A Belgian, Daleyot Erez, has been arrested by the Zimbabwe Anti-Corruption Commission (ZACC) on allegations of externalising over US$180 000.
Erez is the major shareholder in Raiz-El Nickel Processing (Private) Limited with a controlling 70 percent stake.
It is alleged that sometime in December 2021, Erez hatched a plan to prejudice the Government of thousands of dollars in foreign currency through his company, Raiz El-Nickel Processing.
To achieve the plan, Erez allegedly exported 240 tonnes of copper/nickel alloy valued at US$180 000 to Tera Africa, a South African Company, at undervalued prices.
The money was supposed to be paid to the Raiz-El Nickel Processing (Pvt) Ltd Ecobank account in Zimbabwe.
However, Erez allegedly bypassed this to avoid paying tax by instructing Tera Africa to pay the export proceeds to his South African registered company, Knight Corp, through a South African bank, First National Bank (FNB).
Further investigations established that since December 2021, the foreign currency earnings of the accused person were not received by Ecobank Zimbabwe, depriving the country thousands of dollars in undeclared incomes and loss of revenue through externalisation.
It was also established Erez‘s company corruptly posted huge losses to the Government by declaring minimal taxable profits and not acquitting CDI Forms within 90 days in violation of the Exchange Control Regulations.
The Reserve Bank Exchange Control Regulations require all foreign currency earnings to be received within 90 days or within an approved extension period by the Exchange Control.
Non-acquittal of CDI forms constitutes an offence in terms of Section 5(1) of the Exchange Control Act.
Erez has since appeared in control and was remanded in custody by a Kwekwe magistrate to April 20 for bail hearing.