HomeLocal NewsChinamasa threatens cash-hoarding retailers, wholesalers

Chinamasa threatens cash-hoarding retailers, wholesalers

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FINANCE minister Patrick Chinamasa yesterday threatened to enforce the Banking Use Promotions Act to deal with suspected cash-hoarding retailers and wholesalers as the cash crisis worsens.

BY VENERANDA LANGA

Finance minister Patrick Chinamasa
Finance minister Patrick Chinamasa

Chinamasa told MPs that some companies were being monitored daily and the culprits could have their trading licences cancelled.

“The Reserve Bank of Zimbabwe (RBZ), through its Financial Intelligence Unit, has been positioning people at traders to find out cash sales of that day and how much was banked. We are going to intensify those efforts and it will not stop us from passing a law that any businessperson who does not bank money will have his licence withdrawn,” Chinamasa said.

“We have instances where on a daily basis $1,5 million is received, but only $35 000 is banked and if it is bond notes, they are hoarding them to buy foreign currency on the black market and they must stop because we are going to take stern measures to bring these saboteurs to book,” he said, adding that $104 000 worth of bond notes was expected to be circulating in the economy.

Chinamasa said the country currently had 33 000 point-of-sale machines, adding there was need to import more to enable all traders, including vendors, to adopt use of plastic money.

He said the Bank Use Promotions Act compels traders to bank surplus cash on a daily basis.

“We have observed that most traders operating in businesses reserved for locals like public transport, retail shops, hairdressing salons and others are abusing their operations in the reserved sectors by not banking, and we will cancel their licences.”

Chinamasa said to date three traders had been arrested and appeared before the courts where they pleaded guilty and would be sentenced soon for not banking proceeds from their daily cash sales.

He said other factors fuelling the cash shortages included the high fiscal deficit exacerbated by the current account deficit and government’s employment costs, currently standing at above 93% of revenue, where salaries are paid through electronic transfer (RTGS) causing a misalignment when civil servants withdraw their salaries from the banks.

“This is the greatest cause of queues for cash as both RBZ and banks will be required to withdraw foreign currency from nostro accounts to meet cash requirements. Non-banking of cash by major traders is also causing cash shortages and queues and this indiscipline is counter-productive and cannot continue to be tolerated as money is like blood and needs to be circulated for the economy to survive,” Chinamasa said.

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26 COMMENTS

  1. That is one disadvantage of using plastic money. One goes to the bank and get his/her $300 per week. He uses only about $50 cash that week and keep $250. He uses his card to pay for other services. The following week the same process is repeated again and one ends up with lots of cash in his house. The situation is almost impossible to control

    • The majority of the men in the street dont have that kind of money to be going to the bank every week to get $300. thier salaries would have been long finished. It is people like you, with fat bank accounts who are abusing the system when you can do the majority of your transactions through plastic money. We are still primitive as a country, believing that money is only the cash in your wallet.

  2. The relevant laws should have been enforced right from the onset of the multicurrency regime. Punitive bank charges on depositors should also have been tackled head on at that time, helping encourage ordinary consumers to bank money and enhance savings, making it possible for banks to have money to on-lend to business ventures. Malpractices by bank managers and shareholders should have been punished seriously so that no depositors’ money would have continued to be abused in the form of loans to managers, shareholders and suspect borrowers. This would have inspired more confidence in the country’s banking sector so that current shunning of banks would not be there. Special care should also have been paid to the conflicting utterances of ministers on indigenisation since 2015 and the loudmouthed pronouncements by one minister threatening to take over some banking institutions and cancel operating licenses of some companies, creating the turmoil that led to the idea of the bond notes.

  3. Chinamasa must live in Zimbabwe, he must not behave as if he lives in Europe. Doesnt he know that after the same retailers request money from banks to settle foreign payments, they cant get it. If you have money in the bank and you cant use it for your business when you want to make payments, what do you do, keep the money in the safe. He must address the reason why wholesalers and retailers are not banking money rather try to threaten to arrest people.

  4. Before cash shortages, did these business hold on to cash, NO, what has gone wrong. Govt is the chief culprit, spending what it does not have. Chinamasa you are your own problem, leave those businesses which are trying to survive your govt incompetency. These threats do not go well for business, this govt wants the little that is left to close down again.

  5. This whole policy of threatening has never worked anywhere!!! Don’t solve the symptoms, solve the fundamentals behind the crisis!!!! Any right thinking businessmen or individual would rather keep what he has. Even the “Dear Leader” said he also had a stash at home, so Cde please give us a break and go and do some real work.

    • Chinese, Nigerian and Indian businesses can also be referred to as wholesalers and retailers if they fall in the said categories.

  6. Why target on retailers and wholesalers yet ther thousands of Chinese and few NIgerians and Indians who have beiseged CBD and downtown who hoard cash and remmit it to their mother countries.These are the people who have killed the economy.

  7. Patrick ,i thought you were the only level minister in this zanu pf mafia party government but alas! i was wrong.You are all the same.The only logical thing to do Chinamasa is to address the fundamentals that has brought about the situation we find ourselves in rather than threatening to invoke some stupid Acts.This mafia organisation thrives on threats and intimidation instead of taking responsibility.You are the reason why we find ourselves in this economic mess,so don’t blame business people who are struggling to make ends meet for the cash shortages in the banks.You just can’t own up to your mess, now you want to smear everybody with your human shit.Man up or ship out!

  8. Patrick ,i thought you were the only level headed minister in this zanu pf mafia party government but alas! i was wrong.You are all the same.The only logical thing to do Chinamasa is to address the fundamentals that has brought about the situation we find ourselves in rather than threatening to invoke some stupid Acts.This mafia organisation thrives on threats and intimidation instead of taking responsibility.You are the reason why we find ourselves in this economic mess,so don’t blame business people who are struggling to make ends meet for the cash shortages in the banks.You just can’t own up to your mess, now you want to smear everybody with your human shit.Man up or ship out!

  9. Patrick ,i thought you were the only level headed minister in this zanu pf mafia party government but alas! i was wrong.You are all the same.The only logical thing to do Chinamasa is to address the fundamentals that have brought about the situation we find ourselves in rather than threatening to invoke some stupid Acts.This mafia organisation thrives on threats and intimidation instead of taking responsibility.You are the reason why we find ourselves in this economic mess,so don’t blame business people who are struggling to make ends meet for the cash shortages in the banks.You just can’t own up to your mess, now you want to smear everybody with your human shit.Man up or ship out!

  10. The Indians are known for hoarding cash and you are taking no action. When a black business person tries to do what the Indians do, thats when you start taking action. Thats BAD!
    WHATS SO SPECIAL ABOUT YOUR INDIANS?

  11. Chinamasa arresting people who are committing a crime worth $1000 leaving your chines thieves to do the stealing of our money

  12. Why should a business “bank” money? What incentives are there currently to even motivate one to bank money? The govt itself has no bankable ideas at all. Relying on threats to cancel licenses…then what? ZImra will then record less tax so?

    This govt is exposing its actors’ inability to think every day; from the so-called president to all those he appointed.

    Thinking is a lot of work, not everyone is cut out to do it.

    • Well said. These politicians do not think. If these businesses licenses are cancelled, where the hell would Zimra collect taxes from? More pple would be out of employment and what next?

  13. china-masa are you still living in this world with us? don`t pretend as if you do not know where you are taking the money to. where do you expect the banks to get the money from, while you are busy taking money in bags from RBZ to road port for black market deals. mari iripana fourth road port. Why are you not arresting vafana vema exchange rate????

  14. The minister is not serious at all. The sooner he wakes up from his slumber the better. Lying to the nation and threats will never solve anything.Our import bill is roughly $7billion against exports of less than $3 billion and we expect things to be normal – madness.How much is needed to be in circulation cash wise to ensure supply on demand, roughly $3 billion and how much do we have right now, less than even $500 million in bond notes without talking about the US$ that is being externalised and to some extent being kept in trunks and pillows at home.Factor in the punitive bank charges saddled on account holders by banks and the paltry interest accrued on account balances and you have a recipe not to bank money at all.Throw in the ease of depositing any amount of money in any bank and then the torture one has to endure when it comes to withdrawing it and a sane person will not bank at all.Comrade Minister, your policies need tweeking if things are to improve.Threats will not solve anything.

  15. VaChinamasa ndimi dambudziko guru munyika muno nevamwe venyu muhurumende.Mushure mekuuraya mbeva munoda kudya nyama yakawanda sekunge mauraya nzou chaiyo.Muri mapenzi chaiwo.Hamukodzeri kunge muchitungamirira nyika ino nekuti kufunga chaiko hapana.Pamuchatanga kudya kambeva kamauraya, kwete nzou yamusina ndipo pachatanga zvinhu kufamba, kwete mahumbwe azvino aya.

  16. I think he can go ahead and withdraw our licences. He still thinks the business licence has value in this vendor economy. Promote more vending minister and devalue this licence business-business!!!

  17. They think threats will miraculously lessen the cash shortage? This stupid government never learns that over the top regulations and restrictions are always counter productive in an economy. Besides they know the real cause of the shortage and they are either incapable or lazy to tackle it, but i strongly suspect the former.

  18. Chinamasa what do you take of those thousands of bond notes which are in the hands of Osiphatheleni. Who are exactly giving these people all these monies and you seem to be turning a blind eye. Are they licenced to be money changers? Wake up

  19. I don’t think failure to deposit money is the culprit here. This is a policy issue. If you put a very low daily cash withdrawal limit and introduce bond note, who do you seriously expect to deposit $10,000? How did we survive the last 5 years without cash withdrawal limits? How did the USA survive all the 5 years we have been exclusively using their currency here? Our policies do not encourage banking. Banks are not giving our loans, instead they make money through transactions, cash withdrawals to be specific. Deposits don’t accrue interest so why bank the money. High Government expenditure on the back of a dwindling economy, is the biggest problem we have to deal with. Question is why are companies closing? That’s the starting point. Arresting everyone will not help the situation. you talk of hording cash, who doesn’t know that the Mussa’s don’t bank? Should it be criminal to hold any amount of money you wish? Why should you force people to bank money. If i earn my money i think its my right to keep it where I want because I have earned it! In other countries people are sued for not paying taxes not for having large deposits of cash.

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