Kenya's Parliament finally passed the Proceeds of Crime and Anti-Money Laundering Bill in December. But while the passing of the bill is viewed as a highlight of the Tenth Parliament, many fear it may just be a gimmick by the government to appease international partners.
George Kegoro, the executive director of International Commission of Jurists - Kenya Chapter, says while the legislation is good, he doubts there is political will to completely stamp out money laundering in Kenya.
"The existence of the legislation is not sufficient to deter the vice neither are the stiff penalties that are recommended in the bill," he says. "There is need for genuine support from the government to enact this law. We need a good set of people to be put in place to interpret the legislation."
Kegoro, whose organisation undertakes advocacy and policy work aimed at strengthening the role of lawyers and judges in protecting human rights and the rule of law, argues that while the bill was government-sponsored, Kenya’s track-record on corruption is poor and he doubts the genuineness of the political class.
It is the fourth attempt since 2004 to pass a bill to prevent the concealment of large profits from drug trafficking and other organised crime, and even this time around it faced resistance from members of parliament who believed the bill was a sly back-door re-introduction of an Anti-Terrorism Bill which had been quashed.
When the bill was tabled in November, an assistant minister in defiance of his own government, strongly opposed the tenets of the Bill. The assistant minister for public service, Aden Sugow, opposed the Bill saying it was an attack on the Muslim community. He argued implementing the Bill would be bowing to the interests of external interests and said that Kenya currently has adequate laws in place to deter money laundering.
While supporting the bill, defence minister Yusuf Hajji warned of a general feeling among the Muslim community that the legislation was targeting them. The Bill went forward after assurances from Prime Minister Raila Odinga that the government had no such intentions.
Once signed by the president, the law will establish a Financial Reporting Centre to assist in the identification of the proceeds of crime. An Asset Recovery Agency will be charged with tracing and recovering ill-gotten assets.
According to Job Ogonda executive director of international corruption watchdogs Transparency International, this would mean millions of dollars stashed in off-shore accounts swindled from Kenya could be recovered.
But Ogonda doubts the passage of new legislation will improve Kenya’s standing as a corrupt state internationally.
"At the moment it is embarrassing to be a Kenyan. Nigeria is improving with regards to corruption because they have shown tangible commitment of doing something about graft. However, the same cannot be said for Kenya," he says.
"We have previously had good pieces of legislation which would have helped fight graft, however, nothing has been done. How many ministers or former ministers have ever gone to prison because of corruption?" Ogonda wonders.
Ogonda is referring to anti-corruption legislation such as the Public Procurement and the Public Officers Ethics Act which require all public office holders to declare their wealth and origin of the same: this older legislation has had no noticeable effect.
Kenya’s record internationally as a corrupt state has for many years been bad and in the bribery and corruption index released by Transparency International, the country has kept the company of states such as Nigeria, Russia and Zimbabwe. Currently, Kenya is position 147 out of 180 on the global index of corruption.
Indeed the passing of the anti-money laundering bill comes in the wake of the release of a U.S. State Department report saying 93 million dollars of earnings from drug trafficking are laundered in the country’s financial system annually.
Another equally damning report by a UK firm, Kroll Associates, hired by the Kenyan government to track wealth acquired corruptly, revealed an estimated $1.7 billion is currently stashed in off-shore accounts. While the results of this 2004 report have remained confidential, the document was leaked: no action has been taken against any of the prominent figures named in its 110 pages.
But all the right noises were made when the bill was moved in Parliament by deputy Prime Minister Uhuru Kenyatta, who said that in view of the magnitude of the problem to the economy, the debate should focus on the quality of the legislation to ensure it was stringent enough.
Seconding the bill, Raila said, "The country risks becoming a pariah state unless the legislation is passed. We have suffered from the effects of money laundering especially in the property sector whose value has been skyrocketing due to the money being brought from the acts of piracy off the coast of Somalia".
A boom in property prices in Nairobi is preventing a majority of Kenyans from buying real estate, and in some cases even pricing locals out of the rental market. Media reports are linking the boom with profits from Somali pirates who seized numerous vessels during 2009, extracting handsome fees from their owners before releasing ships and crew members. In certain Nairobi neighbourhoods, Somalis are willing and able to pay rent up front for periods of even up to two years.
Ogonda states that for many years, Kenya has been a hub of money laundering with illegally acquired cash from Europe, South Africa, South America, Democratic Republic of Congo, Sudan, Rwanda, Burundi, Uganda and Tanzania finding its way into local financial markets.
"Due to our porous borders and poor implementation of legislation, people have simply walked in with huge amounts of cash, hired a lawyer to front for them who in turn invest the cash, especially in property," Ogonda says.
He says despite moves to assure the independence of the new watchdog agencies' leadership, and fresh monitoring requirements for the banking system, the version of the bill which is now awaiting presidential assent does not demand greater accountability from lawyers whose lawyer-client privileges remain intact.
Kegoro notes that the prescribed penalties are fairly high - jail terms of two to five years, with fines of up to $65,000 for individuals, and corporate penalties set as high as $330,000 or the value of the property. But, he argues, it is not the severity of the penalty that will make people fear it. It is the certainty of being caught, hence the need for genuine political will to implement the law.
Ogonda is in agreement. "Application of the bill is what will be the determining factor. The structure of governance has to support the law and if it remains the same the legislation can exist and nothing will change."
By Susan Anyangu-Amu
Source: IPS
Showing posts with label Zimbabwe. Show all posts
Showing posts with label Zimbabwe. Show all posts
on Wednesday, June 6, 2012
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on Friday, May 11, 2012
One of the country’s leading financial institutions founded by Zimbabwean businessman Nigel Chanakira, Kingdom Bank has fired at least 22 workers for allegedly defrauding the bank of huge sums of money.
Kingdom Financial HoldingsA source says the Reserve Bank of Zimbabwe (RBZ) is expected to descend on the financial institution anytime from now, so as to launch wider investigations which cost Kingdom Bank an unconfirmed amount.
A Kingdom Bank source hints the scam had been taking place for years, but was unearthed recently after internal investigations. All the workers were based at various branches in Harare and include two people at the Westgate branch.
“The dismissed bank workers received letters confirming the immediate termination of employment late last week, on Friday the 7th of March.”
“Most of the fired employees were involved in foreign currency deals within the bank,” he said.
Kingdom Financial Holdings Limited (KFHL) is a Zimbabwe-based holding company of a group of businesses spanning a range of activities in the financial services industry.
Recently, a merger involving Kingdom Holdings, Meikles Africa and Tanganda took place resulting in the birth of Kingdom Meikles Africa- headed by Chanakira.
The source said the bank is still looking for more culprits within the financial institution.
“However, the bank indicated the fired employees are entitled to all their benefits and packages,” he said.
Recently, the RBZ Governor, Gideon Gono said banks, although fully apprised of the anti-money laundering laws, had not taken heed of appeals by the central bank to adhere to the guidelines.
He advised the financial sector to appeal to their good selves in which the central bank issued many circulars and guidelines on the subject of money-laundering and other undesirable banking practices
Some of the culprits were allegedly withdrawing money from accounts that did not belong to them, in which they used it for their own benefit, and did not return a single cent.
“A friend of mine (name supplied) was also caught up in the smoke. He phoned me Friday evening saying that he was shocked to learn of the developments.”
“We used to drink together every weekend but on Friday he indicated he is going straight home. Later that night, he phoned again and said he was stressed and could not eat,” said the source.
Late last year, during the cash crisis, many bank employees reportedly lost their jobs as they were involved in cash deals in which they would get bribes.
The workers would reactivate dormant accounts which they would use as channels to siphon money.
Another sacked employee referred to as Memory (who was based at the Westgate branch) is understood to have bought various properties with the allegedly ‘stolen’ funds.
“She is very talkative and went around town boasting about the illegal deals she was conducting.”
“The lady indicated she was caught unaware and is also not happy with her employer’s decision. She is also not answering her mobile phone,” he added.
http://www.zimbabwegazette.com/the-news/business/massive-fraud-at-kingdom-bank-20080310295.html
Kingdom Financial HoldingsA source says the Reserve Bank of Zimbabwe (RBZ) is expected to descend on the financial institution anytime from now, so as to launch wider investigations which cost Kingdom Bank an unconfirmed amount.
A Kingdom Bank source hints the scam had been taking place for years, but was unearthed recently after internal investigations. All the workers were based at various branches in Harare and include two people at the Westgate branch.
“The dismissed bank workers received letters confirming the immediate termination of employment late last week, on Friday the 7th of March.”
“Most of the fired employees were involved in foreign currency deals within the bank,” he said.
Kingdom Financial Holdings Limited (KFHL) is a Zimbabwe-based holding company of a group of businesses spanning a range of activities in the financial services industry.
Recently, a merger involving Kingdom Holdings, Meikles Africa and Tanganda took place resulting in the birth of Kingdom Meikles Africa- headed by Chanakira.
The source said the bank is still looking for more culprits within the financial institution.
“However, the bank indicated the fired employees are entitled to all their benefits and packages,” he said.
Recently, the RBZ Governor, Gideon Gono said banks, although fully apprised of the anti-money laundering laws, had not taken heed of appeals by the central bank to adhere to the guidelines.
He advised the financial sector to appeal to their good selves in which the central bank issued many circulars and guidelines on the subject of money-laundering and other undesirable banking practices
Some of the culprits were allegedly withdrawing money from accounts that did not belong to them, in which they used it for their own benefit, and did not return a single cent.
“A friend of mine (name supplied) was also caught up in the smoke. He phoned me Friday evening saying that he was shocked to learn of the developments.”
“We used to drink together every weekend but on Friday he indicated he is going straight home. Later that night, he phoned again and said he was stressed and could not eat,” said the source.
Late last year, during the cash crisis, many bank employees reportedly lost their jobs as they were involved in cash deals in which they would get bribes.
The workers would reactivate dormant accounts which they would use as channels to siphon money.
Another sacked employee referred to as Memory (who was based at the Westgate branch) is understood to have bought various properties with the allegedly ‘stolen’ funds.
“She is very talkative and went around town boasting about the illegal deals she was conducting.”
“The lady indicated she was caught unaware and is also not happy with her employer’s decision. She is also not answering her mobile phone,” he added.
http://www.zimbabwegazette.com/the-news/business/massive-fraud-at-kingdom-bank-20080310295.html
on Friday, May 4, 2012
SENIOR Zanu PF politicians are reportedly pushing for the setting up of a cabinet committee to probe the Reserve Bank amid growing reports that it was actively involved in foreign currency and gold dealings on the black market.
This comes after a decision by the parliamentary portfolio committee on Budget, Finance and Economic Development to summon central bank boss Gideon Gono next week to appear before it and reveal names of senior politicians and government officials he alleged were involved in money laundering.
Gono will also be asked to explain the central bank's accounting systems.
Impeccable sources in Zanu PF said a faction led by retired army general Solomon Mujuru wanted Gono and the RBZ probed for their alleged involvement in black market activities as part of "sanctions bursting".
The sources said the Mujuru camp was not happy that Gono was blaming senior politicians and government officials for hoarding cash for speculative purposes when the central bank was also culpable.
"The politicians will push cabinet to come up with a committee to find out to what extent Gono and the central bank are involved on the parallel market," one of the sources said. "They want to stop once and for all Gono's blame game."
The Mujuru faction, the source said, was in the process of compiling a dossier detailing how the central bank was active on the underground market.
"The dossier will reveal the RBZ's runners and how they have been conducting their business. It will bare all," another source said.
The sources said the RBZ was buying foreign currency through individual runners, commodity broking companies and banks to finance the agricultural mechanisation programme, service power debts and other government-related projects in need of hard currency.
Last year, the Confederation of Zimbabwe Industries and the Zimbabwe National Chamber of Commerce revealed that the RBZ had bought foreign currency on the parallel market to settle Zesa and Air Zimbabwe foreign debts.
The central bank also allegedly buys gold from illegal dealers to prop up its reserves that have been in decline over the past nine years.
Gono this week said anyone with information that he and the central bank were involved in illegal activities should report to the police.
"If the governor has skeletons in his cupboard which he cannot explain to the relevant authorities, the law must take its course but let's not speculate," Gono told a media conference on Monday.
"Where I cannot explain to the authorities or police, let's get on with it and allow the law to take its course. I am no exception to this exercise where all of us have to be accountable if called upon to do so."
Gono is also on record denying that the RBZ was active on the black market.
A member of the parliamentary finance committee, MDC lawmaker for Nkayi, Abedinico Bhebhe, told the Zimbabwe Independent this week that they agreed to summon Gono since he "has some explanations to do to the nation".
He said the committee would sit in the absence of its chairperson, Guruve North MP David Butau, believed to have fled to the UK after police said they wanted to interview him on allegations of breaching exchange control regulations.
"When parliament resumes sitting next week, the committee will convene a meeting and choose an acting chairperson before inviting Gono to appear before it," Bhebhe said. "We also want Gono to explain security systems at the central bank."
He said Gono as a public officer should name and shame "chefs" he alleged were involved in money laundering and other corrupt activities.
"Gono will have to name in front of the committee all the senior politicians and the cash barons on the RBZ list that he claims he has. The RBZ has to be accountable to the people and Gono has no right to delay releasing such vital information. The publication of the list will enable the law enforcement agents to act on the information."
Bhebhe said the committee wanted Gono to account in detail on how security systems at the bank operate and for him to explain how huge sums of the new bearer cheques were found in the possession of a Harare woman barely three days after their introduction.
"He has to explain the system of accounting for all printed money and how the money is disbursed to financial institutions," Bhebhe said.
Police last week arrested a Harare woman, Dorothy Primrose Mutekede, who was in possession of $10 billion in $500 000 bearer cheques, when the daily maximum withdrawals for individuals are $50 million and $100 million for corporates.
Mutekede named Harare businessman Jonathan Kadzura as the source of the money. However, Kadzura denied the allegation.
Gono told an extraordinary congress of Zanu PF last month that Zimbabwe's cash crisis was a result of hoarding by cash barons. He said the barons were senior politicians and government officials actively involved in foreign currency dealings.
Less than a week after Gono's pronouncement, police said they wanted to interview Butau on allegations of contravening exchange control regulations.
Butau then reportedly fled to the UK, where he told the Zimbabwe state media that Gono instigated his investigation after his committee started probing Gono on graft allegations.
Police reportedly wanted to interview Butau in connection with the payment of £573 000 to a United States company, Michigan Tractors, last November.
The money was allegedly from Butau's personal account with HSBC Bank in the Channel Islands.
Bhebhe refused to comment on whether the committee was investigating Gono or not and said the public should await the outcome of its meeting with the central bank boss next week.
http://allafrica.com/stories/200801040636.html?page=2
This comes after a decision by the parliamentary portfolio committee on Budget, Finance and Economic Development to summon central bank boss Gideon Gono next week to appear before it and reveal names of senior politicians and government officials he alleged were involved in money laundering.
Gono will also be asked to explain the central bank's accounting systems.
Impeccable sources in Zanu PF said a faction led by retired army general Solomon Mujuru wanted Gono and the RBZ probed for their alleged involvement in black market activities as part of "sanctions bursting".
The sources said the Mujuru camp was not happy that Gono was blaming senior politicians and government officials for hoarding cash for speculative purposes when the central bank was also culpable.
"The politicians will push cabinet to come up with a committee to find out to what extent Gono and the central bank are involved on the parallel market," one of the sources said. "They want to stop once and for all Gono's blame game."
The Mujuru faction, the source said, was in the process of compiling a dossier detailing how the central bank was active on the underground market.
"The dossier will reveal the RBZ's runners and how they have been conducting their business. It will bare all," another source said.
The sources said the RBZ was buying foreign currency through individual runners, commodity broking companies and banks to finance the agricultural mechanisation programme, service power debts and other government-related projects in need of hard currency.
Last year, the Confederation of Zimbabwe Industries and the Zimbabwe National Chamber of Commerce revealed that the RBZ had bought foreign currency on the parallel market to settle Zesa and Air Zimbabwe foreign debts.
The central bank also allegedly buys gold from illegal dealers to prop up its reserves that have been in decline over the past nine years.
Gono this week said anyone with information that he and the central bank were involved in illegal activities should report to the police.
"If the governor has skeletons in his cupboard which he cannot explain to the relevant authorities, the law must take its course but let's not speculate," Gono told a media conference on Monday.
"Where I cannot explain to the authorities or police, let's get on with it and allow the law to take its course. I am no exception to this exercise where all of us have to be accountable if called upon to do so."
Gono is also on record denying that the RBZ was active on the black market.
A member of the parliamentary finance committee, MDC lawmaker for Nkayi, Abedinico Bhebhe, told the Zimbabwe Independent this week that they agreed to summon Gono since he "has some explanations to do to the nation".
He said the committee would sit in the absence of its chairperson, Guruve North MP David Butau, believed to have fled to the UK after police said they wanted to interview him on allegations of breaching exchange control regulations.
"When parliament resumes sitting next week, the committee will convene a meeting and choose an acting chairperson before inviting Gono to appear before it," Bhebhe said. "We also want Gono to explain security systems at the central bank."
He said Gono as a public officer should name and shame "chefs" he alleged were involved in money laundering and other corrupt activities.
"Gono will have to name in front of the committee all the senior politicians and the cash barons on the RBZ list that he claims he has. The RBZ has to be accountable to the people and Gono has no right to delay releasing such vital information. The publication of the list will enable the law enforcement agents to act on the information."
Bhebhe said the committee wanted Gono to account in detail on how security systems at the bank operate and for him to explain how huge sums of the new bearer cheques were found in the possession of a Harare woman barely three days after their introduction.
"He has to explain the system of accounting for all printed money and how the money is disbursed to financial institutions," Bhebhe said.
Police last week arrested a Harare woman, Dorothy Primrose Mutekede, who was in possession of $10 billion in $500 000 bearer cheques, when the daily maximum withdrawals for individuals are $50 million and $100 million for corporates.
Mutekede named Harare businessman Jonathan Kadzura as the source of the money. However, Kadzura denied the allegation.
Gono told an extraordinary congress of Zanu PF last month that Zimbabwe's cash crisis was a result of hoarding by cash barons. He said the barons were senior politicians and government officials actively involved in foreign currency dealings.
Less than a week after Gono's pronouncement, police said they wanted to interview Butau on allegations of contravening exchange control regulations.
Butau then reportedly fled to the UK, where he told the Zimbabwe state media that Gono instigated his investigation after his committee started probing Gono on graft allegations.
Police reportedly wanted to interview Butau in connection with the payment of £573 000 to a United States company, Michigan Tractors, last November.
The money was allegedly from Butau's personal account with HSBC Bank in the Channel Islands.
Bhebhe refused to comment on whether the committee was investigating Gono or not and said the public should await the outcome of its meeting with the central bank boss next week.
http://allafrica.com/stories/200801040636.html?page=2
on Thursday, May 3, 2012
The Reserve Bank of Zimbabwe (RBZ) has directed banks - some of whom were found to have been working with so-called cash barons - to adhere to Zimbabwe's anti-money laundering laws and report any suspicious transactions, the Herald Online reported on Thursday.
Those caught on the wrong side of the law would meet the consequences of their actions, the Herald said.
RBZ Governor Dr Gideon Gono said banks, although fully apprised of the anti-money laundering laws, had not taken heed of appeals by the central bank to adhere to the guidelines.
"Our message and advice to the financial sector is that we have talked to one another for a long time now, we have appealed to your good selves long enough and we issued many circulars and guidelines on the subject of money-laundering and other undesirable banking practices.
"Now is not the time to continue with such talking or lectures anymore but action and as a central bank we shall not be found wanting in this direction so that together and in partnership, we can rid our economy of the cash-hoarding and money-laundering menace," Gono said at a press briefing.
Investigations had shown that some bank officials were releasing billions of dollars to cash barons while starving ordinary depositors, the Herald said.
In some cases, bank employees were reactivating dormant accounts which they would then use as channels to syphon money.
Some bank employees are said to have lost their jobs in recent weeks after investigations established that they were involved in cash deals from which they would get kickbacks.
The bulk of the cash would then be sold to cash-desperate companies and individuals at premiums as high as 40 percent.
The cleansing process was meant to plug loopholes that large cash movers and some individuals had taken advantage of.
"As monetary authorities, we now also hold vital intelligence we have now gathered from the entire banking system on the intricate web of shelf companies and multiple accounts that were being held and operated simply to beat the standing banking regulations," Gono reportedly said.
The central bank implored the business community, labour and the general banking public to desist from any illicit cash transactions. - Sapa
http://www.iol.co.za/index.php?set_id=1&click_id=84&art_id=nw20080103085806189C503685
Those caught on the wrong side of the law would meet the consequences of their actions, the Herald said.
RBZ Governor Dr Gideon Gono said banks, although fully apprised of the anti-money laundering laws, had not taken heed of appeals by the central bank to adhere to the guidelines.
"Our message and advice to the financial sector is that we have talked to one another for a long time now, we have appealed to your good selves long enough and we issued many circulars and guidelines on the subject of money-laundering and other undesirable banking practices.
"Now is not the time to continue with such talking or lectures anymore but action and as a central bank we shall not be found wanting in this direction so that together and in partnership, we can rid our economy of the cash-hoarding and money-laundering menace," Gono said at a press briefing.
Investigations had shown that some bank officials were releasing billions of dollars to cash barons while starving ordinary depositors, the Herald said.
In some cases, bank employees were reactivating dormant accounts which they would then use as channels to syphon money.
Some bank employees are said to have lost their jobs in recent weeks after investigations established that they were involved in cash deals from which they would get kickbacks.
The bulk of the cash would then be sold to cash-desperate companies and individuals at premiums as high as 40 percent.
The cleansing process was meant to plug loopholes that large cash movers and some individuals had taken advantage of.
"As monetary authorities, we now also hold vital intelligence we have now gathered from the entire banking system on the intricate web of shelf companies and multiple accounts that were being held and operated simply to beat the standing banking regulations," Gono reportedly said.
The central bank implored the business community, labour and the general banking public to desist from any illicit cash transactions. - Sapa
http://www.iol.co.za/index.php?set_id=1&click_id=84&art_id=nw20080103085806189C503685
The Reserve Bank of Zimbabwe has directed banks, some of whom were found to have been working in cahoots with cash barons, to adhere to Zimbabwe's anti-money laundering laws and report any suspicious transactions.
Those that would be caught on the wrong side of the law would meet the consequences of their actions. Speaking in Harare on Monday, RBZ Governor Dr Gideon Gono said banks, although fully apprised of the anti-money laundering laws, had not taken heed of appeals by the central bank to adhere to the guidelines.
"Our message and advice to the financial sector is that we have talked to one another for a long time now, we have appealed to your good selves long enough and we issued many circulars and guidelines on the subject of money-laundering and other undesirable banking practices.
"Now is not the time to continue with such talking or lectures anymore but action and as a central bank we shall not be found wanting in this direction so that together and in partnership, we can rid our economy of the cash-hoarding and money-laundering menace," said Dr Gono during a briefing on Operation Sunrise 2.
Investigations had shown that some bank officials were releasing billions of dollars to cash barons while starving ordinary depositors. In some cases, bank employees were reactivating dormant accounts which they would then use as channels to siphon money. Some bank employees are said to have lost their jobs in recent weeks after investigations established that they were involved in cash deals from which they would get kickbacks.
The bulk of the cash would then be sold to cash-desperate companies and individuals at premiums as high as 40 percent. The cleansing process was meant to plug loopholes that large cash movers and some individuals had taken advantage of. "As monetary authorities, we now also hold vital intelligence we have now gathered from the entire banking system on the intricate web of shelf companies and multiple accounts that were being held and operated simply to beat the standing banking regulations."
The central bank implored the business community, labour and the general banking public to desist from any illicit cash transactions. Dr Gono challenged employers to encourage their staff to open accounts and use the banking system as part of a national strategy on Bank Use Promotion and Suppression of Money-Laundering.
http://allafrica.com/stories/200801030066.html
Those that would be caught on the wrong side of the law would meet the consequences of their actions. Speaking in Harare on Monday, RBZ Governor Dr Gideon Gono said banks, although fully apprised of the anti-money laundering laws, had not taken heed of appeals by the central bank to adhere to the guidelines.
"Our message and advice to the financial sector is that we have talked to one another for a long time now, we have appealed to your good selves long enough and we issued many circulars and guidelines on the subject of money-laundering and other undesirable banking practices.
"Now is not the time to continue with such talking or lectures anymore but action and as a central bank we shall not be found wanting in this direction so that together and in partnership, we can rid our economy of the cash-hoarding and money-laundering menace," said Dr Gono during a briefing on Operation Sunrise 2.
Investigations had shown that some bank officials were releasing billions of dollars to cash barons while starving ordinary depositors. In some cases, bank employees were reactivating dormant accounts which they would then use as channels to siphon money. Some bank employees are said to have lost their jobs in recent weeks after investigations established that they were involved in cash deals from which they would get kickbacks.
The bulk of the cash would then be sold to cash-desperate companies and individuals at premiums as high as 40 percent. The cleansing process was meant to plug loopholes that large cash movers and some individuals had taken advantage of. "As monetary authorities, we now also hold vital intelligence we have now gathered from the entire banking system on the intricate web of shelf companies and multiple accounts that were being held and operated simply to beat the standing banking regulations."
The central bank implored the business community, labour and the general banking public to desist from any illicit cash transactions. Dr Gono challenged employers to encourage their staff to open accounts and use the banking system as part of a national strategy on Bank Use Promotion and Suppression of Money-Laundering.
http://allafrica.com/stories/200801030066.html
on Friday, January 5, 2007
The Herald (Harare) - January 3, 2007
Posted to the web January 3, 2007
By Alfred Chagonda - Harare
CORRUPTION dominated debate in Zimbabwe during 2006, the year which also witnessed a number of high-profile individuals being hauled before the courts.
The Government established the Ministry of State for State Enterprises, Anti-Monopolies and Anti-Corruption two years ago and the long arm of the law has not spared a number of prominent people in Government and business. It had become common in the country for people to expect to pay a bribe for them to acquire such documents as birth and death certificates and driver's licence as well as to secure places at schools and colleges and to get a job. President Mugabe said the scourge of corruption continues to rear its ugly head, manifested through the abuse of power and unfair business practices, and the amassing of ill-gotten wealth by those in positions of authority in the public, private and civic sectors. The President said this in Parliament when he addressed Members of the House of Assembly and Senate during his 19th State of the Nation Address. "Government will not relent in its efforts to weed out such bad apples in our midst no matter how highly placed or well connected they may happen to be," the President said. To give teeth to the anti-corruption drive, Cde Mugabe appointed an Anti-Corruption Commission. Minister of State for State Enterprises, Anti-Monopolies and Anti-Corruption Cde Munyaradzi Paul Mangwana said the Government was working on reforms to strengthen anti-corruption laws to ensure that perpetrators got deterrent sentences. He said corruption caused disequilibrium in the economy, resulting in only a few people benefiting at the expense of the majority. "Loopholes in the legal framework and a fragmented anti-corruption policy allows the exacerbation of corruption," he said. Cde Mangwana said corruption was one of the greatest threats to socio-economic development and Zimbabweans needed to play their part to reject it in all its forms. Reserve Bank of Zimbabwe Governor Dr Gideon Gono on several occasions pointed out that corruption was a threat to national development. Former Zimbabwe United Passenger Company board chairman Charles Nherera was in August sentenced to three years in prison for sociliting for a US$85 000 bribe from businessman Mr Jayesh Shah.
Mr Shah is the owner of Gift Investments which supplied buses to the transport utility. In the same month, Zimbabwe was appointed chair of the Task Force of Senior Officials and Secretary to the Treasury of the Eastern and Southern Africa Money Laundering Group for the next year. The appointment came at a time when the central bank had launched Project Sunrise, one of whose objectives was to combat corruption and money laundering.
http://allafrica.com/stories/200701031145.html
Posted to the web January 3, 2007
By Alfred Chagonda - Harare
CORRUPTION dominated debate in Zimbabwe during 2006, the year which also witnessed a number of high-profile individuals being hauled before the courts.
The Government established the Ministry of State for State Enterprises, Anti-Monopolies and Anti-Corruption two years ago and the long arm of the law has not spared a number of prominent people in Government and business. It had become common in the country for people to expect to pay a bribe for them to acquire such documents as birth and death certificates and driver's licence as well as to secure places at schools and colleges and to get a job. President Mugabe said the scourge of corruption continues to rear its ugly head, manifested through the abuse of power and unfair business practices, and the amassing of ill-gotten wealth by those in positions of authority in the public, private and civic sectors. The President said this in Parliament when he addressed Members of the House of Assembly and Senate during his 19th State of the Nation Address. "Government will not relent in its efforts to weed out such bad apples in our midst no matter how highly placed or well connected they may happen to be," the President said. To give teeth to the anti-corruption drive, Cde Mugabe appointed an Anti-Corruption Commission. Minister of State for State Enterprises, Anti-Monopolies and Anti-Corruption Cde Munyaradzi Paul Mangwana said the Government was working on reforms to strengthen anti-corruption laws to ensure that perpetrators got deterrent sentences. He said corruption caused disequilibrium in the economy, resulting in only a few people benefiting at the expense of the majority. "Loopholes in the legal framework and a fragmented anti-corruption policy allows the exacerbation of corruption," he said. Cde Mangwana said corruption was one of the greatest threats to socio-economic development and Zimbabweans needed to play their part to reject it in all its forms. Reserve Bank of Zimbabwe Governor Dr Gideon Gono on several occasions pointed out that corruption was a threat to national development. Former Zimbabwe United Passenger Company board chairman Charles Nherera was in August sentenced to three years in prison for sociliting for a US$85 000 bribe from businessman Mr Jayesh Shah.
Mr Shah is the owner of Gift Investments which supplied buses to the transport utility. In the same month, Zimbabwe was appointed chair of the Task Force of Senior Officials and Secretary to the Treasury of the Eastern and Southern Africa Money Laundering Group for the next year. The appointment came at a time when the central bank had launched Project Sunrise, one of whose objectives was to combat corruption and money laundering.
http://allafrica.com/stories/200701031145.html
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