adminopportunities for corruption.
Cde Chindori-Chininga said this while presenting a report on the committee’s inquiry on diamond mining in Zimbabwe with special reference to Marange diamonds conducted between 2009 and 2012.
“The United States of America has placed sanctions on diamond companies operating in Marange. This has made it difficult for the companies to effectively market and trade their diamonds at competitive prices. The diamonds are sold at below 25 percent of the normal price.
“In the process, the sanctioned diamond companies are trading their diamonds through unconventional means because major international banks, insurance companies and couriers do not want to be associated with Marange diamonds.
“As a result of these financial restrictions, a number of loopholes have been created leading to fiscal leakages, promotion of corruption and national insecurity.”
The EU and the US imposed sanctions on entities operating at Marange after they were certified by the Kimberley Processing Certification Scheme in an attempt to derail the country’s economic revival.
A number of organisations including the World Diamond Council have also called for the removal of the illegal embargo on the Marange diamonds.
“The irony is that the companies operating in Marange were certified as KP compliant, hence should have the freedom to trade equally like all players on the world market,” said Cde Chindori-Chininga.
“However, these companies have been denied that privilege based on unconfirmed allegations that they were involved in undemocratic practices aimed at undermining democracy and human rights abuses in Zimbabwe. The Committee, he said, believed that if the situation remained as it was, the country would not be able to realise optimal benefits from its diamonds.
Cde Chindori-Chininga also said the Committee was concerned with the little contribution of the diamonds from Marange to the fiscus amid conflicting statements on remittances between the companies and Treasury.
He said while Mbada Diamonds said it remitted in June 2012, US$293 million, Treasury said it had only received US$41 million from companies at the fields.
Cde Chindori-Chininga, however, said the committee proposed that Government revamps taxation laws to improve revenue inflows from mining companies.
“Because of the discrepancies that exist between the amounts that companies pay to government and what government reports to have received, companies are encouraged to publish what they pay to government and government is equally encouraged to publish what it received from companies. It is therefore important for government to operationalise a domesticated Zimbabwe Mining Transparency Initiative (ZMTI),” Cde Chindori-Chininga said.
Online Reporter