He said the Diamond Act should regulate both rough diamonds and polished diamonds, as well as provide licensing of dealers, agents, buyers, sellers, exporters, transporters, researchers and sorting premises.
Mtisi added that the law should clearly state the type of license issued to various dealers involved in the supply chain.
“For example, a diamond dealer license which entitles the holder to buy, sell, import and export unpolished diamonds. There should also be a diamond manufacturer’s license which entitles the holder to carry out applied research and tests in connection with diamonds,” he said.
He said the applicants must be thoroughly investigated to determine financial and technical expertise and the existence and sustainability of the premises at which the business will be carried out.
Mtisi also said there was need for investigation of the applicant by the licensing authority to carry out background checks. He underscored the need to put in place security measures.
“The Diamond Act should clearly state the role that may be played by private security companies employed or contracted by the diamond industry, as well as state security forces,” he said, adding that all areas dealing with diamonds should be declared ‘protected areas’.
“However, all restrictions have to be in line with the respect of human rights and restrictions and protection measures should be justifiable in a democratic society,” he said.
Mtisi said the Diamond Act should contain provisions that are aimed at promoting national economic development.
“The law should not rely only on a command and control approach, but should include incentives that will encourage people to desist from illegal acts. One of the incentives will be a requirement of the employment of locals and the provision of services by locals or Zimbabweans. This is the situation in Namibia,” he said.
Zimbabwe has lost millions of dollars in revenue from the mining of diamonds in Marange due to theft and smuggling.
Post published in: Business