Skepticism greets Zim diamond arrests

Police have arrested six directors linked to the Canadile Mining group, on allegations of fraudulently acquiring the concession. The arrested executives include five officials from the state-owned Zimbabwe Mining Development Corporation (ZMDC) and a Zimbabwean representative of its South African partner, Core Mining and Minerals. The two groups are part of the Canadile joint venture that was granted a licence to mine at Chiadzwa. The directors are facing charges of misrepresenting to the government that the joint venture firm had the capacity to fund its mining operations.

According to the states mouthpiece, the Herald newspaper, Canadile has since been barred from Chiadzwa, with the ZMDC now running mining operations on its own. Apart from Canadile, two other firms currently operate in the alluvial fields in partnership with the government. The other two are Mbada Diamonds, jointly owned by South Africa’s New Reclamation Group, and Anjin, a Chinese joint venture.

The arrests coincide very conveniently with a meeting of the international diamond trade watchdog, the Kimberley Process (KP), which has been discussing Zimbabwes future this week. The country was barred from selling its diamonds on the international market last year because of human rights abuses at the hands of the military controlling Chiadzwa. But despite evidence of ongoing abuses, the KP has refused to take strong action against Zimbabwe, and instead of banning the country, gave it time to fall in line with international trade standards.

Earlier this year, KP members met to debate what solution could be reached, after the six month deadline placed on Zimbabwe had passed. In that time, a monitor appointed by the KP had visited the country, and recommended that exports be allowed to resume. The same monitor was implicated in the arrest of diamond researcher, Farai Maguwu, who was detained for five weeks in connection with exposing the ongoing abuses at Chiadzwa. It was only when a solution by the KP looked unlikely that Maguwu was finally released and in the same week that he was bailed, the Mines Ministry and the KP reached a working agreement. This agreement saw two auctions of Chiadzwa diamonds, under monitoring conditions, which were meant to pave the way for full exports to resume.

The decision on allowing Zimbabwe to resume exports is set to be made this week at the KPs Jerusalem meeting, but by Thursday evening agreement by KP members still looked unlikely.

The arrests of the Canadile officials smacks of the same convenient manipulation of the situation as the release of Maguwu, as it demonstrates Zimbabwes compliance with the minimum trade standards outlined by the KP. The monitoring group has come under intense pressure by the Mines Ministry to give Zimbabwe the green light to starts sales, with Minister Obert Mpofu even warning that sales would go ahead, with our without KP approval.

Human rights groups are urging the KP not to cave in to this pressure, with Human Rights Watch leading calls for real change at Chiadzwa before the decision is made. The group said this week that the Zimbabwe government has not fulfilled its promises to the KP, including the demilitarisation of the Chiadzwa fields. The group explained that there are still ongoing abuses in the area, including rampant smuggling and forced labour, and called on the government to make clear progress in ending abuses and smuggling.

The arrest of the diamond officials is also believed to be a result of the bitter intra-party fighting within ZANU PF. According to the Zimbabwe Mail, the arrested officials are victims of ZANU PF rival factions fighting for the control of Zimbabwe diamond resources. The news service quotes a senior ZANU PF government official saying that First Lady Grace Mugabe, Defence Minister Emmerson Mnangagwa and Mines Minister Obert Mpofu are behind the arrests.

The Mugabes and Mnangagwa, who is the favoured successor in the contested ZANU PF succession debate, are believed to be fighting the faction led by retired General Solomon Mujuru, who has a firm place in the diamond smuggling business. Grace Mugabe and Mnangagwa are said to be at the centre of Zimbabwe diamond mining company, Mbada Diamonds, and the rival faction led by Mujuru is said to have been linked to the incarcerated ZMDC officials at the centre of the alleged fraud. Mujuru meanwhile has previously been linked to several illegal diamond deals and also reportedly uses his diamond mine ‘River Ranch’ to launder his familys ongoing plunder of resources from the Democratic Republic of Congo.

Political commentator John Makumbe told SW Radio Africa on Thursday that this infighting could be the reason behind the arrests, because the Mnangagwa faction has been very vocal about trying to get more control over the diamonds, to rival that of Mujuru. Makumbe explained that the fight boils down to the succession debate raging in ZANU PF, saying that the succession battle is dependent on what resources each faction has control of.

With elections coming up it is very unlikely ZANU PF will have money to sponsor all its candidates, so it will be up to the different factions to find enough money to sponsor its candidates, Makumbe said. He added: Whoever is able to sponsor more candidates who will therefore have more parliamentary seats in the next election, will have control of ZANU PF.