Where is Zimbabwe’s diamonds cash going?

Clifford Chitupa Mashiri,
9 February, 2012

Amid claims that Marange diamonds have brought stiff competition on the international market, causing prices to fall sharply, especially in India (the Herald, 6 February 2012) the big question is ‘Where is Zimbabwe’s diamonds cash going?’

This week’s flashy headlines: ‘Zim diamonds shake the market’ and ‘Companies to auction diamonds’ seem to tell only part of the full story.

Despite claims in the state-owned media that Zimbabwe is set to rule the global rough diamond supply market in the next few years, the country is at the mercy of an increasingly rich and powerful ruling elite.

Observers believe tens of millions of dollars in diamond profits, probably even more, are being secretly extracted from Chiadzwa minefields and by passing Treasury to fund Mugabe’s election terror campaign while the Kimberley Process dithers on the definition of conflict diamonds.

Diplomats talk of how diamond sales are being made through suitcases full of cash and anti-sanctions units in local banks, raising concerns that proceeds to treasury are just a token for maintaining mining licences and a semblance of legality.

The basis for that accusation is the US$60 million shortfall in diamonds cash identified in the national budget statement which experts see as just the tip of an iceberg.

Another indicator of a possible stash of arguably ‘unaccounted for cash’ somewhere is the regime’s increased election rhetoric despite Treasury saying there was no money for both the referendum and the general elections.

If Zimbabwe could not independently fund COPAC and failed to give the Election Commission more than US$8.5 million, it is mind boggling that Zanu-pf is so confident about funding elections when it was servicing a bank overdraft in 2010.

There is also speculation about Zimbabwe diamonds possibly about to rescue the next AU summit in Malawi after the two leaders met in Harare last week, followed by reports quoting Malawi’s vice president saying her country was not prepared to host the 54 heads of state and government in June/July 2012.

Recently, a firm mining Zimbabwe’s diamonds allegedly hired a private jet for Mugabe to go where most average Zimbabweans will hardly visit at their own expense, in such luxury – the Far East, for unclear reasons as there are daily connecting flights via Jo-burg.

Rather than the diamonds funding war chests, they should better address impending crises, such as:

“World Food Programme to feed 1 million Zimbabweans through March’; ‘Maputo threatens to switch off Zim’; ‘Typhoid outbreak imminent in Harare’; ‘Chitungwiza vulnerable to typhoid’; ‘Funds shortage slows down construction of mortuary’ and so on.

Clifford Chitupa Mashiri, Political Analyst, London, zimanalysis2009@gmail.com