In addition, the report's researchers were unable to locate a 2.5 million carat stockpile, valued at around $200 million, which mysteriously disappeared in November 2011. It also charges that $300 million in diamond sales never made it to the Zimbabwe treasury in 2011.
The PAC's allegations are "totally false," said the chairman of one of the state-run diamond mining companies in Marange. Goodwills Masimirembwa, chief of Zimbabwe Mining Development Company, told The Associated Press that it was the first time he heard charges of diamonds disappearing.
"No diamonds have ever gone missing," said Masimirembwa. "When we are selling our diamonds all stakeholders, the police, revenue board and the country's mineral marketing body come together. So are they saying all these institutions are in collusion? Instead, let them come up with specific allegations, then the police will investigate."
The watchdog report also criticized the Kimberley Process for allowing Zimbabwe's diamonds to mined and sold in way that was not open to scrutiny.
"Calls for greater transparency have been dismissed within the Kimberley Process," it said.
"The lack of transparency surrounding Zimbabwe's diamond revenue is matter of critical public interest and amplifies concerns for some time that these revenues are funding a parallel government" of police and military officers and government officials loyal to Mugabe, many known to be building private mansions and buying luxury cars costing far in excess of their income from tax-funded salaries, said the report.
Partnership Africa Canada: http://www.pacweb.org
Copyright 2012 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.