Re­tail­ers ad­mit cash back fa­cil­ity abuse

Chronicle (Zimbabwe) - - Worldwide - Kiyapili Sibanda

THE Con­fed­er­a­tion of Zim­babwe Re­tail­ers (CZR) has ad­mit­ted that some of its mem­bers are hoard­ing cash and abus­ing the cash­back fa­cil­ity.

The as­so­ci­a­tion said the col­lab­o­ra­tion be­tween the Re­serve Bank of Zim­babwe (RBZ), re­tail­ers and whole­salers on mea­sures to en­hance reg­u­la­tory com­pli­ance is a com­mend­able mea­sure to­wards restor­ing mar­ket dis­ci­pline in the econ­omy.

In an in­ter­view, CZR pres­i­dent Mr Den­ford Mu­tashu said some re­tail­ers have been abus­ing the cash back fa­cil­ity tak­ing ad­van­tage of mar­ket short­ages.

“We re­alised that the cash-back fa­cil­ity was heav­ily abused by some re­tail­ers. For ex­am­ple, data col­lected by the RBZ sug­gests that one re­tailer banked $10 mil­lion and the other $30 mil­lion was used for cash-back fa­cil­ity. But in­ves­ti­ga­tions re­vealed that the re­tailer did not even of­fer a cash-back fa­cil­ity,” he said.

Mr Mu­tashu said mea­sures to en­hance reg­u­la­tory com­pli­ance and use of plas­tic money in busi­ness trans­ac­tions would en­sure smooth cir­cu­la­tion of cur­rency in the econ­omy and ease of trans­act­ing.

He urged all re­tail­ers and whole­salers to ad­here to the rel­e­vant guide­lines and reg­u­la­tions gov­ern­ing their op­er­a­tions as stip­u­lated by the RBZ in­clud­ing re­stric­tions on cash-back to $20.

Mr Mu­tashu said the col­lab­o­ra­tion with RBZ came af­ter meet­ings with the cen­tral bank over con­cerns that some re­tail­ers were hoard­ing cash.

“We held a se­ries of meet­ings with the RBZ when we re­alised that some re­tail­ers were hoard­ing cash and not com­ply­ing with pro­vi­sions of the Bank Use Pro­mo­tion Act. Some re­tail­ers were even hoard­ing cash and this is not healthy for the econ­omy,” said Mr Mu­tashu.

“Com­ing up with this reg­u­la­tory frame­work will help re­store mar­ket dis­ci­pline in the econ­omy and we hope they (re­tail­ers) will com­ply.”

He told Busi­ness Chron­i­cle that dia­logue was the best way for­ward adding that some re­tail­ers have been ar­rested and ap­peared be­fore the courts for con­tra­ven­ing the Bank Use Pro­mo­tion Act.

Mr Mu­tashu said his or­gan­i­sa­tion was work­ing tire­lessly with the bank­ing sec­tor for the in­stal­la­tion of Point of Sale (POS) machines to pro­mote the use of plas­tic money.

“We are work­ing tire­lessly with the bank­ing sec­tor for the in­stal­la­tion of POS machines for re­tail­ers. This also helps to pro­mote the use of plas­tic money and it will be con­ve­nient to con­sumers when pay­ing for goods and ser­vices,” he said.

Mr Mu­tashu said the re­stric­tion on cash-back to $20 was meant to elim­i­nate that loop­hole. He said his or­gan­i­sa­tion was not happy with for­eign-owned re­tail­ers who were ex­ter­nal­is­ing cash and warned that per­pe­tra­tors risk be­ing pros­e­cuted.

“I’m ac­tu­ally not happy with for­eign nationals who are run­ning busi­nesses here and are in the habit of ex­ter­nal­is­ing cash. We are work­ing closely with the RBZ and those found want­ing will def­i­nitely face the mu­sic,” said Mr Mu­tashu.

He be­moaned un­fair pric­ing and demands for cash es­pe­cially in the fuel in­dus­try say­ing col­lec­tive ef­forts were needed to re­store mar­ket con­fi­dence.

Mean­while, Mr Mu­tashu said busi­nesses that are in the habit of prac­tic­ing a three-tier pric­ing sys­tem must stop forth­with and con­form to Gov­ern­ment poli­cies so as to pro­mote san­ity in the econ­omy. — @Kiyaz_Cool.

Mr Den­ford Mu­tashu

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