Treasury has blacklisted 13 contractors for channeling their proceeds to the parallel market, in the process triggering domestic inflationary pressures. This comes as the local currency experienced a sharp depreciation recently which has seen it trading around 1 500-1 600 against the US dollar due to liquidity coming from payments.
In a statement on April 3, the Minister of Finance and Economic Development Professor Mthuli Ncube said the affected entities would be permanently removed from the list of potential service providers to the Government.
The 13 companies were identified by the Financial Intelligence Unit (FIU) as being involved in unlawful conduct. The firms are; Casha Designs (Pvt) Ltd, Re-net Technology (Pvt) Ltd, Malfran Investments (Pvt) Ltd, Difflock Construction (Pvt) Ltd, Staman Investments (Pvt) Ltd, Guide Marketing (Pvt) Ltd, Nodship Investments Pvt Ltd, Infinity Hire Pvt Ltd, Nomalanga Marketing Pvt Ltd, Gift Mwayera t/a Mwayera Transport Pvt Ltd, Mukota Haulage and Busses Pvt Ltd and Ofixmore Marketing Pvt Ltd Blecia.
“Having monitored various financial transactions with a view to plug parallel market dealings, the FIU has observed that these companies are siphoning their proceeds to the parallel market, thus, triggering domestic inflationary pressures.
“Resultantly, Government has blacklisted the aforementioned companies so as to maintain stability in the foreign currency market and curb inflation.
“In the same vein, the Procurement Regulatory Authority of Zimbabwe (PRAZ) will be advised to permanently remove the entities from the list of potential service providers to the Government,” reads the statement.