RBZ probes Pakistani tycoon's gold licence

RESERVE Bank Governor John Mangudya Monday said the central bank would investigate circumstance under which controversial Pakistani tycoon, Ali Mohamad managed to renew his gold-buying licence at a time he was answering a gold smuggling case at the Harare Magistrates Court.

The businessman was arrested last year on allegations he was part of a syndicate involved in smuggling gold from Zimbabwe to Dubai.

Also arrested with Mohamad was Zimbabwe Federation Miners president Henrietta Rushwaya and some state security agents.

The arrests came after Rushwaya was busted at the Robert Gabriel Mugabe International Airport attempting to smuggle 6kg of gold to Dubai before she implicated Mohamad.

However, Zanu-PF Mberengwa North MP Tafanana Zhou grilled Mangudya Monday how Fidelity Printers and Refineries (FPR) had renewed Mohamad's gold licence when he had criminal cases before the courts.

According to Zhou, Mohamad's licence was renewed last month.

Mangudya was appearing before the Parliamentary Portfolio committee on Environment, Climate and Tourism.

"Governor, are you aware that people have lost confidence in Fidelity Printers because they are giving licences to those implicated in gold smuggling, for example Ali Mohamad's licence was renewed last month?" asked Zhou.

In response, Mangudya told the committee that he would investigate the matter and report back to Parliament.

Two weeks ago, FPR management failed to explain to the Mines Parliamentary Portfolio Committee on how gold why there was an increase in cases of smuggled gold out of the country.