Politics

Fake rent-to-buy vehicle scheme rocks Zim

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A WELL-CALCULATED fake rent-to-buy vehicle scheme has rocked Zimbabwe with unsuspecting individuals wishing to drive personal cars falling prey to scammers over the past few months.

Police are yet to apprehend the fraudsters that are believed to be resident either in Beitbridge, Musina or Harare.

They use different mobile phone numbers to make good their plans and defraud unsuspecting individuals eager to buy cars.

They promise individuals the opportunity to own a car at zero deposit, but ask for administration fees and fuel for delivery of the vehicles in total ranging between between US$250 to US$300.

Rarely do they charge above US$300 unless an individual opts for a truck or minibus which have higher administration charges and fuel costs.

They carefully phrase the advertisement of their fraudulent schemes on social media like WhatsApp groups, Facebook and other informal outlets, an investigation by NewsDay established.

The line goes dead and the number becomes unreachable.

Dozens of people have fallen for the trick, some from as far afield as Australia who wished to buy cars for loved ones back home in Zimbabwe.

One typical advertisement flighted on social media reads: “SBT MOTORS ZIMBABWE* *_car dealership_* *Rent to Buy A Car.* It is buying a car on credit with zero deposit and start paying for it after 30 days while using it for 18 months (instalments).

“Rent to buy is for everyone who is willing to drive a car of his/her choice and make money with it. We also give discounts to all those who do cash and drive (paying cash).

“After your details and particulars have been approved and you are satisfied with the vehicle you want to rent you have to pay administration fee and transportation of US$310.

“You will pay for the vehicle monthly instalments for 18 months while using the vehicle. You pay after 30 days, 3 days before or 3 days after.”

The advert added: “As the vehicle still belongs to SBT Motors, we process the number plates for, we are responsible for tax and insurance (mutero tisu tinobhadhara).

“If you fail to pay for 3 months (90 days) the vehicle will be retrieved from you. Admin fee and transportation free to be paid before you get your vehicle, which is to be deposited/Zipit to our FBC account using the prevailing rate.”

Other scammers have names like Valiant Motors, Beitbridge Car Rentals and Sales just to name a few.

Their advertisements are convincing although careful readers notice several mistakes unlikely to be made by businesses of that magnitude.

An investigator said the scammers could be using modern applications on the mobile phones to select potential victims.

“For instance when you use a number from a certain mobile phone operator you can be able to verify the names if you purport to send money through mobile phone transfers. They can check your details and even go to LinkedIn or True Caller to verify,” the investigator said.

“In some cases they may even be using search engines like Google where some names appear easily.”

An attempt to use the application by this reporter failed when they demanded an identity card matching the name used.

A Beitbridge resident who made an attempt said their responses were calculated.

“Once they ignored me and later came back on WhatsApp to say they had been overwhelmed by Zambian clients. They then said they had a few cars left and were waiting for delivery from Japan and the highest bidders would get the little stock left,” he said.

“I failed to raise the required US$400, and when they asked me to deposit US$300, I sensed that it was a scam.”

Beitbridge lawyer with Garikayi and Partners and former magistrate Jabulani Mzinyathi recently took to social media to warn the public about the marauding con artists.

“I have clients in the four corners of the country. Some fell victim to scammers and wanted me to help recover what they lost,” Mzinyathi posted.

“I tried to locate the scammers at the said physical address; there was no such address.

“I then decided to give a blanket warning on social media where I reach out to around four thousand people to spread the message with their followers.”

Vendors who operate along Granite Road in Beitbridge said they had seen several people asking for directions to a car sale.

“Some came from as far as Buhera and spent the day trudging up and down Granite Road until they asked us. Because we have seen so many people asking for the same place we knew they had been duped,” one vendor said.

Although the adverts have come in different names, their wording is almost the same. – News Day

Politics

Stocks rise modestly after Fed, US data; yen slightly stronger

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NEW YORK, – A gauge of global markets gained on Thursday after the Federal Reserve indicated it was keeping a dovish tilt, while the yen retreated after another suspected round of intervention by the Bank of Japan.

On Wall Street, U.S. stocks gained slightly in early trading, after Fed Chair Jerome Powell said that while recent inflation readings mean it will likely take longer than expected for central bank officials to become comfortable that inflation will resume its decline, interest rate increases also remained unlikely.

“The outcome of the statement, plus the press conference was for slightly more rate cuts to be priced in, not necessarily sooner, but by the end of the year,” said Brian Nick, senior investment strategist at the Macro Institute.

Markets have consistently scaled back the timing and amount of rate cuts this year from the Fed as inflation has proved to be sticky and the labor market remains on solid footing. After expecting the first cut to come by March at the start of the year, markets now see a better than 50% chance the Fed will cut by at least 25 basis points in September, according to CME’s.

The U.S. central bank also said it would slow the speed of its balance sheet drawdown starting on June 1 to ensure this process does not create undue stress in financial markets.

U.S. economic data also showed the labor market remains tight, ahead of key government payrolls data due on Friday, while other data indicated worker productivity was subdued in the first quarter.

Tech shares led sector gains, up roughly 1%, as Qualcomm surged about 10% following its quarterly results. Investors are also awaiting earnings from iPhone maker Apple after the closing bell.

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Of the 310 companies in the S&P 500 that reported earnings through Wednesday morning, 77.4% have topped analyst expectations, according to LSEG data, above the 67% beat rate since 1994 but slightly below the 79% over the past four quarters.

The Dow Jones Industrial Average rose 52.78 points, or 0.14%, to 37,956.07; the S&P 500 gained 1.72 points, or 0.03%, to 5,020.11; and the Nasdaq Composite gained 28.85 points, or 0.18%, to 15,633.56.

MSCI’s gauge of stocks across the globe rose 1.52 points, or 0.20%, to 755.78, while Europe’s broad FTSEurofirst 300 index fell 3.51 points, or 0.18%.

Shares in Europe were slightly lower after touching a one-week low earlier in the session, as investors returned from a midweek holiday and digested the Fed’s announcement and a host of earnings reports.

The Japanese yen also remained in focus, as another round of intervention in the currency was suspected shortly after Powell had finished speaking, the second such event this week.

Against the Japanese yen , the dollar weakened 0.1% to 154.32 after falling to 153.16 in the prior session.

The dollar index , which measures the greenback against a basket of six major currencies, gained 0.11% to 105.83, while the euro was down 0.27% at $1.0678.

U.S. Treasury yields were higher in the wake of the Fed and economic data, as the yield on benchmark U.S. 10-year notes rose 3.7 basis points to 4.631%, from 4.591% late on Wednesday. The 2-year note yield, which typically moves in step with interest rate expectations, fell 1.2 basis points to 4.9268%.

Oil prices were little changed after a recent slump to a seven-week low, losing some ground after the U.S. labor market data. U.S. crude lost 0.22% to $78.83 a barrel and Brent rose to $83.46 per barrel, up 0.02% on the day.

Source: Reuters

Politics

ZiG currency goes physical, but not everywhere

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THE notes and coins for Zimbabwe’s sixth currency since independence in 1980, Zimbabwe Gold (ZiG), hit the streets this week as the government makes yet another attempt to tame inflation.

The money has coins worth 1, 2, and 5 ZiG, and notes for denominations between ZiG10 and ZiG200.

President Emmerson Mnangagwa pleased with the public’s reception of the ZiG so far.

“I commend all Zimbabweans for the manner in which we have adopted and are protecting the use of our currency,” he said.

The ZiG, according to the government, is backed by 2.5 tonnes of gold and other minerals, such as diamonds, thus making it a “structured currency”.

Reserve Bank of Zimbabwe (RBZ) governor John Mushayavanhu told the media that the ZiG was a result of wide consultations that involved experts from the World Bank.

The governor vowed that, unlike his predecessors, the business of “wantonly” printing money wouldn’t be tolerated under him.

Pay more if you pay in ZiG

The money is already available in banks countrywide with individual withdrawal limits pegged at ZiG3 000 (about R5 460) weekly for individuals.

For corporates, the weekly withdrawal is ZiG30 000 (R54 560) while schools, hospitals, clinics and local authorities can get ZiG250 000 (R455 000) monthly, and government departments can withdraw ZiG300 000 (R545 600) monthly.

For vendors, in the second-largest city of Bulawayo, there’s optimism that the currency could at least for some time be a solution.

Sandra Moyo said:

I don’t mind selling my vegetables in the ZiG, provided I won’t have issues when restocking. But for those who import goods the stability of the ZiG will make it work provided they find an official source to buy forex to restock in say, South Africa and Botswana.
The official rand to ZiG rate in Zimbabwe places the latter in a stronger position.

However, on the black market, the ZiG has already lost value barely a month since its digital introduction.

“We do simply sell our things more expensive in the ZiG so that we have room to buy the costly forex on the streets. In some cases, this discourages people from buying using the ZiG when they have forex, which is more competitive,” Moyo said.

“Therefore, as long as the ZiG does not earn the bad money tag, we are ready to trade.”

Public transport operators on local routes are yet to accept the ZiG.

“Our challenge is that we buy fuel in forex. We are comfortable charging in rands and American dollars. We don’t have a ZiG fare for now,” said Taruvinga Zhou, a transport operator.

Air Zimbabwe and Fast Jet are the only airlines accepting ZiG payments.

In 2022, Zimbabwe owed South African Airways (SAA), Emirates and other international airlines a total of $177.6 million in funds that could not be repatriated due to currency shortages.

Economists say those airlines might stick to foreign currency charges instead of ZiG.

Legacy of currency crisis

Currency woes are an all-familiar story in Zimbabwe.

At the turn of the millennium, the economy started deteriorating.

This was against the backdrop of farm invasions, government corruption, and violation of democracy and human rights resulting in international isolation of the Robert Mugabe regime through sanctions by the European Union (EU), the United States (US) and withdrawal from the Commonwealth.

Similar to past episodes when introducing a new currency, the regime in Harare slashed zeros which accumulated due to inflation that had eroded almost 80% of a currency commonly referred to as the Real Time Gross Settlement (RTGS), but denominated as the Zimbabwe dollar.

On 5 April, the RBZ announced that it was introducing the ZiG, when physical notes of the RTGS were already rejected by the public.

The highest denomination (Z$100) was not enough to buy a loaf of bread which cost, at the time, Z$30 000.

This meant that bread could be bought in rand, US dollars, or using the RTGS in electronic form.

Source: News24

Politics

ZiG currency goes physical, but not everywhere

Spread the love

THE notes and coins for Zimbabwe’s sixth currency since independence in 1980, Zimbabwe Gold (ZiG), hit the streets this week as the government makes yet another attempt to tame inflation.

The money has coins worth 1, 2, and 5 ZiG, and notes for denominations between ZiG10 and ZiG200.

President Emmerson Mnangagwa pleased with the public’s reception of the ZiG so far.

“I commend all Zimbabweans for the manner in which we have adopted and are protecting the use of our currency,” he said.

The ZiG, according to the government, is backed by 2.5 tonnes of gold and other minerals, such as diamonds, thus making it a “structured currency”.

Reserve Bank of Zimbabwe (RBZ) governor John Mushayavanhu told the media that the ZiG was a result of wide consultations that involved experts from the World Bank.

The governor vowed that, unlike his predecessors, the business of “wantonly” printing money wouldn’t be tolerated under him.

Pay more if you pay in ZiG

The money is already available in banks countrywide with individual withdrawal limits pegged at ZiG3 000 (about R5 460) weekly for individuals.

For vendors, in the second-largest city of Bulawayo, there’s optimism that the currency could at least for some time be a solution.

Sandra Moyo said:

However, on the black market, the ZiG has already lost value barely a month since its digital introduction.

“Therefore, as long as the ZiG does not earn the bad money tag, we are ready to trade.”

Public transport operators on local routes are yet to accept the ZiG.

“Our challenge is that we buy fuel in forex. We are comfortable charging in rands and American dollars. We don’t have a ZiG fare for now,” said Taruvinga Zhou, a transport operator.

Air Zimbabwe and Fast Jet are the only airlines accepting ZiG payments.

In 2022, Zimbabwe owed South African Airways (SAA), Emirates and other international airlines a total of $177.6 million in funds that could not be repatriated due to currency shortages.

Economists say those airlines might stick to foreign currency charges instead of ZiG.

Legacy of currency crisis

Currency woes are an all-familiar story in Zimbabwe.

At the turn of the millennium, the economy started deteriorating.

On 5 April, the RBZ announced that it was introducing the ZiG, when physical notes of the RTGS were already rejected by the public.

The highest denomination (Z$100) was not enough to buy a loaf of bread which cost, at the time, Z$30 000.

This meant that bread could be bought in rand, US dollars, or using the RTGS in electronic form.

Source: News24