Published by the government of Zimbabwe
22 December 2007
Harare — THE Reserve Bank of Zimbabwe has launched a massive crackdown on cash barons and placed under strict surveillance identified bank branches, border posts and "hotspots" countrywide known to harbour big cash movers.
This comes as RBZ Governor Dr Gideon Gono has expressed dismay at the response by the Parliamentary Portfolio Committee on Budget and Finance to his calls to appear before it.
"In other jurisdictions a governor prepared to speak out would have been welcomed by the responsible parliamentary committee.
"Why are they shying away from their responsibility? What have they got to hide?" he said.
On Thursday, banks started recording high deposits of the $200 000 bearer cheque which ceases to be legal tender on December 31 as holders sought to beat the deadline.
Dr Gono said following the launch of Sunrise II on Thursday, the central bank has had to put in place more measures to bring cash convenience to the public while also dealing decisively with cash barons.
Investigations had shown that bulk cash comprising the expiring $200 000 bearer cheque, way above the exchange control limits on currency exports, were coming through the borders "scot-free", before being split into smaller amounts to avoid detection.
Therefore, with immediate effect, RBZ, the Zimbabwe Republic Police and the Zimbabwe Revenue Authority would be conducting intensive checks of all traffic at all points of entry and exit.
"These targeted searches will also be extended to other inland pockets deemed to be hotspots for illicit trading. Areas such as Victoria Falls, Plumtree, Beitbridge, "the World Bank" in Bulawayo and Roadport in Harare, among other places, shall be prime targets for this crackdown," said Dr Gono.
In Harare, the Belgravia area, Borrowdale and other high net branches were under the central bank's microscope while in Bulawayo all bank branches along Jason Moyo/Bambanani Centre, Leopold Takawira and Main Street were under surveillance.
Firms breaching Section 2 of the Bank Use Promotion and Suppression of Money Laundering Act of 2004 which obliges all trading corporates to deposit their cash from takings, into the formal system the next business day were also under the watchful eye of the central bank and its partners in the clampdown.
Investigations had revealed that some retailers and wholesalers continued to trade local currency at commissions, thus perpetuating the circulation of local currency outside the formal financial system.
RBZ and police were tracking down a Marondera farmer suspected to have been trying to dispose of $3 trillion following Dr Gono's announcement on Wednesday.
The central bank has also launched a reward for information on cash barons under which it has undertaken to refund "innocent victims" the premium charged for buying cash. This would be done upon submission of acceptable evidence and the successful conviction of the offender.
"The central bank, which maintains a database on such offenders, is committed to ridding our society of these economic saboteurs who have converted themselves into mini-banks and whose manipulation of cash movements has brought tremendous suffering to the innocent banking public," said Dr Gono.
He emphasised that charges would not be pressed against providers of information.
Statistics collected on day one of Sunrise II (Thursday December 20) showed unusually huge deposits of the soon-to-expire bearer cheque with one bank, CFX, having recorded $1,2 trillion worth of the $200 000 bearer cheques, of which 54 percent was accounted for by its private branch in Harare.
On the day Standard Chartered Bank had received deposits of the same bearer cheques totalling $174 billion by midday.
NMB had by then recorded $25,5 billion worth of the same while FBC took in $18,6 billion deposits, of which 44 percent was from its Zvishavane branch.
Information from other banks was still being collated at the time of going to press, with indications that those holding cash were making frantic efforts to dispose of it through various means.
However, the surveillance teams dispatched by the central bank, in conjunction with the Zimbabwe Revenue Authority, anti-money laundering and the Anti-Corruption teams were expected to pick out any unusual transactions.
Yesterday Dr Gono implored Zimbabweans to exercise patience as the central bank was making frantic efforts to ensure cash was available in banks.
He said the situation would not be expected to normalise in three days but significant improvements were expected as the days progress.
"Because of the festive season and pent-up pressure it would be unrealistic for anyone to expect that the situation would have normalised in 72 hours, so our appeal is for patience.
"New cash is being spread in a manner that ensures that the cake gets as far as possible. We therefore appeal to depositors to avoid riotous behaviour but to turn their anger towards those that are now depositing billions and billions of dollars and yet yesterday they did not want to deposit even a penny," he said.
Asked about the suffering being experienced by the ordinary people Dr Gono said: "One can understand that people have been in queues for a long time but we cannot be blamed for these sort of things.
"That is why we have been saying that those charged with the responsibility of dealing with economic saboteurs must rise to the challenges and do the needful.
"In situations like these there ought not be sacred cows because everybody is pointing a finger at the Governor when day-in-day out I am screaming that there are people deliberately sabotaging Government's programmes but nothing is happening to them.
"Now you see huge deposits coming from corporates and individuals who only yesterday were crying the loudest about the RBZ's inability to provide cash."
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