Finance Minister Mthuli Ncube has been dragged to parliament over the revelations in Al Jazeera’s GoldMafia documentary.
In the investigation, mafia gang members are trapped planning and operationalising money laundering between Zimbabwe, the UAE, South Africa, and UK.
In a statement, CCC Deputy President Tendai Biti announced saying:
My point of national interest is directed to the Minister of Finance whom I’m begging that you make a ruling that he be summoned to this august house to address the issue of illicit financial flows.
Mr Speaker sir, 69% of our people are living in extreme poverty surviving on less than US$1,25 a day yet this country is extremely rich. We have 64 minerals including world deposits of lithium, gold platinum, diamonds and chrome. But we have nothing to show for it.
Billion dollars are being smuggled illegally through tobacco and smuggling. Can the Minister come before this house to lay out a roadmap of how he is going to deal with corruption including the Gold Mafia and illicit financial flows and a forensic audit of the Reserve Bank of Zimbabwe.
Because we can’t suffer from the “resource curse”, that we’re rich but we’re poor because a few elite individuals have decided to steal from the people of this country.
The Al Jazeera documentary shows gold smuggling and money laundering by President Emmerson Mnangagwa’s allies including Uebert Angel, Ewan Macmillan, Pedzisai Scot Sakupwanya, Henrietta Rushwaya and Simon Rudland.
Consequences of smuggling:
The “Gold Mafia” documentary by Al Jazeera alleged that Zimbabwe is losing billions of dollars annually through gold smuggling. The government will not receive the taxes and royalties that it is entitled to, which can have a significant impact on the country’s finances.
Illicit financial activities can also undermine the mining sector by creating an uneven playing field for companies that operate legally. This can discourage legitimate mining companies from investing in the country, which can ultimately harm the sector’s growth and development.
The proceeds from illicit financial activities may be used to fund criminal activities or to enrich a small group of individuals at the expense of the wider population, exacerbating social and economic inequalities and undermining public trust in the government and institutions.
What are authorities saying?
The allegations made in the “Gold Mafia” documentary have not been fully corroborated by other sources, and the Zimbabwean government has denied the allegations. However, there have been other reports and allegations of gold smuggling and illicit financial activities in Zimbabwe. In 2019, the Zimbabwean government formed a task force to investigate allegations of gold smuggling and underreporting of gold sales by large mining companies. The task force reportedly uncovered evidence of gold smuggling and other illegal activities in the gold sector.
In addition, various international organizations, such as the United Nations and Global Witness, have reported on the issue of illicit financial flows and corruption in Zimbabwe’s mining sector. These reports have highlighted the need for greater transparency and accountability in the sector.