News / National
It never rains but pours for Obert Mpofu
28 Mar 2013 at 19:03hrs | Views
MINES and Mining Development Minister Obert Mpofu, whose name was dragged into recent investigations by the now troubled Zimbabwe Anti-Corruption Commission, faces fresh accusations of resisting a Cabinet initiative meant to ensure transparency for diamond revenue, The Financial Gazette heard this week. This has fuelled speculation that all might not be well in the management of funds generated from the sale of the precious mineral, particularly gems from the controversial Chiadzwa fields.
Allegations of looting diamond funds started at the formation of the inclusive government in February 2009, with Finance Minister Tendai Biti saying Treasury was not getting all its dues while some individuals were getting rich at the expense of the State.
To end the dispute, Cabinet established the Zimbabwe Mining Revenue Transparency Initiative (ZMRTI), which brings together government ministries, civil society organisations and the Zimbabwe Chamber of Mines (ZCM) to promote transparency in the accounting of diamond revenue.
In terms of the country's Constitution, all fees, taxes and other sources of revenue must be paid into the Consolidated Revenue Fund which falls under the aegis of Treasury.
Last year, Biti was forced to revise his US$4 billion national budget to US$3,4 billion after the projected US$600 million he had expected from diamond sales did not materialise. Only US$41,6 million had been received.
The secrecy surround mining revenues prompted Cabinet to ask the Cabinet Committee on Resource Mobilisation chaired by Deputy Prime Minister (DPM) Thokozani Khupe to push for the constitution of ZMRTI, with a director in the former's office, Samukele Hadebe, chairing it.
This week, lawyers group, the Zimbabwe Environment Lawyers Association (ZELA), which is part of the initiative, said the plan was largely moribund and pointed an accusing finger­ at Mpofu who was said to be demanding that sanctions be removed first, even though ZMRTI is a local initiative.
The claims come at a time when the European Union this week removed targeted sanctions on 81 individuals and left President Robert Mugabe and nine other loyalists and the Zimbabwe Mining Development Corporation.
ZELA's Gilbert Makore said even though an official from the Mines Ministry sat and attended ZMRTI meetings, Mpofu's full backing was required to ensure that transparency in terms of revenues was achieved.
"We would have expected the Minister of Mines to welcome the ZMRTI and actually make a commitment towards its full implementation notwithstanding sanctions imposed on Zimb-abwe, because transparency is not necessarily for people outside the country but for the general citizenry that wants information relating to the revenues accruing from public assets," said Makore.
"The initiative was approved by Cabinet but it has the full mandate of the Cabinet Committee on Resource Mobilisation. This initiative was publicly launched last year with the participation of some representatives from government, civil society and Parliament."
Mpofu, who along with Transport and Communications Minister Nicholas Goche and Saviour Kasukuwere, the Minister of Youth Development, Indigenisation and Economic Empowerment escaped a raid by the anti-corruption watchdog after its application in the High Court was found to be defective, was not immediately available for comment.
He did not answer his mobile phones when The Financial Gazette called several times on Tuesday and yesterday seeking his comment on the issue.
Winston Chitando, president of ZCM, was said to be in a meeting when this newspaper called his office to shed light on the issue as his organisation was said to be part of the initiative.
However, Hadebe, a principal director in DPM Khuphe's office, said there have been no meetings for the three stakeholders that make up the initiative this year. Hadebe was however, quick to add that government departments met alone two weeks ago over the matter.
He said there was no law governing the initiative and it remains voluntary, but could not take further questions saying he was rushing into a meeting.
Last month Biti told lawmakers that new companies were being clandestinely granted authority to mine at Chiadzwa.
The minister the country was being ripped off because from last year's diamond exports of US$711 million only US$47 million was realised instead of US$300 million.
"I have got a breakdown here of mine by mine: Mbada Resources US$293 323 000, which is almost US$300 million. Automatically, we ought to have gotten at least US$150 million but globally we got US$47 million. Marange Resources got US$64 million and automatically we were entitled to get US$34 million. There is another company which I do not know, but they keep on sprouting like mushroom, that is DTZ, that got US$1,2 million and Volks Industries got US$500 000," said Biti.
"Drizing Mining, I have never heard of it, got US$388 000. So the total diamond export is US$711 million and we got US$47 million. We should have gotten at least US$300 million because it is 50 percent of the gross and will be put together with what comes through ZIMRA and your tax. So we are being ripped off."
Biti repeated his claims that Anjin Investments, which is jointly owned by the Chinese and Zimbabwe military, was "one of the biggest culprits" when it comes to failure to account for diamond revenues.
In his 2013 budget, Biti said most of the funding for this year's polls and the referendum would come from diamond funds, but it is now apparent that he lost the battle to pin diamond companies down.
Last month, the government approached the United Nations seeking US$250 million for the forthcoming polls and the referendum held on March 16 and its application is still being considered.
For the referendum, Treasury resorted to floating a special bond and managed to raise US$40 million from Old Mutual and the National Social Security Authority.
The one-year bond would attract an interest rate of seven percent.
Due to concerns about the secrecy surrounding diamond revenues, in their end of year report last December, members of the Parliamentary Committee on Mines and Energy said a law should be enacted where all major mining contracts should be ratified by Parliament before they become binding.
The lawmakers also recommended that all major mining contracts should have a clause which makes it mandatory for the contract to be reviewed after a certain period in order to reflect the socio-economic conditions prevailing at the time.
The Members of Parliament said government was losing huge sums of money due to corruption, illegal mining, under-declaration of production by miners and illegal marketing of minerals due to poor monitoring and surveillance, adding that since 2011 there has been no change with regard to issues of concern that are being raised within that sector.
Allegations of looting diamond funds started at the formation of the inclusive government in February 2009, with Finance Minister Tendai Biti saying Treasury was not getting all its dues while some individuals were getting rich at the expense of the State.
To end the dispute, Cabinet established the Zimbabwe Mining Revenue Transparency Initiative (ZMRTI), which brings together government ministries, civil society organisations and the Zimbabwe Chamber of Mines (ZCM) to promote transparency in the accounting of diamond revenue.
In terms of the country's Constitution, all fees, taxes and other sources of revenue must be paid into the Consolidated Revenue Fund which falls under the aegis of Treasury.
Last year, Biti was forced to revise his US$4 billion national budget to US$3,4 billion after the projected US$600 million he had expected from diamond sales did not materialise. Only US$41,6 million had been received.
The secrecy surround mining revenues prompted Cabinet to ask the Cabinet Committee on Resource Mobilisation chaired by Deputy Prime Minister (DPM) Thokozani Khupe to push for the constitution of ZMRTI, with a director in the former's office, Samukele Hadebe, chairing it.
This week, lawyers group, the Zimbabwe Environment Lawyers Association (ZELA), which is part of the initiative, said the plan was largely moribund and pointed an accusing finger­ at Mpofu who was said to be demanding that sanctions be removed first, even though ZMRTI is a local initiative.
The claims come at a time when the European Union this week removed targeted sanctions on 81 individuals and left President Robert Mugabe and nine other loyalists and the Zimbabwe Mining Development Corporation.
ZELA's Gilbert Makore said even though an official from the Mines Ministry sat and attended ZMRTI meetings, Mpofu's full backing was required to ensure that transparency in terms of revenues was achieved.
"We would have expected the Minister of Mines to welcome the ZMRTI and actually make a commitment towards its full implementation notwithstanding sanctions imposed on Zimb-abwe, because transparency is not necessarily for people outside the country but for the general citizenry that wants information relating to the revenues accruing from public assets," said Makore.
"The initiative was approved by Cabinet but it has the full mandate of the Cabinet Committee on Resource Mobilisation. This initiative was publicly launched last year with the participation of some representatives from government, civil society and Parliament."
Mpofu, who along with Transport and Communications Minister Nicholas Goche and Saviour Kasukuwere, the Minister of Youth Development, Indigenisation and Economic Empowerment escaped a raid by the anti-corruption watchdog after its application in the High Court was found to be defective, was not immediately available for comment.
He did not answer his mobile phones when The Financial Gazette called several times on Tuesday and yesterday seeking his comment on the issue.
Winston Chitando, president of ZCM, was said to be in a meeting when this newspaper called his office to shed light on the issue as his organisation was said to be part of the initiative.
However, Hadebe, a principal director in DPM Khuphe's office, said there have been no meetings for the three stakeholders that make up the initiative this year. Hadebe was however, quick to add that government departments met alone two weeks ago over the matter.
He said there was no law governing the initiative and it remains voluntary, but could not take further questions saying he was rushing into a meeting.
Last month Biti told lawmakers that new companies were being clandestinely granted authority to mine at Chiadzwa.
The minister the country was being ripped off because from last year's diamond exports of US$711 million only US$47 million was realised instead of US$300 million.
"I have got a breakdown here of mine by mine: Mbada Resources US$293 323 000, which is almost US$300 million. Automatically, we ought to have gotten at least US$150 million but globally we got US$47 million. Marange Resources got US$64 million and automatically we were entitled to get US$34 million. There is another company which I do not know, but they keep on sprouting like mushroom, that is DTZ, that got US$1,2 million and Volks Industries got US$500 000," said Biti.
"Drizing Mining, I have never heard of it, got US$388 000. So the total diamond export is US$711 million and we got US$47 million. We should have gotten at least US$300 million because it is 50 percent of the gross and will be put together with what comes through ZIMRA and your tax. So we are being ripped off."
Biti repeated his claims that Anjin Investments, which is jointly owned by the Chinese and Zimbabwe military, was "one of the biggest culprits" when it comes to failure to account for diamond revenues.
In his 2013 budget, Biti said most of the funding for this year's polls and the referendum would come from diamond funds, but it is now apparent that he lost the battle to pin diamond companies down.
Last month, the government approached the United Nations seeking US$250 million for the forthcoming polls and the referendum held on March 16 and its application is still being considered.
For the referendum, Treasury resorted to floating a special bond and managed to raise US$40 million from Old Mutual and the National Social Security Authority.
The one-year bond would attract an interest rate of seven percent.
Due to concerns about the secrecy surrounding diamond revenues, in their end of year report last December, members of the Parliamentary Committee on Mines and Energy said a law should be enacted where all major mining contracts should be ratified by Parliament before they become binding.
The lawmakers also recommended that all major mining contracts should have a clause which makes it mandatory for the contract to be reviewed after a certain period in order to reflect the socio-economic conditions prevailing at the time.
The Members of Parliament said government was losing huge sums of money due to corruption, illegal mining, under-declaration of production by miners and illegal marketing of minerals due to poor monitoring and surveillance, adding that since 2011 there has been no change with regard to issues of concern that are being raised within that sector.
Source - FinGAz
