Four Businessmen Nabbed in US$363k Hawala Scam

Four business operators have been arraigned before the courts on charges of contravening the Exchange Control Act in alleged transactions involving more than US$363,000.

The accused — Nitish Raghuvar, Karankumar Girishkumar Shah, Lalbahadur Aatish Jaiswar and Talati Neel Dhavalbhai — appeared before Jessie Kufa at the Harare Magistrates’ Court, where they were not required to enter pleas. Each was granted bail of US$500.

According to the State, police recovered close to US$75,000 in cash from the suspects’ premises, which has since been seized as evidence.

Prosecutors allege that on February 10, detectives from the CID Asset Forfeiture Unit launched an operation targeting individuals suspected of operating an illegal Hawala money transfer system. The exercise was aimed at scrutinising funding sources, investigating irregular pricing practices, examining courier-related transactions and assessing compliance with licensing requirements.

During the operation, investigators reportedly received information implicating the four men in an underground remittance scheme. It is alleged that importers would deposit large sums of cash at the suspects’ premises in Newlands, Harare, after which the money would either be physically smuggled to Dubai or settled through an established foreign network to pay for imported goods.

A search conducted at the premises allegedly led to the recovery of transaction receipts, registers and bills of entry. Police also seized US$74,865 in cash, which is currently being held as an exhibit pending further investigations.

The matter remains before the courts.