Online Reporter
Yeukai Karengezeka
Court Correspondent
A Chinese businessman, Ke Ji Xiao, appeared before the Harare Magistrates Court on Monday, accused of laundering US$192 000 and making unauthorised payments outside Zimbabwe in violation of the country’s exchange control regulations.
Ke appeared before regional magistrate Mrs Marehwanazvo Gofa, facing charges of money laundering and contravening the Exchange Control Act by making payments without the approval of the Reserve Bank of Zimbabwe (RBZ).
He was granted US$1 000 bail and ordered to surrender his passport as part of his bail conditions.
Prosecutor Mr Rufaro Chonzi told the court that on November 29, detectives from the CID Asset Forfeiture Unit (Northern Region), led by Detective Assistant Inspector Kachirika Peter, were conducting investigations under “Operation Pressure Valve”.
The operation focused on inspecting fuel and LPG retail sites, cracking down on the illegal Hawala system, verifying compliance with licensing processes, and disrupting money laundering and courier syndicates.
During the operation, detectives received intelligence that Ke was allegedly running a Hawala system at his premises located at Number 11 Maarsdop Avenue, Alexandra Park, Harare.
According to the prosecution, Ke accepted cash deposits from various clients and illegally smuggled the money to China or used his networks abroad to pay for goods, by-passing official banking channels and the RBZ’s authorisation processes.
A search conducted at Ke’s premises uncovered receipts, registers, and bills of entry, which investigators allege point to his involvement in Hawala activities.
Additionally, cash totaling US$192 575 was recovered and is being held as evidence by the CID Asset Forfeiture Unit.
The prosecution alleges that Ke could not account for the source of the seized cash, raising further suspicions of money laundering.
Instead of routing payments through the RBZ Exchange Control Department, Xiao is accused of directly paying foreign suppliers, thereby violating the country’s exchange control laws.
