Mutare Rural District Council is owed about half a million US dollars by former diamond mining companies which failed to pay levies, while others made erratic contributions during their tenure before consolidation.
A report from a community development meeting organized and facilitated by Zimbabwe Environmental Lawyers Association (ZELA) in Ward 3 of Arda, at Gandidzanwa Primary school this month.
Labour representatives, community leaders under the Village and Ward Development Committees (VIRDCO and WARDCO) and members of Arda Transau Relocation Development Trust (ARDT) attended the meeting.
The report published by Zimbabwe Diamonds and Allied Workers union (ZIDAWU) also claims the Zimbabwe Consolidated Diamond Company (ZCDC), despite being a private firm wholly owned by government, is not remitting its dues to council on time.
ZIDAWU says former miners owe Mutare RDC before consolidation, Mbada Diamonds is said to owe US$150 000, 00 while another miner DMC owes US$ 60 000, 00 and Marange Resources has an outstanding bill of US$163 500, 00.
Chinese mining concern Anjin, which resumed operations in Chiadzwa, did not pay its full share of levies and owed USD$45 000, 00 when firms were consolidated into ZCDC.
On its part ZCDC, which consolidated seven diamond mining companies in 2015 as a result of non-payment of levies and royalties, is also failing to pay and sometimes pays late when the local currency value is eroded by inflation.
Currently, with over half of the year gone Mutare RDC has not yet received any payment from ZCDC.
“Concerns were raised from members who attended the meeting that the rural district council is failing to foster local development yet diamonds are being mined every day in Chiadzwa. To his response Chinaka stated that ZCDC and Anjin in Chiadzwa were not paying mining levies.
“With the coming in of ZCDC as a new kid in the block a lot was expected having realised that the participation of most diamond companies was a monumental failure in tax remittance and redemption.
“However, the recent revelation by the Chief Executive Officer of Mutare Rural District Council, Shepherd Chinaka shockingly stated otherwise… in 2019 the companies paid the levied taxes in December when it had lost its value and after constant follow ups,” ZIDAWU said in the report
“The diamond mining companies seems to be colluding not to remit anything to the district thereby leaving the authorities with a herculean task of making to do with limited resources from other coffers.”
Cosmus Sunguro, chair of the labour union said these revelations exposes government’s insincerity on transparency and accountability as they allowed Anjin to bounce back without addressing its legacy debt, environmental damage and its unclean past on labor relations.
Sunguro said the governance of diamond mining in Zimbabwe and overall management of finite natural resources leaves a lot to be desired as it is failing to foster expected sustainable development from natural resources.
He said this raises questions over the prudence of consolidation of mining companies under ZCDC, as the government owned corporate is charting an unsustainable path, operating under the same veils of secrecy like its predecessors.
Sunguro said hope of benefiting from diamonds is evaporating as the state miner is now said to be facing viability challenges, failing to pay its workers and recently applied for a loan from a local bank to meet labour costs.
“As ZIDAWU we are still at pains to understand how the company was allowed to have another dance in the diamond mining sector given its total fragrance in observing mining laws. Now with Anjin back without settling the previous debt, what hope do we have it will honor its tax obligations.
“The resources are finite and we will have nothing to show for future generations except for degraded land and destroyed environment if definite measures are not taken.
“There is no hope of the ordinary Zimbabwean to benefit from the natural resources in the face the major diamond mining company reported to be bankruptcy. So far it seems it (ZCDC) has failed dismally to bring the desired results and the purpose of which it was created for falls away,” said Sunguro.
Mutare RDC CEO confirmed this, claryfing that said council has a writ of execution to recover outstanding levies, while some companies have since paid back their dues and currently ZCDC is fulfilling its obligations.
Chinaka said his comments were meant to dispel public perception that the RDC was failing to provide quality service, when council received its full share from the mining companies.
“At the time companies shut down they owed us as a council. We are getting support from ZCDC which has been paying but the money comes late.
“There are companies that were owing when they closed, some of them have been paying, what I am not at liberty to discuss are these outstanding amounts because like I indicated some of them have been paying.
“Anjin when the mining companies closed also owed, we have engaged them since they resumed operations, indicating to them that they owed us.
“They have acknowledged their debts but they indicated that they are not yet in full scale mining and they have not sold as they engaging in exploration services,” he said.
