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August 2010 Vol 22, Mining and Industry Indaba

ZANU-PF infighting spills into mining sector

Wed, Aug 18, 2010

The suspension of the Zimbabwe Mining Development Corporation’s chief executive officer and three other top managers, allegedly for misappropriation of US$40 million in proceeds from gold and diamond sales, is being linked to vicious infighting in ZANU PF circles.

Chief Executive Dominic Mubayiwa, Finance Director Robert Karemba, Group Technical Manager Albert Chitambo and Corporate Secretary Tichaona Muhonde, were recently placed on forced leave at the instigation of Mines Minister Obert Mpofu.

Mpofu last month brought in Goodwills Masimirembwa to become ZMDC chairman after going on record as saying ‘times of protection and connections’ will soon come to an end. A source told us on Tuesday the remarks were ‘obviously’ aimed at Mubayiwa, who was reported to be always at loggerheads with Mpofu over the handling of the diamonds cash.

It has taken government almost two years to act on Mubayiwa who was fingered in a Reserve Bank report that claimed the ZMDC could not account for almost $20 million from diamond sales.

But the former ZMDC board, stashed with loyalist from the Solomon Mujuru faction, failed to take any action or carry out investigations into the allegations.

SW Radio Africa is reliably informed that matters came to a head when Mubayiwa reportedly gave out information of the full corporate breakdown of the companies involved in the Chiadzwa diamonds.

The information that Mubayiwa, released was deemed too sensitive to the ZANU PF establishment, especially those linked to the Emmerson Mnangagwa faction. Mpofu is reportedly linked to that camp and according to Mubayiwa some Mbada board members are allegedly close relatives to the minister.

The suspended ZMDC boss identified Sithengisiso Mpofu as one those on the board of Mbada, one of the companies government is ‘allowing’ to mine the controversial diamonds at Chiadzwa, Marange. The board chairman is Robert Mhlanga, a former Presidential helicopter pilot to Robert Mugabe. -
SW Radio Africa

By SW radio

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