THE Methodist Church in Zimbabwe was yesterday convicted of illegal foreign currency dealing after it unlawfully sold some British pounds from an international donor to a local company.
Harare magistrate Ms Sandra Nhau convicted the church, represented by Reverend Simon Madhibha, on its own plea of guilt to contravening the Exchange Control Act.
The church was remanded to Monday next week for sentence.
Prosecutor Mr Obi Mabahwana told the court that on February 15 2002, the Beit Trust of the United Kingdom donated offshore funds amounting to £20 025 to the Methodist Church in Zimbabwe.
The funds were meant for the construction of a classroom block at Chemhanza High School in Hwedza.
The Methodist Church in Zimbabwe runs the school.
The court also heard that the Methodist Church in Zimbabwe later instructed the Beit Trust to deposit the money into an account belonging to Ger and Company, a sister company of Treger Industries Zimbabwe.
On March 24 2002, the church received $9 211 500 from Treger Industries as payment for the money deposited in its offshore account.
The State argued that by acting in that manner, the Methodist Church contravened section 5 of the Exchange Control Act Chapter 22:05 as read with section 4 of the Exchange Control Regulations Statutory Instrument 109 of 1996.
The amount - using the prevailing exchange rate at the time - is equivalent to $1 561 950, 00.
In mitigation, the church's lawyer, Mr Lawrence Chibwe of Stumbles and Rowe, said the money received by his client amounted to free funds and that alone meant it did not contribute to the economy and the balance of payments.
He also said the money was not used for the benefit of individual church members, but for the construction of a classroom block at a school which serves the entire community.
Mr Chibwe pleaded with the court to consider imposing a wholly suspended sentence on the church. He said the appearance of the church in court was enough punishment.
However, the State prayed for the fining of the church, saying it would serve to deter other offenders.
The church committed the offence at a time when the country was battling to eradicate the foreign currency parallel market and that on its own should work in aggravation, said Mr Mabahwana.