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Western countries are allegedly plotting to sneak in a controversial report which accuses Zimbabwe of money laundering and indirectly funding terrorism by selling local diamonds in the United Arab Emirates at the 13th KPCS Intercessional Plenary

Conrad Mwanawashe Business Reporter
Attempts by Western countries to discourage trade in Zimbabwean diamonds at the Kimberly Process Certification Scheme Intercessional Plenary which starts in Angola today are expected to fail .

Western countries are allegedly plotting to sneak in a controversial report which accuses Zimbabwe of money laundering and indirectly funding terrorism by selling local diamonds in the United Arab Emirates at the 13th KPCS Intercessional Plenary which kicks off in Luanda today and will run until Saturday.

The controversial report, which was partially discussed at the KPCS in China last year, is expected to feature during the Seminar on Money Laundering and Terrorist Financing.

It is likely to be dismissed, as the matters it (report) raises are outside the KPCS jurisdiction.

Debate is expected on the controversial report authored by little known World Policy Institute that blames the UAE and Zimbabwe of committing acts of money laundering that directly and indirectly funds terrorism.

Western capitals attack on Dubai is aimed at swaying the vote for the KPCS vice chair, which is currently contested for by Australia and UAE.

According to a report by the Resources Exploitation Watch (REW), the KPCS Intercessional Plenary is expected to debate and conclude on the report submitted by the Financial Action Taskforce (FAT).

“This report makes serious indictment on UAE for causing serious and debilitating acts of Transfer Pricing, money laundering, funding terrorists, among other things. Zimbabwe is also implicated in this report,” the REW said.

REW said FAT is an appendage of the OECD, which is constituted by Western capitals whose attitude towards Harare is apparent.

“UAE, Zimbabwe and other African countries are expected to dismiss the report. Its existence in KPCS brings to the fore the question on whether KPCS must then receive and consider reports coming from alien organisations,” the diamond watchdog said.

A deadlock/stalemate in the election of the vice chair of the KPCS is expected because there is equal support for both parties. “Since every KP member has a right to veto, it is therefore more likely that no appointment of vice chair will occur. Regrettably, KPCS statutes do not provide for deadlock/stalemate settlement mechanism,” the REW said.

According to REW, Russia, as the chair of the Working Group on Rules and Procedures, is expected to present a draft criteria/framework that will seek to settle deadlocks in future, much more as they will relate to election of vice chair.

The plot by the Western countries is also an attempt to discredit Dubai which is now rivalling Brussels as the premier diamond trade centre.

The western countries see Dubai’s growing status as a premier diamond trade centre as a threat to the survival of Antwerp. Dubai serves as the link between African and Asian diamond polishers and cutters. Zimbabwe has held auctions in Dubai following the attempted seizure of its diamond in Brussels last year. The diamonds were later released after a protracted court battle. Since then Zimbabwe has successfully conducted diamond auctions locally.

The latest local diamond auction saw the country selling 1,4 million carats of rough diamonds worth $75,92 million from local tender sales in the first five months of the year, according to data received from the Minerals Marketing Corporation of Zimbabwe.

During the five months to May 5, a total of 1 410 446,44 carats of rough diamonds were sold for $75,9 million. However, a total of $15,2 million made up of 15 percent royalties, 2,5 percent management fees and 2,5 percent depletion fees, was deducted from the total sales leaving a net revenue at $60,7 million.