THE Reserve Bank of Zimbabwe (RBZ) has launched an internal
investigation into possible corruption by some of its senior officials
following a whistle-blower tip off on their alleged underhand dealings
regarding the issuance of bureaux de change licences.
This came in the wake of the recent swoop on seven bureau
de changes suspected to be involved in illicit foreign currency transactions.
RBZ governor John Mangudya last Thursday announced that the
operating bureau de change licences of two private limited companies, Shons
Finance Services and Superdeal Enterprises, which trades as Kwik Forex, had
been suspended on allegations that they have not been declaring, or have been
under-declaring, their foreign currency transactions in breach of the law.
They followed Cash Twenty-Four and Crediconnect, whose
licences had been suspended earlier in the month.
The financial institutions had their bank accounts frozen
on similar allegations a fortnight ago.
Cash Twenty Four, has since admitted to the offence and
paid an administrative fine of ZW$2,5 million.
The central bank also swooped on three other bureau de
change companies Stallion Financial Services, Forbes Financial Services and
Juso Global who were operating without the required licences.
The RBZ’s Financial Intelligence Unit (FIU) is understood
to be looking into the details of how the institutions’ licences were issued
from February last year, when the government liberalised the exchange rate, to
date after a whistleblower alerted them to possible corruption by responsible
officials resulting in some doggy companies being licences.
RBZ and financial services sector sources said questions
were also being raised about the lack of due diligence on the part of those
charged with granting licences.
“There was an anonymous correspondence to the FIU early
this month alleging that some RBZ officials could have had their palms greased
in exchange for these bureau de change licenses, which explains why there is
this mess.
“So in addition to investigating these companies’
operations, the FIU is also interrogating circumstances under which some of
them obtained their operating licences.
“An informer has since raised suspicions about the possible
involvement of some RBZ officials,” a source at the bank said.
“The other issue is that of negligence.
“It is most likely that no proper due diligence was taken
in granting these licences, resulting in dodgy companies being granted
operating licences.
“A proper due diligence exercise would have easily helped
to screen these out.”
In written responses to the Zimbabwe Independent, Mangudya
was unable to say who was being investigated.
He also said he had not been alerted to the whistleblower’s
correspondence.
The central bank boss, however, said RBZ had sufficient
mechanisms to deal with any corrupt officials.
“If there is anyone involved in corrupt activities, the
bank takes very stern measures against such malpractice and the so-called
informer should approach the bank with the necessary information,” Mangudya
said.
He also dismissed allegations that the central bank does
not carry out proper due diligence exercises when granting bureau de change
operating licences, saying the RBZ sticks to stringent procedures laid down by
the law.
He said the current cases were a result of market
indiscipline.
“Bureaux de change are licenced in terms of the Exchange
Control (Authorised Dealer with Limited Authority) Order published in the
Statutory Instrument 104 of 2015 which is complemented by Operational
Guidelines for Bureaux de Change.
“The Operational Guidelines for Bureaux de Change provide
for specific requirements and incorporates operational improvements to the
framework that is done through Exchange Control Directives and Circulars,”
Mangudya said.
“The operational guidelines detail the licensing framework
and include an application form which guides the applicant as to the
information required to enable exchange control to assess the suitability of
the applicant for a bureau de change licence.
“Any applicant, who meets the set minimum licensing
criteria is eligible for a bureau de change licence.
“We should not confuse market indiscipline with the method
of granting operating licences.
“The bank’s surveillance team is seized with the matter to
ensure total compliance with rules and regulations and will not hesitate to
deal with unscrupulous behaviour of some Bureau de Change,” he added.
The minimum criteria include a probity test, where the
applicant is required to provide police clearance for directors and officers of
the bureau de change, Zimbabwe Revenue Authority (Zimra) tax clearance
certificate, anti-money laundering certificate and declarations by the
shareholders or directors of the bureau de change that they have not received
any criminal or regulatory penalty on matters relating any financial activity.
Corruption allegations related to foreign currency matters
have stalked the RBZ a long time now.
In 2018, four central bank directors Mirirai Chiremba,
Norman Mataruka, Gresham Muradzikwa and Azvinandawa Saburi were suspended on
claims of illegally dealing in foreign currency. This followed accusations by
controversial former Zanu PF youth empowerment activist, Acie Lumumba, but were
all cleared of any wrongdoing. Zimbabwe Independent
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