Marange community receives measly $400,000 from diamond firms

The Marange-Zimunya Community has so far received only $400 000 from two companies out of a possible $50 million pledged by five companies operating in Chiadzwa, a parliamentary portfolio committee heard today.

Members of the trust appeared before the committee on Indigenisation and Economic Empowerment chaired by Gokwe-Nembudziya MP Justice Wadyajena to reveal the state of its finances and projects that have been undertaken since its launch in August 2012.

Chief executive of MZCSOT Shepard Chinaka said only Marange Resources and Mbada Diamonds had injected $200 000 each into the trust while Anjin Investments, Diamond Mining Company and Jinan Investments had not contributed anything to date.

"The companies pledged $1,5 million when the trust was launched but up to now, we have only received $400 000 from two companies," he said.

Although the MZCSOT has had the funds for almost a year now, no projects outlined in its Trust Deed had been implemented so far. Chinaka said some of the projects would be implemented as soon as assessment on the type of projects needed in certain areas is completed this month. He said the Trust has used $45 000 from the initial amount but failed to fully account how it had been used. According to a financial statement presented to the committee, the trust had received interest on its investment from its bankers CBZ and Agribank amounting to $17 475 bringing its total income to $417 598.

The trust used almost $13 000 for training which was required to enlighten them on how to manage community share ownership trusts. $14 404 was used for travelling and subsistence while $17 336 was gobbled up in board fees.

Members of the Portfolio committee however expressed concern on how some of the funds were used considering the board was not yet fully constituted and had not implemented any projects so far. Wadyajena said parliament would summon the MZCSOT again in order for them to fully furnish the committee on areas of concern that were raised by Parliamentarians.

Government has set up a number of Community share ownership trusts across the country. CSOTs seek to create conditions that enhance the status of people through establishment of bodies that will hold shares in qualifying businesses on behalf of their respective communities.

The trusts are in line with the provisions of the Fourth Schedule of Section 16 of the Indigenisation and Economic Empowerment Act which seeks to ensure accelerated rural development.

The main objectives of the trusts are to use proceeds of Trust Assets to undertake activities in a non-profit manner for the gain of beneficiaries.

Although some of these trusts have implemented some projects that have benefited their communities, some are yet to do so leaving their communities in doubt over the advantage of such schemes.