End of the road for money changers?



Government has suspended all monetary transactions on phone-based mobile money platforms as well as trading on the Zimbabwe Stock Exchange. Measures are intended to deal with malpractices, criminality and economic sabotage.

In a statement on Friday evening, the Permanent Secretary in the Ministry of Information, Mr Nick Mangwana, Ecocash, Onemoney, Telecash and Mycash are all involved in these illicit activities in varying degrees.

The statement highlights that govt is in possession of impeccable intelligence which constitutes a prima facie case in which phone based mobile money systems of Zimbabwe are conspiring with the help of the ZSE in illicit activities that are sabotaging the economy.

The illicit activities include externalisation of foreign currency through transfer mispricing, acting as banks with Ecocash in particular holding in excess of ZWL$8 billion in just over 501 000 agent lines as at 10 June 2020, which is not under the scrutiny of the FIU.

Illicit activities also include hiding irreconcilable accounts in suspense accounts for unjustifiably long periods and fradulently creating and issuing non attributable & non auditable agent cellphone lines/accounts.

Ecocash, in particular is acting as the center pivot of the galloping black market foreign exchange rate, reads the statement.