Zimbabwe blames those with government tenders for exchange rate, threatens sanctions

Zimbabwe’s government has come lashing out at those with government tenders, who it suspects of fueling the rapid devaluation of the local currency.

In a statement released Monday the Minister of Finance and Economic Development Prof Mthuli Ncube said, “Government has noted with great concern that some suppliers who supply goods and services to government institutions are channeling the funds they receive to the illegal foreign exchange market, thereby contributing to exchange rate and price instability.”

And as to what the government will do, he said

The Financial Intelligence Unit will follow up and scrutinise all payments made to government suppliers, to establish how the funds have been utilised .
Where it is determined that funds were channeled to the illegal foreign exchange market —
1. (a) the bank accounts involved will be frozen indefinitely pending criminal investigations and prosecution of the companies concerned and their directors and officers;
2. (b) proceeds from the illegal transactions will be forfeited to the State in terms of the Money laundering and Proceeds of Crime Act (Chapter 9:24); (c) the suppliers concerned, their directors and related companies will be blacklisted with the Procurement and Regulatory Authority of Zimbabwe and will be banned from participating in any government tenders.

In addition to the above measures, Government is setting up a process to scrutinise all awarded tenders to ensure that government is getting full and fair value.

What that means, we are not sure as many people have been blamed now.