Diamonds Worth 1bn Missing

Published on 15/08/11

THE lack of transparency in the sale of diamonds has prejudiced the State of potential revenues in excess of US$1 billion, Finance Minister Tendai Biti has said. Biti's claims coincide with reports by the United Kingdom's BBC Panorama investigative series alleging the existence of torture camps near the controversial Chiadzwa diamond fields in Marange where civilians are reportedly being subjected to severe beatings and sexual attacks.
Mines Minister, Obert Mpofu has strongly denied the existence of the torture camps, calling it "cheap propaganda from the BBC."
In a Parliamentary speech last week, Biti claimed the country's gems were being sold for a song.
"There is no way we can sell diamonds at US$60 per carat; it is not possible. We hope that the revaluations can be done. If they can be done and true prices can be fetched then where we have US$167 million, our rough calculation show that we can have something like at least US$1,5 billion, which will make our US$700 million (budget) deficit a child's play," said Biti.
"That is our first step, additional revenue from diamonds. Without diamond money we will accumulate wage arrears and create a situation that has never happened in this country that a civil servant will go to the bank on the 24th of the month and find his/her money not there."
He said this during the second reading of the Finance Bill meant to give legal force to the revenue proposals contained in the Mid-year Fiscal Policy Review statement.
Biti also revealed that the Mines Ministry had since written to the Office of the President pledging to provide US$167 million from diamond revenue for the payment of civil servants salaries.