Wednesday 1 December 2010

Diamonds and Zanu PF

Umtali/Mutare Chiadzwa Diamonds and ZANU PF

by Ian Douglas Smith on Wednesday, 01 December 2010 at 15:53

There’s the first group of hardliners led by cabinet ministers and top civil servants. This group consists of Defence Minister Emmerson Mnangagwa, Justice Minister Patrick Chinamasa and Robert Mugabe’s spokesman George Charamba, among others.

The second and the most powerful group is the military junta, also called Joint Operations Command (JOC), led by General Constantine Chiwenga. Many Zimbabwe analysts believe this group to be the brains behind directing and dictating terms in the government.

But our source said; ‘We now have a third group of hardliners, the officer-corps that is funded and paid by proceeds from diamonds. This is a group that is loyal to Chiwenga and the junta and has recently been introduced to the African Diamond Producers Association (ADPA) by Mnangagwa.’

ADPA, with its headquarters in Luanda, Angola works to devise and implement policies, strategies and laws that generate a substantially larger share of diamond profits from foreign diamond mining companies to its member states. The organisation was formed in 2006 and most of its officials are personally known to Mnangagwa, according to our source.

‘What we have now is that the majority of funds from the diamonds are going straight to ZANU PF who are also resurrecting their dwindling fortunes using proceeds from the gems. Little of the funds will find their way to the Treasury under Finance Minister Tendai Biti,’ the source added.

The exploitation of the diamond fields comes at a time when ZANU PF was finding itself desperately short of money in the period after the controversial 2008 elections. The party has been on the back foot since it was forced into a power-sharing deal with Tsvangirai’s MDC.

The two diamond mining firms given government approval to mine the Chiadzwa diamond fields – Mbada Investments and Canadile – are headed or have members who are former senior military officers. Mbada chairman is Robert Mhlanga, a retired Air Vice Marshall who used to fly Mugabe’s presidential helicopter. He is said to be the most senior of the retired officers of the new group.

Canadile’s local representative is Lovemore Kurotwi, a retired army colonel, who is reportedly a nephew of the late General Vitalis Zvinavashe, a member of the ZANU PF politburo who was named in a United Nations report as one of the main figures to profit from the plunder of the Congo’s diamond riches.

SW Radio Africa understands that these two companies are working closely with Thankful Musukutwa, the permanent secretary in the Mines Ministry. The Ministry has also set up offices at the diamond auction floor in Mt Hampden where there will also be a marketing wing and administrative bloc; all within easy reach of a private jet facility airport, Charles Prince, where buyers will jet in and out with little fuss.

The project manager for the centre is Retired Colonel Charles Mugari and accountants at the centre have been seconded from the Reserve Bank, on orders from Governor Gideon Gono. The RBZ officials are believed to be well versed and experienced in transferring huge sums of money through wire transfers and off-shore banking.

Political analyst Luke Zunga said; ‘Mugabe does not rule the country from the centre of government. He’s ruling it from these satellites (junta and military corps) that are mobilizing and controlling the economy of the country.’

He said the diamonds were under the control of a select few, with direct links to the security chiefs. Zunga said it was obvious they intend to use the wealth from diamonds to enrich themselves and entrench ZANU PF’s hold on power in Zimbabwe.

‘With the huge injection they will get from the diamonds ZANU PF will mobilise heavily on the ground to an extent they will overwhelm who ever stands in their way. Right now they’re mobilising funds for elections and this is why Mugabe wants them next year, because he knows he has the cash to fund his campaign,’ Zunga added.

Sources in the inclusive government said the military chiefs had positioned themselves to profit from diamonds and have thus far refused to engage with Tsvangirai to discuss possible ways of bringing lasting peace to the country. Their grip on the whole diamonds set-up ensures the country’s most valuable mineral resource is going out the back door, rather than benefiting the country.

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