Over P3 billion worth of Zimbabwe’s monies externalised through illicit financial flows, have found their way into Botswana, Zimbabwe’s reserve bank records showed this week.
The report detailing these illicit flow transactions comes three months after Zimbabwe’s new President Emmerson Mnangagwa issued an ultimatum for companies and individuals to declare any externalised funds.
Some of the individuals that externalised funds into bank accounts in Botswana include - Ryan Joseph a sum of US$331,700, Farid Shahadat - US$1,197,080 and Delny Ashley Davies made three transactions in different currencies ZAR500 000, €465 275.00 and US$ 5, 916,926.
Other individuals are Edward Nyevera linked to US$ 500,000 and Agrippa Bopela Masiyakurima US$40,000. On companies The Big Secrete externalised US$997,410 Jason Neville Leanders - US$977,000 Jinan Mining -US$332,980,000 and Rosevin Enterprises - US$230,000.
In total monies externalised into Botswana amounts to P3, 3 billion.
According to the report, the financial flows into Botswana are under: “Funds externalised to foreign banks in cash or under spurious transactions.” Botswana’s Financial Intelligence Agency (FIA) could not be drawn to say whether these transactions constituted money laundering and what sanctions would be taken against offenders if caught within its jurisdiction.
Produced from the Computerised Exchange Control Batch Application System (CEBAS) of the Zimbabwe Reserve Bank (RBZ), the report also shows that most Chinese mining companies externalised their monies to their native countries.
Apart from mining companies, trading companies supplying equipment, cotton and plastic merchandise are also named on the list. Other categories of the alleged illicit financial flows listed in the 44-page document also indicate funds externalised through payment of goods not received in Zimbabwe and funds externalised through non-repatriation of export proceeds.
Other countries that have been destinations for externalised money from Zimbabwe are France, USA, UK, South Africa, Mauritius, Ghana, Denmark, Mozambique, Pakistan, Switzerland, Portugal and Uganda. Following the release of the report President Mnangagwa is yet to announce actions to be taken against the perpetrators of the externalised money.
Authorities in Harare could pull instruments from the regional body SADC to support their bid to recover the lost money. However, the SADC Finance and Investment Protocol currently contain more annexes dealing with money laundering than illicit financial flows.