maintain stability in the foreign currency market and curb inflation.
"In the same vein, the Procurement Regulatory Authority of Zimbabwe (PRAZ) will be advised to permanently remove the entities from the list of potential service providers to Government.
"Government remains committed to maintaining price stability, restoring market discipline and engendering market confidence. Further, Government is devoted towards implementing and enforcing informed measures aimed at creating a conducive environment to sustainably grow the economy in line with the macro-economic targets under the National Development Strategy 1, which are key for the realisation of the aspirations of Vision 2030," said Prof Ncube.
There has been concern in the market in the last few weeks as the rate rose on the parallel market from US$1: $1 100 to US$1: $1 600.
Others are slightly higher, a development that has seen some shops adjusting their prices.
To mitigate against the movement of the rate of forex, some formal retailers have pegged their prices in US dollars, and when paying using the local currency, they convert at the prevailing interbank rate.
However, some shops that still have prices in local currency, peg at the black market rate, making the prices a little higher.
In November last year, 19 companies were blacklisted after they were found to have been fuelling the illegal forex market, thereby disturbing the price stability that had been prevailing in the market.
In a statement yesterday, Finance and Economic Development Minister Professor Mthuli Ncube said the Government was concerned that some contractors continue to destabilise the market.
"Following the blacklisting of some companies through my statement dated November 9, 2022, Government is concerned and disturbed to note the continuation of indecorous behaviour by some companies who continue to fuel illegal parallel market activities," said Prof Ncube.
"This waters down Government efforts towards the stabilisation of the local currency and containment of inflation, thereby pervading the economy at the expense of the generality of citizens of Zimbabwe. Such behaviour cannot be condoned."
Prof Ncube said 13 companies have been identified by the Financial Intelligence Unit (FIU) as being involved in the channelling of funds to the illegal forex market.
The companies are Casha Designs (Pvt) Ltd, Re-net Technology (Pvt) Ltd, Malfran Investments (Pvt) Ltd, Difflock Construction (Pvt) Ltd, Staman Investments Pvt) Ltd, Guide Marketing (Pvt) Ltd, Nodship Investments (Pvt) Ltd, Infinity Hire (Pvt) Ltd, Nomalanga Marketing (Pvt) Ltd, Gift Mwayera t/a Mwayera Transport Pvt Ltd, Mukota Haulage and Buses (Pvt) Ltd, Ofixmore Marketing (Pvt) Ltd and Blecia Investments.
Prof Ncube said having monitored various financial transactions with a view to plug parallel market dealings, the FIU has observed that these companies are siphoning their proceeds to the parallel market, thus, triggering domestic inflationary pressures.
"Resultantly, Government has blacklisted the aforementioned companies so as to maintain stability in the foreign currency market and curb inflation.
"In the same vein, the Procurement Regulatory Authority of Zimbabwe (PRAZ) will be advised to permanently remove the entities from the list of potential service providers to Government.
"Government remains committed to maintaining price stability, restoring market discipline and engendering market confidence. Further, Government is devoted towards implementing and enforcing informed measures aimed at creating a conducive environment to sustainably grow the economy in line with the macro-economic targets under the National Development Strategy 1, which are key for the realisation of the aspirations of Vision 2030," said Prof Ncube.
There has been concern in the market in the last few weeks as the rate rose on the parallel market from US$1: $1 100 to US$1: $1 600.
Others are slightly higher, a development that has seen some shops adjusting their prices.
To mitigate against the movement of the rate of forex, some formal retailers have pegged their prices in US dollars, and when paying using the local currency, they convert at the prevailing interbank rate.
However, some shops that still have prices in local currency, peg at the black market rate, making the prices a little higher.
Source - The Herald
