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Tuesday, February 7, 2023
HomeBusinessGovt Blacklists 19 Companies For Illegal Forex Deals

Govt Blacklists 19 Companies For Illegal Forex Deals

The Ministry of Finance and Economic Development has blacklisted 19 companies from participating in the public procurement processes after they were found guilty of siphoning payments from Treasury into the parallel market which is fueling domestic inflationary pressures.

In May, a Value for Money Process on all payments to suppliers and contractors to Central Government, Departments and Agencies was initiated after investigations revealed that some suppliers were over-charging for their services and channeling the funds to the black market to purchase USD.

Authorities went further to state that any company found guilty of these activities would be blacklisted from future public procurement activities.

In an update, Treasury revealed the names of the companies blacklisted which are as follows, Nariox (Pvt) Ltd, New Age Marketers, Pepwit Investements, Tirumi Investments, Mwendo Africa, Alg World Investments, Lobmer Investments, Nisbank Enterprises, Sailgroom Enterprises, Wayvar Enterprises, Poweride Safaris, Azelion Energy, Blackdeck, Paza Buster, Redan Coupon, The Best Car Rental, Josam Enterprises and Construction Warehouse (Pvt) Ltd.

“It (FIU) was also noted that some of the companies would engage in transactions which are not related to their line of business. Some would also purchase fast moving consumer goods from various manufacturers and the goods would then be sold exclusively in foreign currency,” said the Ministry of Finance in a statement.

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Governments world over are the biggest spenders on services and goods which makes public procurement a very essential platform for the growth of most emerging companies.

Since introducing the Value for Money Process, there has been a significant stability in the exchange rate market and subsequently achieving a much slower inflation rate movement.

Government has been keeping a hawk’s eye on money supply in the economy by monitoring its flow particularly with its suppliers and contractors.

This came after the realization that it had been barking the wrong tree by accusing ordinary businesses of fuelling exchange rate movements when it in fact, it was its own bulk payment system to suppliers of goods and services to its developmental projects that was causing monetary instability.

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