Diamond revenue missing: Chinamasa

HARARE - Finance minister Patrick Chinamasa says Treasury did not receive any proceeds from diamond revenue in the nine months to September 2013.

The newly-appointed minister — currently scrounging for 2014 budgetary support — told parliamentarians in Victoria Falls at a 2013 Budget Review Seminar last week that out of a targeted $40 million expected from diamond sales, nothing had been received during the period under review.

This comes on the back of escalating concern over accountability and transparency in the country’s cash-rich diamond mining industry.

Last year, Chinamasa’s predecessor, Tendai Biti, was forced to slash the country’s National Budget to $3,4 billion from $4 billion after receiving a mere $41 million from a targeted $600 million expected from diamond sales.

Zimbabwe is the world’s fourth-largest diamond miner, producing an estimated eight million carats annually and with potential to supply 25 percent of global demand.

Recently, former Prime Minister Morgan Tsvangirai raised concern over the remittance of diamond revenues.
“The secrecy and lack of transparency in the diamond mining industry has resulted in serious leakages and failure to remit satisfactory revenues to the State,” the opposition MDC leader said during a lecture at Oxford University, England.

“While the minister of Finance expected $600 million from the proceeds of diamond exports in 2012, the State only received about $41 million.

“This is against reported sales of diamonds running into billions of dollars every year,” he said.

According to Global Witness, an international non-governmental organisation, about $2 billion in diamond revenues have been unaccounted for since 2008.

Meanwhile, Chinamasa — who recently returned empty-handed from Washington, USA — has revised downwards revenue projection for 2013 from the initial $3,86 billion to $3,762 billion owing to the poor performance of the economy in October.

“Interim revenue collections as at October 29, 2013 indicate that revenue underperformed during the month of October.

“Collections amounted to $248 million against a target of $328,8  million for  the month,” he said adding that the projected revenue collection for October has thus been revised downwards to $269 million.

The decision by government to revise revenue collections for 2013 comes on the back of poor performance of the economy, with latest figures from the Zimbabwe Revenue Authority indicating that revenue collections for the third quarter missed target by one percent.

Chinamasa said this has forced government to revise downwards revenue collections for November and December from a cumulative total of $816,2 million to $702,2 million.

The downward revision of the revenue collections is in line with the developments in the economy as the growth rate has also been revised.

The country’s revenue collection is being pushed by value added tax contributing 29 percent, individual income tax raking in 20 percent, excise duty at 13 percent with customs duty and corporate income tax contributing 20 percent.

Comments (22)

Zvatanga. Kunyepa panechirikuvharwa. the finance minister is fooling us. we do not want to hear that rubbish

rowel - 6 November 2013

Noted Mr Minister, may you please instruct ZRP and ZIMRA to do the job and report to you pronto!

chipo - 6 November 2013

So why is the minister of Mines saying that there is no evidence to show that diamonds are being looted? So why has the Zim police stopped investigating the diamonds case? What kind of leads are we looking for in our country to probe someone for all this heritage that is being hoarded out?

efem - 6 November 2013

As long as Mugabe blesses corruption we will continue on this trend. In his life there is no rule of law and accountability is something that doesn't exist. Wait for the next five years we will all be in the streets as pauper; begging from another beggar.

Exiled - 6 November 2013

When Biti said it, Zanu PF said he was lying. This is the work of Zanu PF sharks. Chase them up Chinamasa - at least you have the baking of the corrupt President Mugabe

Mike Hove - 6 November 2013

to be honest zimbabweans transparency and accountability is the only way to go.why is it that the government isnt making everythng transparent?

BRITELITE - 6 November 2013

why we continue with this kind of behavior,we will never ever move on as a country.chinamasa come on dont be a cry baby always

britelite - 6 November 2013

I can't imagine that the diamonds revenue is really missing. Yes, fromt the state coffers, but Mugabe knows everything there is to know about where the revenue is. Otherwise how does a president of a broke country not intervene and sort out the problem to fill the state coffers?

Mbongeni Sakhe - 6 November 2013

I can't imagine that the diamonds revenue is really missing. Yes, from the state coffers, but Mugabe knows everything there is to know about where the revenue is. Otherwise how does a president of a broke country not intervene and sort out the problem to fill the state coffers?

Mbongeni Sakhe - 6 November 2013

it is way too obvious, who is heading the list of looters. Mugabe is the one blessing the looters for the simple reason that, looters share their loot with him. How else can we explain the looting ? Whay is he not taking action ?

Tafadzwa - 7 November 2013

Reports on diamond revenues to government are grossly understated. Royalties alone at 15% will exceed 41million. I know for certain that the 2012 diamond sales were $781 m. 15% of that would have been more than $117m, This is beofre other revenues like cooperate tax, customs and exercise duty, vat, PAYE etc and government share of profits through ZMDC. Minister, what was the value of diamonds sold and what is the explanation given by ZMDC on why there are no remittances to trreasury? There is also a serious misconception in government that all the money generated by diamond companies and other mining houses belong to government. and I don't want to think that this is where the confusion is coming from.

Timothy Thorton - 7 November 2013

The Police own a diamond mine and the Army were also allocated another mine in Chiadzwa so do you expect them to investigate the diamond issues in a fair and just manner. Diamonds are for Zanu PF and the Chinese that is the bitter truth you must swallow with pride nekuti makatadza kuvhotera chokwadi

Johnson - 7 November 2013

BOREHOLES and IRRIGATION engineers zim.engineers@gmail.com

qsdcv=0987645780 - 7 November 2013

BOREHOLES and IRRIGATION engineers zim.engineers@gmail.com

098gvbnan sx s - 7 November 2013

Are these minerals a case or a blessing to Zimbabweans?

Marlvin - 7 November 2013

Well, well, well, as Elton said, All we have to do is sit and wait. Sebeqalile ukusuzelana, sokusele utsheko

mbuzemnyama - 7 November 2013

For other countries like our neighbours Angola, Botswana and South Africa, diamonds are a blessing from God, but for our Zimbabwe, they are a curse from the devil.

Johno - 7 November 2013

Its a blessing but we make it a curse becoz of greedness

Gladys Sadza - 8 November 2013

Stop mining diamond until control system are in place.There will be no diamond to talk about by the time effective control mechanisms are put in place.What does in profit a nation to continue mining when nothing gets into its coffers. God bless every reader of this comment knowing fully well genesis 1v1 and its implications on true christianity.

chitova - 8 November 2013

After watching a documentary on Siera Leone and what I witnessed during the Chiyadzwa fisco, diamonds God are a curse to us. I hear they are now running out and the country has nothing to show of them except a few driving disco 4s, mercs, and all poshy cars in potholed African roads. Biti said it and Mpofu told him to generate his own revenue. May be walter will soon tell Chinamasa to get the money from their friends the Chinese. Ma China kana achikama mombe haasiyi we mhuru kana vanokokota.

Maita Manyuka - 8 November 2013

Mercedes C200 Compressor , 2003 model,leather interior,Auto, electric windows,immaculate condition, completely spotless jus arrived from UK , vehicle at Plumtree boarder post $5500.oo only…ph 0733384860

treds - 8 November 2013

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