eBusiness Weekly
Martin Kadzere
The amnesty granted to companies and individuals who illegally kept money abroad has resulted in high levels of compliance, two senior government officials have said.
In November last year, the government issued a three-month amnesty for the return of public funds it alleged to have been externalised by companies and individuals.
Early this year, the central bank announced more than 1 000 corporates and individuals it said violated the exchange control laws through illegal transfer of funds abroad.
“We have seen high acquittal of CD1 forms by corporates while significant repatriations in the form of goods have been recorded–as well as real funds–but to a lesser extent,” central bank governor John Mangudya told Business Weekly.
Zimbabwe is facing a critical foreign currency shortages, which the government partly blames on externalisation as well as subdued foreign investments and exports.
The government allowed the use of multiple foreign currencies in 2009 to stem hyperinflation which reached 500 billion, according to the International Monetary Fund, rendering the Zimbabwe dollar almost worthless. Mangudya said the central bank was working with business organisations to ensure their members adhere to the country exchange control laws.
No discipline
Finance and Economic Planning Minster Patrick Chinamasa said there is little discipline in the market.
“People had forgotten that when we export Zimbabwean goods, you must acquit. That was a clear violation our laws,” said Chinamasa. “You don’t export from the country and then keep the money out there. That money belongs to Zimbabwe.
“That is a pool of foreign currency that we need in the country. And also we don’t go to the central bank for an allocation of foreign currency to import; and then when you are given the money, nothing come back, foreign currency or goods.”
“That had become rampant. That I think is something that has been managed. Through the amnesty, we have been able to achieve greater accountability and transparency.”
