Zimbabwe's central bank chief says the government has frozen Nestle's local accounts and ordered an audit after Nestle stopped buying milk from a farm owned by President Robert Mugabe's wife.

Reserve Bank governor Gideon Gono told the weekly Zimbabwe Independent newspaper Saturday that two possible "irregular" transactions were found in the company's accounts.

Nestle's finance director Farai Munestsi told The Associated Press that access to funds at five banks had been blocked.

The international food company stopped buying milk from Grace Mugabe's farm this month after facing worldwide boycott threats. The suspension of funds could cripple its Zimbabwe operations.