The recent moving of Zimbabwe’s mines and indigenisation ministers, Obert Mpofu and Saviour Kasukuwere, respectively was viewed by some people as a sign that President Robert Mugabe’s new government will seek to bring sanity to the diamond industry and soften its position on the much dreaded indigenization programme.
However, Centre for Natural Resource Governance (CNRG) communications and advocacy officer Tafadzwa Kuvheya told Rough & Polished’s Editor in Chief of the African Bureau, Mathew Nyaungwa that they do not believe the moving of individuals from these ministries would bring much change if the policies are still intact.
She said given the outcry over disappearance of diamond revenues, Mugabe should have appointed a commission of inquiry to investigate what was happening.
Kuvheya said with ZANU-PF now in full control of the Treasury, chances were high that diamond revenue will flow in to sustain government operations.
She also noted that the decision to change the country’s indigenisation minister was meant to calm the nerves of investors without necessarily abandoning the programme.
Kasukuwere, in her view, had become “too loud” and controversial in his handling of the indigenisation law.
Below are the excerpts of the full interview.
Zimbabwe’s President Robert Mugabe recently moved Obert Mpofu from the mines ministry. How did you accept news?
That Obert Mpofu has left the Mines Ministry is not the main issue to be discussed. Individuals come and go but institutions remain and so it is the change in policy practice that matters to CNRG. President Mugabe did not change much on his cabinet. It is quite possible that Mpofu was just moved to another Ministry just like a few others who were also moved to new Ministries. It was more of a reshuffle than anything else…
In your view, how did Mpofu handle diamond mining in Marange?
Mpofu took over the Ministry of Mines at a time government had exchanged good governance for political survival. He became a big man; bigger than the Ministry and government itself because institutions had decayed. Some of the wrong things he did were party policy under the inclusive Government. In the process he must have immensely benefitted from the organized chaos.
Can he be held responsible for the poor remittance of diamond revenue to the Treasury, as alleged by former Finance Minister, Tendai Biti?
He is partly responsible as the Mines minister. However, even if the most transparent person was appointed to his position there is no guarantee revenues would have flown to treasury. CNRG believes strengthening institutions is critical if corruption is to be minimized. There was enough evidence pointing to failure by companies to remit and the complicit of the Ministry of Mines in all this. Given the outcry over disappearance of diamond revenues, the President should have appointed a Commission of Inquiry to investigate what was happening. On the contrary, the President attacked sanctions and his detractors for preventing Zimbabwe from selling its diamonds through the normal channels.
Do you see diamond operations becoming open in Marange with the departure of Mpofu?
Just like I mentioned earlier, the issue of transparency in Marange is not a “Mpofu” issue. The system which Mpofu operated under is still intact. It's a governance issue. Parliament must be allowed to carry out its oversight role without interference. Law enforcement agents should be untied so that they can do their job professionally. Above all there is need for political will to ensure there are no sacred cows as far as fighting corruption is concerned.
Do you think that the new Finance Minister Patrick Chinamasa will manage to account for diamond revenue?
There is certainly going to be some increase in revenue flows to treasury as ZANU PF is under pressure to deliver. We are however not sure how much change is possible given that problems with Marange diamonds are deeper than merely remitting revenues. It's about the shareholding structures of the companies, how the diamonds are going to be sold and the commitment of buyers to declare what they have paid publicly.
Your prognosis of Zimbabwe’s diamond industry under the new leadership in both mining and finance ministries?
Now that MDCT is out of government, ZANU PF will implement some minimum reforms just to ensure treasury receives adequate revenues to keep government running. However opaqueness and corruption will continue because there is less likelihood of legislative and institutional reform under this government.
EU recently lifted sanctions on ZMDC, to allow unhindered trading of diamonds from Marange in Europe. What’s your comment on that?
The lifting of EU sanctions on ZMDC is a welcome development though its impact is debatable. Over the years the government argued that transparency and accountability in the diamond sector was undermined by sanctions. The EU move disarms those who used sanctions as an excuse for every vice in the sector.
Former indigenisation minister, Saviour Kasukuwere was said to be a thorn in the flesh of foreign owned entities, including mines. Is Zimbabwe softening its stance on indigenisation?
I think the decision was meant to calm the nerves of investors without necessarily abandoning the indigenization project. Kasukuwere had become too loud and rather controversial in his handling of the indigenisation law. The cost of keeping Kasukuwere in the indigenisation ministry was now higher than the cost of removing him. During an interview on his 89th birthday, President Mugabe highlighted Kasukuwere’s incompetence in formulating the indigenization deal with ZIMPLATS.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
