Chefs loot US$4 million from MMCZ

State officials manipulated data and violated accounting procedures to abate the looting of mineral revenues in the country in the past few years, with the Minerals Marketing Corporation of Zimbabwe (MMCZ) losing US$4 million, a Parliamentary investigation has revealed.

The looting spree affected all minerals, including diamonds, raising fears of aggravated theft by senior civil servants who have been capitalising on porous control systems in the administration of minerals.

This was revealed in a report by the Parliamentary Portfolio Committee on Mines and Energy, submitted to the august House on April 6, 2017, but was only released to the public last week.

It questions the involvement of security forces in the finances of MMCZ, and fires a broadside at top government officials for facilitating illicit financial outflows to shadowy foreign firms, even after the State had fully entrusted them to manage national resources.

But most importantly, the report lifts the lid on the backstage dealings that have benefitted many more foreign nationals and a few well-connected individuals, locally. This was at the back of revealations by President Robert Mugabe in 2016 to the effect that the country lost diamonds worth US$15 billion last year.

The latest report queried why MMCZ officials were barred from monitoring mineral production in diamond mines, seen as bastions for unchecked looting, when the rest of the mines were under the purview of its officers.

“The committee received evidence from the former acting general manager of MMCZ, Mr Richard Chingodza of illicit financial flows from the extractive sector,” said the report.

“Some of the illicit financial flows were aided or facilitated by government officials, in clear violation of government accounting procedures and regulations. The MMCZ lost approximately US$4 million. The money was transferred to Pedstock, an agricultural company, which further transmitted it to an unknown recipient who resides outside the country,” the report added.

“The permanent secretary in the Ministry of Mines and Mining Development Professor Francis Gudyanga admitted to the committee that the money was sent to the unknown recipient who is a foreigner and his identity could not be disclosed because it will jeopardise the State security operations aimed at curbing leakages and smuggling of minerals.

The committee learnt that the permanent secretary of Mines and Mining Development…had both personal and official links with Pedstock,” the committee said.

The US$4 million is much higher than the US$1,3 million said by the committee in November last year to have been made to a company called Glamer Limited, through the Israeli farm input firm, Pedstock Investments.

Payments to Pedstock and Glamer had been under the mines portfolio committee’s spotlight since June last year, when Gudyanga, refused to disclose why he directed MMCZ to make the payments.

“The committee was informed that MMCZ has paid for some of the Ministry of Mines’ expenses, activities and programmes, yet these should be supported by Treasury. Some of the payments have found their way into personal accounts, and an example was cited of payments made into the account of Mr Nzarayapenga whose credentials the committee did not find but was alluded to during an oral evidence hearing with the acting general manager, Mr Richard Chimbodza. During the fact finding mission to Marange, the committee noted the absence of MMCZ at the mining operations yet its officers are visible in other mining operations which include platinum where government does not necessarily have a controlling shareholding,” the report added.

The MMCZ’s role in the mining sector is to advise government on the marketing of minerals.

However, government has tabled plans to transform the parastatal into an exploration company with the mandate of ascertaining the value and location of mineral reserves in the country. Financial Gazette