Govt to curb diamond cash leakages

via Govt to curb diamond cash leakages – DailyNews Live by Eric Chiriga  20 DECEMBER 2013  

Finance minister Patrick Chinamasa yesterday introduced a raft of measures targeted at improving accountability and transparency in the handling of diamond revenue.

This is on the back concerns over the remittance of diamonds proceeds to Treasury.

Under his proposed “revenue sharing model”, the Treasury chief said government would charge a 15 percent royalty fee on gross diamond sales.

Chinamasa said government would also levy a 2,5 percent depletion fee on gross sales of gems.

“This revenue will no longer be remitted to Zimbabwe Mining Development Corporation (ZMDC) but directly to Treasury,” he said.

“There is need to enhance transparency to ensure that revenue flows from these resources contribute meaningfully to the country’s economic reform and development agenda.”

He said the need to minimise leakages in the exploitation of mineral resources saw government ordering the stationing of Zimra officers at selected mining locations.

“…a joint task force comprising of ministries of Mines and Mining Development and Finance and Economic Development, together with tax collector Zimbabwe Revenue Authority has been set up,” Chinamasa said, adding that “transparency would be enhanced by the presentation to Parliament, and publication, by early 2014, of the 2012 audited financial accounts of ZMDC.”

This comes as Chinamasa recently said Treasury did not receive any proceeds from diamond revenue in the nine months to September 2013.

Following the lifting of trade restrictions on gems, a week ago the country auctioned 500 000 diamond carats in Antwerp, Belgium, estimated to fetch around $37 million.

In November, Chinamasa told parliamentarians in Victoria Falls at a 2013 pre-budget seminar that out of a targeted $40 million expected from diamond sales, nothing had been received.

According to Global Witness, an international non-governmental organisation, about $2 billion in diamond revenues had been unaccounted for since 2008.

Chinamasa said there were eight miners operating in the diamond rich Manicaland-based Chiadzwa fields.

He said government was a partner in seven of them while it owned 100 percent of the eighth venture.


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5 comments on “Govt to curb diamond cash leakages
  1. Mafuta says:

    Governments that are involved in business must eventually criminalize the competition and the other shareholders.

  2. Mr Mixed Race says:

    This does not tell us what happened with the $2 billion worth of diamonds.Why is the government not having a criminal investigation on this issue to clear the air?If they have already done it,they should tell us the results of that investigation and prosecute the culprits.minerals are national inheritance which should benefit all Zimbabweans.I really hope that your new transparency measures will work provided we do not end up with conspiracy theory.Due to very high levels of corruption within our country I view everybody as a suspect.Good luck to you minister.

  3. Jrr56 says:

    Yes they should charge 15% royalty, 2.5% depletion fee, 40% export tax, 12.5% party contribution and 30% to be spread amongst the indigenous sector. That should about do it. otherwise pay direct 5% in a back hander.

  4. Nodza says:

    the criteria being used in selling diamonds is very very wrong*.How can u sell our much sorted fo gems to the most experie.ced conmen en crooks.I think e whole sys mst b revampd caz ts self contradictory.”We dnt want whites to loot en plunder ur resource”,yet afta mining en using ur own cheap en vulnerable peasants,we ferry the same gems en surrender @ e tables o’ e imperialist dooped “buyers’, who actually are wel organized, criminals wel adapted syndicates.

  5. Nodza says:

    i think wer being conned here.Only 5 X 20 carats(100carats parcel) of uncut diamonds can easily giv u 10 million.Saka jst imagine the amount of carrats that was sold ??????Shame!!!!!!!

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