126TH INTERNATIONAL SENIOR SEMINARPARTICIPANTS’ PAPERS

COUNTRY REPORT: ZIMBABWE
Samson Mangoma*
I. INTRODUCTION
The Land Reform Programme adopted by the Zimbabwe Government in the year 2000 and thesubsequent smart sanctions imposed by the Western Countries has resulted in the mushrooming of various
forms of serious economic crime. The inflation rate stands at 600% and this is a good breeding ground for
economic crime. The most notable forms of economic crime manifest themselves in corruption, market
manipulation by multinational corporations, insider trading, externalisation of foreign currency, andembezzlement of funds both in private and public sectors and a thriving parallel market. This paper shallenlighten you on the current situation in the country, problems and countermeasures in the investigationand trial of economic crime, prevention of economic crime and ways of strengthening the legal framework
for the punishment of economic crime.

II. THE CURRENT SITUATION AND THE PROBLEMS OF SERIOUS
ECONOMIC CRIME IN ZIMBABWE
As alluded to earlier, the Land Reform Programme brought both positive and negative aspects to thecountry. The Zimbabwean economy is agro-based and thus the Land Reform Programme affected the growthof the economy.
The few whites who owned the land and who were supported by masters of industry and multinational
companies were not supportive of the reform. As a result, they worked in cahoots to derail the reform and at
the same time involved themselves in various forms of economic plunder as pointed out earlier. Thus today,
Zimbabwe is in a very serious economic problem of high inflation and high unemployment rates. This
scenario tends to promote economic crime. The statistics shown in Appendix A portray the situation for theyear 2002/2003.
As can be seen from the statistics, serious economic crime was on the increase in 2002 while in 2003 it
has been on the decrease. This is attributable to the measures put in place to combat economic crime. The
Police as an organisation have also put various strategies into effect to fight economic crime such as i) Crime awareness campaignsii) Seminars with the stake holders on prevention of economic crimeiii) Beat and patrols, etc.
iv) Surveillancev) Effective use of informersvi) Lobbying the courts to pass stiffer sentences on the would be criminalsvii) Lobbying the courts to remand such people in custody
Most of the perpetrators who commit serious economic crimes are leaving the country for Botswana,South Africa, Britain, Australia, Canada, and the United States of America. When these criminals leave thecountry heading to Western countries, they falsely claim political asylum and their extradition to face trial
becomes difficult. Since these criminals are enjoying this protection and proceeds of the crime, more andmore people are getting involved, as there is no fear of arrest and prosecution.

A. Drought
In Southern Africa, there have been successive years of drought. The drought has worsened theeconomic situation forcing law-abiding citizens to engage in criminal activities to make ends meet. Donor
agencies have come forward to assist by providing food aid. However, people entrusted with the distributionof the aid are corruptly enriching themselves at the expense of the intended beneficiaries.
B. Urbanisation
In Zimbabwe many people have migrated from rural set ups for major cities in search of jobs mainly due
to the persistent droughts that have affected the whole of southern Africa. However, the people find it isdifficult to secure jobs since some companies are closing down due to the reasons mentioned above, and* Chief Superintendent of Zimbabwe Republic Police, Zimbabwe.

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thus, they are forced to commit crime in order to make ends meet.
The following are the economic crimes mostly committed in Zimbabwe under Common Law:i) Fraudii) Theft by false pretencesiii) Theft by conversioniv) Extortionvi) Forgery and utteringvii) Receiving stolen property

For definitions and essential elements see Appendix B
As mentioned earlier on, the following are just a sample of the serious economic crimes under the statutelaws of Zimbabwe:i) Corruptionii) Smugglingiii) Money launderingiv) Externalisation of foreign currencyv) Trading in foreign currencyvi) Insider tradingvii) Flouting tender procedures, etc.

III. PROBLEMS AND COUNTERMEASURES IN REGARD TO THE
INVESTIGATION AND TRIAL OF ECONOMIC CRIMEIn Zimbabwe, the police are constitutionally mandated to investigate all criminal matters and bring thematters before the Courts for judicial investigation, and prosecution. The police and the prosecutors operate
independently although there is some co-operation, which exists. The Police complete investigations andcompile their criminal dockets which they hand over to the prosecutors who scrutinises them. If they are
happy with the evidence, they take the matter for prosecution and if they are not happy with the evidence,
they indicate this and return the dockets to the police for further investigation. However, economic crimes
are difficult to prosecute let alone to investigate and some specialised training is required for both theprosecutors and the police investigators. A number of the cases take a long time to be finalised at court andthe main reasons are lack of manpower at the courts and also that sometimes the prosecutors do not possess
the capabilities to deal with such matters. Sometimes, the relationship of the prosecutors and police isaffected by these delays as there is mistrust between the two departments. The other problem we have ison investigations and extraterritorial connotations, as some of the member countries are not ready to assist
or to respond to requests. This contributes to the delay in the completion of our cases.
The following are the types of Courts found in Zimbabwe:i) Magistrate Courtii) Provincial Magistrate Courtiii) Regional Magistrate Courtiv) High Courtv) Supreme Court
1. Magistrate Court
This type of court is presided over by a junior magistrate and is for minor offences. Also juveniles andyoung persons are tried in this court.
2. Provincial Court
This court is presided over by Provincial Magistrates who may sentence someone for up to twelve
months imprisonment or two thousand dollars fine.
3. Regional Court
This court is presided over by Regional Magistrates for offences of a serious nature and may punish
someone with up to seven years imprisonment or twelve thousand dollars.

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4. High Court
Judges preside over this Court which deals with cases of an extremely serious nature like murder andthey may impose the death penalty or life imprisonment.
5. Supreme Court
This is the highest court of appeal in Zimbabwe which also deals with matters involving the constitution.
Ordinarily the Regional and the high Courts mostly deal with serious economic crimes in the country.
These institutions play an important part in the fight against economic crime by imposing stiffer sentenceson the accused persons in order to deter them from committing such crimes.

IV. INVESTIGATIVE APPARATUS
The Zimbabwe Republic Police is an establishment of the Zimbabwe Constitution and is mandated tomaintain Law and Order in the country. The Police organisation is further given powers by various Acts of
Parliament notably the Criminal Procedure and Evidence Act Chapter 9:07. Thus, the police have all theinvestigative powers in the country though the President of the country can establish a commission to carryout investigations if it is deemed necessary. The police are independent of any other body when carrying out
investigations.
The Fraud Squad has been set up to deal with all serious forms of economic crimes nationally and has set
up their offices in the two major cities of Harare and Bulawayo. The office in Harare is headed by an
Assistant Commissioner and deputised by a Chief Superintendent whilst the Bulawayo Office is headed by a
Chief Superintendent and deputised by a Superintendent. Where expertise that cannot be found within thepolice is required, such experts can be hired to carry out tasks like auditing, accounting, etc. The
organisation is aware of the challenges brought about by technology and has constantly been providing on
the job and off the job training to keep the officers abreast of new trends in criminal activities. However,resources have not been adequately supplied to meet the required levels. Computerisation of the Fraud
Squad is still to be fully implemented to meet operational requirements. This is to keep the branch abreast
with the new technology in order to fight the criminals of today who have become technologically advanced.
The Bulawayo office is yet to be computerised.
Organisations Involved In the Fight against Serious Economic Crimes:i) Policeii) Courtsiii) National Economic Conduct Inspectorateiv) Anti Corruption Unitv) Bankers Security Unitvi) Customs Investigations Unitvii) Reserve Bank of Zimbabwe Investigation Unitviii) Controller and Auditor Generalxi) Attorney General’s Office
As mentioned earlier on, the Police have all the powers to investigate crimes in Zimbabwe. However, theabove organisations marked iii) to viii) assist the police by way of gathering evidence and hand it over to thepolice for further investigations whilst the courts prosecute accused persons involved in serious economic
crimes.

V. COLLECTION OF INFORMATION IN ORDER TO INITIATE THE INVESTIGATIONS
A. Information
In offences committed in the public sector, co-operation is very high, as the authorities are forthcoming in
supplying all relevant information that is relevant to the commission of the offence. However, in the private
sector, if the management is involved, there is a tendency to conceal evidential information.
The police as an organisation have set up various means of collecting or receiving information, which
include:(i) Suggestion Boxes(ii) Hotlines

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RESOURCE MATERIAL SERIES No.66(iii) Informers(iv) Community based policing practises such as:(a) Neighbourhood Watch Committees(b) Home Officer Schemes(c) Police Junior Call
The community-based approach has yielded very pleasing results as members of the public come forward
to give tip-offs.
When crimes are committed against the corporate sector, they are forthcoming in lodging formal
complaints to the police. This has always been the traditional means of alerting the police of crime.
Criminals, themselves sometimes give information of other criminals. Syndicates usually are aware ofwhat other groups are doing and if approached are sometimes helpful in supplying useful information inorder to fix their criminal counterparts.

B. Protection of Whistle-Blowers
The prevention of Corruption Act Chapter 9:16, provides for the prevention of victimisation of whistle blowers. Section 14 (2) provides that: - Any person who without lawful excuse;(a) Prevents any other person from giving any information concerning any corrupt practice or(b) Threatens or does any other thing calculated or likely to deter any other person from giving any
information or(c) Does anything calculated or likely to prejudice any other person because the other person has given
any information shall be guilty of an offence.
The Police Act Chapter 11:10 also provides for protection of informers. The police are not compelled todisclose the source of their information.

C. Collection of Evidence and Securing an Appropriate Adjudication
The collection of evidence and securing an appropriate adjudication is covered by the Criminal Procedureand Evidence Act Chapter 9:07.
D. Search and Seizure
Section 48 of the Criminal Procedure and Evidence Act deals with search and seizure of articles,
documents, or substances with or without a warrant. The Act empowers a police officer to search any person
or container or premises for the purpose of seizing any article. These powers conferred upon the police
enables police officers to collect and secure articles that can be produced as evidence before the courts. The
Police can search premises without warrant if they believe that the delay in obtaining the warrant may defeat
the course of justice and that the warrant may be obtained latter. They can also enter any premises for the
purposes of interviewing and obtaining names and addresses of a person, who on reasonable grounds, issuspected of having committed an offence.
E. Acquiring Banking Transaction Records and Protecting their Confidentiality
This is covered under sections 286-289 of the Criminal procedure and Evidence Act chapter 9:07. Section
286(2) provides that: Any banker’s documents shall be admissible as prima-facie evidence of the matters oftransactions recorded therein or endorsed thereon on proof of being given by the affidavit of any director,
manager or officer of the branch concerned or by other evidence that such documents: (a) have been received or executed and kept by the bank in the usual and ordinary course of business; or(b) are in or come immediately from the custody or control of the bank.
The issue of confidentiality is provided for by section 288, which provides that a bank shall not becompelled to produce its banker’s books or any banker’s documents in any criminal proceedings unless thecourt specially orders that such banker’s books or banker’s documents shall be produced.
The Banking Act Chapter 24:20 also provides for the preservation of secrecy under section 76 of the Act.
However, at times, the banks take a long time to avail the requested evidential information required by the
Police in their investigations and this causes unnecessary delays in the finalisation of cases.

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F. Questioning of Suspects and Witnesses
Questioning of suspects is dealt with under the Criminal Procedure and Evidence Act Chapter 9:07.
Suspects who are accomplices are provided for under section 267 of the Criminal Penal Code. The Act
clearly spells out guidelines on how suspects should be questioned and how statements should be obtained
i.e., a suspect has the right to remain silent, the right to legal representation and the right to have his family
informed of his arrest.
Witnesses are dealt with under sections 229-237 of the Criminal Procedure and Evidence Act. The
provisions of the Act adequately cover the securing of witnesses to attend court and further provides fortheir punishment when they default. Granting of immunity and plea-bargaining is dealt with underaccomplice evidence. Sections 290 to 293 of the Code deal with the privileges that are accorded to a witness.
Measures have been put in place to provide effective protection from potential retaliation or intimidation incriminal proceedings.

VI. PREVENTION OF ECONOMIC CRIMEIn Zimbabwe, the law enforcement agencies’ main priority is the prevention of crime; however, economic
crime is difficult to prevent unlike other crimes where the presence of a Police Officer serves as a deterrent
to the would be criminals. A number of programmes have thus been put in place as a means to prevent
economic crime. The most effective strategy are the Public awareness campaigns as for the other strategies
see page one of this report. For the success of these strategies, the co-operation of the public is necessary.

A. Regulation of Economic Activities
There are a number of regulations in place to control economic activities. These are:(i)
Companies Act Chapter 24:05(ii)
Exchange Control Act Chapter 22:05(iii)
Banking Act Chapter 24:01(iv)
Building Societies Act Chapter 24:02(v)
Insurance Act Chapter 24:07(vi)
Corruption Act Chapter 9:16
(vi)
Gold Trade Act Chapter 21.03(vii) Mines & Minerals Act Chapter 21:05(viii) Criminal Procedure in Evidence Act Chapter 9:07
(ix)
Reserve Bank Act Chapter 22:15(x)
Copper Control Act(xi)
Extradition Act Chapter 9:08
(xii) Rates of Exchange & Money Laundering Act(xiii) Postal & Telecommunications Services Act Chapter 12:02(xiv) Sales Tax Act Chapter 23:08(xv) Estate Agents Act Chapter 27:05(xvi) Audit & Exchequer Act Chapter 22:03(xvii) Companies Act Chapter 24:03(xviii) Public Accountants & Auditors Building Societies Act Chapter 27:03
These Acts are effective, though sometimes criminals circumvent the provisions in order to enhancetheir criminal activities.
To compliment these economic activities the Police have put in place a number of strategies to fighteconomic crime.

B. Corporate Governance
In Zimbabwe Corporate Governance is viewed as an effective tool in strengthening the foundation forsustained performance by corporations. It also helps fight (inter-alia) corruption, corporate scandals, poverty
and ensures that managers of corporations avoid serving their own interest. Actually it encourages fairness,
responsibility, accountability and transparency in the way the affairs of the corporations are run.
Measures have therefore been put in place through the above mentioned legislation such as:(i) Independent Risk Management Departments(ii) Independent Internal Audit Departments(iii) Composition of Executive Directors

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The legislation encourages financial institutions to have the above critical areas addressed. The National
Reserve Bank is responsible for monitoring and ensuring compliance of the regulations.

C. Establishment and Implementation of a Corporate “Compliance Programme”
As pointed out above, monitoring and compliance is the responsibility of the Reserve Bank of Zimbabwe.
Banks are encouraged to set up compliance departments to ensure that the particular institutions adhere to
the statutes. The Reserve Bank reserves the right to withdraw the Banking Licence. Inspectorate Units tomonitor activities of the Banks are in place.
(i) Banks are compelled to submit monthly returns(ii) Control banking activities(iii) Require certain information from Banks
D. Establishment of a System to Monitor Economic Activities
The National Reserve Bank has, through various regulations, established a system to monitor economic
activities such as:(i) Control of Banks, Building Societies, Discount Houses and Financial Houses(ii) Submission of Financial Statements by corporate companies(iii) Implementation of the Stock Exchange Act(iv) Monitoring the importation and exportation of goods, etc.
All these measures are calculated to serve as preventive steps in curbing economic crime.

VII. STRENGTHENING THE LEGAL FRAMEWORK FOR THE PUNISHMENT
OF ECONOMIC CRIME
The continuing rise of economic crime and their harmful effects, especially on an emerging economy, hasresulted in the legislature coming up with new laws to criminalize new types of harmful economic activities.
In Zimbabwe, the following laws and bills have been put in place.
(i) Serious Offences (Confiscation of Profits) Act Chapter 9:17, an Act to provide for confiscation of
profits of crime, and to provide for matter connected therein or incidental thereto.
(ii) Bank Use Promotion and Anti-Money Laundering Bill, 2003, to provide for the encouragement of theuse of the banking system for major money transactions while at the same time discouraging the useof the financial system to launder the proceeds of serious crime.
(iii) Anti-Corruption Commission Bill, 2003, to provide for the establishment for an independent,
powerful and high profile body to spearhead the battle against corruption and provide mechanisms toinvestigate corruption at all levels and in all sectors.
(iv) SADC Protocol against corruption - to foster the development and harmonisation of policies anddomestic legislation of the state parties relating to the prevention, detection, punishment anderadication of corruption in the public and private sectors.

VIII. RATIFICATION AND UTILISATION OF INTERNATIONAL STANDARDS
Zimbabwe is not merely involved in International Conventions but is actively participating in theSouthern African Development Community (SADC) to fight crime. Various protocols, including the SADC
protocol against corruption, have been signed and ratified.
Zimbabwe is moving towards meeting the United Nations Conventions against Transnational organised
crime, which is intended to promote co-operation to prevent and combat Transnational Crime. A few
examples of articles of the UN Convention against Transnational organised crime are: (i) Article 7
Measures to combat laundering(ii) Article 8
Criminalisation of corruption(iii) Article 9
Measures against corruption(iv) Article 11
Prosecution, adjudication, and sanctions(v) Article 18
Mutual legal assistance.
Under the FATF, 40 recommendations, the critical problems faced by Zimbabwe are measures to detect
or monitor the physical cross-border and transportation of cash and bearer negotiable instruments. In 2003,
Zimbabwe faced a critical shortage of banknotes after they had been exported to neighbouring countries
resulting in chaos in the banking industry. The situation was only alleviated by the introduction of negotiable
Bearer Cheques with expiry dates.

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However, most of the recommendations have been put in place. As pointed out earlier. Money launderinghas been criminalised and it is an offence in Zimbabwe to obstruct the due process of law either by physicalforce, threats, or intimidation.

IX. REPATRIATION OF CONFISCATED PROPERTYIn Zimbabwe, confiscated or seized property is dealt with under section 58-63 of the Criminal Procedureand Evidence Act Chapter 9:07. Articles involved in offences committed outside Zimbabwe are, on the orderof the court, delivered to a member of the police force established in such country who may remove it from
Zimbabwe. This is further strengthened by Civil Matters (Mutual Assistance) Act Chapter 8:02, which
provides for the enforcement in Zimbabwe of Civil judgements given in foreign countries.

X. CORPORATE SANCTIONSThe Criminal Procedure and Evidence Act Chapter 9:07, Section 385(6) provides that, when an offence
has been committed, whether by the performance of any act or by the failure to perform any act for which
any corporate body is or was liable to prosecution, any person who was, at the time of the commission of theoffence, a director or employee of the corporate body, shall be deemed to be guilty of the offence, unless it isproved that he did not take part in the commission of the offence and shall be liable to prosecution therefore,
either jointly with the corporate body or apart therefrom, and shall upon conviction be personally liable topunishment therefor.
Administrative sanctions are dealt with by Section 385(7)(b), which provides that any document,
memorandum, book or record, which was drawn up, entered up or kept in the ordinary course of that
corporate body’s business or which was at that time in the custody or under the control of any director,
employee or agent, shall be prima-facie evidence of its contents.

XI. CONCLUSION
Concerted efforts to put mechanisms in place to control serious economic crime are being made by
Zimbabwe. National Policies, Regional Protocols, and International Conventions have been entered into by
Zimbabwe. In this global village, both regional and international co-operation is required to control all formsof crime. Results of the efforts are pleasing though remarkable results could have been achieved had it notbeen for the inadequate resources provided for in the fight against crime. As has been pointed out earlier, theeconomy is not doing well; thus, resources are not easy to come by.

185

186

60

18

1

1

154

THEFT BYFALSE
PRETENCES

THEFT BY
CONVERSIONPREVENTIONOFCORRUPTIONACTEXCHANGE
CONTROLACTTOTALS

106

4

6

16

30

140

0

1

19

38

95

3

2

6

25

61

74

FRAUD

82

2002 2003

2002 2003

50

FEB

JAN

OFFENCE

77

0

1

9

24

43

101

2

3

7

20

69

2002 2003

MAR

114

0

1

7

38

68

94

3

3

8

22

58

2002 2003

APR

139

3

1

15

55

75

101

5

0

9

23

65

2002 2003

MAY

188

2

5

31

60

90

117

2

5

8

34

68

2002 2003

JUN

193

10

11

16

42

114

111

1

5

3

30

72

2002 2003

JUL

121

0

0

10

36

75

97

1

1

8

14

73

2002 2003

AUG

124

1

0

15

31

76

117

2

3

9

22

81

2002 2003

SEP

142

1

3

19

39

81

141

2

0

20

20

99

2002 2003

OCT

MONTHLY CRIME STATISTICS: JANUARY - NOVEMBER 2002 AND JANUARY - NOVEMBER 2003

APPENDIX A

NOV

108

0

2

12

24

70

132

2

0

6

30

94

2002 2003

27

28

100

270

760

1510 1185

18

26

171

447

848

2002 2003

TOTALSRESOURCE MATERIAL SERIES No.66

126TH INTERNATIONAL SENIOR SEMINARPARTICIPANTS’ PAPERS

APPENDIX B
DEFINITIONS AND ESSENTIAL ELEMENTS
A. Fraud
It consists in unlawfully making, with intent to defraud, a misrepresentation which causes actual
prejudice or which is potentially prejudicial to another.
1. Essential elementsi) Unlawfullyii) Making a misrepresentationiii) Causingiv) Prejudice
2. Other forms of frauds
Cheque fraud
Transit Fraud
Charity Fraud
Master Card Fraud
Insurance Fraud

B. Theft by False Pretences
Consists in unlawfully making with intent to steal, a misrepresentation which effects a contractatio of
property capable of being stolen.
Essential Elementsi) Unlawfullyii) Making a misrepresentationiii) Intent to stealiv) Property capable of being stolenv) Contractatiovi) Effecting

C. Extortion
Consists of taking from another some advantage by intentionally and unlawfully subjecting him/her topressure which induces him/her to submit to the taking.
Essential Elementsi) Some advantageii) Intentioniii) Pressureiv) Unlawfulnessv) Inducement

D. Forgery
It consists of unlawfully making, with intent to defraud a false document which causes actual prejudice or
which is potentially prejudicial to another
Essential Elementsi) A documentii) Which is falseiii) Making the document falseiv) Intent to defraudv) Causingvi) Prejudicevii) Unlawfulness

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E. Uttering
It consists in putting off, unlawfully and with intent to defraud, a false document which causes actual
prejudice or which is potentially prejudicial to another.
Essential Elementsi) A documentii) Which is falseiii) Unlawfulnessiv) Intent to defraudv) Causingvi) Prejudice

F. Receiving Stolen Property Knowing It to Have Been Stolen
It consists in unlawfully receiving possession of stolen property knowing it to have been stolen.
Essential Elementsi) Unlawfullyii) Stolen propertyiii) Receiving possessioniv) Mens Rea

G. Theft by Conversion
This depends on the circumstances in which the conversion is done but this occurs where someone isentrusted with goods or money on behalf of a company or organisation. Instead of honouring his/her
obligation, he/she converts such goods or money to his/her own use.

188