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Govt blacklists 19 companies for fueling black market dealings

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By Alois Vinga

FINANCE Minister, Mthuli Ncube Wednesday blacklisted 19 companies after investigations by the Reserve Bank of Zimbabwe (RBZ) showed that they siphoned money to the black market and illegally purchased foreign currency.

Zimbabwe is currently working hard to maintain exchange rate stability and contain inflation within sustainable margins following market disturbances which saw monthly inflation shooting through the roof to 30,7% and yearly inflation to over 280% in the year’s first half.

At the bottom of the instability, authorities singled out market indiscipline perpetrated by suppliers of goods and services to the government, who in turn dispose of the local currency in the alternative market as chief among the causes pushing up parallel market rates.

Despite a raft of measures having been implemented to include hiking interest rates, introducing gold coins and mopping up excess liquidity, authorities have continued to maintain a tight grip on errant suppliers.

Ncube said recent findings by the Reserve Bank of Zimbabwe’s arm, Financial Intelligence Unit, are that some contractors ,after passing through Value for Money Processes and having received their payment from the government, still tend to siphon their proceeds into the parallel market, thereby causing domestic inflationary pressures.

He said the FIU noted that upon receiving their payments, the companies would engage in spontaneous Illegal Foreign Currency transactions through buying foreign currency from individuals and entities.

“It was also noted that some of these companies would engage in transactions which are not related to their line of business. Some would purchase fast moving consumer goods from various manufacturers and the goods would then be sold exclusively in foreign currency.

“In view of the above, and in an endeavor to maintain sanity in the foreign currency market and to curb inflation, government is left with no other option than to blacklist the mentioned companies. The Procurement Regulatory Authority of Zimbabwe will be advised accordingly, to blacklist these entities from doing business with government,” said Ncube.

The 19 companies list includes Nariox (Pvt ) Ltd, New Age Marketers (Pvt } Ltd, Pepwit Investments (Pvt ) Ltd, Tirumi Investments (Pvt) Ltd, Mwendo Africa (Pvt } Ltd, Alg World Investments (Pvt ) Ltd, Lobmer Investments (Pvt ) Ltd, Nisbank Enterprises (Pvt ) Ltd, Sailgroom Enterprises, Wayvar Investments, Poweride Safaris, Azelion Energy (Pvt) Ltd, Blackdeck (Pvt) Ltd, Paza Buster (Pvt) Ltd, Redan Coupon (Pvt) Ltd, The Best Car Rental, The Legacy Car Rental, Josam Enterprises (Pvt ) Ltd and Construction Warehouse (Pvt ) Ltd.