Maravi

(NEWZIMBABWE) Only US$25m received from diamonds

Only US$25m received from diamonds
21/06/2012 00:00:00
by Staff Reporter

THE government has so far received about US$25 million from diamond sales, Prime Minister Morgan Tsvangirai revealed in Parliament Thursday. Tsvangirai told legislators Cabinet was concerned with the performance of diamond revenues adding funds received to date had been very disappointing and far short of budgetary estimates.

Finance Minister Tendai Biti said in his 2012 budget that he had been promised US$600 million from diamond sales by the Mines Ministry with most of the money already allocated to various infrastructure development projects. However, mid-way through the financial year only US$25 million has been remitted to treasury, according to Tsvangirai.

The cabinet recently held an emergence meeting over the economy as it emerged the 2012 national budget was way out of whack, with revenues falling far short of projections. Biti claims funds are being diverted from Treasury by the diamond companies, allegations denied by the firms.

Five companies are currently operating in the Marange diamond fields, all of them joint ventures between private investors and state entities.

“We are also deeply concerned that the ZMDC, which is supposed to be government’s representative in Anjin, is actually not a shareholder in Anjin, but some other body which we do not know,” Biti said last month.

“We, in the Ministry of Finance, now fear that there may be a parallel government where these monies may be going and not coming to us.”

Mps asked Tsvangirai if it was not possible for the government to cancel its agreements with the companies mining at Chiadzwa and re-tender the concessions in a more transparent process.

But the Prime Minister said the problems were not so critical as to warrant cancellation of mining licences.

He said measures needed to be taken however, to ensure accountability and transparency in the mining operations at Chiadzwa.

Labels: DIAMONDS, MORGAN TSVANGIRAI, TAXATION

posted by MrK @ 3:06 AM