21 more entities found guilty of forex abuse.

Judith Phiri, Business Reporter

THE Reserve Bank of Zimbabwe (RBZ) has found 21 more entities guilty and facing penalties for abusing the foreign exchange auction system.

This brings to 39 the number of entities that have been flagged thus far, after 18 were named last month.

The Government in May announced Statutory Instrument 127 of 2021 Presidential Powers (Temporary Measures), where firms that abuse the foreign currency obtained at the Foreign Currency Auction Trading System would be heavily penalized.

In a statement, RBZ governor, Dr John Mangudya, said:

“In addition to the 18 entities named in the press statement of 15 June 2021, 21 more entities have been investigated by the Bank and Financial Intelligence Unit and found guilty to various breaches that include transfer pricing, use of fraudulent import documentation, failure to bank cash and conducting illegal foreign exchange transactions.

“Of the total 39 entities, 27 have been fined to date and 12 have been issued with written warnings for aiding or abetting flouting of exchange control rules and regulations.”

The statement said the punitive measures include prohibitions from participation in the foreign exchange auctions until the full payment of the fines imposed or permanent blacklisting from participation in the foreign exchange auctions, depending on the seriousness of the breach.

Last month, Zimbabwe’s largest food manufacturer, National Foods Limited, topped the list of the companies that were flaunting foreign currency regulations.