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Accept cheques, parastatals told
Walter Muchinguri, The Herald (Zimbabwe)
November 21, 2008

http://www.herald.co.zw/inside.aspx?sectid=825&cat=8

All parastatals have — with immediate effect — been directed to accept cheques as payment for services as opposed to demanding cash from their clients.

Reserve Bank of Zimbabwe Governor Dr Gideon Gono yesterday said members of the public should report to the central bank utilities that flout the directive.

He added that the public utilities should not hesitate to accept cheques because the central bank would descend heavily on any person or organisation whose cheque is dishonoured.

"The Reserve Bank is working flat out to ensure that the cash situation is resolved ahead of the imminent festive season.

"Whilst this is being done, the Reserve Bank calls upon all public utilities such as Zesa, TelOne, Zinwa and local authorities to accept cheques as legitimate forms of payment, without prejudice to the bill-payers," said Dr Gono.

He also urged other private companies demanding cash, such as Econet, to soften their stance on payments.

Econet recently transferred all its Business Partna customers to the prepaid platform with effect from last week and directed that the affected subscribers buy top-up airtime cards worth a minimum of $3 million cash.

The $3 million would require one to visit the bank at least six times at the current withdrawal limit of $500 000 per day.

Econet said the measure was temporary, as the company was working on installing a new billing and Customer Relationship Management system.

Most companies had in recent weeks directed their staff not to receive cheques in favour of cash payments in either local or foreign currency.

The companies took the decision to cushion themselves from losses due to dishonoured cheques and also as a measure to protect themselves from speculators who were making a fortune from activities such as "burning" money.

The issue had put pressure on members of the public, who were failing to pay their bills due to the low withdrawal limits at the bank.

Recently, there was a near stampede at Zesa Holdings' headquarters when irate clients threatened to storm the building demanding to be addressed by management after the parastatal refused to accept cheques as a form of payment.

Authorities at the power utility said they had been forced to demand cash as most of their service providers were also demanding cash.

Cheques — together with credit and debit cards — are a preferred mode of payment in most financial transactions elsewhere in the world as opposed to cash.

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