Bogus finance institution in court

HARARE - An unregistered micro-finance institution was yesterday fined $2 000 and barred from taking investors’ deposits after contravening the Banking Act.

Perfect Shot Investments pleaded guilty to contravening banking registration laws when it accepted deposits and was involved in money lending schemes without registering with the Reserve Bank of Zimbabwe (RBZ).

The court heard that in February this year, a team from the central bank visited the company’s offices disguised as potential investors and observed that the firm was registered under the Companies Act but was unregistered with the RBZ.

The team discovered that the company was accepting deposits from the public with promises of a huge return on investments of at least $200.

Perfect Shot ran two investment schemes, Investment Horizon and Compound Investment.

In mitigation, defence lawyer Sindiso Mazibisa of Cheda and Partners told the court that although his client pleaded guilty, no complaints had been raised by investors and its operations were not prejudicial to any client.

Magistrate Crispen Mberewere presided. - Nyasha Chingono

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