‘Zimbabwe loses $770 million diamond money’

ZIMBABWE lost about $770 million in potential revenue between 2008 and 2012 through undervaluation and transfer pricing of its gems from the Marange diamond fields.

VENERANDA LANGA
SENIOR PARLIAMENTARY REPORTER

A report by Partnership Africa Canada on illicit financial flows in the diamonds industry said the gems were being exported to the United Arab Emirates (UAE), mostly Dubai.

The report was on the agenda of the just-ended Kimberly Process Certification Scheme (KPCS) Intersessional meeting in Shanghai, China.

The three-day meeting ended yesterday.

According to the report, the UAE allegedly imported Zimbabwean diamonds cheaply but exported them at much higher prices.

The report analysed the statistics of exports submitted to the KPCS by Zimbabwe and the statistics of imports and exports by the UAE.

Zimbabwe Environmental Law Society participates in the KPCS meetings as the coordinator of the KPCS Civil Society Coalition.

“Perhaps one of the countries worst affected by transfer pricing and under-valuation of diamonds in is Zimbabwe, which lost an estimated $770 million in taxable revenues on exports to UAE between 2008 and 2012 due to an average 50% undervaluation of its diamonds, ” read the report.

“Zimbabwe lost an average 50% undervaluation of its diamond revenues on exports to UAE. Last year a joint report by the African Development Bank and Global Financial Integrity, a US research and advocacy group, concluded that the illicit haemorrhage of resources from Africa is about four times Africa’s current external debt — or as much as $1,4 trillion between 1980 and 2009.”

The report also said the Democratic Republic of Congo (DRC) last year lost about $66,2 million under similar circumstances.

“In the diamond sector DRC has routinely been identified as a country through which conflict affected diamonds have fraudulently obtained KP certificates for onward travel to trading centres, including Dubai. This was the case with sanctioned Marange diamonds from Zimbabwe that first appeared in Kinshasa in 2008 to 2009,” the report said.

“In 2013 alone, price manipulations due to transfer pricing generated in excess of $1,6 billion in profits for diamond companies in the UAE, and represents a major deprivation for African treasuries which lost much needed tax revenues that could have funded public services.

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32 Comments

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  2. We boost of so many learned amongst us but how in this age is this happening it boggles the mind,cry the beloved dark continent.Ichoo

  3. Isn’t it the same NGO which was vigorously advocating for our exclusion from the Kimberly process. What they are now calling a research is nothing but a result of low competition for our diamonds due to the sanctions which the same NGO invited. The law of demand will imply that with low competition (Demand from buyers) prices are bound to fall. The NGO is now pretending to sympathise with us when it was responsible for for downgrading the value of our diamonds throug sanctions.

    1. iwe, if there is no demand then how is it that those that buy the diamonds from us for a song are able to sell them at more than twice the price? in what way do you figure the “sanctions” are affecting our sale of diamonds. the facts are simple here, someone deliberately sold those those diamonds at a give away price and got kickbacks from whoever it is he sold to. seenzesa brain mhen nxaa.

  4. IT WAS OBVI0US THAT DUBAI & INDIA LOVED THE DIAMONDS AT ONLY 20% OF NORMAL RETAIL

  5. Pasi nezanu, ndiyo yakaba mari iyoyo.

  6. There is nothing to cry for here, this was all due to a some puppets, idiotic political party and its western allies who sanctioned the country in free trade. What ever we got kept us going because
    they had really squeezed us for our rights. The blame should be put on the shoulders of the idiotic puppets, we all know who they are.

    1. Indeed reason. The the puppets of the Chinese have cost this country dearly. We all know who they are, the party of puppets keen on enriching their “all weather friends” while selling Zim shot.

  7. Chokwadi chakubuda manje. Biti was right all along, madiri aya akaitwa kuti mari idyiwe ne zpf. Right now zpf’s wives frequent Dubai countless times kutora mari vouya negoo kuzotengesa. No wonder the diamonds haachawanikwa. Midzimu yeZimbabwe yaramba.

  8. Reason ka iwee usataure zvekunyepa. Sanctions kudii. Chinamasa akataura chokwadi kuti zpf was in self preservation and survival mode during GNU. This is how they managed to finance their projects dzekuba maelections. I bet the difference yemari iyoyo was taken/paid to zanupf

  9. Even if they sold the diamonds at higher prices mari yose yaingodyiwa nezvipfukuto same fanana

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  11. This shows how stupid this ZANU leadership is,How can they be crooked in daylight,but most of them have plenty degrees and we wonder whats are they for ?
    I concure with Maheu, they took the money and under declared sales.nxaaa

  12. That’s the end result ZANU have of appointing people to posts through patronage and it’s killing us as a nation. Imagine what $770 million could have done to uplift the nation. Right now we have appointed Ministers who are clueless with their portfolios. And now Masimirembwa who stole diamonds has been rewarded another top post by another clueless minister who was also involved in shady diamond deals. Will we ever achieve anything?

  13. we are losing money

  14. All the zpf bootlickers have suddenly disappeared from this discussion. Why? Cause chokwadi chabuda. Diamonds were underpriced so that treasury got peanuts, wen later sold they got the profits. Zpf bought 500cars plus all the t shirts & trucks full of house trinkets that they dished out ndiyo imwe Mari yacho iyoyo.

    1. except for reason.

      1. Reason is still expecting his cut, poor guy??

  15. Haiwawo imaths dzekunyepera idzo magen’a anoziva mafambiro ecash why is it that mabig shark ari kuflooder mucash vachitenga mazimota whilst we suffer.hapana hapana kuvharana uku kt tifunge kt vekunze varutibira, God knows vedu ndovakaipa. Hatusati tatanga

  16. Zim is now a useless country

  17. Well said mbatatisi zvimaNGO izvi shouldnt pretend to care because they caused this havoc.If they had a genuine agenda we wouldnt have had clandestine opaque trading of our diamonds and a lot of shenanigans happens under sanctions-busting.Its all their fault for campagning against the open transparent sale of our gems

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  19. Partnership Africa Canada is the same company which fought a legal battle with our gvt over the Marange diamonds claims. Same company is also funding and fronting NGO’s to tarnish our diamonds,infact they r the ones who wanted them classified as blood diamonds. So i wldnt lose sleep over this malicious and fictional report.

  20. they dont realise that if they did things properly they could steal more money and have enough to run the country…..look at south africa, mbavha dzizere, but its better situation…….stupid old people ruling gvt and industry

  21. Tichaona kunowira tsvimbo nedohwe.

  22. Zpf ministers had accepted that diamond revenue has been transfred offshore. As the confession goes it means few individuals are reach when the Reseve Bank is empty and and opening its safe to donors and loan offers. Now its dog it dog in the country of’ honey and milk’ Can anyone explain what offshore account mean and who is benefiting.

  23. Not only diamonds are going for a song but all our minerals. The problem is we do not have leadership. We have old tired and recycled people in our gvmnt. Obert Mphofu doesnt know that rough diamond is far less than a polished one.

  24. Is that all the money we lost? Does not tie up with the Manifesto of trillions?

  25. Did we lose only 700MUSD? Sounds less than the trillions in the Manifesto?

  26. $777 million dollars is lot of money for Zimbabwe to be lost just like that. It is enough to fund the Matebeleland Zambezi water project; it is enough to transform rural agriculture; it is enough to resuscitate one quarter of industry and put 300 000 people back in their jobs; it is enough to revive our mining; it is more than enough to repair Hwange power station; it is enough to buy new desk for all the government schools. Yes if that kind of money would have just been channelled into just one sector then Zimbabwe’s recovery would have been more than sustainable.

    Honestly, this was the duty of the finance minister to deal with these leakages. Instead the then finance minister spent his time flying around the world and scheming to get $4 000 million dollars only after he had removed his own boss, Tsvangirai! He was not even thinking of the zanu pf monster. What a shame Tendai Biti.

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