A US$70,000 deal that went sour and spilled over into the courts has blown the lid off some murky deals, involving some money laundering gangs, dominated by tycoons in Harare’s clothing-focused retail sector.
A number of small shops that sold exclusively clothes appeared in the capital, and many buildings were divided to make room for these shops.
Sources say that cartels in this booming retail sector are secretly moving millions of US dollars out of Zimbabwe, with a number of couriers involved in the complex operations.
The sources revealed that the gang leaders have contacts, especially at Harare International Airport, who help them transfer large sums of money without raising red flags.
The law allows anyone to leave with no more than US$10,000, without having to explain to the authorities why the money is being taken out of the country.
However, according to sources, the cartel has found ways to bypass security checkpoints through their couriers carrying huge sums of money out of the country.
According to the case before the court, Godwin Mutata, a trader in Harare, defrauded a person of US$20,000 in a botched cash/swap transaction.
Motata was not asked to plead when he appeared before Harare magistrate Dennis Mangosi last week.
The court heard that in October last year, his sister contacted the complainant, who was not named in court papers but was known to H-Metro.
The sister wanted to pre-order a car in China, and the price was $70,650, which could be discounted if payment was made within 72 hours.
Realizing the seriousness of the case, the complainant resorted to various channels to assist her sister who was in China.
It is the State’s case that on 24 October, the complainant contacted Motata, who told him that he was traveling to China on the same day.
Mutata, from Warren Park, claimed he had free money in China and promised he would hand over the money to his sister upon receiving his money in Zimbabwe.
On October 24, the complainant gave Motata US$70,650 in cash.
Motata left for China on the same day and upon arrival handed over US$50,650 to his sister instead of US$70,650.
The complainant followed up with Motata regarding the outstanding amount of US$20,000, but failed to account for it.
Finally, Mutata became evasive and avoided the complainant’s calls, which led him to file a report with the police.
Sources told H-Metro: “You will hear that there are sums of money lost during transportation, and stories like money getting lost in luggage in places like Dubai.
“The footprints will tell you that these are money laundering rings, especially when it comes to these small shops that sell clothes here in Harare. Obviously, because it is a sensitive issue, on occasions when things do not go according to plan, many of these cases go unreported.” Because on the one hand, the injured party could find themselves having to face some very difficult questions from the authorities.
“But something is really going on over there and a lot of money is being moved out of our country by these gangs.” h metro