By Sydney Kawadza and Victoria Ruzvidzo (The Herald)

The Reserve Bank of Zimbabwe, police and the Anti-Corruption Commission have launched a joint blitz on illegal foreign currency dealers abusing the e-banking system at Internet cafes.

At least 20 dealers who have been netted in the crackdown are expected to appear in court soon.

Investigations have so far revealed that the dealers spend hours in Internet cafes, with some even booking days in advance, buying foreign currency and carrying out transfers using the e-banking system.

Most holders of foreign currency now opt for this form of transaction, which has been fetching rates up to 30 times or more above the cash rates.

The raids, which started early this week, have netted several illegal dealers who have been detained while the money found in their possession was confiscated.

Details as to the value of the funds or the number of culprits caught in the swoop so far were not available at the time of going to press.

RBZ Governor Dr Gideon Gono confirmed that the hunt was on for those that were abusing the e-banking system. The team was acting on a tip-off.

The central bank had received intelligence about malpractices in the economy which were currently being investigated.

Dr Gono said he was aware that there were some people claiming to be dealing in foreign currency on his behalf and on behalf of the central bank, saying the truth would come out. The Internet café was only one of the leads into various illegal foreign currency dealings under investigation.

“The chickens are coming home to roost. Kune vamwe vanofamba vachiti vanotenga forex on behalf of the Governor or on behalf of the central bank. Vamwe varikutenga ngoda vachiti ndeya VaGono uye kune bag ravo ririkuita push the parallel market rates. Saka ini ndinoti ane bag irori kuRoadport ngaataure. (There are some dealers going about telling lies that they are buying foreign currency and diamonds on behalf of the RBZ chief or on behalf of the central bank causing the parallel market rates to rise. Anyone in possession of the said bag should come out in the open).”

“That nonsense has been going on for far too long,” Dr Gono said.

Illegal foreign currency dealings have been largely blamed for the prevailing socio-economic challenges that have seen prices rising astronomically while foreign currency which could benefit the economy through the formal channels has been diverted to the more “lucrative” parallel market, particularly the transfer system.

Inflation, at 11,2 million percent as of July, has remained a major hurdle largely due to speculative behaviour.

Internet café operators in Harare yesterday confirmed the raids, saying a number of foreign currency dealers who had set up base in the cafes had been arrested.

A employee at Digi Café operating on the mezzanine floor of Batanai Gardens, who refused to be identified, said dealers would book a computer for a full day to do their transactions.

“A number of dealers were using the café for their transactions. They book a computer and open their e-banking accounts while people with foreign currency would exchange the money through transfers that fetch more than the interbank and informal market rates,” he said.

However, most Internet cafes in the CBD had put up notices advising customers against dealing in foreign currency at their premises.

At ChuWeb along Nelson Mandela Avenue, management has put up notices stating: “Dealing in foreign currency is

prohibited. Anyone found dealing in foreign currency will be prosecuted.”

People interviewed yesterday said officials from the central bank and the police had also raided Quick ‘n Easy Internet café along Angwa Street.

“Many people are opting to use transfer systems to change their foreign currency because of the higher rates while forex dealers have suddenly abandoned the streets to use the latest technologies in the banking system,” said Wengai Chamboko, a vendor who witnessed one of the raids.

He said most of the queues that had formed at Internet cafes where for foreign currency exchanges. Those people with e-banking technological knowledge were making a killing.

Mr Sylvester Mutemi, a local businessman, hailed the raids, saying these clandestine activities were fuelling inflation.

“There is too much speculation in the country’s economy, especially in foreign currency dealings. The issue of transfers has also caused a lot of anxiety in foreign currency dealings and instead of the banking sector determining the rates, the informal market continues to influence trading in foreign currency,” he said.

Mr Mutemi said the unstable rates, which rise on a daily basis, have brought instability in the pricing of goods and services.

He urged Government to come up with stringent measures to curtail these illegal activities.