MUTARE A recent report has uncovered security loopholes in two mining companies, Canadile and Mbada, enabling employees to smuggle diamonds for sale on the black market.
The two mining companies were controversially awarded mining licenses by Zanu (PF) minister of Mines Obert Mpofu, and have been accused of selling the precious gems secretly, depriving the country of revenue.
A local NGO based in Mutare, Centre For Research and Development (CRD) director Farai Maguwu presented a report to the Kimberly Process Certification Schemes diamond monitoring advisor for Chiadzwa diamond Abbey Chikane at a local hotel last week.
Chikanes visit to Chiadzwa was a follow-up to his visit in March to get first hand information on the operations of Mbada and Canadile Miners.
It was reported that there are some top Zanu (PF) cabinet ministers and officials that have shares in the two mining companies.
In the report Maguwu said: We have gathered enough evidence that security loopholes at Canadile Miners plant in Chiadzwa are costing Zimbabwe about 2000 carats per day through smuggling of diamonds.
Maguwu told Chikane that Canadile employees had overtaken the illegal panners and security forces in supplying diamonds to local and foreign buyers.
An impeccable source told The Zimbabwean that Canadile had employed some known hard-core illegal diamond dealers who were being used to secretly sell the diamonds to diamond barons, whom many of them are foreigners based in Mutare and Mozambique.
In Mutare the diamond barons have been staying at a named hotel in the city for long periods.
Said Maguwu: Many of the diamonds are stolen at The Density Medium Separator, popularly known as the plant. The porous security at Canadile is one of the several indicators of the failure by Zimbabwe to meet the minimum standards of the Kimberly Process Certification Scheme.
There are reports that the diamonds are finding their way to Mozambique where there is a ready market for the precious gems.
This prompted Chikane to visit the Forbes Border Post to check the security system at the place.
Commenting on his fact finding mission Chikane said: I have visited Chiadzwa diamond field and I have managed to meet all the necessary stakeholders. However, I cannot divulge my considerations at the moment as I am still arranging meetings with other stakeholders and some NGOs.
I have also made my findings at the Forbes Border Post where I checked on the security and I will be giving the outline of the visit when I have completed meetings with other stakeholders, he added.
However, sources said Chikane was likely going to produce a damning report on his findings at the operations of Canadile and Mbada Miners.
From the look of things he is not impressed by the operations of the two mining companies. The other NGOs have also said they would present their reports to him. The NGOs have not been happy with the operations of the two mining companies where there have been underhand dealings.
Zanu (PF) top officials and cabinet ministers are benefiting from the secret selling of diamonds and the NGOs have been against that. Some traditional leaders too have voiced their concerns over the operations of these two companies and they need this thing to be addressed, said the source.
In February, the government of Zimbabwe accepted Chikane as the KP Monitoring advisor for Chiadzwa diamonds after Zanu (PF) rejected a European monitor in January this year.
Post published in: Economy