Electronic payments to stem corruption: Chinamasa

FINANCE minister Patrick Chinamasa says the country should permanently embrace mobile and electronic payments as cash-based transactions will now constitute at most 10% of total transactions, as government moves to stem corruption.

BY FIDELITY MHLANGA

Officiating at a work ethics and corporate summit in Harare yesterday, Chinamasa said the digitisation of the financial services sector will make it complex for people to indulge into corrupt activities.

“We are going to capacitate all agencies mandated with the fight against corruption meaning here we are going to capacitate the Zimbabwe Anti-Corruption Commission, the Zimbabwe Republic police. We are also going to strengthen the judiciary system to deal with cases of corruption. We are promoting digitisation of financial services,” he said.

“What I want to emphasise is the future direction is electronic and mobile payment system. We are going to move away from cash-based transactions. They will remain but they should constitute about 10 to 15% of total transactions that are undertaken in the country.”

The digitisation of financial services, he said, would make it difficult for people to engage in corrupt practices.

“This will go a long way to stamp out corruption. The idea that we can move with cash to buy a car [and], a house which has become the pattern, I think this will be no more. We should move away from that.

What it means is that that cash won’t be accounted to tax authorities, that cash won’t be deposited into the banks and as a result cause and contribute to the shortage of cash and inefficient circulation of cash. So we are moving away from that system,” he said.

Zimbabwe has been experiencing cash crisis since 2015 with desperate citizens enduring long queues to withdraw cash.

The cash shortages has forced people to adopt the use of plastic money with statistics from Reserve Bank of Zimbabwe showing that 96% of the $97,5 billion transacted in 2017 was from plastic money.

5 Comments

  1. Matebele Warrior

    Yes i partly agree but the most important element in fighting corruption is having zero tolerance to you and your fellow zanu pf cabalists for all the corruption you did in the past.

  2. have you ever told this news to your chinese friends who have businesses here mr Minister? it should start with you and Chinese businesses to accept electronic funds

  3. Chinamasa,while there might be a thread of truth in your imagination. Here are the facts which perhaps you may or may not choose to ignore. The Chinese Nationals are the main culprits when it comes to handling cash transactions. 90% of their business transactions are cash and hidden under the zimra raider. Secondly the banks are another problem. why is it that most banks take time or days to clear and avail transferred funds into accounts?????
    If the system is efficient then surely we would welcome it. Then there is the issue of confidence building here, they say “there’s no smoke without fire” you yourself have been fingured out in corrupt activities. I suggest you tread carefully….

  4. Mr Minister, for an economy to work properly all restrictions must be removed. People must be able to transact electronically or in cash as they wish. Only then will trust in the banks and country be restored – just as it was between 2009 and 2014. Controls simply don’t work. Let the market find it’s own level and the economy will improve in short order.

  5. Disguising ineptitude by rebranding “electronic transactions” as some ingenious policy to curb rampant corruption by a government that created a system of state capture.

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