Directors Of Black-listed Government Suppliers Face Arrest
The government may close the bank accounts of 51 suppliers who have been blacklisted for engaging in illegal foreign currency dealings, with the National Prosecution Authority (NPA) set to determine the next steps.
On Wednesday, 24 July, Finance, Economic Development and Investment Promotion Minister, Mthuli Ncube, announced that the government had blacklisted 51 contractors for illegally channelling funds to the black market after receiving payments in local currency.
The blacklisted contractors include Browline Transport (Pvt), Exceptional Office Fitouts and Shop Fitters, Diagno Pharm(Pvt) Ltd, Zambezi Bulk Plant Hire, and Avant Garde Group.
Others are Bezzei Enterprises, Golyn Supply Chain Solutions, Lennillim Investments, Advetoois Private Limited, Swasfontain, Siketaal Investments, Motornet Private Limited, ZimQuick Windscreen, Long Reach Technologies, and Blessing Africa Tech Private Limited.
In an interview with the Independent, the Permanent Secretary for the Ministry of Information, Publicity and Broadcasting Services, Nick Mangwana said that while these illicit activities may not have directly harmed the government, they destabilised the country’s exchange rate. Said Mangwana:
For tech news & updates
Techzim WhatsApp Channel: https://whatsapp.com/channel/0029VaS23mO84OmAI88Cwd2q
Government action in such cases is normally debarring such companies. This will stop them from supplying to the government. If the NPA believes there is enough evidence of a crime then prosecution will certainly follow, which includes the closing of the accounts.
These companies got money from the government after supplying goods or services. They then took the money and changed it to US dollars on the black market.
That is the gist of the cases. There is no direct prejudice to the government. What is affected by such actions is the exchange rate, which affects the performance of the economy and the welfare of ordinary citizens.
Mangwana acknowledged that these firms turned to the black market to protect their businesses after being paid in the then rapidly depreciating Zimbabwean dollar. He said:
Let me make it clear that the transgression by these companies is not that they got money and failed to perform or supply.
It is that when they got paid for the goods or services, they went to the black market and changed the money to US dollars to hold value.
According to the Independent, ten firms affected by the crackdown had deals with the Ministry of Defence, and seven were suppliers to the Office of the President and Cabinet (OPC). The Ministry of Home Affairs also had a significant number of blacklisted suppliers.
More: Pindula News
