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Mandatory Jail Terms For Financial Criminals, Economic Saboteurs

Mandatory Jail Terms For Financial Criminals, Economic Saboteurs

President Emmerson Mnangagwa on Saturday, 7 May, announced new measures to encourage the use of the Zimbabwe dollar while at the same time discouraging the use of the US dollar in domestic transactions.

Addressing journalists while flanked by Finance and Economic Development Minister Mthuli Ncube and Reserve Bank of Zimbabwe (RBZ) governor John Mangudya at State House in Harare on Saturday night, Mnangagwa said lending by banks to both Government and the private sector has been temporarily suspended. He said:

In order to minimise the creation of broad money that is prone to abuse for purposes of manipulating the exchange rate for financial gains, and to allow current investigations, lending by banks to both the Government and the private sector is hereby suspended with immediate effect, until further notice.

The security agents of the Government and the Financial Intelligence Unit shall, with immediate effect, enhance their roles to effectively monitor financial transactions in order to address the delinquent arbitrage behaviour in the economy.

Civil penalties shall be substantially reviewed upwards to ensure that such behaviour is discouraged.

Appropriate legal changes shall also be instituted to elevate some of the financial crimes to become criminal offences, which automatically attract jail sentences.

Mnangagwa also directed the RBZ to settle all foreign currency auction system allotments within 14 days and to only auction off the funds it has.

He also announced that local currency transfers will continue to attract a 2 per cent Intermediate Money Transfer Tax (IMTT) tax, while foreign currency transfers will be levied at 4 per cent. Mnangagwa said:

All domestic foreign currency transfers to attract the Intermediate Money Transfer Tax (IMTT) of 4 per cent.

There is a preference to withdraw foreign currency for transaction purposes, thereby undermining IMTT collections, given that cash withdrawals are not liable to IMTT.

In order to discourage the withdrawal of cash which is traded on the parallel market, the cash withdrawal levy for amounts above US$1 000 will with immediate effect be reviewed from the current 5 cents per transaction to 2 per cent.

Mnangagwa further announced that banks can now purchase more forex under the willing-buyer, willing-seller system.

Currently, banks are limited to purchasing US$1 000 per day per individual. He said:

With immediate effect, the amount that can be traded under this arrangement has been increased to a maximum of US$5 000 per day with a limit of US$10 000 per week per individual.

Mnangagwa added that the transport sector will soon be opened to private players to provide public transport alongside the failing Zimbabwe United Passenger Company (ZUPCO).

More: The Sunday News

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16 Comments

Temz 1 month ago

#ShutdownZim on 9 May


Asalif 1 month ago

so how can banks servive without having to offer loans did they ever read the definition of a bank


ABSA 1 month ago

History repeat itself,these people don't learn from their mistakes i thought Mugabe advisors are dead too zanupf is zanupf hapana kwatiri kuenda i think they should ask Gono for advice now who tried it and fell


Asalif 1 month ago

chikasirai kumakombi vana vadzokere kubasa pamaloan apo masunga zvinhu ini I'm in home industry my bank assessed my work so that I can get a loan anytime . because sometimes I get jobs on fix and supply basis pasina kana deposit so I just go to the hardware store have a quotation then go to the bank for RTGS


Da Truth 1 month ago

CLOSE ZIM FIRST ZVIMWE TOZVIONA MBERI.


Freda 1 month ago

First of all the Zimdollar should be as good as gold and gold as good as the Zimdollar.


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Jah🇿🇼Tsvarie-07 1 month ago

Corruption starts at RBZ, i repeat that FIU should first investigate RBZ...


Povho 1 month ago

Fighting fire with fire you end up with a heap of ashes.


freedomRoad 1 month ago

#CCC2023


Machiavelli 1 month ago

Is Zimbabwe open for business?
If banks are not allowed to make loans available to businesses, then what's the raison de tre for having banks in this God forsaken country? What business can survive without bank loans and overdrafts?

Is it any wonder that Barclays Bank and Standard Chartered Bank have closed shop in Zimbabwe?

Who are the real economic saboteurs?

#ShutdownZimbabwe


Tio4 1 month ago

Zimbabwe is closed for business, banks now cant lend money, which school of business did these lunatics go to??? . Zim is an example of a failed country whilst being run by educated fools

Machiavelli 1 month ago

With all due respect, what about the political saboteurs?

... and those in the ruining party who have brought the economy onto its knees?


Chawabvunza 1 month ago

I am happy that President ED MNANGAGWA has or is implementing measures he considers to fix the economy. If these measures fail, then there shall be more pressure on government to revert back to dollarisation.

[ VOTE CCC FOR REAL CHANGE ].


Observer 1 month ago

In Zim life is a crime. The abuse of power is a curse.


fcts 1 month ago

uyu anogwara


Maparamuro 1 month ago

Let's start with that Rushwaya who was caught smuggling gold and conclude the case of Prisca Mupfumira who has denied pensioners of their pensions as this directly affects the economy negatively



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