TINASHE MAKICHI/ TAURAI MANGUDHLA
Zimbabwe’s multi-million diamond sector has, once again, been thrown on the spotlight after it emerged that a controversial Lebanese businessman, Robai Hussein, is now actively involved in the sorting of the precious stones in violation of global standards, Business Times has established.
Diamonds mainly found in Marange, east of Harare, are a major source of revenue for the country, albeit covered under a veil of secrecy around operations of some mining companies.
Information gathered by this paper shows that Hussein, a dodgy personality, is reportedly using government’s metallurgical facilities for washing of his gems away from the radar of global diamond watchdog, Kimberley Processing Certification Scheme.
Hussein according to sources is not even licensed to buy diamonds in Zimbabwe.
This is in contravention of the KPCS minimum rules which require exporters to have KP certificates and also emphasises on traceability of origin of the gems.
Zimbabwe struggled to get KP certification until late 2011 due to incidents of violence and gross human rights abuses around diamond mining in Chiadzwa with concerns over transparency in processes and what was termed illicit diamond trade including smuggling.
Hussein is alleged to have been invited by senior Zimbabwe Consolidated Diamond Company (ZCDC) officials to set up a de-coating plant for diamonds in the country. This is in spite of the fact that local companies could have offered de-coating services at much lower charges.
ZCDC finance director Charles Gambe is also alleged to have invited Hussein to undertake the same project despite local companies having the capacity to clean the diamonds.
Business Times is further informed that Gambe at one time contracted South Africans to undertake the de-coating exercise at inflated prices, an allegation which Gambe refuted saying it was a government to government engagement and that nothing concrete came out of it.
Gambe denied all the allegations. He also said this was just a fight between Kenako and Hussein who are trying to outwit each other and has no involvement of ZCDC officials.
“We are not looking for people to do de-coating of diamonds but we were approached by individuals and companies with proposals that they can undertake the de-coating process to increase the value of the diamonds. On the local front Kenako has already approached us and have submitted a sample which is still undergoing some tests,” Gambe.
“This process is something that we have never done before therefore we have been trying to see if this process will not end up affecting the quality of our diamonds. At the moment we have just been receiving proposals from different people including Robai Hussein.”
Chase Diamonds Processors, Satombo and Kenako Diamond Processors are the current prominent diamond processing companies in the country.
“At one time, (ZCDC chief executive Morris) Mpofu wanted to pay $1 million to a company in India where companies like Kenako bought their own equipment to undertake the same exercise. After this deal failed they then engaged Hussein, who is currently using government metallurgical facilities yet he doesn’t have a licence.
“There are allowing Hussein to use government metallurgy facilities along Rekai Tangwena Street in the first floor laboratory. This deal most likely involves officials at the metallurgy complex,” a source familiar with the developments said.
Contacted for comment, Kenako managing director, Barbra Mutambanengwe could not shed more light on the issue but rather noted that the issue was still in the hands of the principals.
“We are only waiting for Government to decide on the issue and my suggestion has been to make sure that something is done to increase the value of diamonds before selling them. As Kenako we are proud that we now have the solution to remove green skin on diamonds,” said Mutambanengwe.
This publication is also informed that there are underhand dealings involving senior ZCDC officials and illegal diamond dealers specifically of Lebanese nationality.
Allegations are that Gambe at one time had a clash with officials at Minerals Marketing Corporation of Zimbabwe (MMCZ) and ZCDC sorting house for allegedly trying to circumvent the proper diamond selling processes by imposing a Lebanese national to get diamonds without a licence.
“One of the senior executives at ZCDC (name withheld) met a Lebanese national who approached ZCDC and submitted his proposal to wash diamonds and that Lebanese guy has been involved in illegal buying of diamonds in the country for some time now,” said the source.
It is alleged that the same senior executive rented a premise in Mutare for the Lebanese national in addition to the freedom he gave him to choose the diamonds he wanted for cutting, polishing. It is said that after selling the diamonds the ZCDC official would get a 20 percent cut.
Hussein, who until recently, had been in detention over a separate case in Zimbabwe, could not give a comment on the allegations saying the case was still before the courts.
In September 2008, Hussein of Guyana and Yusuf Ossely were arrested with rough diamonds worth an estimated $900 000. They were later sentenced to four years in prison for trading in conflict diamonds.
