HARARE — A Harare company has pleaded guilty to making unauthorised foreign payments of more than R1.6 million and E519,000 through the informal Hawala system to pay suppliers in South Africa and Eswatini.
Unicorn Trading (Private) Limited, represented in court by finance manager Ryan Eric Maidwell, admitted violating Zimbabwe’s exchange control laws after making the payments without Reserve Bank of Zimbabwe approval.
Prosecutors said the company made payments totalling R1,687,000 and 519,911 Eswatini emalangeni between January and August to facilitate imports from the two neighbouring countries.
The transactions were uncovered after detectives from the CID Asset Forfeiture Unit’s Northern Region received information on Sept. 1 that the company was allegedly making foreign payments outside authorised channels.
Detectives visited Unicorn Trading’s premises along George Avenue in Harare and requested documents relating to its imports as well as evidence that the foreign payments had been authorised by the central bank.
According to the prosecution, the company could not provide evidence showing that the money had been transferred through the formal banking system.
Investigators subsequently established that the payments had instead been made through Hawala, an informal system through which money can be transferred between parties without funds moving directly through conventional banks.
Prosecutors said no money was recovered.
Maidwell is expected to return to court Friday for sentencing.
