In serious economies where any form of delinquency is given the attention it deserves, many of the current crop of bankers would have been summoned to explain the ongoing market mayhem.
The extent of damage inflicted on the economy by those abusing bank cards is immeasurable.
But in Zimbabwe, the elites protect each other.
If you are a rich politician, banker, or high-flying civil servant, nobody touches you.
Your money protects you.
If any rational person tries to hold you to account, they end up as the victims.
It is a culture that has been nurtured for decades and has been normalised, yet it is dangerous.
We have witnessed this several times. But Zimbabwe’s leadership cannot act. It has been captured by the powerful, wealth individuals.
- Zimbabwe needs to rethink economic policies
- Zimbabwe needs to rethink economic policies
- Forex demand continues to fall
- Digital platforms transfer ZW$8tn
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This is the reason why, as we report elsewhere in this edition, dozens of the City of Harare officials have been looting at an industrial scale. But they continue to live in their luxury mansions without punishment.
But this is only an aside.
There is a more worrying development that has been taking place in the banking system.
Thousands of banks’ debit cards have been used by currency black market dealers for the wrong reasons.
Some of the crimes that have been committed using debit cards could easily qualify as illicit financial flows.
These corrupt people enjoy backing from politically connected individuals. When they abuse debit cards on the black market, they do so on the streets.
But nobody touches them.
Yet the results of their actions are dire.
The currency has tumbled from US$1:ZWG13,56 on the official market on introduction in April, to about US$1: ZWG14 this week.
It has also been battered on the black market, depreciating to about US$1:ZWG32 on Thursday, from around US$1:ZWG16 on April 5.
As we report, over 1 100 cases of debit cards abuses involving backstage deals have been documented by authorities this year, marking the latest grim revelation to emerge out of a protracted currency crisis.
This sad scenario boggles the mind.
Considering the big population engaging in black market activities, only 1 100 is a joke.
The Reserve Bank of Zimbabwe must take a harder stance on banks for what is happening.
Zimbabweans have been fooled to think that banks have no capacity to police those using their debit cards. Yet in many countries, such transactions have been traced and offenders have been arrested and charged.
The Zimbabwean banking industry is part of a global network of financial services, which claims to have the same capabilities in many areas.
But when it comes to being held to account for these crimes, they claim they have no capacity.
It is time requisite laws are enacted to hold banks to account.
Bankers know that the more transactions take place on the black market, the better their earnings from bank charges. For them, this is a business opportunity.
They would rather destroy an economy than protect millions of those affected by economic malaise.
