Zimbabwe Losing Over US$2 Billion Annually in Illicit Financial Flows: Biti

Harare East Legislator Tendai Biti has said mining houses are major culprits on the Illicit Financial Flows in Zimbabwe, and the country is losing over US$ 2 billion annually in IFF.

Speaking in Parliament, Tuesday Biti urged the government to come up with a Legislation that deals with the issue of IFF in Zimbabwe.

“I thank you for allowing me to raise on a national point of interest madam speaker I am concerned about the issue of Illicit Financial Flows in Zimbabwe. We are losing over US$ 2 billion annually in illicit financial flows what we are losing in terms of the IFF is more than what we are getting in terms of Diaspora Remittances US$ 1 billion what we are getting in terms of Foreign Aid or Oversees Development assistance and what we are getting in terms of foreign investments is around US$200 million dollars.

“The major culprits are the mining houses organisations such as the Zimplats and Unkie of this world who are guilt of transfer pricing, thin capitalisation under invoicing and over invoicing. The mining sector madam speaker is bleeding its accounting for US$ 6-7 Billion a year yet Billions are getting out of our country.

He further said out of the 65 minerals in the country, Zimbabwe is not benefiting from these minerals and urged the Minister of Finance and trade to come up with a Legislation about IFF.

“We have got 65 minerals but they are not benefiting our country and most of the mining model in Zimbabwe is extractive you come in you loot and you get out leaving total destruction unemployment and so forth and look at the status of Mangura in Mashonaland West Province it’s a ghost town. If you go to Renco in Masvingo the roads there looks like they were built in 1942 but there have been getting gold form our country.

“So, I urge the Minister of Finance and the Minister of Trade should come up with a Legislation that deals with IFF from this country were losing a billion of US$ from Tobacco, billion US$ from Gold Smuggling on its own, we are now losing possibly US$ 2 billion from Lithium alone which has now scattered all over,” he said.