The Sunday News
WHEN President Mugabe announced the 10-Point Plan for Economic growth in August last year, which was meant to help give impetus to the country’s economic blue print, the Zimbabwe Agenda for Sustainable Socio-Economic Transformation (Zim Asset), point number nine was “Pursuing an Anti-Corruption Thrust”.
The President added that Government has also turned the spotlight on Corporate Governance throughout the public sector which he said has over the years fallen to levels well below what might be regarded as even minimally acceptable. There is no doubt that corporate governance and zero tolerance to corruption are some of the major cornerstones of a sound economy, and there is no way in which the country’s economy could go to the levels that everyone desires if the cancer of corruption is not cured.
While it is subjudice to comment on matters relating to persons arrested for alleged cases of high level corruption, we however, wish to commend the relevant arms of Government for walking the talk and taking heed of the President’s call to fight corruption.
There have been cases of business people and companies accused of externalising large sums of money, and some abusing their offices to deprive the country of the much needed revenue through some suspected illicit deals at the country’s borders.
The stance by the police and relevant authorities to act on alleged cases of externalising large sums of United States dollars is commendable, and the nation would take that as a measure of seriousness on the part of Government to attend to the prevailing economic situation and cash shortages which have affected the country in recent weeks.
The Reserve Bank of Zimbabwe announced last week that it was investigating several top companies for allegedly externalising millions of United States dollars, adding that those fingered in illicit financial flows will be handed over to the police. And more firms, the report said, could be outed in “Panama Papers” scheduled for release in coming days.
Platinum giant Zimplats was the first to be fingered in the damning whistleblower papers that recounted how the company’s top management were paid millions off shore and deprived the State of revenue. In addition, the report said monetary authorities have already compiled a list of suspects and will soon wrap up investigations and will give police the names of suspects who are shipping out millions of US dollars even as ordinary people struggle to withdraw US$200 daily from banks.
Reserve Bank Governor Dr John Mangudya told our Harare Bureau that at least US$50 million had been externalised via wire transfers since January 2016. Cash transported out of Zimbabwe physically is still to be quantified.
Dr Mangudya said, “In terms of leakages of foreign exchange from the country through externalisation, it is something that the Central Bank is continuously addressing through monitoring of transfers by the banking public.
We are saddened by such activities which are counterproductive and result in the abuse of our hard-earned foreign exchange. Externalisation is worrisome worldwide and needs to be closely monitored.
“And yes, investigations are taking place. It has been very difficult to objectively quantify the levels of externalisation, though, as most of it is externalised as cash by some unscrupulous businesspeople who sell their trinkets and other non-productive low local content items in Zimbabwe. Wire transfers through similar transactions amounted to US$50 million for the first four months in 2016.”
The Acting General Manager of the National Social Security Authority (NSSA) Hashmon Matemera has been nabbed for allegedly externalising close to US$330 million and has since appeared in court. Matemera, who is a former BancABC managing director, is out on bail.
Charges against Matemera date back to 2011 when he was still the managing director of BancABC when Jinan Mining was formed through a joint venture agreement with Marange Resources, a subsidiary company of Zimbabwe Mining Development Company and a Chinese company, Anhui.
The two companies opened a transitory account with BancABC at Mt Pleasant in Harare with a total of US$628.7 million from January 2012 to December 2013. The state alleges that the transitory account was unprocedurally opened as it did not have identification of the account holders. The money was transferred to various accounts in different countries that include Dubai, Sierra Leone, Zambia and Botswana.
The President has often emphasised the importance of strengthening re-engagement with international community particularly the multilateral lenders, and we note that efforts in that direction will not give us positive results if the cancer of corruption, particularly high level, is not cured.
