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Zimbabwe retailers warn of shutdowns due to exchange rate distortions

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BY WANDILE TSHUMA

Companies like TM Pick n Pay, OK, Halsteads, Electrosales, Edgars, and Metro Peach are warning that they may be forced to shut down due to exchange rate distortions and strict enforcement measures by the central bank.

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The retailers are being forced to use the official exchange rate, which is US$1 to ZiG14.8, but manufacturers are using parallel market rates of up to ZiG31 in some cases.

The Retailers Association of Zimbabwe said, “Suppliers of goods and services into the formal retail sector are now maintaining two tier price lists for local currency and another for foreign currency – whose implied rates are way higher than the obtaining official exchange rate… Our suppliers have expressed concern that they are faced with an acute foreign currency shortage and excessive volatility of ZiG exchange rates on the parallel/alternative market which has now become the basis of their pricing framework.”

This has caused retailers “massive losses,” and they’re trying to lessen the impact by making steep USD price increases. However, this leads to real USD inflation creep and other economic and social problems.

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The retailers are proposing to let the ZiG float freely to allow a “market determined exchange rate” and implement a pricing model that reflects real-time market exchange rate fluctuations.

They also want to offer discounts for customers buying in forex to attract payments in foreign currency.

The situation is clearly untenable, and the retailers are calling for policy measures to protect the formal retail sector.

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The gold-backed ZiG, which was introduced in April, has lost almost 80 percent of its value on the black market, and the central bank has injected US$64 million into the foreign exchange market to address dollar demand.

The retailers are hoping for a solution soon to avoid company closures.

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    September 24, 2024 at 10:32 am

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National

Woman sentenced to 10 years for killing husband’s girlfriend

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BY STAFF REPORTER

A 27-year-old woman, has been sentenced to 10 years in prison for murdering her husband’s girlfriend.

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The High Court sitting at Gweru delivered the verdict where Stacey Mnkandhla was being tried for murder.

She was convicted of murdering the girlfriend , who was found half-naked in Mkandhla’s matrimonial bedroom on February 10.

The court heard that Mkandhla attacked the girlfriend with fists and then used a kitchen knife to stab her multiple times, resulting in her death.

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The National Prosecuting Authority encourages members of the public to seek peaceful resolutions and mediation in such cases.

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National

Passport scandal: RG’s office employees in court for forgery

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BY BAYANDA NKATHA

A group of 12 employees from the Registrar General’s Office have been arraigned before the Harare Magistrates’ Court facing charges of criminal abuse of office as public officers. The accused include:

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•⁠ ⁠Ruramai Mutyatya (37), a supervisor
•⁠ ⁠Maureen Natasha Munemo (32), a processing officer
•⁠ ⁠Chiedza Hlomani (34), a processing officer
•⁠ ⁠Romio Shonhiwa (45), a processing officer
•⁠ ⁠Marian Roman (40), a processing officer
•⁠ ⁠Tanaka Lisaphael Magaya (27), a processing officer
•⁠ ⁠Edith Moto (38), a processing officer
•⁠ ⁠Grace Kapungu (34), a processing officer
•⁠ ⁠Luckmore Chinokokora (34), a processing officer
•⁠ ⁠Nena Sombi (44), a cleaner
•⁠ ⁠Trymore Chipanga (20), a cleaner
•⁠ ⁠Acid Asidi (42), a cleaner

The allegations against them are as follows:

•⁠ ⁠On September 17, an individual known as Tatadzwa or Mai Tayara, who is still at large, hatched a plan to acquire Zimbabwean passports for four Cameroonian nationals.

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•⁠ ⁠Tatadzwa fraudulently obtained Zimbabwean birth certificates for the four in Mt Darwin and National Identity cards in Harare.

•⁠ ⁠She then colluded with accused persons 10 to 12 (Sombi, Chipanga, and Asidi), who are cleaners at the Registrar General’s office, to escort the Cameroonian nationals to make passport applications.

•⁠ ⁠Accused persons 1 to 9 (Mutyatya, Munemo, Hlomani, Shonhiwa, Roman, Magaya, Moto, Kapungu, and Chinokokora), who are processing officers and a supervisor, issued the passports without verifying the information on the application forms against the birth certificates, which had discrepancies.

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•⁠ ⁠The entire process was captured on Closed Circuit Television (CCTV) cameras.

•⁠ ⁠The Cameroonian nationals were later arrested at Beitbridge border post on their way to South Africa when they were caught using the fraudulently acquired passports.

•⁠ ⁠This led to investigations at the Registrar General Passport Office in Harare, resulting in the arrest of the accused persons.

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The accused are facing charges of criminal abuse of office as public officers and are currently before the Harare Magistrates’ Court.

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National

Government faces criticism for chief’s vehicle expenditure

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BY WANDILE TSHUMA

Amidst a devastating economic crisis, President Emmerson Mnangagwa’s administration has sparked outrage by splurging millions on vehicles for traditional chiefs.

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On Wednesday, Mnangagwa handed over 90 Isuzu D-Max double cab vehicles to chiefs at the Harare International Conference Centre.

“The facility ensures that the Chiefs can carry out their critical duties more efficiently and effectively,” Mnangagwa said during the handover ceremony.

This unconscionable expenditure has drawn widespread criticism, with many questioning the government’s sanity in prioritizing chiefs’ comfort over citizens’ welfare.

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“Look at our education system, here in Jambezi our children are not going to school and even the clinics are far, no roads…that money should be channeled towards giving the people a decent life.”argued Ezekiel Siansali from Jambezi’ Chief Shana.

Witness Dube, another Nkayi villager from Somakandane said this extravagance comes at a time when millions of Zimbabweans are desperate for food, water, and basic necessities.

“Our animals are dying. Everyone is dehydrated because of drought. Why not use that money to provide basics for us. There’s starvation and even the handouts they give are little and only covers a few, but they can spend millions for luxury. It’s not fair.”

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The vehicle distribution is part of a policy that provides chiefs with new vehicles every five years, at a staggering cost estimated around $17 million.

Elizabeth Dube said it’s time for the administration to rethink its priorities and address the pressing needs of its citizens, rather than indulging in unnecessary extravagance, but the government insists that this is a necessity.

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