A new report by The Sentry, an American investigative organisation, has uncovered a secret business network controlled by Zimbabwe’s Central Intelligence Organisation (CIO), potentially funding the agency’s operations beyond its official budget.
The CIO, responsible for domestic and international intelligence, has been accused of partisan and violent behavior, including intimidating voters in the 2023 election.
The Sentry noted that, despite its official budget, the agency has a history of engaging in private business ventures, including joint ventures in mushroom farming, exporting baby elephants and diamond mining.
The Sentry’s investigation reveals that the CIO likely controls Terrestrial Holdings, a conglomerate involved in hemp, solar energy, coal mining, tourism, and golf.
CIO-linked companies, including Terrestrial Mining and Whitelime Mining, have been awarded coal mining concessions near Lake Kariba, close to proposed and existing coal-fired power plants.
The companies mentioned in the report are: Terrestrial Holdings, Terrestrial Mining, Whitelime Mining, Chimanimani Logistics, Chapel Mining, Sino Zimbabwe, Sino Zim Cotton Holdings, Sino Zim Diamonds, Terrestrial Safaris, Rudgold Investments, Dashville, and Todware Investments.
The existence of an autonomous CIO business network raises concerns about the agency’s potential to operate without civilian control and financial oversight, leading to abuse of power.
The Sentry recommends that the Zimbabwean government dissolve the CIO’s businesses, wind up its investment branch, and ensure a single source of revenue voted for by Parliament.
The report also calls on banks and commercial counterparties to conduct enhanced due diligence into the ownership structure of Terrestrial Holdings and related companies to identify and mitigate risks associated with supporting a state security agency accused of human rights abuses and undermining democracy.
Companies operating in Zimbabwe’s coal mining sector should conduct ongoing due diligence to identify and mitigate risks associated with direct or indirect support for the CIO.
“The government of Zimbabwe should dissolve the CIO’s businesses, wind up its investment branch, and ensure through appropriate national security legislation that there is, in future, just one source of revenue for the agency, voted for by Parliament in the annual budgeting process.
“This would enable better oversight and accountability and allow for security priorities to be balanced against other civilian funding requirements during the budgeting process.
“The government should introduce an online, public corporate registry of directors and beneficial owners to replace Zimbabwe’s difficult-to-access paper-based system in which up-to-date information is often missing.
“At present, the records for Terrestrial Holdings and Chimanimani Logistics are missing from the company registry, while the records for Whitelime Mining appear to be out of date.
“Banks and firms doing business with Terrestrial Holdings and related companies should conduct enhanced due diligence—consistent with the United Nations Guiding Principles on Business and Human Rights—into the ownership structure of the entity to identify and mitigate risks associated with direct or indirect support for a state security agency whose members are accused of human rights abuses and undermining democracy.
“Companies operating in Zimbabwe’s coal mining sector should conduct ongoing due diligence consistent with the Organisation for Economic Co-operation and Development’s Due Diligence Guidance for Responsible Supply Chains of Minerals From Conflict-Affected and High-Risk Areas, with particular attention paid to identifying and mitigating risks associated with direct or indirect support for the state security agency, whose members are accused of human rights abuses and undermining democracy,” read the report.
The Sentry last week released a new report detailing the activities of the purported Central Intelligence Organisation (CIO) and its front organisation, Forever Associates Zimbabwe (FAZ), which played a role in President Emmerson Mnangagwa and Zanu PF’s controversial election victory.
