BY Ndumiso Tshuma
The Centre for Natural Resource Governance (CNRG) has urged the government to address critical transparency and oversight issues plaguing the country’s diamond trade, following the recent arrest of five individuals for allegedly stealing diamonds during a sale at the RGM International Airport.
Five Zimbabweans, including a diamond inspector, evaluator, two security guards, and a police officer, were arrested for stealing a 98.20-carat diamond parcel valued at $31,010.53, which was destined for the United Arab Emirates.
The incident occurred on 17 April, but the suspects were only arrested a month later.
The sale was conducted by a leading diamond mining company Anjin Investments.
The matter took a new twist this week when the five accomplices revealed in court that the United Arab Emirates-based recipient, Erleen Gold Trading DMCC, Dubai had purchased the diamonds without going through normal procedures and without going through the bidding process.
“This incident reveals serious transparency and due diligence flaws in the diamond sale procedures at Anjin. Amid this debacle, eyebrows will be raised on how the Minerals Marketing Corporation of Zimbabwe (MMCZ) agreed with a company that did not follow formal diamond bidding processes. Ironically, the MMCZ is set up to ensure effective accountability of national mineral resources through sound inspectorate and monitoring strategies in line with the corporation policies and control systems,” CNRG said.
CNRG immediately called on the government to halt to diamond sales to the Dubai-based company and a probe how Paolo Persico who represents Erleen Gold Trading DMCC became the sole buyer for both ZCDC and Anjin diamonds.
They also queried Persico’s suitability as a diamond buyer following his previous arrest in the Democratic Republic of Congo.
“In 2021 Mr Persico, alongside two Belarusian businessmen, Alexander Zingman and Oleg Vodchits, were arrested and detained for 12 days in the Democratic Republic of Congo (DRC). They were later released without charge and immediately flew to Harare.”
CNRG also raised concerns on the pricing of Zimbabwe’s diamonds.
“If the 98.20 carat parcel was valued at $31000 this places Zimbabwe’s near gem diamonds at $315/ct, way above official claims of $90/ ct. At number 39, the missing parcel must have been outside the gem quality category.
“Diamonds produced by Zimbabwe Consolidated Diamond Company (ZCDC) are also sold to the same Paolo Persico’s Erleen Gold Trading DMCC company, which is effectively determining the value of Zimbabwe’s diamonds,” the organisation said.
Zimbabwe’s diamonds continue to face serious transparency and human rights challenges since their discovery in 2006. The country has failed to ensure that diamonds contribute to local and national development as with neighbouring Botswana.
