Maravi

Mining firm charged with fraud

Mining firm charged with fraud
by Nelson Banya, Reuters
08/11/2010 00:00:00

ZIMBABWE focused African Consolidated Resources (ACR) has been charged with fraud and violating the country’s precious stones laws and will soon appear in the high court, the company said.

ACR said it faced allegations of unlawfully acquiring diamond claims in Marange by using subsidiary companies that were unregistered at the time, a process the authorities considered fraudulent.

"ACR has been legally advised that this should make no difference to the validity of the Marange Claims and accordingly that the charges are groundless," the company said.

London-listed ACR is already involved in a court battle with the Zimbabwean government which cancelled the company’s claims in the Marange fields in the east of the country in 2006.

Zimbabwe’s high court confirmed ACR’s titles in a Sept. 2009 ruling. It rescinded that decision this year, citing irregularities in the acquisition and registration of claims.

Last week, Zimbabwe police arrested six directors linked to a joint venture firm mining diamonds in Marange, also on allegations of fraudulently acquiring the concession.

The arrested executives include five officials from the state-owned Zimbabwe Mining Development Corporation (ZMDC) and a Zimbabwean representative of its South African partner, Core Mining and Minerals, in the 50-50 diamond mining joint venture, Canadile Miners.

A magistrate will rule on Tuesday on the executives’ bail application.

Labels: AFRICAN CONSOLIDATED RESOURCES PLC, ANDREW CRANSWICK, CORRUPTION, MARANGE DIAMOND FIELDS

posted by MrK @ 12:15 AM