MUTARE-Troubled state entity Zimbabwe Consolidated Diamond Company (ZCDC) is facing serious viability challenges and has failed to pay salaries to its employees for three months, it has emerged.
The government entity says these challenges have been triggered by travel restrictions to curb the spread of the COVID-19 pandemic, which have halted international diamond sales.
Most countries across the globe have closed their airspaces and borders to stop the spread of the deadly coronavirus.
ZCDC spokesperson Sugar Chagonda confirmed this development in the mainstream media, acknowledging that the state company was facing a myriad of challenges due to the pandemic.
He said the workers were aware of the viability challenges that was facing the company, which he said was now under control as they have devised innovative marketing strategies and have started to pay the outstanding salaries.
“It is true, the company, like many other organisations, has been facing a myriad of challenges owing to the COVID-19 pandemic, which affected our planned diamond sales, as you know most of our buyers come from around the globe,” he said.
“However, ZCDC has since deployed innovative marketing strategies in view of the obtaining challenges, we are glad that even the salaries you mentioned, payments to employees have commenced and production is underway.
“What we are facing is a situation our workers and stakeholders are well abreast of,” said Chagonda.
Some ZCDC workers are now reportedly openly inviting illegal diamond panners and diamond buyers to encroach into the company’s concessions for as they are struggling to make ends meet as a result of non-payment of salaries.
Recently the state miner was in the news when its entire board resigned in protest to what were termed predatory contracts, with Non-Disclosure Agreements, penned by the company and twelve investors.
Sources close to these developments also says the enmasse resignation was also triggered by the clandestine return of the Chinese miner Anjin, to Chiadzwa, without the board’s blessing as the company has unaddressed legacy issues.
