Maravi

(HERALD) Biti attacks US government

Biti attacks US government
Sunday, 15 January 2012 05:20
Kuda Bwititi

Finance Minister Mr Tendai Biti has attacked the US government for plac­ing mining companies Mbada Dia­monds and Marange Resources under sanctions, describing the move as self-defeating and went on to make a dra­matic U-turn by accepting that the illegal sanctions were affecting the generality of Zimbabweans.

Minister Biti added that the two mining companies "should have firstly been allowed to put their case forward before the punitive measures were taken".

However, analysts have lambasted Minister Biti, saying instead of calling for the lifting of sanctions on the two mining companies, he should have also called for the lifting of sanctions on the Zimbabwe Mining Develop­ment Corporation (ZMDC) because of its partnership with the two compa­nies in the mining of diamonds in Chiadzwa.

Mbada Diamonds is a joint venture company between Grandwell Hold­ings owned by some South Africans and ZMDC.

In the past, Mr Biti and his MDC-T party have tried to downplay the ille­gal economic sanctions, labelling them "restrictive measures" targeting only top Zanu-PF individuals and not the general populace.

In a letter to the US Assistant Secre­tary of Treasury, Mr Charles Collyns, Mr Biti pleads with the Americans to scrap the embargo, saying capital projects worth US$600 million pro­posed in his budget depended totally on diamond revenue.

He said the decision to proscribe the two companies was "self-defeat­ing" and went against the KPCS deci­sion to give Zimbabwe the green light to sell its diamonds. He said the move by the US govern­ment was "contrary to the spirit of engagement and harmful to the gen­erality of Zimbabweans".

"Zimbabwe is a poor fragile econ­omy and, there­fore, it must be allowed to sell and benefit from its resources," said Mr Biti in the letter dated December 19 2011.
"In my 2012 Budget, there are capi­tal projects of US$600 million which are totally dependent on diamond revenues.

"Diamonds have been sold illegally and illicitly from Zimbabwe. There have been challenges of accountability and lack of trans­parency when Zimbabwe was outside the Kimberley Process Certification Scheme.

"Selling under the KPCS would, therefore, take away any excuse for opaqueness or illicitness. Being part of the KPCS would allow Zimbabwe to benefit from the expertise of the KPCS. We have challenges of policing and monitoring the large area of almost 120 000 hectares where these diamonds are found."

Minister Biti indicated it was unfair for the Ameri­cans to take punitive action without considering the firms' side of the story.

He also accused the United States of undermining the KPCS by acting against companies that complied with the diamond grouping's requirements.

". . . The US decision undermines the KPCS and its chairmanship of this body. A member must act in good faith. One cannot, in one forum, act in one manner then unilaterally undermine the collective decision taken at the common forum."
Minister Biti also indicated the US was pursuing ulte­rior motives.

"It would be curious to find out the motive of your decision against the two companies. Your decision will not stop the mining that is a sovereign issue covered by international law.

"Most importantly, it will not stop the sale of dia­monds. All it does is to encourage more opaqueness and underwriting of the diamond industry . . . this is a self-defeating and retrogressive position; one which I hope was not taken to placate powerful interests who were against the Kinshasa agreement."

An economist in the Ministry of Finance who refused to be named for fear of victimisation said Minister Biti should have also called on the US to lift sanctions on the ZMDC.

"As things stand, the minister is calling on the US government to remove a foreign company, Mbada Dia­monds, from the sanctions and not calling for the removal of the local company ZMDC which has a 50-50 partnership with Mbada Diamonds. What message is he trying to send here?

"Surely, as Minister of Finance he should know that ZMDC is the arm of Government responsible for min­ing the diamonds in this case and it's not a secret that Mbada Diamonds was placed on sanctions because of its partnership with ZMDC. So how does he call for the lifting of sanctions on Mbada Diamonds and leave ZMDC out?" said the economist.

Political analyst Dr Lawton Hikwa said though com­mendable, the minister's stance reeked of insincerity.

"It has dawned on the Finance Minister that his port­folio has been negatively affected by the sanctions, hence, his call for the lifting of the embargo.
"His position, therefore, smacks of hypocrisy because he does not recognise the need to call for the holistic lift­ing of the sanctions.

"The sanctions must be lifted omnibus and Mr Biti should not call for the lifting of the sanctions for dia­monds alone.

"It is a fact that the sanctions have hurt the economy in a big way."
Dr Hikwa said all ministers should speak with one voice on sanctions.

"It seems we are having an ‘exclusive government' as opposed to an inclusive one.
"The element of inclusivity is, therefore, critically lacking when it comes to the issue of sanctions."

Another economist from the University of Zimbabwe said: "The minister should call for the removal of all sanctions against Zimbabwe and not to target a few companies. However, just the stance taken by the minis­ter tells you that the sanctions are now in really trouble.

"It's clear that there is confusion now to the whole sanctions conspiracy as there are differences between those who called for the imposition of the sanctions and those who implemented them."

Last November, the KP gave all companies operating in Chiadzwa the green light to sell diamonds mined at the fields. The decision, taken at a special plenary in the Democratic Republic of Congo, was largely unpopular with Westerners who sought to block Zimbabwe from trading in the gems. Zimbabwe stands to rake in annual revenue of more than US$2 billion from the sale of dia­monds. Barely a month after the plenary, the United States added Mbada Diamonds and Marange Resources to its sanctions list.

The US argued this was done to "clarify already existing arrangements". It said the puni­tive measures were not a result of KP meetings or deci­sions. Last year, secret US Embassy cables released by whistleblower website WikiLeaks revealed that Mr Biti was at one point at the forefront calling on the Ameri­cans to ratchet up pressure on Zimbabwe through increased sanctions. The minister, who is also the MDC-T secretary-general, also refused to sign the Anti-Sanctions Petition.

Labels: DIAMONDS, KIMBERLEY PROCESS, MDC, SANCTIONS, TENDAI BITI, TRADE SANCTIONS, ZDERA

posted by MrK @ 7:01 PM