Harare, (New Ziana) – The Reserve Bank of Zimbabwe (RBZ) on Tuesday listed 18 companies facing penalties for allegedly abusing the foreign exchange auction system “to the detriment of the stability of the economy.”
Central bank governor, Dr John Mangudya said the censure followed investigations by its Financial Intelligence Unit.
“The bank has a duty of care to ensure that the significant progress that the economy made since the introduction of the foreign exchange auction system in June 2020 continues on an unabated positive
trajectory whilst at the same time protecting consumers and fostering compliance to engender fair play in the economy,” Dr Mangudya said.
“It is against these noble objectives that SI (Statutory Instrument) 127 was put in place to provide for penalties against errant entities that were at the forefront of abusing the foreign exchange auction system to the detriment of the stability of the economy.”
The companies are National Foods (Pvt) Ltd, Georgia Petroleum (Pvt) Ltd, Tettola Investments (Pvt) Ltd. Africa Steel (Pvt) Ltd and Westvillle Investments (Pvt) Ltd trading as Omni Africa.
Flicknik Enterprises (Pvt) Ltd, Duo Valley Commodity Brokers, Faircclot Investments, GlenuLas Trading, Natural Stone Export Company, Nuvert Trading, and Phirebrook Investments also make the list.
The rest of the firms include Classic Energy, Clorex Energy, Explochem, Mutare Mart & Exchange, Souzrce Fuels and Kimya Investments.
Dr Mangudya said it had engaged the business community in the past two weeks over SI 127.
The law demands that companies pricing goods in foreign currency allow payment for the same goods using the official local currency exchange rate.
“Going forward and in line with the recommendations from the business community on the need to continue to enhance stability in the economy, the Bank’s efforts to foster compliance in terms of SI 127 shall be limited to outliers that wantonly abuse the foreign exchange auction system, (engage in) exchange rate manipulation and noncompliance with anti-money laundering rules and regulations,” he said.