The Reserve Bank of Zimbabwe (RBZ) has taken a Bulawayo-based company to court, accusing it of failing to comply with foreign currency auction requirements after receiving funds to import goods from South Africa.
Westboard Timbers, represented by Teramayi Matare and Georgina Matare, is alleged to have received US$29,124.66 through the central bank’s foreign currency auction system between November 2021 and February 2022. The funds were allocated for the importation of sanitisers, disinfectants and saw-milling resaw machinery.
According to the prosecution, the company has not submitted the required supporting documents to prove that the goods were delivered, as required under the auction system.
An RBZ official, Belina Sigauke, told the court that transactions under the system must be “acquitted” through submission of matching bills of entry and invoices confirming receipt of goods.
“In this case, the company did not submit sufficient information,” she said. “At one point, the RBZ approached the company and they committed to paying back the money, but they did not follow through.”
Prosecutor Tsungirai Mutapi said the allocated funds were intended for sanitisers valued at US$10,489.12, disinfectants worth US$9,990.44 and saw-milling machinery valued at US$8,645.40.
Sigauke told the court that the company’s failure to provide documentation prejudiced the RBZ, as the funds could have been allocated to other businesses seeking foreign currency support.
“The purpose of the foreign currency auction funds was to ensure that exporters contributed through surrender requirements so that local companies without forex earnings could conduct business,” she said. “Because of the conduct of Westboard Timbers, the country suffered prejudice as those funds could have benefited other companies.”
She added that companies were expected to formally apply for exceptions if circumstances changed.
“Westboard was supposed to approach its bankers and explain why the intended goods were not received. If the reasons were plausible, they would then be advised to apply for an exception for acquittal,” she said.
However, the company’s lawyer, Bruce Masamvu of Masamvu & Da Silva Gustavo Law Chambers, denied the allegations, arguing that his clients complied with all procedures required by their bankers.
He told the court that the transactions took place during the Covid-19 lockdown period, which disrupted import schedules and affected delivery timelines.
“Lockdown affected the expected delivery dates,” Masamvu said. “When they realised that it no longer made business sense to proceed with the original products, they changed their order.”
He said the company communicated with its banker and made the necessary applications to procure different goods. The latest application, he said, was submitted on 15 April 2026.
Masamvu also rejected claims that the RBZ suffered prejudice, arguing that the company had deposited the equivalent amount in local currency before receiving the forex allocation.
“My clients maintain that there was no prejudice suffered,” he said. “They provided the local currency, the RBZ used it, and the transferred forex was used strictly for business purposes.”
He added that none of the funds were diverted to personal accounts and that the company had evidence showing that goods were ultimately received, although different from the original order.
Magistrate Sibonginkosi Mnkandla postponed the matter to 19 May for continuation of the trial.