The Zimbabwe Anti-Corruption Commission (ZACC) has been called upon to launch an urgent investigation into alleged large-scale financial fraud, money laundering and asset stripping at RioZim Limited, one of the country’s oldest and formerly most respected mining companies.
In a detailed criminal complaint dated 24 September 2025, the Zimbabwe Diamond and Allied Minerals Workers Union (ZDAMWU) accused RioZim of criminal activity occurring within the company including the diversion of trading revenues into private accounts, secret disposal of mining assets and the creation of shell companies to disguise transactions.
According to the union’s General Secretary, Justice Chinhema, the allegations point to a systemic looting scheme that has defrauded not only minority shareholders and workers but also the Zimbabwe Revenue Authority (ZIMRA) and the investing public.
“Funds generated from RioZim’s trading activities were allegedly channelled through accounts belonging to Rio Gold (Private) Limited, raising serious questions about transparency and disclosure to ZIMRA,” reads part of the complaint.
The union alleges that after ZIMRA garnished RioZim’s bank accounts, alternative accounts including one at CABS under the name Rio Gold (Private) Limited were used to receive and redirect company income.
ZDAMWU also claims RioZim illegally sold coal claims from its Sengwa Colliery operations three months after being notified by the Ministry of Mines of the cancellation of its special grant, SG 849, in August 2024.
The proceeds from those sales, the union says cannot be traced back to the company.
“This behaviour constitutes a serious offence as it undermines government authority,” the union warned adding that the move was concealed from both contracting parties and regulators.
Further allegations include that only a fraction of proceeds from the sale of the company’s One Step Mine were disclosed to stakeholders or tax authorities — a move described as a deliberate effort to defraud minority shareholders, the investing public and ZIMRA.
ZDAMWU also raised alarm over the registration of “unrelated entities” under false pretences, allegedly used to funnel money out of the company.
One such entity, Takaoma Investments (Private) Limited registered in 2025 is cited as a conduit for undeclared transactions disguised as loans.
Chinhema’s letter also highlights past police investigations including cases handled by Highlands Police and the Commercial Crime Division that were closed under questionable circumstances suggesting possible interference.
The union argues that the alleged corruption has contributed to RioZim’s collapse from blue-chip status to near insolvency, threatening thousands of jobs and investor confidence in the mining sector.
“This matter is of national importance. The alleged looting at RioZim affects not only its employees but the entire investing public and the credibility of Zimbabwe’s capital markets,” Chinhema said.
