Opinion / Columnist
Marange diamonds - questions remain unanswered despite spin
24 Apr 2012 at 20:47hrs | Views
The document entitled, "Mbada Diamonds: The Facts 'they' will not tell you," New Zimbabwe.com, 28 March 2012, raises more questions than answers.
In an apparent trivialisation of Operation Hakudzokwi (No Return), Mbada Diamonds said:
'Alleged rights abuses when the army moved in to drive off illegal miners gave hostage to fortune as hostile foreign governments, the NGOs they control, sought to prevent the country from selling the precious stones internationally'.
Mbada was not the first one to "play down" the army-led exercise which saw hundreds killed, some of them allegedly shot by helicopter gunships at Marange amid reports of mass graves.
Mugabe's spokesman, George Charamba also known as 'Nathaniel Manheru' coldly wrote: "I do not think diamond hunters will descend on Chiadzwa ever again… KuChiadzwa hakuna mai. Hakudzokwi… The Untouchables of Chiadzwa are either slaving, wounded or dead" (The Herald, "Operation Hakudzokwi", 24/11/08).
Mbada Diamonds also claimed that in one year it contributed 'the most mining revenue to the national fiscus' without giving hard figures and which year it was referring to.
'In one year Mbada Diamonds contributed the most mining revenue to the national fiscus than all money contributed by the mining sector since 1980', the firm claimed, again without stating the actual amount and the specific year.
It would make a lot of sense if the European Union, the IMF and the US authorities made the lifting of sanctions on Mbada and Marange companies conditional on an immediate audit of every concession granted so far in Marange and a diamond cash audit, because that seems to be the smoking gun.
Despite the so-called targeted sanctions, Mbada Diamonds says it declares dividends monthly. The company also substantially sponsors football â€" arguably a very strategic marketing and political tool ahead of elections.
Anyone with basic knowledge of accounts knows that dividends are only declared after making a profit and paying tax and royalties and all operational costs, suggesting the company is 'minting' money beyond expectations.
There is no denying of the fact that Mbada Diamonds has created employment and bailed out government on some occasions with civil service salaries and offered better compensation and relocation facilities for displaced villagers in Chiadzwa, than other mining firms.
However, there is still concern that fierce dogs stopped locals from leaving their homes to meet MPs who were on a fact finding mission in the area recently.
Unless diamond and indeed other mining companies are compelled to list on the Zimbabwe Stock Exchange, which will compel them to publish their accounts for scrutiny, transparency will never be a long suit in some of the firms at Chiadzwa.
If Mbada was seriously being inconvenienced by the so-called sanctions, it would arguably not have managed to commission its state-of-the-art diamond mining plant; construct a 1.2 km long runway and buy or lease a private jet for its deliveries after initially using a helicopter.
While the secure transfer of diamonds is a requirement of the KP system, the massive investment in a runway and the acquisition of an aircraft raises many questions, when the job could still be done by an armed road convoy. Mbada's priorities seem to be elitist.
For example, last year, Mbada reportedly "lent", "hired" or "leased" a private jet for Robert Mugabe's 'private' visit to the Far East but the facts 'they' will not tell you are who paid for the trip â€" the State or Mbada Diamonds.
Last month, Mbada again, reportedly lent its aircraft to Mugabe to connect with Singapore airlines in Jo'burg on his approximately 11th 'private' visit to Singapore in 15 months.
The facts 'they' will not tell you are, who paid for that flight, how much and where are Zimbabwe's diamonds being cut and polished, given the massive unemployment?
In February 2009, there were media claims that Mugabe's wife, Grace travelled to Asia the previous month to allegedly discuss investment possibilities. One was "a multi-million-pound diamond venture" for cutting and polishing diamonds at Qingdao, on China's east coast (The Times, 'Grasping Grace puts diamonds on her shopping list, 15/02/09).
.
In view of the outstanding issues at Marange coupled with the opening of new diamond mining operations at Chimanimani amidst growing fissures in Zanu-pf, there is need for legislation banning serving members of the security services from controlling mining companies.
Questions that remain unanswered are: 'Have we had all the facts on Marange diamonds? Why are there still shortfalls in diamonds cash remittances to treasury despite all the assurances made last year by the Zanu-pf Mines Minister Obert Mpofu?'
Contact author: zimanalysis2009@gmail.com
In an apparent trivialisation of Operation Hakudzokwi (No Return), Mbada Diamonds said:
'Alleged rights abuses when the army moved in to drive off illegal miners gave hostage to fortune as hostile foreign governments, the NGOs they control, sought to prevent the country from selling the precious stones internationally'.
Mbada was not the first one to "play down" the army-led exercise which saw hundreds killed, some of them allegedly shot by helicopter gunships at Marange amid reports of mass graves.
Mugabe's spokesman, George Charamba also known as 'Nathaniel Manheru' coldly wrote: "I do not think diamond hunters will descend on Chiadzwa ever again… KuChiadzwa hakuna mai. Hakudzokwi… The Untouchables of Chiadzwa are either slaving, wounded or dead" (The Herald, "Operation Hakudzokwi", 24/11/08).
Mbada Diamonds also claimed that in one year it contributed 'the most mining revenue to the national fiscus' without giving hard figures and which year it was referring to.
'In one year Mbada Diamonds contributed the most mining revenue to the national fiscus than all money contributed by the mining sector since 1980', the firm claimed, again without stating the actual amount and the specific year.
It would make a lot of sense if the European Union, the IMF and the US authorities made the lifting of sanctions on Mbada and Marange companies conditional on an immediate audit of every concession granted so far in Marange and a diamond cash audit, because that seems to be the smoking gun.
Despite the so-called targeted sanctions, Mbada Diamonds says it declares dividends monthly. The company also substantially sponsors football â€" arguably a very strategic marketing and political tool ahead of elections.
Anyone with basic knowledge of accounts knows that dividends are only declared after making a profit and paying tax and royalties and all operational costs, suggesting the company is 'minting' money beyond expectations.
There is no denying of the fact that Mbada Diamonds has created employment and bailed out government on some occasions with civil service salaries and offered better compensation and relocation facilities for displaced villagers in Chiadzwa, than other mining firms.
However, there is still concern that fierce dogs stopped locals from leaving their homes to meet MPs who were on a fact finding mission in the area recently.
Unless diamond and indeed other mining companies are compelled to list on the Zimbabwe Stock Exchange, which will compel them to publish their accounts for scrutiny, transparency will never be a long suit in some of the firms at Chiadzwa.
If Mbada was seriously being inconvenienced by the so-called sanctions, it would arguably not have managed to commission its state-of-the-art diamond mining plant; construct a 1.2 km long runway and buy or lease a private jet for its deliveries after initially using a helicopter.
While the secure transfer of diamonds is a requirement of the KP system, the massive investment in a runway and the acquisition of an aircraft raises many questions, when the job could still be done by an armed road convoy. Mbada's priorities seem to be elitist.
For example, last year, Mbada reportedly "lent", "hired" or "leased" a private jet for Robert Mugabe's 'private' visit to the Far East but the facts 'they' will not tell you are who paid for the trip â€" the State or Mbada Diamonds.
Last month, Mbada again, reportedly lent its aircraft to Mugabe to connect with Singapore airlines in Jo'burg on his approximately 11th 'private' visit to Singapore in 15 months.
The facts 'they' will not tell you are, who paid for that flight, how much and where are Zimbabwe's diamonds being cut and polished, given the massive unemployment?
In February 2009, there were media claims that Mugabe's wife, Grace travelled to Asia the previous month to allegedly discuss investment possibilities. One was "a multi-million-pound diamond venture" for cutting and polishing diamonds at Qingdao, on China's east coast (The Times, 'Grasping Grace puts diamonds on her shopping list, 15/02/09).
.
In view of the outstanding issues at Marange coupled with the opening of new diamond mining operations at Chimanimani amidst growing fissures in Zanu-pf, there is need for legislation banning serving members of the security services from controlling mining companies.
Questions that remain unanswered are: 'Have we had all the facts on Marange diamonds? Why are there still shortfalls in diamonds cash remittances to treasury despite all the assurances made last year by the Zanu-pf Mines Minister Obert Mpofu?'
Contact author: zimanalysis2009@gmail.com
Source - Clifford,Chitupa Mashiri
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