The
Marange Diamonds US$2 billion: The people vs potential oligarchs.
Marange Diamonds US$2 billion: The people vs potential oligarchs.
By
Takura Zhangazha.
Takura Zhangazha.
Newsday of 08 November 2011, reported that civil servants are to
be paid bonuses from the proceeds of the sale of Marange Diamonds. Quoting Prime
Minister Tsvangirai, the same story indicated that the government intends to
raise US$300 million by end of November 2011 in order to pay the civil service salary
bill plus bonuses. This announcement comes hard on the heels of an announcement
by the Minister of Mines and Mining Development, Mr. Obert Mpofu that the government expects a gross amount of US$ 2 billion yearly from the sales of the
diamonds that was given the green light by the Kimberly Process Certification Scheme (KP) at a review
meeting in the Democratic Republic of the Congo in the last two weeks. In his announcements, Minister Mpofu had not
however indicated what the proceeds from the selling of the diamonds would be utilized
for by the government.
Tsvangirai has however given the first hint at what the diamond wealth will be
used for, well at least US$ 300 million of it.
We are however not yet clear as to what the other potential US$1, 7
billion will be used for.
A number of my economist
friends have already pointed out to me that the Zimbabwean public must be
cautious about the figures that the government, through the Ministry of Mines,
has issued.
friends have already pointed out to me that the Zimbabwean public must be
cautious about the figures that the government, through the Ministry of Mines,
has issued.
This is because the US$ 2 billion is not necessarily what the
government will get into its coffers. This is because the projected value of the
sales of the diamonds does not translate into what the government will make
because it is not the government that is selling them, but companies that have
been granted extraction rights in Marange. Government may get a windfall but
that windfall is probably not US$2 billion. And therein lies the first problem
with what the Prime Minister and the Minister of Mines have announced.
government will get into its coffers. This is because the projected value of the
sales of the diamonds does not translate into what the government will make
because it is not the government that is selling them, but companies that have
been granted extraction rights in Marange. Government may get a windfall but
that windfall is probably not US$2 billion. And therein lies the first problem
with what the Prime Minister and the Minister of Mines have announced.
no clarity as to how much exactly is government expecting out of the Marange
precious stones. But already we have pronouncements about a holistic estimated
amount as well as a specific amount to pay civil servants’ bonuses. Given the
fact that there is no love lost between the Prime Minister and the Minister of
Mines over the contentious issue of the Marange diamond fields, I am sure there
will be a another policy pronouncement as to what the money might be used for,
and perhaps this time from a Zanu Pf minister. And therein lies a second problem
which is that of the politicization of the potential diamond revenue. The MDC
and Zanu Pf are going to scramble to claim the credit as to how the money was
eventually used for the purposes of their own individual party political interests.
This is despite the fact there is limited clarity, as confessed in the last
budget by the Minister of Finance, about
how much the fiscus has been getting or will actually get.
Having initially been
confronted with the dilemma of accepting
the fact that after all the noise that has been made about the Marange diamonds
being ‘blood diamonds’ they are now being sold on the world markets, we are now
faced with a new challenge. This being that of watching the inclusive
government haggle over who gets what, when, how and why from the potential but
unverified proceeds. This is primarily because the inclusive government does
not want to establish common ground on some fundamentals of its collective
responsibility to the people of Zimbabwe in times of our continuing economic
crisis.
confronted with the dilemma of accepting
the fact that after all the noise that has been made about the Marange diamonds
being ‘blood diamonds’ they are now being sold on the world markets, we are now
faced with a new challenge. This being that of watching the inclusive
government haggle over who gets what, when, how and why from the potential but
unverified proceeds. This is primarily because the inclusive government does
not want to establish common ground on some fundamentals of its collective
responsibility to the people of Zimbabwe in times of our continuing economic
crisis.
An easy question however would be what would
be this common ground I am referring to. The answer is that it is the ensuring
of administering a functional and social democratic society. This would further
mean that in the aftermath of the clearance by the KP, the inclusive government
must literally sit down to agree on the holistic usages that the revenue to be accrued
should be utilized for before making individuated statements to the same
effect.
be this common ground I am referring to. The answer is that it is the ensuring
of administering a functional and social democratic society. This would further
mean that in the aftermath of the clearance by the KP, the inclusive government
must literally sit down to agree on the holistic usages that the revenue to be accrued
should be utilized for before making individuated statements to the same
effect.
These considerations by theinclusive government should be premised on the firm understanding that the
Zimbabwean state is seriously challenged in relation to the social welfare
needs of its people. Any revenue that is derived from our minerals and at
potentially phenomenal profit levels should have the following key social
welfare targets: the re-introduction of
free access to public health; modernization of our hospitals; reinvestment in free public education; the completion of our pending dual highways
together with the refurbishment and re-introduction of an efficient public
transport railway system; the full and
comprehensive compensation of those displaced from Marange; a social grant system
for the physically challenged, the youth, women; a specific improvement of our
water retention systems (urban and rural) and the completion of the Zambezi
Water Project for Matebeleland.
These are straightforward
issues that establish the necessary ‘performance legitimacy’ mandate that the
inclusive government in its transitional nature, is burdened with, regardless
of the various political contestations that characterize it. Where there have
been disputes over how the diamonds have been mined and the allegations of
human rights abuses in the same processes, it is now an issue that must be
handed over to our newly established Human Rights Commission and investigated objectively
and fairly. But in order that we do not fall into the trap of creating ‘diamond
oligarchs’ in Zimbabwe, we must from the onset be very clear as to what we
intend to use the diamond revenue for, and whatever we decide, it must be in
the best public and social welfarist interest.
issues that establish the necessary ‘performance legitimacy’ mandate that the
inclusive government in its transitional nature, is burdened with, regardless
of the various political contestations that characterize it. Where there have
been disputes over how the diamonds have been mined and the allegations of
human rights abuses in the same processes, it is now an issue that must be
handed over to our newly established Human Rights Commission and investigated objectively
and fairly. But in order that we do not fall into the trap of creating ‘diamond
oligarchs’ in Zimbabwe, we must from the onset be very clear as to what we
intend to use the diamond revenue for, and whatever we decide, it must be in
the best public and social welfarist interest.
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