via Illicit financial flows cost Zim $500m | The Herald December 14, 2015
ILLICIT financial flows have this year cost Zimbabwe more than $500 million, which is enough to buy about over half of the season’s supply of grain for the country. Zimbabwe requires about 1,8 million tonnes of maize annually at a total cost of about $702 million at the Grain Marketing Board. Reserve Bank of Zimbabwe governor Dr John Mangudya said the authorities are dealing with the cancer.
“For this year alone Zimbabwe has lost more than $500 million which has no authentic, bona fide justification,” said Dr Mangudya. “I am very concerned from where I sit as most companies are now abusing the systems in Zimbabwe by utilising funds from company accounts into individual accounts so they can take money out of the country. This is happening and we shall deal with that problem. It’s not desirable,” he said.
He said some companies are taking advantage of the opening up of the exchange controls to drain money out of the country. “That shows lack of confidence. How can you be confident that you love to live in Zimbabwe without your money? “So you send your money to Mauritius, China or Pakistan or other parts of the world but your business is in Zimbabwe,” he said.
“It’s a paradox. So if you are not happy with Zimbabwe its better you go and live where your money is. It’s a grave concern. I looked at the statistics and found out that it’s a cancer that we are brewing,” said Dr Mangudya.
“This calls for measures to curb the bleeding of the nation through the illicit financial flows. “We need to improve on foreign exchange management systems. We need compliance. Systems are there but those people who are given the task of implementing our policies must walk the talk,” said Dr Mangudya.
One of the measures under the foreign exchange management systems in other countries includes cash limits. The United States of America, for instance, limits daily cash withdrawals to $10 000 per individual.
Other measures are expected to include crafting legislation to coerce mining firms to release production data. The measures will help to curb illicit financial flows and money laundering.
According to a recent study, Africa loses between $50-$60 billion annually through unscrupulous movement of money outside the continent. According to study, the flow of illicit money out of Africa is facilitated by a global shadow financial system comprising tax havens, secrecy jurisdictions, disguised corporations, anonymous trust accounts, fake foundations, trade mispricing, and money laundering techniques.
COMMENTS
The ZANU’s are the main ones externalising money.
I think the reserve bank governor is mainly concerned with reserving currency export for himself and his friends operating in their private capacity
Reserve bank and its zanu pf have have been raiding companies and individuals’ accounts at free will and with no shame. some companies are still owed money raided by Gideon and frioends. Now you ask why pple dont trust your banks? are you for real?
Who in Zimbabwe is withdrawing $10,000 cash daily? The US limits in-country cash withdrawals to combat drug dealers and such, who deal only in cash. The US has no limits on the amount of cash an individual takes out of the country, however any amount over $10,000 must be declared. Likewise, the US has no limits on the amount of money that an company or individual can transfer in and out of the country, after all, it’s their money, not the government’s. However, only in Zimbabwe does the government feel that private assets are theirs to occasionally take. That of course includes, money, land, machinery and whatever else they want to expropriate.
How can you be happy living with a bunch of Zanu thieves? The 4 million people who left are now expected to remit currency for the very same Zanu thieves to get fat on – whilst they abuse and starve the poor people of Zimbabwe. The Diaspora need to be careful that they do not feed the Zanu fat cats whilst their own kith and kin are beaten, tortured, raped and looted of what little they have. The Diasporan billions are keeping Zanu in power now.
The US dollar is the property of the USA how can zanupf lay claim to this money who in their right mind will even consider paying taxes or retaining any money (US$) in any bank in Zimbabwe where zanupf can grab it as usual.
These Racist tribal indunas HAVE imposed a lawless system on the citizens NOW they cry. Zimbabwe is known the world over as THE #1 hot bed of corruption.
Mangudya FYI there is no law in Zimbabwe. BOB IS A GREAT TEACHER IN THIS FACULTY HE HAS A PHD AS WELL AS THE CONFUSION AWARD FROM CHINA JUST ASK HIM AT THE NEXT INDUNA MEETING.
THANK GOD for the OBAMA dollar.. I earn it .. I Spend it .. I move it.. I burn it … IT IS MY DOLLAR.. Not your thieving ZAnu PF dollar… ALUTA CONTINUA…