Zim loses millions as sanctions cripple MMCZ

Source: Zim loses millions as sanctions cripple MMCZ – The Standard

TREASURY might be losing millions of dollars in potential revenue amid indications that the Minerals Marketing Corporation of Zimbabwe (MMCZ) is handicapped to monitor funds received through mineral exports due to sanctions.

MMCZ, which is the exclusive selling and marketing agent of the government for all minerals produced in the country, except gold and silver, is under the United States’ Office of Foreign Assets Control sanctions (Ofac).

Ofac monitors sanctions adherence and penalises any United States company or individual that does business with a sanctioned individual, entity or country.

In an interview with Standardbusiness, MMCZ acting general manager Nomsa Moyo said sanctions were crippling their operations.

“The major challenge that we have as an institution is that we are listed on the sanctions, the Ofac sanctions,” Moyo said.

“In terms of the law, we are actually supposed to receive the funds for all minerals then we disburse to the miner for statutory obligations but because of sanctions, we are no longer able to receive funds.

“So, the miners or the producers receive funds on their own behalf which means they are then responsible for ensuring that statutory obligations are paid and then they remain with the same amount, but people being people then they don’t do that sometimes.”

She added: “You find in terms of acquitting CD1, we have challenges because they don’t let us know that they received the funds and in some cases, the funds are delayed in terms of being received in the country.

“So, the monitoring process, especially of receiving funds, becomes a challenge because we are on sanctions.

“Now we are relying on third parties, yet the law provided that we should be receiving the money.

“So, sanctions are the major challenge. Other challenges, we find ways of going through them but the sanctions issue remains a thorn in the flesh.”

Currency or customs declaration forms (CD1s) are declaration forms that show the quantity and value that a particular company would have exported over a given period.

They are used in international trade and mining companies in Zimbabwe submit the CD1 form returns to the corporation for export proceeds reconciliation purposes.

To ensure that the country gets value for its minerals, Moyo said they were involved in the processes of exporting the minerals.

“So we ensure that whatever is exported goes through MMCZ except of course gold and silver and in terms of getting awareness internationally and regionally, the corporation attends international fairs whereby we interact with other players from the region and all over the world,” she said.

“In those fairs or in those conferences, we then go there and we market Zimbabwe’s products. We interact with other stakeholders. That’s where we get most of our customers.”

In terms of ensuring that the minerals are known, she said they also attend exhibitions where they showcase the products like gemstones and diamonds.

“We participate in those in the spirit of ensuring that our minerals are well marketed and we get value for our money. The unfortunate part is we are price takers,” she said.

“For some of the minerals we do not determine the prices, so we end up taking prices from the big players in the industry.

“But as an institution, we try our level best that whatever is mined and goes out of the country, is fully accounted for because we are involved in the contract negotiations.

“We are involved as far as even when the exports are being conducted, so that whatever is declared as being exported ends up being the exact product and exact quality that is being exported.”

Zimbabwe, according to reports, is losing up to US$1 billion in revenue from smuggling along its porous borders.

The leakages are prevalent across all minerals, with the gold sector at the top, a report by the parliamentary portfolio committee on defence, home affairs and security services showed.

COMMENTS

WORDPRESS: 2
  • comment-avatar
    Mukanya 1 month ago

    Looting is the major cause and not sanctions….

  • comment-avatar
    Nyoni 1 month ago

    What rubbish is she talking ,what rubbish. How many mines are there in Zimbabwe firstly. These are registered mines . This will be known by you . So why is an officer not staying on a mine for example and monitoring the output on a daily basis.The mining company along with that officer , hopefully not a corrupt one will then determine the dollar value for the day according to the price given by the authorities. The mining company then pays the responsible organ in Zimbabwe any monies prior to being exported out of the country. In most cases these mining companies will have foreign bank accounts .
    The illegal miners can be contained by the authorities if they wanted to but we all know who the corrupt people are. The goverment of Zimbabwe and mainly ZanuPF thugs. There is no excuse whatsover . Zimbabwe has no sanctions on it only on certain individuals. Are we saying that these individuals run all the mines in our country thus the sanctions. Let us be truthful here. Australia and England are some of the country’s who have businesses in Zimbabwe but who have placed sanctions on certain companies and individuals here in Zimbabwe. How are they doing business here? So much rubbish being told to us by thugs who are simply holding Zimbabwe back. If there was a fair playing field in our country Zimbabwe would be great long time ago. ZanuPF must go. Alutu Continua.