Dumisani Muleya
THERE were furious scenes at a stormy high-level government meeting on Tuesday attended by President Robert Mugabe and Prime Minister Morgan Tsvangirai over the missing US$174 million in diamond revenues, with Finance minister Tendai Biti reportedly breathing fire over the issue and the intensifying internal squabbles on civil servants’ salaries.
There are also questions over U$125,8 million realised in January 2011which has not been remitted to Treasury. In total US$300 million has not been accounted for.
Top official sources told the Zimbabwe Independent yesterday that Biti “hit the roof” and grilled Mines minister Obert Mpofu at the meeting held at Munhumutapa Building over the US$174,2 million which cannot be accounted for.
Biti told parliament on Tuesday last week that he had not received the US$174 million as claimed by Zanu PF ministers and more specifically by Zimbabwe Mining Development Corporation (ZMDC) chairman Godwills Masimirembwa.
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“Information on hand as supplied by ZMDC indicates that an amount of US$174,2 million should have been remitted to Treasury, while an additional U$125,8 million realised in January 2011 remains outstanding,” Biti told parliament.
“However, Treasury has only managed to reconcile US$62,1 million including accruals to both Zimra (US$17,7 million) and the Exchequer account (US$42,9 million). Clearly, ZMDC and (Minerals Marketing Corporation of Zimbabwe) MMCZ are not remitting in full the revenues which they have themselves declared as due to the fiscus.”
There are fears that the US$300 million has either been stolen or was being kept secretly somewhere by Zanu PF ministers as a war chest for anticipated elections.
Sources said Biti hammered Mpofu at the Tuesday meeting over the missing funds and indirectly attacked Mugabe who recently said in Ethiopia that civil servants’ salaries were going to be increased because there were diamond revenues to foot the bill.
Biti’s slamming of Mpofu and firing across Mugabe’s bows was said to have forced Defence minister Emmerson Mnangagwa to join the fray to rescue Mugabe.
“There was a deadly fight at the meeting,” a cabinet minister said. “Biti was fuming over the issue of the diamond proceeds. The money seems to have disappeared because no one is able or willing to account for it.
“Biti was angered by insistent and persistent claims from Zanu PF and ZMDC officials that his ministry has been given a total of US$174 223 814,88 since January last year. He said that was a lie because Treasury had only received US$62,1 million in collective diamond revenues. He challenged everyone, from Mugabe to the most junior minister in there, to say where the money is.”
The minister said Mnangagwa reacted to Biti’s remarks, saying he had no problem with what he was saying but was bothered by insinuations that the president had misled the nation on civil servants’ salaries.
Sources said Biti also queried Mugabe’s claims that there was no money to pay the civil servants, saying he had no such funds. He asked Mpofu where the money was and there was no response, it was said.
Mugabe said last month while in Addis Ababa there was money from diamond sales to hike salaries of civil servants.
“It was a heated and tense meeting. The meeting had more questions than answers and in the end it was resolved that Biti and Mpofu must do reconciliations on diamonds revenues and get to the bottom of the matter.”
In the meantime, Biti has instructed the Auditor-General and the Commissioner General for the Zimbabwe Revenue Authority to verify figures of the diamond proceeds received so far. In addition, he has also ordered the Comptroller and Auditor General to audit the books of the relevant parastatals involved in the sale of the diamonds.
Zanu PF officials are resisting the diamonds revenues audit, saying Biti has no powers to order an investigation into the issue. Biti said at the Tuesday government meeting that if Mugabe and Zanu PF officials thought he had stolen the money then they should agree to an audit.
“Biti argued that if there was anyone who thought his ministry had mishandled the money then they should support the call for an audit of diamond revenues,” a source said. “If you are accusing someone of failing to account for monies they received then surely you must demand an audit, but Zanu PF is opposed to it. Why?”
Masimirembwa has accused Biti of playing politics, saying he had the money but was refusing to pay civil servants in a bid to incite an “insurrection so that we have another Egypt or Tunisia in Zimbabwe”.
North African Arab states and other Middle East countries are currently in flames due to popular uprisings by pro-democracy movements against dictators and their failed policies. Former Tunisian president Ben Ali and ex-Egyptian president Hosni Mubarak have been overthrown through street riots, while the Libyan leader is fighting for political survival. There is sweeping unrest in Algeria, Bahrain, Yemen and other countries in the region.
Biti has demanded the enactment of a Diamond Act to regulate the mining and sale of the gems in Zimbabwe. “It is important that there be enforcement of transparency in dealing with public resources such as Marange diamonds for the common good of the country,” he said on Tuesday last week. “As I indicated in the 2011 budget, a Diamond Act is imperative.”
