Government to blacklist errand contractors
Nevanji Munyaradzi Chiondegwa
Government has announced a raft of measures to deal with contractors and suppliers who channel funds to the illegal foreign exchange market.
In a statement Minister of Finance and Economic Development, Professor Mthuli Ncube expressed government concern over the practice which has been one of the major drivers of the illegal foreign currency market.
“Government has noted with great concern that some suppliers who supply goods and services to government institutions are channelling the funds they receive to the illegal foreign exchange market, thereby contributing to exchange rate and price instability.”
He said that Government will, with immediate effect, implement the following measures to deal with such acts which are tantamount manipulating the exchange rate.
The Financial Intelligence Unit will follow up and scrutinise all payments made to government suppliers, to establish how the funds have been utilised.
Where it is determined that funds were channelled to the illegal foreign exchange market the bank accounts involved will be frozen indefinitely pending criminal investigations and prosecution of the companies concerned and their directors and officers. He also added that proceeds from the illegal transactions will be forfeited to the State in terms of the Money Laundering and Proceeds of Crime Act [Chapter 9:24];
Further measures include the suppliers concerned, their directors and related companies being blacklisted with the Procurement and Regulatory Authority of Zimbabwe and will be banned from participating in any government tenders.
Prof Ncube also said, “In addition to the above measures, Government is setting up a process to scrutinise all awarded tenders to ensure that government is getting full and fair value.”
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