THE proposed US$400 million investment into Great Dyke Investments (GDI) by Zimbabwe Consolidated Diamonds Corporation (ZCDC) has turned into a movie series with various episodes being churned out weekly.
It seems there is no solution to the acrimonious events happening at the state-run diamond miner, ZCDC. Kuvimba Mining House (KMH)’s proposal for ZCDC to buy a 33% stake in GDI, which is developing a US$3 billion platinum mine in Darwendale has since been rejected by the Chiadzwa Community Share Ownership Trust (CCSOT).
With Zimbabwe’s looming national elections, Mnangagwa was cautioned by the CCSOT in petitions that the US$400 million deal could potentially scupper his chances at the polls. The reputation of the country’s diamonds on the international market is also at stake.
In several other petitions CCSOT wrote to Parliament, the Zimbabwe Anti-Corruption Commission (Zacc), Kimberly Process (KP), and the World Diamond Council (WDC) warning that the deal could taint Zimbabwe’s gems as “conflict diamonds”.
Delays by ZCDC to finalise the deal with GDI on the other hand subsequently triggered the suspension of ZCDC boss Mark Mabhudhu in March this year.
The presidium seems to be acting slowly to address the issue while Mines Minister Winston Chitando has decided to take a back seat. This is despite several efforts made by the ZCDC's previous board
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together with the current management led by Mabhudhu for Zimbabwean gems to get back on the international market.
Zimbabwe in November last year assumed the chairmanship of the Kimberly Process Certification Scheme (KPCS) for 2023. This came at a time when the country is angling towards achieving a US$12 billion mining economy by 2023, with diamonds expected to contribute significantly to the target.
Established in 2003 following the United Nations Security Council Resolution 1459, the KPCS regulates transactions in rough diamonds to increase transparency and eliminate trade in conflict diamonds.
However, the continued bickering and ego fights between the current ZCDC board and management are only pointing to efforts being made to sanitise the diamond sector coming to nothing.
Those in the echelons of power must intervene in the current ‘ego’ fight playing out between the current board led by Munashe Shava and management led by Mabhudhu.
One can easily see elements of an ‘ego’ fight and it is the country that is eventually going to suffer.
Before the appointment of the current board, ZCDC for the first time since its inception declared dividends but since the fights erupted, reports say the state diamond miner is now struggling.
Mnangagwa had outdone himself by appointing technocrats at ZCDC, but the current events are derailing all progress.
Government must intervene to address the current impasse in the national interest.