THE National Prosecuting Authority (NPA) has reported a significant rise in corporate executives embroiled in illicit activities, with the private sector suffering an estimated annual loss of US$250 million.
This translates to nearly US$21 million in monthly losses, highlighting the growing threat of financial crime within Zimbabwean businesses.
NPA chief public prosecutor Clemence Chimbari told businessdigest that company litigations were increasingly revealing the extent of executive misconduct.
“The most common issue we face is the involvement of individuals in management who engage in illicit activities, which is a troubling trend underscoring the broader implications for the economy,” Chimbari said.
“The private sector suffers an estimated loss of US$250 million annually as a direct result of illicit financial flows.
“However, progress is being made, with US$130 million successfully recouped through litigation efforts.”
According to the police, white-collar criminals are exploiting insider information to target businesses.
Police national spokesperson Paul Nyathi told businessdigest that commercial crimes in Zimbabwe were becoming more sophisticated and audacious.
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“Alarmingly, the police have recorded some cases of robbery where security guards and company employees fake robbery cases, further complicating the situation,” Nyathi said.
“In some cases, security guards have been attacked and left for dead, highlighting the brutality and desperation of these criminals who, in some instances, pounce on companies armed with machetes and firearms.
“The stakes are high, with large sums of money being stolen and the impact on businesses and individuals is devastating.”
To curb this growing threat, he urged businesses to adopt proactive security measures, including rigorous monitoring of employees and security personnel.
“There is a need to regularly monitor and supervise security personnel, employees and business operations to prevent insider complicity,” Nyathi said.
“Leveraging technology, such as CCTV cameras, alarms and GPS tracking, can enhance security and facilitate rapid response to incidents.”
Nyathi also recommended the use of armed escorts for cash-in-transit operations to minimise the risk of robberies.
“This is more secure than sending individuals to the bank or depositing money without proper protection,” Nyathi pointed out.
Additionally, he stressed the importance of thorough background checks and vetting of employees in sensitive positions to mitigate insider threats.
Echoing these sentiments, Peace Security head of electronics Bernard Tongogara underscored the necessity of robust security protocols within companies.
“Organisations must optimise their security protocols to ensure that there are no breaches. When every individual within a company is aware of sensitive financial information, it exposes the organisation to potential threats,” Tongogara said.
He urged companies to restrict access to confidential information, particularly details on bank deposits, to only essential personnel, reinforcing the need for stringent security measures to safeguard sensitive data and mitigate risks.
Last month, the RBZ noted that more companies were opting to store cash in safety deposit boxes rather than bank accounts, reflecting concerns over financial security and crime.
