[miningmx.com] – CORRUPTION in Zimbabwe’s mining sector was thrown to the top of the agenda again with the European Union insisting the country’s state-owned miner must remain under restriction.
In a separate development, a prominent Zimbabwean minister has accused sources in the government of motivating an anti-graft investigation against him regarding several empowerment deals in that country.
The two instances bolster the perception of Zimbabwe as one of the most corrupt places to do business, especially in the mining sector. The Fraser Institute, in its recently published Policy Potential Index (PPI) Score, ranked Zimbabwe as the most corrupt mining district.
“Corrupt beyond description and, from a mining point of view, a shambles in each and every conceiveable respect,’ on respondent to the Fraser Institute’s PPI survey was quoted as saying.
The Zimbabwe Anti-Corruption Commission (ZACC) is probing officials including executives from the National Indigenisation and Economic Empowerment Board (NIEEB) and other government officials such as Empowerment Minister, Saviour Kasukuwere and for irregularities in concluding an empowerment deal for Zimplats.
However, Kasukuwere has responded, telling Miningmx that the probe being carried out by ZACC is baseless as the anti-graft body has never sought to establish the irregular conduct allegations from him or from officials at NIEEB.
The anti-corruption commission, which has faced political pressure following initial moves to probe Zimbabwean government officials for alleged corrupt activities, insisted last week that it will forge ahead with the probes.
Kasukuwere accused the anti-graft commission of investigating Zanu PF officials on behalf of Prime Minister Morgan Tsvangirai’s Movement for Democratic Change (MDC) which shares power in a government of unity with Zanu PF.
Tsvangirai is expected to face off against President Robert Mugabe in elections expected in July following disputed elections in 2008.
“Anti-Corruption Commission was busy investigating on behalf of the MDC. That’s a ruse, those are stupid allegations. They have never sought to ask us, they never spoke to NIEEB,” said Kasukuwere in an interview, declining to comment further.
Meanwhile, the Zimbabwe Mining Development Corporation (ZMDC) will remain under restrictions from the European Union, with experts saying the state owned mining company – which is involved in mining diamonds in the controversial Chiadzwa gem fields – is used “to fund repression” in Zimbabwe.
The ZMDC has been at the centre of alleged human rights violations in the mining of diamonds in Chiadzwa. It has been on the European Union sanctions list over the last couple of years following outbreaks of violence in the Chiadzwa diamond fields.
ZMDC has partnered companies allegedly backed by the army and other Chinese to mine diamonds in Eastern Zimbabwe.
Pedzisai Ruhanya, a Zimbabwe expert and director for the Zimbabwe Democracy Institute (ZDI) said this week the ZMDC was responsible for sponsoring repression against the people of Zimbabwe.
“The ZMDC is being used to create a war-chest by Zanu PF. Diamonds are used to fight the transition towards democracy,’ he said.
Zimbabwe Finance Minister, Tendai Biti says the treasury is not receiving proceeds from diamond mining companies backed by the ZMDC.
This has created a divide with Mines and Mining Development Minister, Obert Mpofu, accused of shielding the ZMDC from remitting revenue to the fiscus and of benefiting from suspected corrupt activities and kick-backs, amid charges that Zimbabwe military and other government officials are plundering state resources.
The EU refused to remove ZMDC from its list of companies and individuals slapped with travel restrictions and embargoes. Ten other individuals, including army, police, intelligence and air-force chiefs as well as the Zimbabwe Defence Industries (ZDI) Mugabe and his wife, Grace are still under the EU’s restrictions despite the lifting early this week of embargoes against 81 individuals.
“Those left on the list are the ones that are critical. They can facilitate or block transition to democracy. They are responsible for the anarchy, they are responsible for the failure of the rule of law,’ added Ruhanya.
In a third development, Impala Platinum said that its subsidiary, Zimplats, had objected to the Zimbabwean government’s seizure of some 27,948 hectares of land held by Zimplats.
On February 13, Mpofu said the government had repossessed the land and, at the same time, called for construction of a platinum refinery in the country rather than have foreign miners add value to its ore outside its borders.
