Probe clears Zim in diamonds trade
Source: The Financial Gazette
Date: 28 February 2008
Author: Njabulo NcubeFrom The Financial Gazette, 28 February
Zimbabwe has been cleared of any illegal activity in the trade of diamonds, after a probe by the Kimberley Process (KP), the global standard for the diamond industry. In a summary of a report after a visit by its investigators to Zimbabwe between May and June last year, KP said it had found no "substantial proof" of smuggling. The report also exonerates the United Nations Development Programme (UNDP) against which charges had been levelled that some of its vehicles were used to smuggle diamonds from a mine in Beitbridge. "The team has not found substantiated proof to allegations of illegal smuggling of diamonds from the River Ranch area with the help of UNDP vehicles," reads part of the report.It is the view of the review team that the overall structure of the implementation of the KP Certification Scheme (KPCS) appears to be working in a satisfactory manner in Zimbabwe, and, in general, meets the minimum requirements of the KPCS."
According to records, the team made its review under the terms of the KPCS Administrative Decision of October 30, 2003, with the appropriate amendments adopted by the Gaborone Plenary Meeting in November 2006. The team comprised representatives from Russia (team leader), Norway, South Africa, the World Diamond Council, and Partnership Africa-Canada for Civil Society. During the visit, the team inspected government agencies controlling and co-ordinating the implementation by Zimbabwe of the KPCS. These included the Ministry of Mines and Mining Development, Zimbabwe Revenue Authority, Minerals and Marketing Corporation of Zimbabwe (MMCZ), Zimbabwe Mining Development Corporation, the Reserve Bank of Zimbabwe and the Zimbabwe Republic Police (Minerals Unit).
Harare lawyer Terrence Hussein, who represents Bubye Minerals, a company claiming ownership of River Ranch mine, has refuted the investigators’ suggestions he was consulted during the visit. Apart from the controversial River Ranch mine, the KP team visited Murowa Diamonds, the country’s largest producer of diamonds, as well as the Marange diamond fields, scene of a rush by illegal miners in 2006. An audit was conducted on Kimberley Process Certificates at the Ministry of Mines and the MMCZ, which keep statistics and records of all diamond exports in Zimbabwe. "It should be noted that the KP review visit to Zimbabwe was taking place at the time of wide spread allegations of massive smuggling of rough diamonds from the country, both from already established diamond producing areas, and from newly discovered ones. These allegations were exacerbated by the continued legal disputes between various private entities for the property rights on the diamond deposits in Zimbabwe. Those rivaling entities have made attempts to have the team involved in whatever manner in resolving those disputes."
The team also noted that the first KP review visit to Zimbabwe conducted in 2004, took place when the national system for the implementation of the KP Certification Scheme was already in place, as established by the review at the time, but there was yet no diamond production in the country and, consequently no exports and imports of rough diamonds to and from Zimbabwe. "Against this background, the team relied strongly on the prerequisites of the terms of reference of the KP review visits, and carefully avoided all the attempts to have it involved in resolving those rivalries. "The team has made its views absolutely clear both to the representatives of the Government of Zimbabwe, and to the contesting entities," it said. The team, however, acknowledged that the situation regarding illegal diamond production by panners in the Marange area was "extremely difficult" in the second half of 2006. The government had, however, brought the area under control.