Gvt blacklists 51 contractors over illegal forex dealings

The Government said on Thursday it had blacklisted 51 contractors providing various services to it for dealing in illegal foreign currency trading, as part of broad moves to stabilise the economy.

It accused the contractors of diverting local ZIG currency payments from government to the parallel foreign currency market, causing exchange volatility which impacted pricing in the economy.

In a statement, Finance, Economic Development and Investment Promotion Minister, Prof Mthuli Ncube, said government was committed to creating a conducive economic environment in the country, including ensuring stable currency exchange rates.

He said the blacklisted companies, which have been named – including their directors – have been under scrutiny since July 18, 2022, when Treasury tasked the Financial Intelligence Unit to monitor all payments of high-value government contracts.

“This was aimed at identifying those involved in illegal foreign currency dealings and containing market forces to align the macro-economy with the liberalized foreign exchange market,” he said.

The government introduced a new currency, the ZIG, in April with the main aim of arresting run-away currency exchange rates and inflation.

“The continued implementation of the Value for Money principle in government has realized savings that have enabled the implementation of programs and projects that benefit citizens,” Mthuli said.

He underscored government’s commitment to efficient and transparent use of public funds.

The illegal currency transactions of the blacklisted companies have also been made public.

The move is expected to send a strong message to the business community and deter further attempts to undermine the country’s financial stability.

“The government remains committed to improving the economy and will continue to monitor developments in the market,” Mthuli said. – New Ziana

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