HomePoliticsSalaries in forex: RBZ to rein in firms

Salaries in forex: RBZ to rein in firms

Shakeman Mugari

THE Reserve Bank of Zimbabwe plans to launch a crackdown on companies that have been paying portions of salaries of their top managers in foreign currency.

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The bank will soon investigate companies that pay their senior managers and directors in hard currency. Many listed companies in Zimbabwe deposit part of their executive officers’ and top managers’ salaries in offshore accounts.

In written responses to the Zimbabwe Independent, the central bank said companies doing so were externalising foreign currency.

“Any foreign currency-denominated salaries deposited offshore by the said ‘listed companies’ is tantamount to externalisation of foreign currency and is a contravention of the Exchange Control rules and regulations,” the RBZ said.

Over the past few years, companies have been offering hard currency salaries to senior managers in a bid retain key staff. The Independent is in possession of a confidential salary survey indicating that one listed company paid more than £170 000 to six of its managers last year alone.

According to the documents, the chief executive received £75 000 and the managing director £50 000 deposited in offshore accounts as part of their pay packages.

The documents show that the finance director was also entitled to £30 000 per annum. The investment manager and company secretary received £4 500 each last year.

Most companies listed on the stock exchange have facilities to pay part of their top managers’ salaries in foreign currency. The Reserve Bank said no Zimbabwean company was allowed to pay salaries to its Zimbabwean executives in foreign currency through FCAs or offshore accounts.

“Significant amounts of foreign exchange may have been externalised through these transactions and the Reserve Bank would appreciate it if information on hand could be made available to the bank to facilitate further investigation on the companies concerned,” said the RBZ statement.

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