ZIMBABWE MONEY MISSING

Australian Broadcasting Corporation
Broadcast: 12/03/2012
Reporter: Ginny Stein
There is concern that money from diamond mining in Zimbabwe is not flowing through to the country’s economy.

Transcript
EMMA ALBERICI, PRESENTER: A battle is brewing in Zimbabwe over control of the country’s newly-found diamond wealth. Three companies have been licensed to mine and export the diamonds, potentially worth billions of dollars, but the benefits are yet to be seen by the people of Zimbabwe. Even the prime minister claims he doesn’t know where the money is going, and that’s straining an already fragile power-sharing arrangement.

Africa correspondent Ginny Stein reports.

GINNY STEIN, REPORTER: Once tarnished as blood diamonds, Zimbabwe’s gems have been cleared for sale.

OBERT MPOFU, ZIMBABWE MINES MINISTER: They’ve already started auctioning. I mean, the DMC has sold their diamonds, Engin has sold their diamonds and all the recently certified companies have sold their diamonds.

GINNY STEIN: Mining at Chiadzwa, possibly the world’s richest alluvial diamond find, is now operating around the clock.

TENDAI BITI, ZIMBABWE FINANCE MINISTER: Zimbabwe’s diamonds will be a billion-dollar industry. There’s no question about it. The finds at Chiadzwa are amazing and unbelievable finds by any standards.

GINNY STEIN: While the peak diamond body may have approved their sale, no-one is quite sure just who’s profiting, let alone the country’s prime minister.

MORGAN TSVANGIRAI, ZIMBABWE PRIME MINISTER: The amount of activity there is quite extensive. But what do we show for it?

TAKURA ZHANGAZHA, INDEPENDENT POLITICAL ANALYST: It is a good thing Zimbabwe has diamonds, it is a bad thing that the government is not utilising them transparently and with honesty.

GINNY STEIN: In Mutare the capital of what’s now become known as the diamond province of Zimbabwe, revenues from the mines are being closely watched. With little transparency to date, just who is profiting remains the key question.

Farai Maguwu has been keeping a close eye on Chiadzwa since the Government sent in security forces to seize control at the height of a diamond panning frenzy. He spent time in jail for speaking out about human rights abuses at the diamond fields.

FARAI MAGUWU, DIRECTOR, CENTRE FOR RESEARCH & DEVELOPMENT: I think now we have got about three companies which have been licensed to export now. Within a few weeks we should be able to review whether that decision means we now have some paper trial of how our diamonds are being exported, whether this money’s being properly accounted for and whether this money’s making an impact on the Zimbabwean people.

GINNY STEIN: Three years into a power-sharing government made up of unequal partners, control of this wealth could decide the country’s future. With president Robert Mugabe one of the world’s longest-serving leaders seeking re-election, there are fears that the country’s new riches will fund campaigns and even renewed violence.

Finance minister Tendai Biti belongs to prime minister Tsvangirai’s party.

TENDAI BITI: There is no transparency in the present moment. The Chinese that are there, the Lebanese that are there – no-one is sure of what is happening vis-a-vis the revenue transmission. They are Zimbabwean assets and they have to benefit the Zimbabwean people. So far they’re not benefiting Zimbabwean people.

GINNY STEIN: How much is it actually costing Zimbabwe, the leakage from the mines? Do you have a figure?

TENDAI BITI: It’s costing, ah, it’s costing, ah, Zimbabwe, yes. I can’t give you, you know, privileged information on the figures that I have, but the fact of the matter’s that there’s a gap.

GINNY STEIN: But is it $1 million, is it a billion?

TENDAI BITI: I can’t give you privileged information. Yes, the figure is close to billions.

GINNY STEIN: At 88, Mugabe must want an election this year regardless of committing to electoral and constitutional reforms. For now, Zimbabwe continues to mark time.

JOHN ROBERTSON, INDEPENDENT ECONOMIC ANALYST: While he is there, you can pretty well write down exactly what’s going to happen tomorrow and as long as he’s there. I could still write down today what’s gonna be happening in a year’s time if he’s still there.

GINNY STEIN: Which is?

JOHN ROBERTSON: Nothing. Virtually nothing is allowed to happen, again because they are fearful of the possibility that other people’s success will diminish their authority.

GINNY STEIN: The first step to real change is tied to a new constitution and that could be ready within weeks. While term limits are likely to be set, a transitional clause is expected to allow president Mugabe to run for office again.

Ginny Stein, Lateline.