Zimbabwe’s largest mobile telecommunications firm Econet Wireless has made an urgent chamber application for a stay of execution of a warrant of search and seizure.
Last week, the magistrates’ court granted police a search and seizure warrant last week to enable investigations into suspected money laundering activities.
An affidavit signed by investigations officer, Detective Inspector and Officer-in-Charge of the Criminal Investigations’ Asset Unit Mkhululi Nyoni reads that the company allegedly used several individuals between January and June this year to engage in buying and selling hard cash.
The company claims there is a political agenda against it.
Reads part of Econet’s chamber application:
“This loss of value of the Zimbabwe dollar has been blamed on Econet and Old Mutual as it fully appears on the press statements mentioned above.
“Chris Mutsvangwa, was on television blaming Econet and threatening them with action similar to the coup that happened in 2017.
“The reference to coup betrays an agenda to destroy Econet and remove it from its market leadership position and to the benefit of another operator. Therefore these warrants are calculated to enrage Econet subscribers and to drive them to other mobile operators.”
Added Econet CEO Douglas Mboweni in the document:
“If this position is disputed by the Respondents, the Applicant reserves the right to play the video by Mutsvangwa at the hearing.
“It is also important to mention that Chris Mutsvangwa is married to the current Minister of Information, Publicity and Broadcasting Services and that he has an interest in the telecommunications industry.
“At the time Applicant applied for its
initial licence in 1997, Chris Mutsvangwa was a principal in a consortium that applied for a telecommunications licence but was unsuccessful. As a result, the threats against the Applicant must be taken in that context.”
In the last few months, the Reserve Bank of Zimbabwe (RBZ)’s Financial Intelligence Unit (FIU) has been investigating Econet along similar allegations, and it appears the warrant is an escalation of that investigation.
Earlier in May, Econet lost a court case against the RBZ in which the company was contesting the closure of its agents’ lines that had been flagged for illegal foreign currency trading by the FIU.