It is important for Zimbabwe's diamonds to be certified conflict free.This will allow the nation to trade freely and put proper systems and mechanisms to stop all leakages,smuggling and other unacceptable activities that have become normal.
Human rights groups claim the diamonds have been an important source of revenue for the military top brass and for President Mugabe's Zanu-PF party.Ahead of a possible election in 2011 all diamonds must be accounted for and not be abused by one political party to finance and fuel election violence."Sometimes they take all [the stones] and leave you with bus fare only," one miner, who asked to be identified only by his first name, Eric, said of the government soldiers in an interview. "We can't even protest, because they have their guns pointing." This indicates the level of lawlessness which has become normal in Chiadzwa and the Province since the diamond rush began
An investigative team for the Kimberley Process Certification Scheme, responsible for policing conflict diamonds drafted a damning and stinging report after a visit to Zimbabwe mid 2009 .The team found evidence of killings and forced labor at diamond fields in the east of the country, among other human-rights violations, according to a copy of the final report available on the internet.
After earlier resistance Mines ministry Permanent Secretary Thankful Musukutwa on march 16 2010 appeared before Parliament's Committee on Mines in a closed-door session to answer questions about official joint ventures with private firms developing the controversial Marange diamond projects.The parliamentary hearings were set up to probe the two firms' activities in Chiadzwa, where there are still reports of forced labour,human rights abuses and diamond smuggling. The firms have taken over mining the claim from the UK based African Consolidated Resources (ACR), which holds the legal title to mine there.
The appearance by Mr Musukutwa though not under the best of conditions is an important step in the process to make the diamond mining process more transparent and accountable to the people of Zimbabwe.It is unacceptable that communities remain poor whilst they possess and produce diamonds.Zimbabwe's diamonds must be used to set up a Zimbabwe Sovereign Wealth Fund."A Sovereign Wealth Fund (SWF) is a state-owned investment fund composed of financial assets such as stocks, bonds, real estate, or other financial instruments funded by foreign exchange assets. These assets can include: balance of payments surpluses, official foreign currency operations, the proceeds of privatizations, fiscal surpluses, and/or receipts resulting from commodity exports. Sovereign Wealth Funds can be structured as a fund, pool, or corporation."This is what Zimbabwe should be exploring and setting up to properly manage the diamond wealth.Several nations have been transformed just by the discovery of natural wealth.In the gulf region several Emirates have managed to transform their economies in the middle of the desert into bustling financial services and real estate centres of the world.All through the discovery of one resource - oil.Zimbabwe can easily do the same with the Diamonds
The two state selected diamond mining companies, which have been mining the controversial Chiadzwa fields, could face a stern parliamentary reprimand for avoiding two consecutive parliamentary hearings on their activities.Whilst reports suggest they could be arrested it must be analysed why do they appear as if they have something to hide?
The directors of the mining ventures, Canadile Mines and Mbada Investment (joint ventures between the government's Zimbabwe Mining Development Corporation (ZMDC) and South African investors) reportedly failed to appear for a scheduled meeting with the Parliamentary portfolio committee on mining on Monday 15 March 2010. This attitude must change.The individuals involved need to know their responsibilities and expectations on them to act in a manor that encourages Zimbabwe's efforts in being accepted as anormal country within the community of nations.Refusal to appear before parliament will do more harm than good as it feeds into reports that Zimbabwe's diamond mining is now privatized by a few politicians and senior military personnel.
It is imperative for Zimbabwe to embrace the Kimberly process and get assistance on gathering statitical data on the quantities of the diamonds being mined.It has been widely reported that Zimbabwe Revenue Authority has deployed several officers in the Chiadzwa diamond field area.Again this is a positive step but it requires guidance and expertise offered by the Kimberly Process.
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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