Businessman arrested for 'externalising' over $500,000

Businessman arrested for 'externalising' over $500,000
Published: 04 September 2017 (632 Views)
Police have arrested a Bulawayo businessman for allegedly externalising more than $500 000 in breach of the country's foreign exchange rules.

Edward Nyevera, a director of Lysavay Enterprise Private Limited, opened a foreign currency account and externalised $510 367 to Botswana without the approval of the Reserve Bank of Zimbabwe.

Nyevera appeared before Harare magistrate Mrs Josephine Sande charged with contravening the Exchange Control Act, which prohibits dealing in gold, currency or securities without approval from the central bank.

He was remanded to October 12 on a $1 000 bail.

The prosecutor Mr Sebastian Mutizirwa alleged that on February 25 this year, Nyevera opened an account with Stanbic Bank in Botswana account number 0960002575405.

It is alleged that during the period extending from February 25 to July 31 this year, he externalised a total of $510 367.

The court heard that of this money, an amount of $180 000 was wired to America from Botswana.

It is the State's case that Nyevera was not given the authority to move the money to Botswana.

Police reacted to a tip off leading to his arrest.

The RBZ has in recent months repeatedly warned businessmen to desist from externalising foreign currency without approval.

The clampdown on illegal foreign exchange dealers comes amid reports that more than $3 billion was externalised over the past two years.

Monetary authorities say the externalisation of foreign exchange to offshore accounts by both big and small businesses under the guise of management fees, technical fees and royalties is largely to blame for the cash shortage.

"We already have our Bank Use and Promotion Act in place, which prohibits capital flight and money laundering, but we haven't done enough to stop this from happening for quite some time," RBZ Governor Dr John Mangudya was quoted saying in the media last month.

- chronicle

 0

You May Like These Videos

Comments

There are no comments.

Latest stories

A tale of three vice presidents

by Tondorindo Chinehasha | 23 February 2018 | 59 Views

Nust Graduate wins beauty pageant

by Jefferson Metha | 23 February 2018 | 31 Views

It's time for rural cemeteries

by Thomas Murisa | 23 February 2018 | 47 Views

Mugabe warned: Shut up!

by Stephen Jakes | 23 February 2018 | 288 Views

2017 O-Level pass rate down to 26.35%

by Ndou Paul | 23 February 2018 | 110 Views

The mystery of the missing MDC-T constitution

by Joe Devanny | 23 February 2018 | 75 Views

Khupe snubs Chamisa overture

by Staff reporter | 23 February 2018 | 135 Views

Mutambara warn MDC-T members

by Staff reporter | 23 February 2018 | 212 Views

Jonathan Moyo taunts 'hopeless charlatan'

by Staff reporter | 23 February 2018 | 164 Views

Cheated wife cuts off man's sex organs

by Punch.com | 23 February 2018 | 79 Views

Cheating man in juju scare

by Staff reporter | 23 February 2018 | 105 Views

Headmaster, wife demand $145,000 from school

by Staff reporter | 23 February 2018 | 79 Views

Woman faces $10 000 adultery lawsuit

by Staff reporter | 23 February 2018 | 64 Views

Chamisa salutes Mnangagwa's govt

by Staff reporter | 23 February 2018 | 101 Views

Chamisa blasts the police force

by Simbarashe Sithole | 23 February 2018 | 411 Views

The social media president

by Charles Munganasa | 23 February 2018 | 69 Views

Four incredible gambling stories

by Agencies | 23 February 2018 | 54 Views

Reckless behaviour cost lives - PDP

by Jacob Mafume | 23 February 2018 | 68 Views

Tapping into diaspora remittances for growth

by Victor Bhoroma | 23 February 2018 | 54 Views

Zimbabwe's pricing dilemma

by Victor Bhoroma | 23 February 2018 | 61 Views

Chamisa blast the police force

by Simbarashe Sithole | 23 February 2018 | 213 Views

MDC-T drama: We have learnt very little about the past 37 years

by Hopewell Chin'ono | 23 February 2018 | 94 Views

Grace Mugabe is being harrassed, says Mugabe

by Staff reporter | 23 February 2018 | 188 Views

Ramaphosa forgives Peter Ndoro for 'killing' him

by BBC | 23 February 2018 | 144 Views

South Sudan to hang former South African colonel

by BBC | 23 February 2018 | 114 Views

British couple kidnapped in South Africa

by AFP | 23 February 2018 | 96 Views

Zim revives fuel pipeline deal with Botswana

by Staff reporter | 23 February 2018 | 81 Views

Fresh row over command agriculture

by Staff reporter | 23 February 2018 | 82 Views

MDC-T succession war, violence and tribalism

by MUCKRAKER Twitter: @MuckrakerZim | 23 February 2018 | 78 Views

MDC-T violence simply barbaric, unacceptable

by Faith Zaba | 23 February 2018 | 54 Views

Mudzuri seeks legal opinion

by Staff reporter | 23 February 2018 | 144 Views

Chamisa digs in

by Staff reporter | 23 February 2018 | 114 Views

MDC-T succession battles more political than constitutional

by Staff reporter | 23 February 2018 | 66 Views

Mugabe says, 'Mnangagwa government is illegal'

by Staff reporter | 23 February 2018 | 424 Views

'Lacoste cabal' has captured MDC-T

by Staff reporter | 23 February 2018 | 117 Views

What ZRP had to say about yesterday's shooting and riots

by Staff reporter | 23 February 2018 | 112 Views

'How G40's power-grab plan collapsed'

by Staff reporter | 23 February 2018 | 114 Views

Looting at Tsvangirai's burial

by Staff reporter | 23 February 2018 | 137 Views