DT Correspondent
FAZAK, a prominent retail outlet in Bulawayo, is under growing scrutiny following allegations that its persistent cash-only policy may be facilitating money laundering and tax evasion.
The store, known for selling high-end goods, has reportedly refused to accept electronic payments for an extended period, citing persistent issues with its point-of-sale (POS) systems.
Customers and industry observers have raised concerns that this practice may be a deliberate attempt to bypass formal banking channels.
Fazak primarily accepts United States dollars and South African rand, while reportedly rejecting the recently introduced Zimbabwe Gold (ZiG) currency.
This has fuelled speculation that the retailer may be avoiding financial transparency obligations required under Zimbabwean law.
“Every time I shop here, they say the card machine isn’t working. It’s suspicious because it’s been like this for months if not years. No business should operate this way indefinitely,” said Tyron Ngwenya, a frustrated customer.
Banking experts warn that avoiding digital transactions can obscure revenue trails, making it easier to engage in illicit financial activities.
“Businesses are required to bank their earnings and report transactions. If Fazak is systematically avoiding digital payments, it creates serious concerns about financial transparency,” said one economist familiar with the matter.
Zimbabwe’s financial regulations mandate that businesses maintain transparent records of earnings and utilise formal banking systems.
The Zimbabwe Revenue Authority (ZIMRA) and the Reserve Bank of Zimbabwe (RBZ) have not yet issued public statements regarding any investigations into Fazak’s practices.
Beyond regulatory concerns, security analysts have highlighted the risks associated with cash-heavy operations. Zimbabwe has seen a rise in armed robberies targeting businesses known to hold large sums of physical cash.
In one notable incident earlier this year, a Harare supermarket was robbed of thousands of US dollars in an armed heist.
“Robbers follow the money, and businesses that don’t bank cash are prime targets. Not only does this create risk for the business, but it also endangers employees and customers,” warned a local security consultant.
Efforts to obtain comment from Fazak’s management have so far been unsuccessful. The retailer has not publicly addressed the allegations or explained the prolonged malfunction of its POS systems.
As pressure mounts, financial regulators and law enforcement agencies may be compelled to investigate whether Fazak’s operations are in breach of anti-money laundering and tax compliance laws.
