MEMBERS of the security forces and Reserve Bank of Zimbabwe (RBZ) officials tasked to maintain order and security in the mining sector have been accused of the smuggling of the precious mineral outside the country, a new damning report shows.
The revelations come at a time the
government is struggling to contain gold smuggling amid stunning official
disclosures that illegal dealers are shipping at least US$1,5 billion worth of
gold outside the country annually.
The report, by Southern Africa Resource
Watch (SARW), claimed that soldiers and police officers have been increasingly
involved in illegal gold activities since the 2017 military coup which toppled
the late former president Robert Mugabe in favour of the incumbent, Emmerson
Mnangagwa.
Police spokesman Paul Nyathi could not
comment yesterday as he said he had not read the SARW report.
He said: “We have not been furnished with
the report. Therefore, we cannot comment on it. May those who produced the
report forward it to us; then we can start from that point.”
Reached for comment, Zimbabwe National
Army (ZNA) spokesperson Alphios Makotore said he was out of office and would
only respond to the issues raised in the report today.
RBZ governor John Mangudya said: “We are
not aware of that as a central bank. If they have more information they can
give us. We are not aware of that. It’s news to us.”
However, the SARW report claimed that most
of the gold is illegally shipped from small-scale mines, to the bullion-trading
hub of Dubai and to South Africa.
Zimbabwe’s mining sector plays a
significant role in the development of the country as it brings in foreign
currency and contributes towards export earnings.
Since 2009, the mining sector has become
the fastest growing with both small-scale mining companies, artisanal miners
and multinational companies taking part in the gold rush.
But as a result of illicit financial
flows, Zimbabwe has been losing money through gold smuggling into neighbouring
South Africa and the United Arab Emirates.
To make matters worse, the security
sector, which is supposed to guard against gold smuggling, is deeply involved
in the illicit gold market, according to the latest report titled Illicit Gold
Markets in East and Southern Africa by the Global Initiative Against
Transnational Organised Crime (Global Initiative).
The report further indicates that a joint
committee comprising soldiers, police officers and RBZ officials known as the
Gold Mobilisation Technical Committee (GMTC), which in theory is entrusted with
harmonising the work of different government institutions that have a stake in
compliance issues in the gold sector and the mandate to plug gold leakages, has
in fact become a major facilitator for gold smuggling.
Initially, the report says, the committee
consisted of officers and RBZ officials, but soldiers, through the ZNA’s
investment vehicle, Nkululeko/Rusununguko Holdings, forced themselves onto it
and assumed leadership of the outfit. This then corresponded with an
unprecedented surge in gold leakages as Dubai emerged as the leading
destination, overtaking South Africa.
Interestingly, this also coincided with a
sharp decline in official deliveries to the Fidelity Printers and Refineries
(FPR) — the RBZ’s sole gold marketing entity. Recently, RBZ figures show that
in 2018, Zimbabwe received 34 tonnes of gold before the figures tumbled to 25
tonnes in 2020.
“It is not exactly clear when the GMTC was
formed, but RBZ attributed increased gold deliveries from ASGM (Artisanal and
Small-Scale Gold Mining ) in 2015 partly to the efforts of the GMTC,” the
report says. “Initially, the GMTC comprised RBZ, and the ZRP department
formerly called the Minerals Border and Control Unit, now called the Minerals,
Flora and Fauna Unit.
“Zimbabwe’s military is also becoming more
involved in the country’s illicit gold markets. After the military-assisted
change of government in November 2017, the military, through its investment
arm, Nkululeko-Rusununguko Holdings, is now part of the GMTC, and in fact is
its de facto leader.
“GMTC is also involved in the vetting and
final approval of gold buying licence applications. There are now stationed
units of the GMTC in each province that regularly monitor the activities of
gold producers — large-scale and small-scale producers. Their interest covers
record-keeping, gold production returns, remittance of gold to Fidelity
Printers and Refiners, and other compliance issues as required by the Mines and
Minerals Act, the Gold Trade Act, and the Environmental Management Act.”
The report also accuses the GMTC of being
a haven for corruption as its officials allegedly solicit bribes from miners.
“Because of the potential rent-seeking
opportunities this offers, as well as sizeable allowances, the GMTC is reported
to be an attractive posting for military officials. The ZRP and army officials
have been accused of frequenting mines and processing centres known to be
non-compliant with licensing regulations in order to extort bribes. It is
alleged that known gold buyers also pay regular bribes to the ZRP,” it said.
The report also notes that Chinese
nationals are prominent and influential actors in Zimbabwe’s gold sector where
they have formed partnerships with Zanu PF elites, along with senior military
and ZRP officers. Benefits allegedly include fast-tracking licences and
protection from law enforcement agencies.
The report says one industry
representative reported that the Chinese have the audacity to tell government
compliance officers that “they are small boys”.
“Chinese nationals rarely buy gold not
produced at their milling centres and reportedly offer competitive gold prices,
especially when wanting to retain a trade relationship with a miner who has
quality gold ores,” the report says.
“The quality of law enforcement heavily
dictates whether the gold sector can be captured by criminals or not. The
police may do their jobs to the letter of the law but, equally, they may become
a tool to be used by corrupt politicians to get control of mining operations
and markets.”
The report also noted that there were
several mining disputes that occurred in Zimbabwe when multiple mining titles
were granted for the same location.
“While mining activity should be suspended
while disputes are resolved, many actors instead use violence, political
connections and bribery to continue operating in disputed areas,” it said.
“This is especially the case when a gold
rush occurs, with senior politicians reportedly abusing their power to quickly
secure ownership of claims. If they are unable to secure permits, they may
employ machete gangs (traditionally used for political violence during
elections) to displace ASGM miners, secure access to mine sites and, in some
cases, steal gold ore.”
The report said in Zimbabwe, if a miner
finds a profitable gold site, they must share the profits with senior
politicians to secure protection against machete gangs.
In some cases, this can reflect a
significant part of the value of the gold, which can add up to hundreds of
thousands of dollars, according to the report. Zimbabwe Independent
0 comments:
Post a Comment