Govt Blacklists 51 Contractors Over Parallel Market
by Priviledge Zviregei
In a crackdown on illegal foreign currency dealings, the government has blacklisted 51 contractors for unlawfully diverting payments they received for supplying goods and services to the parallel foreign currency market.
Finance, Economic Development and Investment Promotion Minister, Professor Mthuli Ncube, announced the move in a statement released last night. The blacklisting means the companies will be barred from being suppliers or service providers to the government and its agencies, as well as any companies connected to the directors of the blacklisted firms.
“This action has been taken in pursuit of Government’s continued efforts to improve economic stability and restore confidence in the financial system and provide a conducive business environment,” said Prof. Ncube.
The blacklisted companies were identified through a monitoring exercise conducted by the Financial Intelligence Unit since July 18, 2022, when the Treasury tasked the unit to track payments of high-value government contracts to uncover any involvement in illegal foreign currency dealings. This was aimed at aligning the macro-economy with the liberalized foreign exchange market.
The introduction of the Zimbabwe Gold (ZiG) currency as legal tender on April 5 has further stabilized the economy and brought about orderly pricing in the market, a positive development the government seeks to maintain.
Prof. Ncube said the government remains committed to improving the economy and will continue to monitor market developments. The implementation of the Value for Money principle in government procurement has also realized savings, enabling the funding of programs and projects that benefit citizens.
The principle was introduced after it was discovered that some contractors were inflating invoices and diverting the funds to the parallel forex market, a practice that pushed up exchange rates and fueled inflation.
Some of the blacklisted companies include Browline Transport (Pvt) Limited, Avant Garde Group, Zambezi Bulk Plant Hire, and Goldair Technologies. Others were previously named, shamed, and blacklisted for similar offenses.
