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#MondayBlues:Zimbabwean Dirty Dozen Banks Fingered Out of 16 Undermining RBZ MPS Gains

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President Mnangagwa on Saturday announced a dirty dozen banks undermining the gains of the Reserve Bank Of Zimbabwe (RBZ) Governor Dr John Panonetsa Mangudya’s Monetary Policy Statement (MPS) implementations.


Mnangagwa mentioned an investigation launched after his May 7 ban on new bank loans, lifted by the RBZ Governor 10 days later when RBZ Financial Intelligence Unit (FIU) and other authorities had a reasonable idea of what had been happening, discovered that 12 of Zimbabwe’s 16 banks had been systematically breaching the rules.

Among the main drivers, directly and indirectly, of the foreign currency black market are banks funding their more reckless customers so they can play games, or helping them access the black market, or even manoeuvring themselves through the morass.

The 12, the proverbial dirty dozen in fact, were fined, which would mean those steep civil penalties that can be imposed very quickly by a designated officer of the Reserve Bank of Zimbabwe on the balance of probabilities without going through the long and very involved process of a criminal trial with all the legal delays.

This kind of action that results in the equivalent of a fine without a criminal conviction is common in most countries when it comes to banks breaching the rules and regulations, and does hit banks hard where it hurts the most, in their profits.

In fact this is one reason why a large number of American banks are twitchy about doing routine business with Zimbabwean banks because they fear they might include someone under sanctions and get hammered as a result. They say that the amount they need to spend on investigations is greater than the fees they earn in pushing through what amount by US corporate standards to very modest sums.

President Mnangagwa said the dirty dozen pleaded with the authorities not to name them, because “they might lose customers”. It is possible that some of the banks chief executives and their senior managers mat have been fired resultantly.

ross moyo

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