We are scanning the environment to identify auction protocol violators says Govt
The Deputy Minister of Finance and Economic Development Clemence Chiduwa has told Parliament that his ministry is constantly scanning the economic environment to identify auction protocol violators so that they can be fined.
He said several violators have been identified and have also been fined for the violations.
Institutions that get foreign currency from the auction system are required to sell their products in local currency.
However, some of them especially those in the fuel industry have defied that law and there are reports that some wholesalers have also joined in.
Answering a question from Rushinga legislator Tendai Nyabani who wanted to know what the government is going to do about those wholesalers, Chiduwa said some have already been fined.
‘’Thank you very much, Mr. Speaker Sir, for such a pertinent question which was asked by Honourable Tendai Nyabani. Indeed, it is very true that we are receiving reports regarding wholesalers and such business entities which come to the auction. They get money to buy their goods. Such business entities, upon receiving money from the RBZ, then sell their goods in US dollars and not take local currency.
‘’Working together with the Financial Intelligence Unit, our Ministry has been seized with the issue. I will give a report of what we have done so far. For those who violated the auction protocols, who get money from the auction and sell their products in US dollars, for those who abused the system we have managed to penalise 163, and for those who are under investigation by the FIU, we have 284 business entities that are being investigated.
‘’I would like to inform the House that we also do an environmental scanning. As of Friday, last week, we investigated big shops, pharmacies, and some retailers.
‘’Out of the 28, those who were complying with the exchange rate were only 11, which means that we have a lot of violations. The FIU on its own does not have the capacity to cover Zimbabwe as a whole.
‘’At the moment, we want to work with the National Economic Inspectorate and different law enforcement agents so that we cover the whole country.
‘’In the past, we were getting reports that the auction-rate is not doing the price recovery as it is but now that there is the willing buyer, and willing seller basis, there is no reason for us to go around taking note of what is happening in the market.
‘’What is left is that we start enforcing laws through the different arms. We are penalising offenders, and the law is very clear that anyone who gets money from the auction should charge in local currency. If they want to use the USD, they need to use the auction exchange rate,’’ he said.
We are scanning the environment to identify auction protocol violators says Govt
