Minerals act posing accountability problems: Dhliwayo

Comment & Analysis
BY PATRICE MAKOVAZANU PF “paranoia” with sanctions should not be used to mask the looting of minerals, particularly diamonds from Marange, civil society organisations and analysts have said.

Mines and Mining Development ministers, Obert Mpofu last week shocked participants attending a Centre for Public Accountability conference in Harare, when he said as long as Western sanctions on Zimbabwe remain in force, a full disclosure of the goings on in Marange would never happen.

Finance minister Tendai Biti, recently accused a small coterie of powerful Zimbabweans of looting diamonds from Marange, enabling them to splash millions of dollars on private jets and other assets.

Biti also disclosed that Chinese firm, Anjin, a joint venture with the army, had not submitted any revenue to the treasury despite the company being the largest mining entity in Chiadzwa.

Civil society organisations which are advocating for transparency in the mining and selling of Marange diamonds under the “Publish What You Pay” campaign, said as long as the current secrecy in the sector remained, the country would not meaningfully benefit from the resource.

Political analyst and Sapes Trust executive director, Dr Ibbo Mandaza, said there was no doubt the country’s minerals, particularly diamonds and gold, were being looted but the culprits remained untouched.

He claimed that he had it on good authority that two weeks ago, a plane loaded with diamonds worth US$4 billion left Marange for an undisclosed destination, warning that lack of accountability and transparency had become a threat to democracy.

“Those benefiting may want to continue indefinitely and are prepared to go to war to resist transparency and accountability,” said Mandaza.

“It is anyone’s guess, what may happen if securocrats are stopped from exploiting resources, including diamonds.”

Mandaza said in the late 1990’s and before the discovery of diamonds and platinum, the minerals sector used to contribute US$3,8 billion annually, but by 2009, the figure had gone down to US$1,5 billion.

He said if transparency was restored, Zimbabwe could earn between US$9 to $12 billion annually from its minerals alone, enabling the country to pay off its huge external debt in two years.

 

Minerals act posing accountability problems: Dhliwayo

Zimbabwe Environmental Lawyers Association (Zela) executive director, Mutuso Dhliwayo, blamed the archaic and colonial Mines and Mineral Act for the accountability challenges facing the sector.

“Much (revenue) is coming in, but how is this being used?” he asked. “Is using diamond revenue to build a military academy a priority for our country?”

Dhliwayo said he agreed with Deputy Prime Minister Arthur Mutambara, who recently said foreign companies were getting the country’s vast minerals resources for a song, as cabinet “was deaf, dumb and blind,” when negotiating contracts.

Dhliwayo also accused the private sector and foreign mining companies of corruption and fixing prices.

“They trade with their sister companies in other countries at ridiculously cheap prices, but the same products are later resold at their true market value,” said Dhliwayo.