Heads will roll – Vice President Chiwenga in stern warning to gold smugglers, illegal forex traders
Vice President Constantino Chiwenga has issued a stern warning to gold dealers and black market forex traders adding that strict measures will be put in place to curb leakages and exchange rate manipulation.
Since the introduction of the new gold-backed currency, the government has cracked down on money changers “running down” the ZiG.
As police intensify its blitz, over a hundred have been arrested and have appeared in court on allegations of contravening the Exchange Control Act.
Delivering his keynote address while officially opening the international business conference at the Zimbabwe International Trade Fair (ZITF) in Bulawayo on Wednesday, Chiwenga said gold leakages should be plugged and “not a gram should leave the country”.
An Al Jazeera documentary ‘Gold Mafia’ last year exposed how highly connected individuals were smuggling the precious mineral out of the country in the process prejudicing Zimbabwe billions of dollars.
Little was done to investigate the allegations of illicit financial flows by the web of politically linked individuals who included ZMF boss Henrietta Rushwaya, businessmen Simon Rudland, Kamlesh Pattni and Ambassador-at-Large Uebert Angel.
In what was widely interpreted as a catch-and-release, RBZ’s Financial Intelligence Unit scrapped an asset freeze on those fingered.
Said Chiwenga, “We are going to put strict measures to ensure that we protect our resources as a country.
“Not even a single gram should leave this country, resources should benefit every citizen.
“We are going to put measures, strict measures, that can see heads rolling.
“Every gram of gold must be accounted for. We need our gold because it is God-given. No one came with gold to Zimbabwe, but it’s in our soil.
“If we don’t want to mine it, it will stay there, but no one should touch it.”
He also issued a stern warning to forex traders saying “So, all the money we are talking about here, the Zimbabwe Gold, is going to be anchored firmly, by our gold.
“The new currency will, therefore, not be subject to exchange rate volatility or manipulation by speculators.”
The ZiG replaced the Zimdollar which had severely lost value after being battered by inflation.
The government says ZiG will provide a lasting solution to inflation, which is critical for sustained price and exchange rate stability in the economy.
Chiwenga further singled out the retail sector, threatening to shut down supermarkets if they were suspected of sabotaging the new currency.
