Government targets 40 companies

FINANCE minister Patrick Chinamasa has revealed that government is investigating 40 large companies to determine how they are handling their cash as the country’s liquidity crisis deepens.

Source: Government targets 40 companies – NewsDay Zimbabwe June 15, 2016

by Everson Mushava

Chinamasa said big companies, particularly those in the retail business, were exacerbating the country’s cash crisis by not banking their daily takings contrary to the legal requirement that they should deposit their earnings on the following business day.

Addressing Zanu PF national consultative assembly members last Friday, Chinamasa said investigations on the 40 big companies would, however, be done in a market-friendly way to make sure that they would not close.

“We have looked at the trend and realised they [retail companies] do not bank their money, yet we have a law that requires them to bank their money the next day given the circumstances,” he said.

“The Reserve Bank has now targeted 40 businesses in a market-friendly way. We don’t want them to close, and we won’t name them, but we are monitoring their cash deposits, cash takings and to what extent they are banking with their respective banks.”

He added: “And we think this will go some way to make the United States dollar circulate. In fact, there was a practice we picked up where some retailers were selling cash. Because people are desperate for cash and, say, those who want $100, will be asked to transfer into the bank of the retailer, say, $150 or $120, and they are given $100 in cash. So those are the issues that we clearly must tighten.”

Zimbabwe has been experiencing a severe cash crisis that has forced government to announce the introduction of bond notes in the coming months, despite resistance from the market. Bank account holders have been struggling to access their hard-earned savings due to the biting cash shortages.

Chinamasa said the use of the US dollar had made the country a prime target by businesspeople looking for the green back, apart from illegal tendencies by big corporates not to bank their cash and subsequently reducing the money in circulation.

He said government had come up with a priority list of goods that could be traded in hard foreign currency, while other domestic transactions would now be conducted in bond notes.

“What the public and the newspapers had lost completely from the measures that we have introduced is the new focus that of management of our foreign currency. Our foreign currency market was overregularised,” the Treasury boss said.

“You could buy any rubbish using our hard-earned foreign currency. As of now, through discussions with commercial banks, players, the Confederation Of Zimbabwe Industries, retailers and so on, we have introduced a priority list which must guide the usage of our foreign currency.”

Chinamasa said government would intensify its fight against corruption and also devise strategies to collect money from the informal market.

He revealed that government would now introduce a cargo tracking system to monitor trucks passing through the country until they cross the borders to make sure undeclared goods are not dumped in the country.

Also speaking at the event, former Finance minister Herbert Murerwa said failure by banks to provide money on demand was the biggest reason why Zimbabweans shunned banking their money.

COMMENTS

WORDPRESS: 7
  • comment-avatar
    R Judd 6 years ago

    Typical ZANU lies. ZANU stole all the money that is why there is a problem.

  • comment-avatar
    Joe Cool 6 years ago

    ‘You could buy any rubbish using OUR hard-earned foreign currency’ What does this mean? Isn’t my foreign currency mine, to buy what I want with it? Is it now ours, and I buy what I am told to with it? Go back to the A-G’s office Chinamasa and legalise some more theft – it’s what you are better at.

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    Nyoni 6 years ago

    The first lot of companies that should be investigated should be ZANU PF listed companies. Why is there no mention of this anyway. How does a company survive in this climate and it is apparent that these ZANU PF companies are flourishing. No this Chinamasa or ‘china’ must play fair. Get an independent auditor/s to investigate all companies even those ma Chinese ones and the corrupt people whom we know already and then see how much was stolen . What is happening to Cuthbert Dube and the others . Get your act together China because your time to rule the roost is nearly over and then we will take revenge. Bassopo hokoyo.

  • comment-avatar

    No more police on the roads …….as there is no more money in our pockets ….. have you noticed…..THEY will hoover up every last dollar …until you are forced to accept the bond notes …. then they will leave…..with the OBAMA dollar to Singapore

  • comment-avatar
    IAN SMITH 6 years ago

    AN OTHER 40 COMPANYS GOING OUT OF BUSINESS SOON.

    BOB WANTS TO MAKE SURE BONA AND GRAND LITTLE RAT NEVER COME BACK TO ZIMBABWE RUINS
    BOB’S GOAL IS TO SAY AFTER ME IT ALL COLLAPSED. HIS DAYS ARE NUMBERED SO SCUTTLE THE SHIP HE MUST.

    HE WILL BONA THE PEOPLE OF ZIMBABWE THE STORM IS GAINING MOMENTUM.

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    A whole currently relying of 40 companies i.e 0.4 companies per province. Sorry Maningi my beloved Zimbabwe!!! How companies were operating in Zimbabwe before, where are they now, what happened for them to close, who caused it, when did they close, why do the not want to bank their money. Look for the root cause Chinamasa and address that before crying loud. Before it was kuda kutora nechisimba muchiti vanoda kuvhara ngavavhare hatinyengere coz we 2million jobs on standby through ZIMASSET. Not the tone has changed, kwanzi we will engage the companies in friendly manner. Shame

  • comment-avatar
    Shame 6 years ago

    Zanu must give up you failed. How these guys got degrees I have not idea. I suppose even a therometre got a degree. I would hang my head in shame, but you got to had it to these guys they are so proud and loud.