Veteran economist and former member of Zimbabwean parliament, Eddie Cross, has made alarming accusations regarding the disappearance of $20 billion worth of rough diamonds from Zimbabwe.
Cross implicates the late Robert Mugabe, who served as the country’s prime minister from 1980 to 1987, in personally misappropriating $1.3 billion of these diamonds.
Historical Context and Production
The Marange diamond fields, discovered by De Beers, began production in 2006. These fields, spanning nearly 100,000 hectares, were soon taken over by Zimbabwe’s Ministry of Mines. According to Cross, six companies with ties to influential government officials, including the state president, exploited these fields. He estimates that the Marange fields have yielded nearly $30 billion in raw diamonds since the beginning of production, with a third of this amount accounted for in costs and the remainder unaccounted for.
Parliamentary Revelations and Continued Corruption
In a recent blog entry, Cross detailed his efforts to highlight the large-scale theft from the Marange diamond fields during his tenure in parliament in 2012. Despite producing more carats than Botswana that year, significant leakages in economic output and income have persisted. Cross asserts that corruption permeates every sector of government, describing instances where bribes were demanded for routine governmental tasks.
The Bigger Picture
Cross’s allegations extend beyond the diamond sector, highlighting systemic corruption within the Zimbabwean government. He recounts an incident where he was asked for a bribe by a senior civil servant to perform a standard job function. Such widespread corruption can erode investor confidence and discourage foreign investment in the country’s mining sector.
Quotes from Eddie Cross
“We still suffer from massive leakages of economic output and income,” Cross writes. He also states, “Mr Mugabe famously asked where US$15bn had gone since mining had started. He knew the answer to that as I think he personally took $1.3bn.”
Cross further criticises the prevalence of corruption, noting, “It is well known that in certain ministries if you want a decision of any sort, you have to pay for it.” He adds, “This scourge soon also infects the private sector.”
Implications for the Jewellery Industry
These revelations of corruption and mismanagement have notable implications for the jewellery industry. The loss of $20 billion in rough diamonds not only represents an economic loss for Zimbabwe but also raises concerns about the ethical sourcing of diamonds. The involvement of high-ranking officials in these alleged corrupt activities affects the credibility of the country’s diamond industry globally.