Tackle smuggling head on
A Zimbabwean was arrested at OR Tambo International Airport on Saturday for allegedly trying to smuggle 23 pieces of gold worth R11m (about US$780,000).
Tashinga Nyasha Masinire is facing charges of contravening the Customs Act 91 of 1964 and Precious Metals Act 37 of 2005 respectively.
Masinire was arrested by the Hawks Serious Organised Crime Investigation team on Saturday afternoon soon after landing at OR Tambo International Airport. He is out of custody on R100, 000 bail.
The arrest comes barely seven months after former football head Henrietta Rushwaya was arrested at the Robert Gabriel Mugabe International Airport in Harare, on allegations of trying to smuggle 6kg of gold to Dubai. The matter is before the courts and she is out on bail.
The fact that there is attempted smuggling through ports of entry such as airports known for tight security should worry authorities.
Where were the scanners at Robert Gabriel Mugabe International Airport which failed to pick the 23 pieces of gold and the scanners in South Africa had to do the job on our behalf?
Do we have a watertight system at the ports of entry? Is there a group that is compromising security for selfish reasons?
There is a need for a thorough investigation to unmask those that could have aided the smuggling of the yellow metal. It is clear that smugglers are not small fish but have backers who oil the wheels.
The economy has been battling smuggling of minerals, especially gold, due to unfavourable pricing regime. Gold producers are on record saying the existing regime is unfavourable and a fertile ground for smuggling.
Fidelity Printers and Refiners estimate that gold worth US$1.7bn was smuggled last year for alternative markets that pay more and on the spot.
The gold producers are paid less than the prices obtaining on the international market after deducting royalties and the cost of importing the cash. In addition, they are paid within a week. In alternative markets, you are paid on the spot at high prices since one does not need to pay for royalties and the importation of cash.
Authorities need a holistic approach to stem smuggling. The low hanging fruit is putting a favourable environment that attracts deliveries to formal channels. This means that concerns around low retention levels have to be addressed.
The government this week made steps in addressing the anomaly by offering a sweetener to gold producers: those that deliver gold quantities above their average monthly deliveries are now entitled to a retention level of 80% on the incremental portion of the gold delivered to Fidelity Printers and Refiners.
Another option is to be tough on smugglers to send the message clear that the administration is ruthless on corruption and is different from its predecessor.
President Emmerson Mnangagwa began his reign in November 2017 advocating zero tolerance to corruption. This has to go beyond statements. Corruption has to be tackled head on.
