Blanket Manufacturers Cry Foul Over Smuggling Cartels

Staff Writer

Companies in the business of manufacturing blankets are feeling the heat emanating from the soaring smuggling reportedly run by cartels at the country’s border posts.

It has also emerged that those in the business of manufacturing groceries are crying foul as the cartels bring in cheaper goods manufactured in neighbouring South Africa, Botswana and Mozambique.

The continued influx of contraband has left Zimbabwe’s blanket manufacturing industry at a standstill as consumers’ limited spending power is forcing them to prefer these cheaper goods compared to locally made products.

Influx of these commodities is increasing by the day despite the existence of statutes governing importation of goods into the country being in place.

Flouting of these regulations has resulted in leakage of revenue meant to be remitted to the Zimbabwe Revenue Authority (Zimra) which is losing millions of dollars through underhand dealings at the country’s border posts.

The cartels reportedly by-pass the regulated process of paying the specified regulated Government Statutory Import Duty (being 40% Duty + $2.50Kg on mass weight) and value-added tax (VAT) in accordance to Tariff Code protocol.

Some of the smugglers allegedly do not possess the valid import licences issued from the Ministry of Industry and Commerce as a requirement.

Zimbabwe Anti-Corruption Commission (ZACC) chairperson Justice Loice Matanda-Moyo recently told the media that Zimbabwe was losing billions annually to smuggling and further asserted that the corruption watchdog has been unleashed on personnel manning the border posts to end the vice.

This was after nine buses were nabbed last week for smuggling various commodities including blankets and assorted groceries into the country through Beitbridge border post.

“We are investigating the Zimra officials and the law enforcement agents at the borders to find out how those buses are actually bypassing the regulations at the border. In some of the buses, you find out that it is only the driver and the conductor, there are no passengers in there. It is now the buses being used to carry contraband into South Africa,” she said

“Everybody needs to know that they must comply with the rules and we are going to fight smuggling whether it is being committed by high profile or small fish. Smuggling must simply stop,” she said.

Recently, the Zimbabwe Republic Police arrested 18 border control officials in Beitbridge on allegations of facilitating the smuggling of goods into the country by cross-border bus operators.

Confederation of Zimbabwe Retailers president Dr. Denford Mutashu, told this publication that smuggling and importation of goods that are readily available in the country are twins partnering with corruption to hemorrhage the country of the much-needed foreign currency.

“A case in point is PVC 140mm × 6meters and many hardware and electronic goods. Basic goods, school uniforms, drugs, clothes, steel and fabrication products are also part of the list which is endless,” Dr. Mutashu said.

Dr. Mutashu said there was need for the government to form an all encampusing taskforce to nip smuggling in the bud as informalisation seems to have triggered the vice being necessitated by runners scattered throughout the country.

“The growing informalisation has also necessitated smuggling by providing a safe haven locally. Government should set up an interministerial task force comprising various departments from industry, commerce and private sector players,” he said.

Zimbabwe Republic Police spokesperson Assistant Commissioner Paul Nyathi said law enforcement will not hesitate to arrest anyone involved in crime especially smuggling or corrupt activities.

“Our target is individuals, syndicates, security personnel companies, and transporters engaging in the illegal movement of goods across the borders,” Nyathi said.

He said police had noted an increase in inter-city and cross-border buses being used by syndicates to transport smuggled goods.

An affected source who preferred anonymity said it was high time a taskforce is put in place to monitor money trails used by the cartels as well as raiding known fortified warehouses where contraband that enters the country is concealed from the authorities.

“Some of these warehouses are are well fortified; with high walls and security wiring fencing. The premises are monitored 24/7 by CCTV making it difficult for authorities like ZIMRA to access entry.”

“Players In Blanket & Textile Sector Cry Foul Over Smuggling Cartels A strong taskforce should be out in place as the country is losing critical revenue through smuggling and the menace is crippling local manufacturing companies which are already facing foreign currency challenges for them to be viable,” she said. Nhau/Indaba