Suspended Zimra bosses accused of helping Econet to evade taxes and externalise cash

Suspended Zimbabwe Revenue Authority boss Gershem Pasi is being accused of helping Econet Wireless to evade paying taxes and to externalise cash to the tune of $300 million.

According to a Zimra forensic audit report compiled by HLB Zimbabwe Chartered Accountants signed off in October 2016, Government could have lost about US$300 million in revenue between 2009 and 2013 after Econet allegedly imported dutiable goods without paying taxes. The report states that Econet Wireless hired clearing agent Mr Edward Matambanadzo to process its goods through his Paul Edwards Shipping Company (Private) Limited. Auditors found out about the issue as Mr Matambanadzo wanted to get Zimra to pay him for providing them with information on Econet’s alleged scandal.

Matambadzo’s lawyers, C Nhemwa and Associates, wrote to suspended Zimra Commissioner-General Mr Geshom Pasi on 7 February, 2014 raising the allegations but the matter was not pursued. Zimra’s director of legal and corporate services, Mrs Florence Jambwa wrote a letter on 23 July, 2014  stating that the allegations were not supported by facts and as such they were not able to take any action on them. Auditors found out that Pasi had ordered Ms Jambwa to write the letter, possibly to cover up the issue.