HARARE - In May, Mbada Diamond Mining is alleged to have held a major diamond viewing, without the knowledge of the Kimberley Process (KPCS) agent in Harare, Abbey Chikane Sources said Mbada a recently formed company with no background in diamond trading deliberately misled the KPCS.
It is now confirmed that Mbada Diamond Mining has closed and finalised the awards in a tender that has exceeded US$150 million, revealed a source. This sale appears to have been with the full blessing of the minister of mines, Obert Mpofu, in spite of his assertions that he had banned diamond exports as directed by Cabinet. Robert Mhlanga, the Robert Mugabe-approved chairman of Mbada, and South African David Kassel are said to have staged this secretly held diamond tender.
Mdada invited a number of major diamond firms to view the diamonds at Harare airport from May 15 to 30. However, all the participants were asked to leave on May 24 when Abbey Chikane went to see Mbada. Mbada hoped to gain Kimberley Process papers for the 3.56 million carat lot of rough diamonds, estimated to be worth US$150 million, but had told participants that they planned to sell the diamonds with or without KP papers.
Companies that attended the pre-auction viewing of the diamonds included Rosy Blue, Radam and Samir Gems from Belgium, Diamrio from Brazil, Kesri Gems and Sunrise from India, Zar Diam, Pure Diamond, Amani Gems and Akshar International from Dubai, Super Gems from Belgium and Dubai, and LLD from Israel.
Mbada, whose alleged right to mine derives from a disputed right held by ZMDC, is believed to be a front for a variety of elites, but is financed and controlled by The New Reclamation Group Pty Ltd, known as Reclam, a South African scrap metal trading company. This holding is fronted by a Mauritian tax-haven company called Grandwell Holdings Ltd.
Reclams chief executive officer and chairman, David Kassel, signed the diamond tender documents. Also involved in the group is his friend and business partner Robert Mhlanga, former air vice marshal in the Zimbabwean Air Force now living in Sandton, Johannesburg, who allegedly began his diamond trading during active service in the Democratic Republic of Congo war.
The shareholder register of Reclam makes for interesting reading and includes Old Mutual and Capital Works. Old Mutual holds 5.8 per cent of the company and has appointed a director to the Reclam board, Quinton Dicks. Old Mutual is a London-listed company worth 6 billion.
Capital Works have 15 per cent of Reclams shares. It is a South African private equity company made up of many of South Africas yuppie set that formerly worked for Brait Capital, two of whom sit on the Reclam board. These are all supposedly legitimate and clean organisations.
This newspaper is in possession of company documents that directly show a resolution by the Reclam Board to enter into diamond mining in July 2009. Even the name of Zimbabwe is concealed in the minutes of this meeting.
Why did the directors from Old Mutual and Capital Works not insist on transparency in the matter? Were they aware that these operations would be in Zimbabwe and on rights owned by another company altogether? If so, why did they allow the company to hide the facts? Either way why was there no due diligence by the directors themselves? Why have Capital Works and Old Mutual not sued Reclam and the chairman, David Kassel?
The only possible answer, it seems, is they were fully complicit in this well orchestrated plan to lawlessly loot from Zimbabwe in what amounts to organised crime, said a source from the mining industry, who spoke on condition of anonymity.
It is well known that in September 2009 the High Court ruled that the ZMDC (and obviously their partnership companies Mbada and Canadile) were mining illegally, that the rights still belonged to the original owner, ACR, and that all diamonds ever derived from that place should be returned to ACR. Most importantly, it was ordered that any appeal against the court judgement would not delay execution of the order, which was to have immediate effect.
This High Court order was ignored ignored Mbada, Canadile, ZMDC and the police who were supposed to enforce it.
The chief justice of the Supreme Court, Godfrey Chidyausiku, in February 2010, further clarified this order. He ruled that pending the appeal, all the diamonds should be held in safekeeping in the vaults of the Reserve Bank of Zimbabwe (RBZ), while all mining should cease pending the outcome of the main appeal.
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