A report by Financial Times claims that the International Monetary Fund (IMF) privately warned the Zimbabwean government that payouts to Sakunda Holdings were exacerbating shortages in the economy and signified high-level corruption.
Sakunda Holdings is owned by businessman Kudakwashe Tagwirei who is a close ally of President Emmerson Mnangagwa and linked to the ruling ZANU PF party.
The payouts that were given to Sakunda were met by the Central Bank printing money, leading to the devaluation of the Zimbabwean dollar.
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Sakunda, which owns a stake in commodities trader Trafigura Zimbabwe, received $366m in government bonds as payments for supplying Command Agriculture.
Sakunda redeemed some of the bonds, with the payout being made in Zimbabwe dollars leading to an 80 per cent surge in Zimbabwe’s monetary base — money in circulation including bank reserves.
The Central Bank’s decision last week to freeze the accounts of Sakunda and other companies was a result of the IMF’s warning to the Zimbabwean government, the report claims.