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Biti demands transparency in the sale of Zimbabwe's diamonds
15 Apr 2013 at 22:12hrs | Views
Finance Minister Tendai Biti has demanded for transparency in the sale of country's diamonds in order to use the revenue from the precious stones to fund this year's elections.
After the successful holding of the referendum on the new Constitution on 16 March, Zimbabwe is expected in a few months to hold the watershed elections.
Minister Biti made the plea today during a press conference on Treasury State of the Economy report for March 2013.
"If there is honest in diamond revenue then the revenue should fund the elections," Minister Biti said.
He explained that last year over US$800 million worth of diamonds were mined and exported from Zimbabwe but only US$45 million was paid to the Treasury. The government has 50 percent shareholding in all the diamonds mined at Chiadzwa, which shows that over US$300 million should have found its way into the Treasury coffers.
"The least we should get is US$300 million and it would be enough to fund the referendum and the elections," Minister Biti said.
For the first quarter of this year, diamond exports are at US$113,7 million an increase of seven percent from 2012.
"The 50 percent which should have gone to Treasury is US$60 million and will have been half of the funds needed to see through the election. This is not acceptable," Minister Biti said.
He said US$132 million was required to fund the next elections money which the Treasury did not have.
"It is self evident that Treasury does not have the capacity to fund elections. What we did in the referendum on the new Constitution is not sustainable if we want to save the economy. This Ministry of Finance is not going to emasculate the economy," he said.
Submissions by the State organs overseeing the Constitutional referendum had indicated requirements totalling US$85 million. With the murky diamond sales, the Treasury has now approached the United Nations to raise resources earmarked for the elections.
However, the Zanu-PF arm in government has been blocking a UN delegation that was set to visit Zimbabwe last week to establish the country needs and how best they can assist in terms of funding. For some days the delegation has been stranded in Johannesburg, South Africa.
The UN delegation is now expected in the country this week.
"The delegation is now coming to Zimbabwe as a matter of urgency. As failure to fund these elections will compromise on quality," Minister Biti said.
After the successful holding of the referendum on the new Constitution on 16 March, Zimbabwe is expected in a few months to hold the watershed elections.
Minister Biti made the plea today during a press conference on Treasury State of the Economy report for March 2013.
"If there is honest in diamond revenue then the revenue should fund the elections," Minister Biti said.
He explained that last year over US$800 million worth of diamonds were mined and exported from Zimbabwe but only US$45 million was paid to the Treasury. The government has 50 percent shareholding in all the diamonds mined at Chiadzwa, which shows that over US$300 million should have found its way into the Treasury coffers.
"The least we should get is US$300 million and it would be enough to fund the referendum and the elections," Minister Biti said.
For the first quarter of this year, diamond exports are at US$113,7 million an increase of seven percent from 2012.
"The 50 percent which should have gone to Treasury is US$60 million and will have been half of the funds needed to see through the election. This is not acceptable," Minister Biti said.
"It is self evident that Treasury does not have the capacity to fund elections. What we did in the referendum on the new Constitution is not sustainable if we want to save the economy. This Ministry of Finance is not going to emasculate the economy," he said.
Submissions by the State organs overseeing the Constitutional referendum had indicated requirements totalling US$85 million. With the murky diamond sales, the Treasury has now approached the United Nations to raise resources earmarked for the elections.
However, the Zanu-PF arm in government has been blocking a UN delegation that was set to visit Zimbabwe last week to establish the country needs and how best they can assist in terms of funding. For some days the delegation has been stranded in Johannesburg, South Africa.
The UN delegation is now expected in the country this week.
"The delegation is now coming to Zimbabwe as a matter of urgency. As failure to fund these elections will compromise on quality," Minister Biti said.
Source - Byo24News
