Melinda Kusemachibi
The national extensive research on public resources management report published by the Zimbabwe Coalition on Debt and Development (ZIMCODD) for the period ending February 2022 has revealed that revenue flow remains insignificant because of corruption practiced by the public officials.
The report says there is poor revenue inflows to the treasury as a result of corruption and other illicit activities especially in the mining sector.
“Despite high earnings from minerals, revenue flows to the Treasury remain insignificant due to elevated corruption by public officials. The mining sector is under siege of illicit financial flows like the smuggling of gold. For example, government estimates that it is losing about US$ 100m worth of gold per month to smugglers,” read part of the report.
The report also highlighted that mining communities have nothing despite poor infrastructure which hangs in such areas.
“The mining host communities like Mutoko and Chiadzwa have nothing to show from granite and diamond mining respectively besides poor infrastructure, degraded environment, polluted air and water resources as well as forced relocations to pave way for unsustainable mining activities.
“As such, there is need for government to expedite the rolling out of the electronic mining cadaster system and the Mines and Minerals Amendment Bill which seeks to pluck leakages and increase transparency in mining,” the report read.
ZIMCODD also revealed that the mining sector is important in the economy of Zimbabwe as it contributes 60percent to annual export receipts.
“The mining sector is a key for Zimbabwean economy as it contributes about 60percent to annual export receipts and at least 14percent to Gross Domestic Product (GDP). The gold sub-sector also provides direct employment and income for artisanal miners who are predominantly youth.
“Gold is a safe haven asset during the time of uncertainty, a characteristic it derives from its long history of use as a currency and a store of value. At US$ 1.6b, gold exports constituted 27percent of total exports in 2021. The value of other minerals like nickel and Platinum Group Metals( PGMs) also fetched high global prices in 2021 thanks to increased global business activity from a severe Covid-19 induced recession experienced in 2020,” added part of the report.
Contacted for comment on the situation currently obtaining in the mining sector after the proliferation of more small scale and in some cases illegal mining activities notably around Manyama and Bhuka areas, Masvingo Provincial Mines Director Marshal Muzira said that he is not authorized to speak to the media.
“Unfortunately I am not authorized to speak to the media on ministry’s issues,” said Muzira.
At one point, current President of the Zimbabwe Miners Federation (ZMF) Henrietta Rushwaya was arrested by police as she was boarding a flight to Dubai from Robert Mugabe International Airport in Harare in October 2020. It is reported that she was caught trying to smuggle six gold bars worth around US$366 000.
In 2021 BatterBrands Mining Company owner Scott Sakupwanya faced arrest after his company allegedly snatched 132 gold mining blocks from Redwing Mine in Penhalonga in connivance with Redwing judicial manager Cecil Madondo.
