News / Press Release
US$15 Billion loot, a tip of the iceberg
15 Mar 2016 at 13:01hrs | Views
The revelations by Robert Mugabe that Zimbabwe lost a whopping US$15 billion worth of diamonds from Chiadzwa in the 7 or so years of operations confirm what then Minister of Finance and current President of the People's Democratic Party (PDP) said on several occasions, that Chiadzwa was being looted.
Zimbabwe has been in a dire economic crisis which is now approaching its second decade. The Zimbabwean economy has shrunk by 40% of its 1990 value, unemployment has reached an all time high of 94% level, 98% of youths are working in the informal sector and hundreds of companies have closed shop reducing cities like Bulawayo to almost ghost town status.
Revenue collection continues to shrink and social service delivery has all but collapsed in most urban areas. Water cuts, electricity cuts, heavily potholed roads and non-functional hospitals have become the order of the day for the last 2 decades in Zimbabwe.
The discovery of diamonds in Chiadzwa and their subsequent exploitation was seen as capable of turning around our national fortunes. However the sad reality is that 7 years after the commencement of mining operations, Zimbabwe has only received a paltry US$600 million worth of revenue from diamonds and has lost a whopping US$15 billion, according to the man who must give us answers.
The admission by Mugabe to what we in the PDP had long pointed out is not what is shocking but the subsequent failure to bring those responsible to account. It is an indictment for Mugabe and as the PDP we are very clear that he is no longer fit to govern. If so much money can be looted by companies whom he gave mining licenses and fails to take action it shows that he was a beneficiary of the looting.
In our political transition document ARREST, we argue that Mugabe and his cronies are running an extractive political institution driven by the twin dynamics of power and primitive accumulation.
In undertaking this, they have enlisted the services of international bandits and mercenaries mainly from the Far East and China. This is the very reason why Mugabe did nothing when President Tendai Biti raised the issue of looting of diamonds as way back as 2009.
Mugabe is thus the godfather of corruption and his mild admission that diamonds were heavily looted is just a tip of the iceberg. As the PDP we argue that more than just diamonds have been looted in the country's extractive sector.
Various mining operations are veiled in secrecy which is a perfect haven for looting. To this day no one knows what other minerals have been looted in areas such as platinum mining in Ngezi and Zvishavane. If investigations can be done we will certainly get shocked at the level to which our minerals have been looted by private companies with the full blessings of Mugabe himself.
In any case, Mugabe is concerned about his own political survival and nothing else hence he will protect those who plunder our resources as long as the pay him and his party cuts. The 2013 election was characterized by breath taking patronage and large scale vote buying which were certainly paid for by diamond money.
The recent rallies by Mugabe's second wife have also had the same features thus betraying that someone looting our resources is giving rent to the first family and ZANU PF. This is unacceptable.
As PDP we recommend that the following key action be taken:
That President Mugabe resigns with immediate effect as he has failed the nation as its Chief Executive.
That a commission of inquiry is set up by parliament to investigate into the looting which occurred in Chiadzwa and prosecution of those responsible must follow.
That the international community freeze assets of all those figured in the Chiadzwa looting which are in their countries.
That the opposition, civil society, workers, students, youths, peasants, war veterans and all ordinary citizens come together and mobilize a campaign for the money to be returned.
In the final analysis however, the PDP maintains that the only viable option going forward is the liquidation of ZANU PF and its replacement with the National Transitional Authority (NTA) which will avert a chaos scenario which Mugabe is actively working towards. The NTA will stabilize the economy, address transitional justice including the latest issues of large scale looting and ensure a free and fair election which will guarantee a peaceful transition.
Zimbabwe has been in a dire economic crisis which is now approaching its second decade. The Zimbabwean economy has shrunk by 40% of its 1990 value, unemployment has reached an all time high of 94% level, 98% of youths are working in the informal sector and hundreds of companies have closed shop reducing cities like Bulawayo to almost ghost town status.
Revenue collection continues to shrink and social service delivery has all but collapsed in most urban areas. Water cuts, electricity cuts, heavily potholed roads and non-functional hospitals have become the order of the day for the last 2 decades in Zimbabwe.
The discovery of diamonds in Chiadzwa and their subsequent exploitation was seen as capable of turning around our national fortunes. However the sad reality is that 7 years after the commencement of mining operations, Zimbabwe has only received a paltry US$600 million worth of revenue from diamonds and has lost a whopping US$15 billion, according to the man who must give us answers.
The admission by Mugabe to what we in the PDP had long pointed out is not what is shocking but the subsequent failure to bring those responsible to account. It is an indictment for Mugabe and as the PDP we are very clear that he is no longer fit to govern. If so much money can be looted by companies whom he gave mining licenses and fails to take action it shows that he was a beneficiary of the looting.
In our political transition document ARREST, we argue that Mugabe and his cronies are running an extractive political institution driven by the twin dynamics of power and primitive accumulation.
In undertaking this, they have enlisted the services of international bandits and mercenaries mainly from the Far East and China. This is the very reason why Mugabe did nothing when President Tendai Biti raised the issue of looting of diamonds as way back as 2009.
Mugabe is thus the godfather of corruption and his mild admission that diamonds were heavily looted is just a tip of the iceberg. As the PDP we argue that more than just diamonds have been looted in the country's extractive sector.
Various mining operations are veiled in secrecy which is a perfect haven for looting. To this day no one knows what other minerals have been looted in areas such as platinum mining in Ngezi and Zvishavane. If investigations can be done we will certainly get shocked at the level to which our minerals have been looted by private companies with the full blessings of Mugabe himself.
In any case, Mugabe is concerned about his own political survival and nothing else hence he will protect those who plunder our resources as long as the pay him and his party cuts. The 2013 election was characterized by breath taking patronage and large scale vote buying which were certainly paid for by diamond money.
The recent rallies by Mugabe's second wife have also had the same features thus betraying that someone looting our resources is giving rent to the first family and ZANU PF. This is unacceptable.
As PDP we recommend that the following key action be taken:
That President Mugabe resigns with immediate effect as he has failed the nation as its Chief Executive.
That a commission of inquiry is set up by parliament to investigate into the looting which occurred in Chiadzwa and prosecution of those responsible must follow.
That the international community freeze assets of all those figured in the Chiadzwa looting which are in their countries.
That the opposition, civil society, workers, students, youths, peasants, war veterans and all ordinary citizens come together and mobilize a campaign for the money to be returned.
In the final analysis however, the PDP maintains that the only viable option going forward is the liquidation of ZANU PF and its replacement with the National Transitional Authority (NTA) which will avert a chaos scenario which Mugabe is actively working towards. The NTA will stabilize the economy, address transitional justice including the latest issues of large scale looting and ensure a free and fair election which will guarantee a peaceful transition.
Source - Solomon Madzore - PDP Organising Secretary
