26.4 C
Tuesday, June 6, 2023

19 companies blacklisted for channelling funds to the parallel market

By Stanley James, Business Editor

The government has blacklisted 19 companies for channelling their payments to the illegal foreign exchange market, thereby causing domestic inflationary pressures.

The crackdown on firms overpricing government goods and services continues in a move aimed at stamping out errant suppliers.

A statement released this Wednesday by the Minister of Finance and Economic Development, Professor Mthuli Ncube indicates that 19 firms have been blacklisted.

Findings by the Financial Intelligence Unit (FIU) revealed that after receiving their payments from the government in local currency, the firms channelled the funds to the parallel market.

It was also noted that some of the firms would engage in transactions that were not related to their line of business.

The government says it will continue to monitor transactions by the contractors, with a view to stamping out illicit transactions.

Under the value-for-money process introduced by the government, contractors and suppliers are required to desist from forward market pricing systems and engage in the illegal foreign exchange market.

Related Articles

Stay Connected

- Advertisement -spot_img

Latest Articles