Govt Blacklists 51 Contractors For Trading On Black Market
The Treasury has blacklisted 51 contractors for illegally channelling funds to the black market after receiving payments in local currency.
In a statement issued on Wednesday, 24 July, Finance, Economic Development and Investment Promotion Minister, Mthuli Ncube, said the move to blacklist the contractors is part of increased measures to stabilise the ZiG and contain inflation.
The blacklisted contractors include Browline Transport (Pvt), Exceptional Office Fitouts and Shop Fitters, Diagno Pharm(Pvt) Ltd, Zambezi Bulk Plant Hire, and Avant Garde Group. Said Ncube:
Government has blacklisted fifty-one (51) contractors for unlawfully diverting received payments for goods and services to the illegal foreign currency parallel market.
This action has been taken in pursuit of Government’s continued efforts to improve economic stability and restore confidence in the financial system and provide a conducive business environment.
The blacklisted companies have been under scrutiny since 18 July 2022, when Treasury tasked the Financial Intelligence Unit to monitor all payments of high-value Government contracts to identify those involved in illegal foreign currency dealings.
This was meant to contain market forces and align the macro-economy to the liberalised foreign exchange market, whose exchange rate is freely determined by the banking system based on demand and supply.
The introduction of the ZIG as legal tender on 5 April 2024, further stabilised the economy and brought about orderly pricing in the market, a positive development that Government seeks to maintain.
Government remains committed to improving the economy and will continue to monitor developments in the market.
The continued implementation of the Value for Money principle in Government has realised savings that have enabled the implementation of programmes and projects that benefit citizens.
Added Ncube:
The blacklisting listing entails that the above-named companies will be barred from being suppliers or service providers to government as well as the government agencies and this extends to other companies connected with the named directors.
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