Published by the government of Zimbabwe
27 October 2008
Harare — SOME Zimbabweans have called on the Government to prosecute those individuals and bank officials implicated in the cash scam and implored the Reserve Bank of Zimbabwe to phase out cash withdrawal limits as they fuel illicit dealings.
Some individuals are reportedly conniving with bank employees and central bank staff to withdraw large sums of cash way above the $50 000 daily limit. The money is then used to buy foreign currency. The Bankers' Association of Zimbabwe last week warned those involved that they risked prosecution.
"We will investigate the allegations to see whether they have substance or warrant action and then issue a statement," BAZ president Dr John Mangudya said.
He said the difficulties in the banking sector could only come to an end in the event of a political settlement between Zanu-PF and the two MDC formations.
"Our prayer is that the political problems come to an end. First and foremost is the need for speedy political settlement because the economy is bleeding. Things are bad and what we are seeing are symptoms of a big problem," he said.
Dr Mangudya said hyper-inflation was also contributing to the current problems the sector was facing.
"You are aware of the nature of the problems and the major cause is the hyper-inflationary environment. The environment is not conducive for normal business and there are bound to be temptations," he said.
Allegations are that some individuals and bank officials were using prescriptions from doctors requiring millions of dollars, which they then use to obtain quotations from pharmacies to apply for cash at their banks with the assistance of bank employees.
The Herald was last week inundated with phone calls as people aired their views on the cash scam. Most of the callers said the central bank should immediately phase out cash limits.
"Limiting access to cash fuels illegal activities. People should be able to access their salaries but cannot. People are then forced to resort to illegal activities to survive," Mr George Mazangunye of Harare said.
Although he condemned the abuse of the emergency purpose facility, Mr Mazangunye said the RBZ should address the interest rate policy to attract money back into the banking system.
Others were of the view that the withdrawal limit should be increased to $5 million for individuals and up to $10 billion for companies.
People also said the country's banking system was benefiting a few individuals with connections at the expense of the general public.
"The banking system in the country is benefiting a few people who have access to senior managers in the banking sector while the majority who are not connected are suffering," Mr Kudakwashe Jodo said.
He suggested that the maximum withdrawal limit be increased to $5 million in line with the prices of goods and services.
Last week a loaf of bread was selling at between $30 000 and $50 000, a kilogramme of beef at between $150 000 and $200 000 a kg and a 75ml bottle of cooking oil was costing between $150 000 and $200 000.
Transport has also gone up with commuter omnibuses charging between $15 000 and $25 000 for a trip to Chitungwiza.
Another caller who declined to be named said many people had resorted to walking to work.
"Things are hard, we are appealing to the Government to make money easily accessible to everyone and at the same time prosecute those culprits who have caused this suffering. The majority of people are suffering and it's pathetic while others are flashing bundles of cash in the city," he said.
He alleged one bank worker (name supplied) was boasting recently that they get $1,5 million cash every week.
"She told me that she was getting $1,5 million every week and uses it to buy foreign currency. This is real and we have learnt to live with it," he said.
He said the central bank should also ensure that shops and service providers are forced to accept cheques as a form of payment.
"Where do we get the hard cash to settle our bills? For years we have been using cheques to pay bills, why cash today?" bemoaned a resident of the Avenues who declined to be named.
Most banks were last week reportedly called meetings with workers over the exposed scam.
"We have been holding meetings but I cannot give you the details or the nature of our meetings," a teller at a commercial bank said.
Another official at a building society also confirmed that they had been summoned to a meeting over the scam in which bank employees are also accused of using dead relatives' and friends' ATM cards to withdraw huge sums of money.
Bank workers were also accused of being the chief culprits in violating the RTGS and inter-bank systems by withdrawing huge sums of money and offloading it on to the black market to buy foreign currency.
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