By Pretty Manyewe
The Reserve Bank of Zimbabwe (RBZ) has released a list of companies that will face penalties for abusing the foreign exchange auction system and disregarding SI 127 of 2021.
SI 127 of 2021 gazetted under Presidential Powers (Financial Laws Amendment), states that penalties are now imposed for issuing of local currency receipt for foreign currency purchase, pricing goods and services above the ruling exchange rate.
It also prohibits pricing of goods and services only in foreign currency and using money obtained from the auctions for other purposes than what the supporting invoices on the bid stated.
In a statement, RBZ Governor Dr John Mangundya said RBZ has been engaging with business, trying to make the key players see reason in recent policy decisions.
Dr Mangundya said the RBZ Financial Intelligence Unit and the Bank’s Exchange Control Division has been running investigations on errant entities and they have now compiled those contravening provisions of SI 127 of 2021.
“Companies or entities facing penalties are as follows; National Foods (Pvt) Ltd, Georgia Petroleum (Pvt) Ltd, Africa Steel (Pvt) Ltd, Westville Investments (Pvt) Ltd, Flicknick Enterprises (Pvt) Ltd, Duo Valley Commodity Brokers, Faircclot Investments, GlenuLas Trading, Natural Stone Export Company, Nuvert Trading, Phirebrook Investments, Classic Energy, Clorex Energy Explochem, Mutate Mart & Exchange, Souzrce Fuels, Kimya Investmets,” wrote Dr Mangudya.
According to SI 127, companies that charge prices that do not match with the exchange rate are liable to pay a ZWL$500 000 fine.
Those who use money obtained at the auction to fund unrelated activities, are supposed to pay ZWL$1 million.
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