gtag('config', 'UA-12595121-1'); FIU Cracks Down on Non-Compliant Suppliers and Manufacturers Over ZiG Transactions – The Zimbabwe Mail

FIU Cracks Down on Non-Compliant Suppliers and Manufacturers Over ZiG Transactions

Oliver Chipereso - RBZ Director General FIU
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HARARE, Zimbabwe — The Financial Intelligence Unit (FIU) has initiated a sweeping crackdown on suppliers and manufacturers across Zimbabwe who are refusing or obstructing Zimbabwe Gold (ZiG) transactions. This move, according to FIU, aims to prevent potential volatility in the exchange rate and inflation rate, as reported by Business Times.

The FIU has frozen several accounts of the offending manufacturers and suppliers, a measure confirmed by Oliver Chiperesa, the Director General of the FIU. Chiperesa highlighted the importance of this action in achieving long-term economic stability.

“We began this targeted exercise against manufacturers last week, freezing the accounts of several industry players and imposing penalties. They have paid the fines, and we will continue to monitor their compliance,” Chiperesa stated.

He further mentioned that the FIU plans to extend this operation, targeting more manufacturers based on reports from retailers.

This development follows recent FIU raids on retailers, whom Chiperesa identified as key players in the pricing regime due to their direct interactions with consumers. Retailers have reportedly blamed manufacturers and suppliers for price manipulation in the market.

“Some manufacturers and suppliers still restrict the amounts of ZiG they receive from downstream traders, which remains a concern,” Chiperesa explained. “We are using both engagement and enforcement against them, and we have already frozen the accounts of several manufacturers and imposed penalties.”

Chiperesa expressed optimism that compliance levels in the manufacturing sector would increase, leading to positive effects down the supply chain and ultimately benefiting consumers.

In a broader context, the FIU has also targeted foreign currency manipulators, freezing 534 accounts and penalizing 161 individuals, including 12 caught earlier this week. Some offenders face long-term exclusion from financial services.

An official from the Confederation of Zimbabwe Industries (CZI), the country’s largest business lobby group, defended manufacturers, stating they were merely setting prices that allowed them to sustain production.

“We charge prices that enable us to continue producing. We can’t set prices that would force us to shut down. There needs to be engagement for mutual understanding,” the CZI official told Business Times.

Manufacturers have accused the FIU of imposing “price controls” and harassing struggling companies amid severe economic challenges.

The FIU’s crackdown coincides with an awareness campaign targeting millers selling underweight mealie meals. The Grain Millers Association of Zimbabwe announced a nationwide initiative to ensure compliance with regulations and protect consumers.

“We will be collaborating with the Ministry of Industry, Consumer Protection Council, Trade Measures Board, Joint Operations Command, and Minister of State for Bulawayo. The goal is self-regulation within the private sector and ensuring consumers get value for their money,” the Grain Millers Association of Zimbabwe stated.

This week, the crackdown on errant millers has revealed instances where eight kilograms of mealie meal were being packed in ten-kilogram bags, deceiving customers.

The FIU’s comprehensive efforts to enforce compliance with ZiG transactions and tackle pricing issues reflect a broader strategy to stabilize Zimbabwe’s economy. While the measures have faced resistance from some industry players, the government remains committed to ensuring a fair and transparent market environment for all stakeholders. – Business Times