A forensic audit ordered by the Zimbabwean government of companies licensed to mine diamonds at Chiadzwa has revealed massive differences in the price the miners sell their diamonds for.
One company, Mbada Diamonds, could be responsible for revenue losses to the state of millions of US dollars through under-invoicing on a massive scale.
The underpricing scandal emerged during a tour of some of Zimbabwe’s diamond fields by a parliamentary committee on mines and energy.
Some Chiadzwa diamond mining companies, including Mbada, opposed the investigation and the forensic work only began after the state invoked the Auditor-General’s powers for the audit to proceed.
The audit revealed that the average price per carat Mbada invoiced its diamonds for was far lower than that of other firms extracting the same gems from Chiadzwa.
Mbada invoiced diamonds at US$23 per carat while Jinan booked its gems at almost US$89 per carat on its invoices.
The remaining three companies audited invoiced at similar values. Anjin invoiced at US$44, Diamond Mining Company at US$46.66 and DTZ at US$49.42 per carat.
Categories: Trade Based Financial crimes News