Mugabe benefitted from $15b theft, PDP

Mugabe benefitted from $15b theft, PDP – NewZimbabwe 17/03/2016

PRESIDENT Robert Mugabe and his Zanu PF party must explain why they repeatedly rejected allegations by coalition finance minister Tendai Biti that diamond revenues were diverted from treasury, an opposition party has demanded.

Marange cash was one of the reasons behind the many ructions in the coalition administration between Zanu PF and the MDC parties with the veteran leader ignoring claims by then treasury head Biti that the gem cash was being stolen.

But seven years later, Mugabe suddenly admitted as he turned 92 last month, that the country may have been robbed of $15 billion in diamond revenues by companies he licenced together with then Zanu PF mines minister Obert Mpofu.

Even more stunning was the fact that while Mugabe claimed government has no idea how the cash was looted, the State-owned mining firm ZMDC had a 50 percent interest in most of the companies operating at Marange.

Biti now heads the opposition People’s Democratic Party (PDP).

In a statement, this week, PDP said Mugabe’s revelations merely confirmed what Biti said repeatedly seven years ago.

“The admission by Mugabe to what we in the PDP had long pointed out is not what is shocking but the subsequent failure to bring those responsible to account,” said the party’s organising secretary Solomon Madzore.

“It is an indictment for Mugabe and as the PDP we are very clear that he is no longer fit to govern. If so much money can be looted by companies whom he gave mining licenses and fails to take action it shows that he was a beneficiary of the looting.”

The diamond discovery could have helped transform Zimbabwe, which has struggled with a serious economic crisis for more than ten years.

“Zimbabwe has been in a dire economic crisis which is now approaching its second decade,” said Madzore.

“The economy has shrunk by 40% of its 1990 value, unemployment has reached an all-time high of 94% level; 98% of youths are working in the informal sector and hundreds of companies have closed shop reducing cities like Bulawayo to almost ghost town status.

“Revenue collection continues to shrink and social service delivery has all but collapsed in most urban areas. Water cuts, electricity cuts, heavily potholed roads and non-functional hospitals have become the order of the day for the last 2 decades in Zimbabwe.”

He added: “The discovery of diamonds in Chiadzwa and their subsequent exploitation was seen as capable of turning around our national fortunes.

“However the sad reality is that 7 years after the commencement of mining operations, Zimbabwe has only received a paltry US$600 million worth of revenue from diamonds and has lost a whopping US$15 billion, according to the man who must give us answers.”

Mines minister Walter Chidhakwa this week told legislators that government would carry out a forensic audit to establish how the US$15 billion was looted.

“We have started a process of establishing why and how it happened and how much it is,” Chidhakwa told the national assembly. “Once the forensic audit is done, we will bring it to Parliament.”

However, Madzore said there was little chance of the economy turning the corner with Mugabe remaining president.

“The admission by Mugabe to what we in the PDP had long pointed out is not what is shocking but the subsequent failure to bring those responsible to account,” he said.

“It is an indictment for Mugabe and as the PDP we are very clear that he is no longer fit to govern. If so much money can be looted by companies whom he gave mining licenses and fails to take action it shows that he was a beneficiary of the looting.”

He added: “As PDP we recommend that …President Mugabe resigns with immediate effect as he has failed the nation as its Chief Executive.

“(and) that a commission of inquiry is set up by parliament to investigate into the looting which occurred in Chiadzwa and prosecution of those responsible must follow.”