Zimbabwe orders diamond miners to sell gems through Reserve Bank

via Gvt orders diamond miners to sell gems through Reserve Bank | SW Radio Africa by Tichaona Sibanda on Friday, May 23, 2014

The cash-strapped ruling ZANU PF government has issued an order to all diamond miners in the country to sell to their gems through the Reserve Bank of Zimbabwe (RBZ).

The permanent secretary in the Ministry of Mines, Francis Gudyanga, reportedly wrote a letter to the companies explaining that the central bank will use the diamonds to secure a government loan.

According to media reports Gudyanga instructed producers to ‘prepare parcels of all your currently produced diamonds which must be sorted and evaluated with the involvement of the Minerals Marketing Corporation of Zimbabwe. It is expected payments to the diamond companies will be made soon after.”

The central bank will keep the diamonds and use them to ‘securitize a government loan’ according to the letter from Gudyanga.

Last month government called time on the mining firms operating in the Marange diamonds fields in Chiadzwa, indicating that only one company will remain operating there. Seven firms operate in Chiadzwa and these are Anjin Investments, Diamond Mining Company, Gye Nyame, Jinan, Kusena, Marange Resources and Mbada Diamonds.

There is speculation that Mbada diamonds, linked to Robert Mugabe and chaired by the multi-millionaire retired Air Vice Marshall Robert Mhlanga, will be the only company continuing to mine in the area.

Lack of transparency surrounding diamond revenues has been a matter of critical public interest. It has deprived the Treasury of much needed revenue and amplified concerns raised by the opposition MDC-T that much of the money from the diamonds only goes to fund ZANU PF and its various cronies.

Economist and MDC-T MP Eddie Cross wrote in April that at least $7 billion in surplus revenue has been siphoned off from the operation in eight years. He said he estimated that well over 100 million carats were extracted, with a face value of $12 billion during the same period.

Some individuals in President Robert Mugabe’s cabinet and senior officers in the armed forces have accumulated vast wealth, adding to suspicions that the country’s diamond revenues are not being accounted for or managed in the public’s interest.

 

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8 comments on “Zimbabwe orders diamond miners to sell gems through Reserve Bank
  1. Chaka says:

    I dont know whether Kudyanga will succeed in this. It’s like instructing ur boss to perform

  2. Petal says:

    Then Bob and Disgrace will go to Singapore again??

  3. Petal says:

    The miners should refuse to sell through RBZ

  4. LUCY says:

    The feebleness ,half heartedness or the lack of conviction in the ‘ORDER’ is as palpable.
    You can almost hear the thieving mine owners sniggering in the background because they know the Government either lacks the machinery to enforce the order or it just has to be seen by the general population to be doing something to dig the country out of a deep economic hole.
    The toothless Government has issued so many orders but we know they can’t follow it through.

    Kana mombe dzaswera nebenzi dzimwe nguva dzinodzoka kumba even though dzichidzoka late. This government cant order nothing except mobilise goons to harrass the public.

  5. tawanda says:

    How to increase the smuggling activities of the likes of Gutu and Mhlanga.

  6. adam jones says:

    Confused.com …… So the RBZ has money to pay diamond miners then keep the diamonds then use them to secure a loan? Why need a loan if they have the money in the first place?

  7. Straight Shooter says:

    Avele azini amagukurahundi. Yiku mpentsha nje kuphe. Akukho okuzolunga la. Yena Mgabe kade a threatenisha ukuthi bazothwal ‘amagabh ‘avuzayo abomkhonyovu – yini aseyenzile na lamhlanje? NIX. Yikukhuluma nje kuphela!!

  8. Petal says:

    if an independent external audit company from outside the border would conduct an audit on this Buffoon Government they would find alot of irregularities

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