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The six were yesterday still in police custody after being arrested on Tuesday night.
Those arrested include ZMDC chief executive Dominic Mubaiwa and company secretary Tichaona Muhonde, who were both last month suspended from work.
Others are former ZMDC chairperson Gloria Mawarire, and board members Ashton Ndlovu and Mark Tsomondo.
Canadile Miners local representative Lovemore Kurotwi was also arrested.
Chief police spokesperson Senior Assis-tant Commissioner Wayne Bvudzijena yesterday said: “Investigations are still in progress.”
He said the matter was “very sensitive” and would not be pursued through the media.
Sources yesterday said more people could be arrested in connection with the matter.
The six allegedly connived to dupe Gov- ernment into believing they had the resources to meaningfully exploit the Chiadzwa resource and formed a joint venture called Canadile Miners.
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Sources said allegations are Kurotwi and Mubaiwa first claimed a non-existent South African company, BSGR, was keen to invest US$2 billion in local mining.
After that, they allegedly misrepresented that Core and Mineral Resources (Pvt) Ltd was in a position to mine diamonds.
Kurotwi reportedly controls Core and Mineral Resources.
It is alleged Core and Mineral Resources and Marange Resources subsequently joined hands with ZMDC to form Canadile.
However, the firm only started operations after securing a US$1,5 million loan from Agribank.
Government investigations unearthed the alleged scam leading to the arrest of the six suspects.
The Herald is reliably informed that Canadile’s operations have been suspended and ZMDC is managing the affairs on its own.
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