ZMDC ordered to publish financial statements

via ZMDC ordered to publish financial statements | The Herald 1 December 2014

Government has given a directive to the Zimbabwe Mining Development Corporation to publish its financial statements in a bid to ensure transparency and accountability within this mining investments vehicle. ZMDC is a State-owned mining company which has investments in most of the major mining sub-sectors in the coun- try.

It is a shareholder in eight companies that operate in the Marange Diamond Fields in Chiadzwa. The companies include Marange Resources, Mbada Diamonds, Diamond Mining Corporation, Anjin Investments, Jinan Mining, Kusena Diamonds, Rera Diamonds and Gye-Nyame Resources..

However, concerns were raised that diamond revenue was not flowing to Treasury coffers amid claims that senior Government officials were lining their pockets.

Last year Government promised the International Monetary Fund that it would issue a statutory instrument establishing a formula for calculating diamond dividends. Presenting the 2015 Budget Statement last week Finance and Economic Development Minister Patrick Chinamasa said ZMDC should publish its financial statements as way of proving a true reflection of the company performance and diamond production.

ZMDC also owns gold mining operations at Sabi, Jena Elvington Mine, which was once ZMDC’s gold flagship but was closed after collapsing in 2003.

Mhangura Copper Mine, Alaska, Shekelton, Copper Queen and Copper King also fall in ZMDC’s mining portfolio.

He said ZMDC is critical in championing mining investment and development in the country hence need for accountability and transparency.

“ZMDC has substantial shareholding in various mining companies on behalf of Government and that makes it imperative that it upholds transparency and accountability values in its operations.

“One way of promoting this transparency and accountability is through publication of ZMDC’s audited financial statements,” said Minister Chinamasa.

“Accordingly, ZMDC will be required to produce and publish annual audited financial statements in fulfilment of legal requirements under the Companies Act.”