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THE discovery of diamonds in the Chiadzwa area of Manicaland was a Godsend to Zimbabwe and the country welcomed the development as an outlet which would generate substantial revenues to boost the fiscus and help the economy to grow. The alluvial nature of the gems in Marange meant that Zimbabwe was extracting the diamonds relatively cheaper than the kimberlite ones found elsewhere across the world. But due to its lack of experience and expertise in mining diamonds, the government invited foreign firms to undertake the project and established joint partnerships.
It seconded certain officials to represent its interests in the firms mining at Chiadzwa but that does not seem to have helped. Massive leakages in the sector have resulted in government losing millions of dollars in illicit deals in the murky world of diamond trading. Officials seconded to the mining companies by the State have allegedly been conniving with the firms to defraud government by under-declaring proceeds.
According to a research by Equity Communications released earlier this month, Zimbabwe’s diamond revenues may rise 47 percent this year, indicating the country could have been fleeced from its previous diamond sales. It is a serious indictment on those entrusted with oversight over the diamond sector that Zimbabwe is today struggling to ascertain the value of diamonds mined at Chiadzwa.
For all we know, diamond cartels could have been siphoning the bulk of our diamonds leaving very little to trickle into the fiscus. We are however, glad that the government is taking measures to clean up the rot in the sector and regularise the trade in diamonds. The dissolution of the boards of diamond companies was the first step and we are supportive of government moves to undertake an audit of all its sole and joint venture mining companies and institute criminal charges in cases where deliberate prejudice is established.
The government on Monday tasked the newly appointed Zimbabwe Mining Development Corporation board to carry out the audit. It also emerged that one of the seven diamond mining companies in Chiadzwa, Gye Nyame, had its operating licence withdrawn for failure to perform. The withdrawal of the licence is also part of government’s efforts to streamline operations in the diamond fields, where only one or two companies would be left operating. Mines and Mining Development Minister, Cde Walter Chidhakwa said on Monday those who prejudiced the country would not go unpunished. “We will pursue matters where deliberate actions of misconduct and abuse will have been committed,” he said. “One of the things that the board (ZMDC) must do is to look at financial statements, get financial accounts audited and see whether there were no areas of abuse. I am happy the chairman has said to me that they will tell us as bluntly as it is so that we know who has abused in the past so we are able to take action.”
This is a welcome development that will go a long way in bringing those who abused state resources to book. As part of ensuring that the state reaped maximum benefits from Chiadzwa, Cde Chidhakwa said government had since withdrawn Gye Nyame’s operating licence. He said one or two companies would be left to mine in Chiadzwa and anyone unhappy with that position was free to leave.
Cde Chidhakwa said government should have a controlling stake in diamond mining and negotiations were underway with foreign companies mining in Chiadzwa to that effect. We concur with the Minister that government should play a central role in diamond mining given the corruption and underhand dealings rampant in the sector. President Mugabe has said diamonds will be nationalised and all mining will become the sole preserve of the State and we agree with him.
Speaking during an official visit to the United Arab Emirates earlier this month, the President said extraction, polishing and export sales of diamonds would be done under conditions of strict accountability and government would rationalise existing operations to create one State-led company. We applaud the government’s timely intervention to stop the rot in the diamond sector and call on authorities to ensure that those who deliberately prejudiced the State are prosecuted.
Zimbabwe deserves to benefit from its God-given natural resources and foreigners out to fleece the country of its diamonds are certainly not welcome. Similarly, those who connived with foreign multinationals to prejudice the State of diamond revenues are equally culpable. The long arm of the law should catch up with them so that they account for their actions. The rationalisation of diamond mining will ensure that Zimbabwe derives maximum benefits from its gems and weed out undesirable elements from the sector. Those Zimbabweans who connived with foreigners to loot our diamonds should be named and shamed. It’s time to stop the rot in diamond mining.
Online Reporter