RBZ blacklists 6 contractors, freeze 5 wholesalers...

RBZ blacklists 6 contractors, freeze 5 wholesalers' accounts

Zim Now Writer

The Reserve Bank of Zimbabwe’s Financial Intelligence Unit has blacklisted six contractors for trading in foreign currency on the black market while five major wholesalers have had their accounts frozen for manipulating prices of goods and services.

This comes as the authorities want to ensure they achieve market discipline.

In December 2022, government released substantial amounts of money to contractors and service providers following value-for-money audits that were designed to ensure fair pricing.

Some companies, it is believed, used the funds to mop up US dollars on the black market.

FIU director-general Oliver Chiperesa said the unit had tightened the screws to ensure market discipline.

“So far, we have identified six or so (contractors) that we have taken action against, including referring to the Ministry (of Finance and Economic Development) for blacklisting. We expect the stability to continue. I think government suppliers are no longer really getting involved on the parallel market because they are aware of the consequences,” he said.

“It’s only a few that are still doing it and we have taken stern action against those by freezing their accounts and referring them to the ministry. So, following the action taken by the ministry last year, we continue to refer more companies periodically, as and when we find them.”

Chiperesa said the FIU is not confining itself to the parallel market drivers only, but also wholesalers who are overcharging.

“So far, in the last two weeks, we have frozen the accounts of five major retail and wholesale shops pending further investigations. We are continuing with our work. Our teams are out there identifying more companies and entities that are doing the same.”

Some companies involved in buying US dollars from the parallel market are believed to be benefitting from the central bank’s foreign currency auction market.

“There is really no excuse for the companies to be using parallel market rates at all at this stage with the near convergence that we have enjoyed over the last few months between the parallel market and official rates. It’s just greediness that is driving some of these companies to do that,” he said.