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RBZ boss warns big firms ‘manipulating exchange rate’

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Reserve Bank of Zimbabwe (RBZ) governor John Mangudya has urged large corporates to stop “manipulating the exchange rate” by exploiting the gap between the parallel-market and official currency prices for profiteering.

The governor expressed concern that companies are snapping up more foreign currency than they are allowed to through the Reserve Bank of Zimbabwe’s auction system, then selling it on at inflated prices.

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“They are manipulating the auction system through arbitrage behaviour.

“Some of them are coming to the auction with more than 50 surrogate entities and we have picked that up,” Mangudya said in an interview Monday.

“They come to the auction and they are allocated the foreign currency at $86 (for one United States dollar) but they offload it at $140 on the parallel rate,” he said.

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Under the auction rules, primary producers are allowed to bid for as much as US$500,000 during the weekly auction while secondary producers can bid for a maximum of us$100,000.

Mangudya said the entities are also pricing their goods and services using the parallel rates, despite having accessed the dollars at the auction system.

“At the end of the day, it’s the consumer who will be forced to pay more and that is simply not fair,” he said.

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Zimbabwe’s central bank last year abandoned a currency peg and set up a weekly auction to ease a severe United States dollar crunch that forced companies to turn to the parallel market for foreign currency. Since then, officials have regularly raised concern over the abuse of the auction system.

President Emmerson Mnangagwa has previously issued warnings to private companies he blames for undermining his efforts to turn around an economy plagued by annual inflation of 50% and foreign-currency shortages.

In May, he published penalties for companies and individuals for currency manipulation that include fines of $1million (US$11,620) as well as a “total ban” from the auction. – Bloomberg

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Hwange

Hwange Local Board impounds cattle: Owners urged to claim animals

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BY WANDILE TSHUMA

The Hwange Local Board is urging livestock farmers to come forward and claim their cattle that were impounded by Council Police last week.

According to a notice issued by Acting Town Secretary Paul  Mabhureni, the 10 animals have been unclaimed for over a week and are currently being held at the impound yard.

Farmers with missing cattle are advised to visit the Hwange Local Board offices to identify and claim their animals.

A daily fee will be charged for each impounded animal, and if the animals remain unclaimed after a month, the Council will auction them off .

The Hwange Local Board is also warning livestock owners to take responsibility for managing and controlling the movement of their animals to prevent them from encroaching into residential areas.

Council Police have increased patrols to reduce the presence of stray animals in these areas.

Residents are encouraged to report any stray livestock to the Council immediately.

 

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Hwange

Victoria Falls City Council meeting aborted due to lack of quorum

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BY NOKUTHABA DLAMINI 

A full council meeting scheduled to take place at the Victoria Falls City Council today was aborted due to a lack of quorum.

The meeting, which was initially scheduled for Thursday, was fast forward to today in the wake of reports of confusion at Town House.

The meeting was called to discuss the suspension of Town Clerk Ronnie Dube who was suspended two weeks ago on corruption allegations.

It was further reported that it was also to rescind the  Housing Director Brian Nyamande.

However, only five councillors attended, falling short of the required six to form a quorum.

According to Mayor Tuso Moyo, the meeting was urgent, but the lack of quorum prevented any progress.

However, residents’ associations disputed this agenda, stating that the meeting was against the will of the residents and that they were expecting it to take place on Thursday.

Hwange District Residents Association and Victoria Falls Combined Residents’ Association representatives and a few residents were gathered outside the boardroom, awaiting the outcome of the meeting.

The suspension of Dube has sparked controversy, with many calling for transparency and accountability.

The aborted meeting has only added to the uncertainty, leaving many questions unanswered, HWANDRA chair, Hebert Ncube said after the meeting.

“We also gather that the minister, Daniel Garwe, has summoned the two and the mayor, deputy mayor to Harare tomorrow where they just came from again last week. There is so much pressure to rescind the suspension of Dube, but we are saying, he should come here and talk to the people and let justice handle this, then he can be rescinded.”

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Hwange

Hwange Local Board cracks down on overdue license fees

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BY STAFF REPORTER 

The Hwange Local Board has issued a stern warning to business owners with overdue license fees, stating that trading licenses for the 2025 license year will not be renewed for commercial properties with outstanding accounts.

According to a notice issued by Acting Town Secretary Mr. Paul Mabhureni, “Hwange Local Board would like to advise the business community that we will not renew trading licenses for the license year 2025 to all commercial properties whose accounts are in arrears.”

The notice further states that “The Business License Renewal period for the license year 2025 commenced in November 2024 and ends on 31 December 2024.”

Additionally, the notice reminds business owners that, “In terms of the Shop Licences Act Chapter 14.17, no person shall in any shop, store or other fixed place of business, carry on the trade or business of selling or letting for hire any goods except in terms of a shop licence.”

Business owners who fail to renew their licenses within the stipulated timeframe will face penalties, including a fine of one-twelfth of the appropriate license fee for each month or part thereof that has elapsed since their liability arose.

The notice concludes by advising business owners to ensure that their premises are inspected prior to renewing their trading licenses, and urging cooperation in settling outstanding accounts to avoid disruptions to their operations.

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