A report tabled in the Zimbabwe parliament by a government committee has criticised last year’s takeover of the diamond mining sector in that country and the consolidation of the operations of different mining companies under the single banner of the Zimbabwe Consolidated Diamond Company (ZCDC), according to reports in the local media.

The report by the Parliamentary Portfolio Committee on Mines and Energy was tabled by its chairperson Dr Daniel Shumba. The report states that the takeover of foreign diamond mining companies and the consolidation under a single state-run entity was incorrect and says that the expiry of leases was a “weak excuse” to get rid of the joint venture operations without paying any compensation. It opined that "the grounds for dispossessing the mining companies of their concessions are weak and indefensible” and said that these steps had hit investor confidence in the entire mining sector in Zimbabwe.

The committee was reportedly also critical of the lack of hands-on experience in diamond mining activity among those who were selected to lead the ZCDC contrasting this with the cumulative 127 of total experience between those who headed the mining operations for the earlier foreign companies. The committee said that this resulted in a lack of growth in output and absence of any meaningful returns from the sector.

The media reports also state that the committee pointed out that the Minerals Marketing Corporation of Zimbabwe (MMCZ) had failed to conduct strategic planning sessions to discuss critical issues, and suggested that “illicit financial outflows from the MMCZ should be thoroughly investigated by the auditor general, Zacc, and the ZRP before the end of June 2017.”

While calling for an audit and complete investigation into the handling of finances and particularly the transfer of funds to outside entities, the committee also questioned the role of the ZCDC's acting Chairman, Professor F.P. Gudyanga, who was also simultaneously holding the post of Permanent Secretary of Mines and Mining Development, the media has reported.

The committee concluded with nearly 20 recommendations that included the framing of a clear legal framework to effectively regulate mineral production and marketing, provision of appropriate punishment for offending companies, due diligence on mining suitors, working taxation laws, a comprehensive audit of diamond mining in Marange and a policy on the alluvial and artisanal miners who are working in the area.