HARARE – A new row has erupted over Zimbabwe’s controversial Marange diamonds – this time over control of the revenue from last week’s auction of 900 000 carats.

Also in dispute is the value of the auctioned diamonds, with various
figures thrown around ranging from US$72 million to US$250 million.

Zimbabwe began selling its stockpiled rough diamonds from the Marange
fields last week after nearly a year during which the country was not
allowed to sale gems from the controversial area where soldiers have
been accused of human rights abuses.

But a political row has broken out over the diamond revenue amid
reports that Finance Minister Tendai Biti wants net revenue from the
sale deposited with the Treasury.

Sources said Biti has clashed with Mines Minister Obert Mpofu over who
should be the custodian of the diamond process.

“Biti wants the state-owned Zimbabwe Mining Development Corporation to
pay all its net revenue to the Treasury while Mpofu is adamant that
the ZMDC should retain the net proceeds from the Marange sales and
only pay annual dividends to the government,” one source said.

The row comes barely a month after Biti made a passionate plea for the
diamond industry watchdog Kimberley Process to allow Zimbabwe to
resume exports of rough gems from the Marange area, arguing that the
cash-strapped Harare government desperately needed the money in order
to balance its books.

The Movement for Democratic Change secretary general spoke of a
government consensus to takeover all the alluvial diamond mining in
the country.

The move to centralise control of the diamond funds comes in the wake
of claims by Biti who said in his mid-year budget review that the
government could not account for US$30 million earned from exports of
the Marange diamonds last year.

Human rights organisations accuse the country’s army of abuses against
hundreds of illegal miners who descended on Marange and have said no
diamonds from the fields should be sold until rights issues are
addressed.

Diamond sales from the field in eastern Zimbabwe were suspended in
November 2008 after accusations by human rights organisations of
killings and brutality by the Zimbabwe security forces that were sent
to clamp down on smuggling and illegal sales.

The value of the gems is also in dispute.

Prime Minister Morgan Tsvangirai and KP monitor for Zimbabwe Abbey
Chikane put the value of last Wednesday’s sale at US$72 million while
Mpofu said auction brought in about US$250 million.

Analysts said even the US$72 million figure was an exaggeration for
the gems sold, translating to an average of US$82 per carat.

They said the Marange diamonds are estimated to be worth about half
that, averaging US$35-US$50 per carat.

By The Zimbabwean