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A CONCERTED effort is needed from all arms of Government to stem the massive capital flight from Zimbabwe which is directly responsible for the cash shortages and liquidity challenges affecting the country. Records show that corporates and business tycoons externalised $3 billion between 2015 and 2017 mainly to Botswana, Mauritius and the Far East, worsening the country’s foreign currency shortages.

This is a worrying development which also indicates that Zimbabwe has become a cheap source of the much sought after US dollar which is an international currency. We call on Government to audit all foreign-owned companies operating in the country so that they acquit all their earnings, failure to which heavy penalties are imposed.

It is clear that most of these firms are circumventing Reserve Bank of Zimbabwe foreign currency regulations and spiriting most of their income to offshore accounts through countries such as Botswana which are close to Zimbabwe.

We reported yesterday how three businessmen from Bulawayo are on the run after allegedly squirrelling more than $7,3 million to Botswana this year. Delny Deanna Ashley (41), Farid Shahadat (45) and Ryan Gregory Joseph (29) are wanted for contravening Section 8(1) paragraph (b) of the Money Laundering and Proceeds of Crime Act, Chapter 9:24.

“During the period between 14 January 2017 to 7 April 2017, the suspect Delny Deanna Ashley Davies, on her own personal capacity and through other couriers who are all Zimbabwean passport holders crossed into Botswana with large amounts of cash and deposited a total of $5 819 106, R500 100, Euro39 500 into her three foreign accounts, namely Stanbic Bank (South African rand) account number 9060001687994, Stanbic Bank (Euro) account number 9060002320067 and Stanbic Bank (United States dollar) account number 9060001680000 and 9060002620435 without the approval of the Reserve Bank of Zimbabwe,” police spokesman Chief Superintendent Paul Nyathi said.

He said during the period between February 23 and April 11 this year, Shahadat, who is the director of a gold mining and milling company, Yakuts Marketing (Pvt) Ltd in Bulawayo, with the help of other couriers crossed into Botswana with large amounts of money.

They deposited a total of $1 197 080 into his three foreign bank accounts — Stanbic Bank account number 906 000 257 2465, Stanbic Bank (906 000 257 2504) and Capital Bank (000 370 300 8498) — without the approval of the Reserve Bank of Zimbabwe.

“On 12 and 13 April 2017, Ryan Gregory Joseph deposited a total of $331 700 into his personal foreign Stanbic Bank Account number 906 000 162 9595 in Botswana without the approval of the Reserve Bank of Zimbabwe. The three suspects externalised a total amount of $7 347 886,” Chief Supt Nyathi said.

We believe this could be a tip of the iceberg as more companies could be involved in the massive externalisation of foreign currency through the country’s porous borders. What we find distressing is that these suspects were obviously not banking their proceeds locally and operated with impunity without anyone raising alarm. It is extremely worrying that the RBZ’s surveillance teams failed to detect the scam until the suspects were way beyond their reach after salting away such large sums of money.

We also find it strange that banks in Botswana could accept huge cash deposits in foreign currency from Zimbabwean citizens without raising alarm with their country’s monetary authorities or their counterparts in Zimbabwe. What is equally galling is the complicity of our border authorities because it is clear that the suspects could not have managed to transport such vast amounts of money across our ports of entry/exit without assistance from corrupt officials.

The RBZ could therefore be fighting a losing war in trying to ease liquidity challenges at a time when most of the cash is being externalised. There are also reports that the bond notes are being taken to South Africa and Botswana where there is a thriving illicit parallel market. The fight against externalisation of cash requires the collective efforts of all Zimbabweans — from law enforcement agents, the RBZ and border authorities.

The central bank needs to intensify its surveillance and oversight role on all companies, particularly mining firms since they constitute the bulk of foreign currency earners. Security at border posts also needs to be tightened further with penalties for cash smugglers reviewed so that they are deterrent enough to dissuade would be offenders. We are appalled that our border posts continue to leak like sieves to the detriment of our national interests.

Clearly, the Zimbabwe Revenue Authority has its work cut out when it comes to curbing corruption within its ranks and it is time it cracked the whip with dire consequences for offenders. Zimbabweans are failing to access cash and spending valuable productive hours in long bank queues because of cash shortages.

Authorities need to end their suffering by stemming the tide of externalisation of cash.