Mnangagwa Wants To Arrest RBZ Suppliers, Labels Them Mere “Pawns”
22 October 2018
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By Farai D Hove| Amid the ongoing economic turmoil and after causing the monetary crisis by blowing (RBZ forex reserves) hundreds of millions on luxuries: expensive cars, and unnecessary foreign travels, ZANU PF leader Emmerson Mnangagwa has begun attacking street merchants, those in the trade of money changing.

In previous years, this group was crucial in sustaining the Reverse Bank of Zimbabwe’s reserves as the central bank openly traded with them.

But this time, they are labeled criminals.

Mnangagwa said police investigations have proved that illegal money changers operating from the streets are mere pawns in the black market scheme.

The ZANU PF leader told the state media, “as we work towards improving and stabilising the flow of foreign exchange into the productive sector, we must at the same time ensure and enforce discipline in the market. This means everyone must play to rules and norms, including respecting the laws of the land. Sadly, events of the past two weeks have shown this is not so.”

He continued saying: “not everyone is playing to the rules. Partly because of wanton illicit currency deals happening in what is known as the black market, our economy has been disturbed. We have suffered massive market failures, manifesting in complete collapse of the pricing framework for virtually all commodities, regardless of import component. There has been a run on the bond note. In all this, there have been no winners, given that at the end of the day we are all consumers who demand and buy goods and services at any one stage for our survival.”

He said he will use emergency powers vested in him by the constitution to come up with laws to arrest offenders.

The President said Government will adopt international statutes to stop the bleeding in the financial sector which is also costing the State in taxes.

“In the United States of America, they have the Office of Foreign Assets Control (Ofac). We need a similar measure in our financial services sector,” said Mnangagwa.

He added that: “the information before me shows that individuals and shelf companies not involved in any gainful or productive economic activity are engaged in fuelling instability in the economy. Zimra is neither aware of this, nor does it get its own share of taxes or revenue.”

He said the banking sector has a case to answer as some of the illegal financial flows are happening right under its nose.

“In most economies, sudden huge movements of money or unexplained “swelling” of deposits raise eyebrows. Millions have been moved unexplained in our financial services sector, with no one batting an eyelid,” Mnangagwa said.