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Reserve Bank of Zimbabwe

The Reserve Bank of Zimbabwe made disturbing revelations this week that some devious characters have already started illegally benefiting from the Diaspora remittances using international debit cards.The immoral individuals and groups are taking advantage of the recently introduced remittances incentive to encourage Zimbabweans in the Diaspora to send money back home through official channels.

The Diaspora remittances incentives together with the incentives for the exporters were introduced in a bid to boost local production.

In its wisdom, the RBZ introduced a five percent incentive on exporters funded by a $200 million backed bond notes facility.

But as we reported yesterday in The Herald Business, though the margin is small, some Zimbabwean residents have been operating syndicates where they use international debit cards such as Mastercard and Visa to withdraw money in regional countries and send it back to themselves through agents such as Mukuru and Western Union, using relatives and friends to earn the remittances bonus.

We take great exception to these revelations and call upon the central bank to take stern measures against these corrupt individuals and syndicates.

In that same vein, there must be thorough investigations into the matter and the culprits must be brought to answer to their illegal actions.

We must nip this illicit behaviour in the bud with speed and efficiency.

We are heartened by the speed with which the central bank has detected this illicit behaviour.

It shows that the RBZ’s early warning signs are effective. This will go a long way in curbing many other illicit transactions.

However, we believe that more work should be done not just to identify such activities, but also to ring fence the incentives.

We must find ways to protect the noble ideas that we implement directed at growing our economy.

In that regard, the RBZ should consider legislation specific to the incentive schemes in light of the new development.

We always knew that some uncouth individuals will hatch plans to illegally benefit from the incentives which they are not entitled to.

Our suspicion arose from the revelations also by the apex bank that Zimbabwe was losing billions of dollars every year through illicit financial flows.

This informed our position because we never at any time thought those involved in moving money outside the country fraudulently would just watch the new system work efficiently.

In that regard, we urge the authorities to carefully study the latest findings of international cards fraud. They may discover that the same culprits who were involved in illicit financial flows maybe involved in the latest fraudulent activities.

It may not be difficult to identify those involved as the apex bank can engage and work with its regional and international counterparts.

Also, the RBZ could extend its investigation and monitoring to money transfer agents and sift through the data.

Once evidence has been gathered, the RBZ should work with the police to effect arrests and ensure prosecution.

We cannot have people benefiting where they are not entitled to. Diaspora remittances are a crucial investment for the country and incentives are only for those genuinely working in the Diaspora and sending money home through the formal channels.

Therefore, no one should be left to siphon from coffers.

Whoever is caught with his hands in the cookie jar must account for his/her actions.

We are worried that if we do not nip this bad behaviour and root out these bad apples, we may slow down the economic trajectory we have so worked hard for.

More importantly, we may have real exporters and those in the Diaspora who send money home faithfully through formal channels not benefiting.

If they fail to benefit from the incentives it may lead them to resorting to using informal channels to send money. And this will not be good for the economy.

We must devote our energies to harnessing all the Diaspora earnings and therefore would not let thieves stand in the way.

Zimbabweans must also take responsibility to protect their own.

It may be necessary and our collective responsibility to report such illegal acts to the RBZ and to the police. Let us all play our part.

The money transfer organisations must also be on the lookout for suspicious transactions.