ZIMBABWEAN leader President Robert Mugabe’s trumpeted anti-corruption drive has netted an unlikely suspect – the Roman Catholic Church.
The church’s Hwange branch in southern Zimbabwe was dragged before a court Monday on charges of contravening a section of the Exchange Control Act which deals with exchanging foreign currency on the black market.
The amount involved was not disclosed when the church’s representatives appeared in court.
But the representatives indicated that the church would be pleading guilty to the offence which will likely result in a fine.
The case was moved to a later date.
The developments came barely a week after the Roman Catholic Church-run Mater Dei Hospital in the second city of Bulawayo was also arraigned for dealing in forex on the black market.
Several institutions have been dragged before the courts for trading on the black market owing to a crippling shortage of foreign currency before the central bank adopted corrective measures.
Meanwhile Zimbabwe's central bank Tuesday declared it illegal for people to use foreign currency to pay for goods and services within the country.
In a statement, the Reserve Bank of Zimbabwe said the Zimbabwe dollar is the only legal tender in the country.
It said it is concerned that some individuals and companies are charging their local customers for goods in a foreign currency.
The bank says the practice has become endemic especially for those trading with foreign embassies, international organizations, and non-government groups.
Zimbabwe is facing a severe shortage of cash which has caused inflation rates to soar. The crisis has led to a black market, where foreign currency, especially the U.S. dollar, can sell for many times more than the official exchange rate.