Chronicle Editor
AN audit is important in any organisation as it helps in detecting the effectiveness and efficiency of operations. It is through audits that fraud is unearthed as audits look at internal control systems as well as finances of an organisation.It must be borne in mind that an audit is never a witch-hunt but helps in locating and correcting errors.
To this end, we applaud the Mines and Mining Development minister Walter Chidhakwa for ordering an audit in diamond firms to ascertain whether or not the firms were complying with good corporate governance.
There is growing suspicion that diamond firms across the country have been under-declaring earnings from the precious stones and that the country has lost a substantial amount of money in revenue because of the opaque nature of operations.
There are diamonds in Chiadzwa, yes, but also at Murowa in Zvishavane.
We urge the minister to order audits across the entire spectrum of the mining industry to find out how much the nation has been getting from its finite mineral resources be it gold, chrome, tantalite, platinum, coal, you name it.
When diamond mining started at Chiadzwa, there was huge optimism that the sale of the minerals would help our fiscus to a very great extent but that has not been the case as up to now the companies have not been forthcoming with revenue. Only Mbada Diamonds recently declared earning US$1billion but that still needs to be ascertained through an audit. It could be more.
This is why the assertion by Minister Chidhakwa that those firms and individuals who prejudiced the country would have to be punished has our support. Let the audit look at all the aspects of operations, including financial statements, the audited statements of accounts and where a crime was committed, the law should be allowed to take its course.
Diamond mining was expected to be done in the national interest but the connivance between the companies and those seconded by the State to represent it in those companies, potentially prejudiced the country of millions of dollars.
If the audit unearthes fraud, then we expect to see criminal charges being instituted without fear or favour. We believe the audit should not be confined to diamond firms operating at Chiadzwa but should also include those in Zvishavane, where Murowa Diamonds is operating.
There has been a disturbing trend where the focus has been on Chiadzwa only when there are other diamond firms operating elsewhere and the quantity and value of what they are mining should also be known so that what goes to the fiscus is established.
There is no reason why this country, so rich in natural resources should struggle with a liquidity crunch to the extent of delaying to pay the civil servants.
We hear big diamond parcels leave the country for overseas markets but no one seems to really know the value of the parcels as at times the deals are conducted clandestinely.
Everything that is mined at Chiadzwa, Zvishavane and other areas should be declared to the State so that it reaps maximum benefits from the minerals.
We should be able to develop our road infrastructure, our hospitals, schools, our economy at large with inflows from diamond mining and other minerals.
We thus want to salute Minister Chidhakwa for taking the bold move to have diamond firms audited for the greater good of the nation.
Online Reporter