At least $2 billion (£1.3bn) worth of diamonds have been stolen from Zimbabwe’s eastern diamond fields in ‘the biggest plunder of diamonds’, according to an organisation leading the campaign against conflict diamonds.
It is said that a cash-strapped Zimbabwe is selling its diamonds to few takers at give-away prices as most foreign buyers shun the country isolated by its former western allies, an expert said on Monday.
Chaim Even-Zohar, president of the Tel Aviv-based diamond consulting service Tacy Limited, said that Zimbabwe has the potential to produce 8.0 to 10 percent of global gem production but was not benefiting fully as potential buyers were worried about trading with Zimbabwe.
“Although you are totally KPCS-compliant, major companies are scared, insurance companies are afraid of OFAC (the US Office of Foreign Assets Control) and you sell your goods at 25 percent less in value,” said Even-Zohar referring to the international Kimberley Process Certification Scheme.
Even-Zohar was addressing a conference organised by the government of Zimbabwe to try to spruce up the country’s tainted diamond industry.
“We want you to unlock the diamond wealth because we all need it. You are not capturing the full value of your goods.”
Zimbabwe’s diamond sector has been blemished by allegations of graft, and labour and human rights violations which occured when Harare deployed security forces to drive away illegal miners from the eastern Marange diamond fields.
Global watchdog Kimb-erley Process then suspended exports from there but lifted the ban after government said it had pulled the security forces out of the area.
Finance minister Tendai Biti complained in July that of the $600 million diamond revenue expected this year, only $46 million had materialised.