Zimbabwe's participation in the KP will result in greater transparency in the gathering of statistical data on the true output of the diamonds coming out of Marange Diamond fields.Currently reports suggest ZANU -PF has replaced Zimbabwe dollar printing with Diamond looting as one way to finance its operations.These are serious allegations which can be addressed by inviting the KP to verify the activities and goings. The recent out burst by both President Mugabe and Minister of Mines Mpofu that Zimbabwe will pull out of the KP only make these allegations sound genuine and legitimate.The KP pull-out threats are very unwise and sound very familiar since ZANU -PF once uniletarally pulled Zimbabwe out of the Commonwealth over peer review pressures.
The Kimberley Process Certification Scheme imposes extensive requirements on its members to enable them to certify shipments of rough diamonds as ‘conflict-free’.It has 49 members, representing 75 countries, with the European Community and its Member States counting as an individual participant. KP members account for approximately 99.8% of the global production of rough diamonds.The scheme is only a soft law as such, it is not legally binding on the participating countries.Countries cannot be subject to criminal legality.The KP is essentially a self-enforced mechanism based on peer review system similar to a club of individuals with same interests.The process was established in 2003 to prevent diamond sales from financing conflicts and human rights abuses.
In recent times the world diamond industry has been driven by a network of secrecy and sophisticated levels of corruption.Smuggling is also rampant in the industry, making the global diamond trade one of the largest black markets globally. Diamond smuggling intensifies violence and instability in communities where diamonds are found.This has been the case in D.RC.,Sierra Lione,Liberia and now Chiadzwa.There is greater need for transparency and the involvement of the Reserve Bank of Zimbabwe brings more questions than answers since the central bank is now more known for looting private foreign currency accounts and ruining the Zimbabwe dollar.
Recent studies conducted by Human Rights Watch show that police officers deployed in Zimbabwe’s fields to end illicit diamond smuggling were actually responsible for the harassment, torture, beatings and killings of artisanal miners and Zimbabwe locals. (Link http://www.reuters.com/article/idUSLQ67185420090626).These reports further cast shadows over the country's young diamond industry and makes KP membership imperative.
The smuggling of diamonds reduce the amount of money being re-invested into diamond-producing communities, depriving the government of legitimate tax revenues ( Link - http://www.news24.com/Content/Africa/Zimbabwe/966/32dfb62f92f14aefb4a0ac1b4b15c8c4/05-04-2007-07-50/Zim_loses_$400m_in_diamonds ). Reports indicate Zimbabwe could be losing anything between US$ 50 million to US$ 400 million per month from smuggled diamonds and leakages.These leakages must be stopped and revenue channeled proper state Treasury coffers.This is money that could be used to create the Zimbabwe Sovereign Wealth Fund (ZSWF).
In other African countries KP involvement has increased the revenues of poor governments, and helped them to address their countries’ infrastructural development needs and challenges. For instance, some $125 million worth of diamonds were legally exported from Sierra Leone in 2006, compared to almost none at the end of the 1990s.http://www.pacweb.org/programs-resources-e.php.Curently Zimbabwe's diamond earnings are almost negligable despite reportedly having one of the largest diamond reserves in Africa.This indicates leakages,smuggling and non-accountability which must be addressed.
Republic of the Congo was removed from KP because it was unable to properly account for the origin of its gems, most of which were believed to have come from the neighboring Democratic Republic of the Congo.The country faced UN sanctions in 2004 because despite having no official diamond mining industry, the country was exporting large quantities of diamonds, the origin of which it could not detail - http://www.nationaljewelernetwork.com/njn/content_display/diamonds/e3idc28e6611ea5f0a80a32173f4a8fed07.This is similar to early reports that Zimbabwean diamonds were being smuggled and certified as SouthAfrican diamonds.
The major producing countries are Democratic Republic of Congo (formerly Zaire), Botswana (which produces more than 28%), South Africa, Angola, Namibia, Ghana, Central African Republic, Guinea, Sierra Leone, and Zimbabwe. Greed, on the part of corrupt politicians, governments and private companies involved in the diamond trade, has caused a significant portion of the political turmoil experienced in many of the African diamond producing countries. History has shown that the trade in these illicit stones has fuelled decades of devastating conflicts in countries such as Angola, Cote d'Ivoire, the Democratic Republic of the Congo and Sierra Leone. (http://www.zimbabwejournalists.com/story.php?art_id=3399&cat=1)
According to the Kimberly Process website "The Kimberley Process Certification Scheme (KPCS) imposes extensive requirements on its members to enable them to certify shipments of rough diamonds as ‘conflict-free’ and prevent conflict diamonds from entering the legitimate trade. Under the terms of the KPCS, participating states must meet ‘minimum requirements’ and must put in place national legislation and institutions; export, import and internal controls; and also commit to transparency and the exchange of statistical data. Participants can only legally trade with other participants who have also met the minimum requirements of the scheme, and international shipments of rough diamonds must be accompanied by a KP certificate guaranteeing that they are conflict-free."
The KP does not concern itself with other human rights abuses including child labor, state sanctioned violence, and worker exploitation and poverty.- http://www.nytimes.com/2006/12/29/world/americas/29diamonds.html?_r=1.This makes the process a partial solution to the problem.The other part is for Government leaders to be accountable to the communities from which these diamonds have been discovered.Many areas which have discovered these diamonds remain poor and under develop0ed.There are no schools,clinics ,hospitals and other basic infrastructure or clean running water.Chiadzwa remains poor and underdeveloped.
The Government of the Northwest Territories of Canada (GNWT) also has developed a unique and effective certification program. They offer a Government certificate on all diamonds that are mined, cut, and polished, in the Northwest Territories of Canada. Each diamond is also laser inscribed and recorded in a database. To obtain this certificate one must cut and polish the diamond in the NWT.This is a lesson which other diamond producing countries such as Zimbabwe can adopt and ensure that the diamond wealth is properly used to uplift the country and not to finance a political party or unjust self enrichment for a few politicans.
The KP implementation is monitored through ‘review visits’ and annual reports as well as by regular exchange and analysis of statistical data between member states.This allows weaker states to adopt sytems and measures which stronger and more established members would have built and developed of the years.
Zimbabwe should be encouraged to remain in the KP which is recognized as an effective conflict-prevention instrument to promote peace and security.The KP has helped stabilise weak and volatile countries and facilitated their development though proper accountability of the diamonds mined and exported.The KP system will help create proper auditing channels backed by statisistics to avoid a few individuals privatizing what is supposed to be a national resource and common heritage monopolized along political lines.
Acknowledgements and Sources
- African Diamond Council ,
- Kimberly Process ,
- Partnership Africa Canada
- GMRI Capital Research
This article appears as courtesy of GMRI Capital ( http://www.gmricapital.com ) prepared for 3MG MEDIA
Gilbert Muponda is a Co-Founder of 3MG Media - ( http://www.3mgmedia.ca ) . He can be reached at;
Email: gilbert@gilbertmuponda.com . Skype ID: gilbert.Muponda
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