Maravi

(NEWZIMBABWE) West blocking diamond sales: Mugabe

COMMENT - From former South African president Thabo Mbeki:

" "It was perfectly clear to the political leadership in this Southern Region of Africa, and indeed the masses of the people in all our countries, that the determination by some from elsewhere in the world to effect this ‘regime change’ in Zimbabwe had to do with fundamentally undermining and weakening the historically and strategically important right of the peoples of Africa to self-determination," he said. "

West blocking diamond sales: Mugabe
12/11/2012 00:00:00
by Business Reporter

ZIMBABWE is being forced to sell diamonds from Marange in the eastern Manicaland province at sub-market prices because of sanctions imposed by the West, President Robert Mugabe said Monday.

Addressing an international diamond conference at the Victoria Falls resort which was also attended by former South Africa President Thabo Mbeki, Mugabe said: “The diamonds have been marketed at depressed prices owing to a negative buyers’ perception resulting from these illegal sanctions.

“In this regard, may I urge the diamond industry players to call for fair play in the marketing of our diamonds from Marange.”

Western countries imposed sanctions against Zimbabwe more than a decade ago, accusing Mugabe’s government of rights abuses and electoral abuse - allegations denied by the Zanu PF leader.

Although political tensions have since eased following the establishment in 2009 of a power-sharing government between Mugabe and long-term rival, Morgan Tsvangirai, now Prime Minister, a campaign to have the sanctions removed has met with little success.

Chaim Even-Zohar, president of an Israeli diamond consultancy told the conference that Zimbabwe was selling its diamonds at rock-bottom prices as most foreign buyers were scared of falling foul of a US ban against trading in Marange diamonds.

Even-Zohar said "major companies are scared, (and) insurance companies are afraid" of the US Office of Foreign Assets Control, forcing the country to dispose of its gems at 25 per cent less than their full value.

Rights groups have also continued a campaign to have the Marange stones classified as tainted despite the country complying with the requirements of industry watchdog, the Kimberly Process.

On Monday a Canadian group released a report to coincide with the conference claiming that at least $2 billion worth of diamonds had been stolen from the Marange fields with most of the money allegedly enriching President Mugabe's ruling circle.

Marange has seen "the biggest plunder of diamonds since Cecil Rhodes," the colonial magnate who exploited South Africa's Kimberley diamonds a century ago, charged Partnership Africa Canada (PAC), a member of the Kimberley Process, the world regulatory body on the diamond trade.

"Marange's potential has been overshadowed by violence, smuggling, corruption and most of all, lost opportunity," the PAC report said.

"The scale of illegality is mind-blowing," and has spread to "compromise most of the diamond markets of the world," said the report.

The allegations were however dismissed as “totally false” by Goodwills Masimirembwa, chief of Zimbabwe Mining Development Company.

"No diamonds have ever gone missing. When we are selling our diamonds all stakeholders, the police, revenue board and the country's mineral marketing body come together,” said Masimirembwa.

"So are they saying all these institutions are in collusion? Instead, let them come up with specific allegations, then the police will investigate."

Meanwhile, Mugabe said the government would speed up formulation of policy and legislation such as the Diamond Policy and the Diamond Bill to address transparency concerns by the international community.

“Government remains steadfast in the promotion and maintenance of transparency and accountability, not only in the diamond sub-sector, but also in all other sectors,” he said.

“Given (our) commitment to upholding of international industry standards and requirements, it goes without saying that diamonds from Zimbabwe must, in the same spirit, be allowed market space in order to trade competitively and fully benefit the nation.”

Mugabe’s call was also backed by Mbeki who said sanctions imposed by the West had nothing to do with concerns for human rights and democracy.

"It was perfectly clear to the political leadership in this Southern Region of Africa, and indeed the masses of the people in all our countries, that the determination by some from elsewhere in the world to effect this ‘regime change’ in Zimbabwe had to do with fundamentally undermining and weakening the historically and strategically important right of the peoples of Africa to self-determination," he said.

posted by MrK @ 9:15 PM