Zimbabwe board fined for breaching exchange laws

Zimbabwe Cricket have been fined $US 50,400 by a Harare court for breaching the country's foreign exchange laws.

Between November 2004 and September last year Zimbabwe Cricket (ZC) paid a British television company, Octagon CSI, $US 1.3 million for advertising and marketing services. And although the board committed the offence to further the interests of the sport in the country, they breached a recently introduced law. Given the record inflation and shortage of essential supplies in the country, foreign payments now need approval from the central bank.

The board were also charged with a second offence when they switched their advertising contract from 7Cs, based in South Africa, to Gameplan Limited in India.

"The accused (ZC) then directed Gameplan Limited to pay US$ 75,000 to 7Cs for breach of contract without the permission of the exchange control authority," Obi Mabahwana, the state prosecutor, told the court. The board was also accused of paying $US 42,930 in college fees for three players and a manager's daughter who were pursuing studies overseas.