Political heavyweights targeted in crackdown

LIVINGSTONE MARUFU

Justice Minister Ziyambi Ziyambi has confirmed that relatives and children of political heavyweights were the ones fuelling trouble in the market through foreign currency manipulation and will be targeted in the police blitz.

Ziyambi said they have established that politically connected persons were at the forefront of contravening Exchange Control Act but there were no sacred cows as government steps in to flush them out.

This follows the arrest two weeks ago of Neville Mutsvangwa, son of the Zanu PF spokesperson, Chris and Women Affairs Minister Monica.

Neville remains in custody ahead of his bail ruling on Monday next week.

“We have found out that those who are causing trouble [in the market] are bigwigs’ children but this time we are not leaving perpetrators of forex manipulation because he or she is a political heavyweight’s son or daughter. We are arresting and sentencing them [if they are found on the wrong side of the law],” Ziyambi said.

Sources told Business Times that the heavyweights are siphoning cheap forex in local financial institutions and feeding it into the parallel market through fronting their children.

“We have a situation whereby the majority of the top chefs’ children are in the business of illegal forex dealings, gold smuggling and money laundering but nothing has been done to them.”

“With Minister Ziyambi saying the children involved in illicit deals will be dealt with, we hope there will be a change,” a source said.

Despite the Financial Intelligence Unit and police issuing stern warnings saying that there are no sacred cows in the countrywide crackdown on forex dealers, the market is pessimistic if the authorities could walk the talk.

“We don’t know what the police meant when they said they want the members of the public to give them information about those supplying money changers with money when they have the databases of everyone and can access the bank accounts and information from everywhere. They are fearing to engage the real godfathers of illicit deals,” a source continued.

The source argued that despite the police arresting close to 250 illegal money changers in a blitz and FIU freezing 90 bank accounts, they have dealt with the small fishes in the pond and instead should hit power behind these dealers.

Economists argued that the arrest of forex manipulators will not stop the depreciation of the Zimbabwe gold (ZiG) as the market does not have confidence in the   new currency despite being backed by gold reserves.

The taskforce which is carrying out the blitz consists of the police, the FIU, the Ministry of Finance, Economic Development and Investment Promotion, and the Zimbabwe Anti-Corruption Commission, have cleared the streets but money changers have since adapted.