The Zimbabwe Coalition on Debt and Development (ZIMCODD) has bemoaned corruption and mismanagement in the mining sector as a hindrance to the attainment of the US$12 billion industry target.
In a situational report for February 2022, the socio-economic justice coalition said the vision remains a pipe dream if necessary steps are not taken to amend the Mines and Minerals Act.
“The mining sector has remained one of the most corrupt and mismanaged sectors yet it has the capacity to transform the fortunes of the country if prudently handled. The attainment of the US$12 billion mining vision remains a pie in the sky if bold steps are not taken to advocate and lobby for the fast-track of the Mines and Minerals Bill (MMB).
“The MMB was introduced in order to amend the Mines and Minerals Act (MMA: Chapter 21:05) which is now an outdated legislation. The MMA was crafted in a manner that safeguards the interests of the ruling class and elite. Thus, it has many loopholes that those connected to the upper echelons always manipulate to their own benefit,” read the report.
ZIMCODD said allegations of mine grabs against Mines Minister Winston Chitando raise alarm and lamented the adoption of the Mines and Minerals Bill to avoid confusion.
“The recent allegations of mine grabs against the Minister of Mines and Mining Development Winston Chitando area cause for concern and a reflection of the abuse of power. Chitando is said to have grabbed eight gold mining claims that belonged to Yakub Ibrahim Mohamed and re-issued them under a special grant to Golden Reef Mining (Pvt) where he is a Director.
“Vested interests are projected in Chitando’s decision as it is embedded with rent-seeking given his history with Yakub Ibrahim Mohamed who at one point engaged Chitando for a partnership before he was appointed Minister of Mines. However, the minister might claim ignorance of the grab arguing that he was not aware. A common feature in mine allocation within the ministry which has led to double allocations and confusion among investors.
“Nevertheless, ZIMCODD believes that if the MMB is adopted the confusion and double allocations are likely to go away as it has provisions that are meant to promote transparency and accountability in the allocation of claims through a cadaster system.” the report said.
