4 businessmen in US$363K foreign currency storm

Four Harare businessmen have appeared in court facing charges of contravening the Exchange Control Act in transactions amounting to more than US$363,000.

Nitish Raghuvar, Karankumar Girishkumar Shah, Lalbahadur Aatish Jaiswar and Talati Neel Dhavalbhai appeared before Harare magistrate Jessie Kufa and were not asked to plead. They were each granted bail of US$500.

According to the State, on February 10 detectives from the CID Asset Forfeiture unit were deployed to investigate individuals allegedly operating an illegal Hawala system, with a focus on verifying sources of funding, pricing irregularities, courier-linked transactions and compliance with licensing requirements.

Police allegedly received information that the four accused were running a Hawala operation from premises in Newlands, Harare. It is claimed that importers deposited cash at the premises, after which the funds were either smuggled to Dubai or settled through a network of associates based there to pay for imported goods.

During a search of the premises, detectives reportedly recovered receipts, registers and bills of entry believed to be linked to the alleged transactions.

Cash totalling US$74,865 was seized during the operation and is being held as an exhibit.

The matter has been remanded for further proceedings.