THE government has been urged to consider registering the new consolidated diamond mining company on the Zimbabwe Stock Exchange (ZSE) and cede some of its shares in a bid to plug leakages of the precious mineral and promote transparency and accountability in the sector.
BY OBEY MANAYITI
In his presentation during the capacitation workshop with the Parliamentary Committee on Public Accounts yesterday, Kimberley Process Civil Society Coalition in Zimbabwe co-ordinator Shamiso Mtisi said the government should open up on the process and allow other knowledgeable investors to come on board.
The government is the majority shareholder in diamond mining companies operating in Chiadzwa and Mines minister Walter Chidhakwa recently announced that the ministry was tying up loose ends in bringing the companies together.
“The merged or consolidated diamond mining companies should work towards registering on the Zimbabwe Stock Exchange. This will be an important step for diamond mining companies to promote transparency, accountability and good corporate governance,” Mtisi said on key research findings of proposed consolidation.
“This will bring professionalism in management and investments in which the State has equity. The companies will be required by the stock exchange rules to publish their results. This means they will become public companies in which Zimbabweans and other investors may invest.
“However, it is important to note that the stock exchange listing means that government will have to reduce its shareholding because of the requirement that prohibits the holding of more than 35% of shares by a single entity in any listed company.”
- Chamisa under fire over US$120K donation
- Mavhunga puts DeMbare into Chibuku quarterfinals
- Pension funds bet on Cabora Bassa oilfields
- Councils defy govt fire tender directive
Keep Reading
Some legislators, however, said it would be improper for the government to have Zimbabwe Mining Development Corporation take a leading role as it had shown a degree of failure when it inherited and ransacked many different mining companies.
Mtisi said the government must observe the Kimberley Process Certification Scheme minimum requirement when bringing together the Marange mining firms as well as ensuring that the merged companies contribute to the Zimunya Marange Community Share Ownership Trust.
He added that the proposed merger would present an opportunity for government to attract established and experienced local, regional and international diamond mining companies that have traceability systems that can eliminate leakages.
