Long-time foreign currency dealers at Harare’s bustling Roadport and other parallel market trading points told The Zimbabwean that at least two cabinet ministers (names withheld) and a number of senior army officers, together with top company officials in the diamond mining sector, were involved.
These officials, say forex dealers, are offloading millions of South African rands onto the black market on a regular basis in exchange for American dollars – considered more stable. The Rand has in recent months weakened against major currencies.
“The chefs (top officials) are getting diamonds, and some gold, that they sell in South Africa for Rands. They give them to their fronts here who bring it to Roadport to exchange for US dollars. Posh cars come here regularly, and the chefs’ middlemen give bags full of Rands to their runners who exchange the currency.
This has swamped the black market with Rands and small traders are finding it difficult to survive as it has dramatically pushed down illegal exchange rates,” said one of the dealers.
“At this time of the year, the Rand normally fetches about $13.50, but the rate is currently at $10.50 and could go down further,” said another illegal dealer at Roadport”.
“Sources say the runners have acquired instant riches after a long slump in illegal forex dealings following the dollarisation of the economy in 2009.
The renewed vibrancy of the parallel currency exchange business is reminiscent of the pre-2009 era, when the illegal market was mainly fed by the Reserve Bank of Zimbabwe, which dumped virtually worthless Zimdollars printed at a break-neck speed at Fidelity Printers in exchange for much-needed foreign currency.
The money was used to finance RBZ and government operations and in some cases shady projects such as the farm mechanisation programme involving the mass purchase and distribution of agricultural equipment to choice individuals and groups.
A significant chunk of the parallel market, illegal traders say, has been claimed by Chinese dealers who are believed to be selling diamonds bartered by the government for services rendered.
Gift Chimanikire, the Deputy Mines Minister, recently confirmed to this newspaper that the government was bartering diamonds from such companies as Anjin, co-owned by the Chinese and the Zimbabwe National Army.
“Security is tight at the mines and it’s difficult to imagine that top officials can smuggle diamonds out of the fields. However, you cannot rule out collaboration between mining officials and the said high level individuals, especially after gem processing.
“It is also possible that the officials are involved in illegal mining elsewhere. That is happening with every other mineral and, in a country like Zimbabwe, it is difficult to plug every whole. The army, CIO and police are involved in diamond mining as well,” said Chimanikire.
President Robert Mugabe has acknowledged high levels of corruption among cabinet ministers, the police and other institutions, but he is seen as powerless to stop it.
Post published in: News