Mpofu Faces Diamonds Board Appointments Storm
in [Physics]
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From: as on 16 Jan 2010 09:19 Mpofu Faces Diamonds Board Appointments Storm http://www.theindependent.co.zw Thursday, 14 January 2010 20:08 MINES Minister Obert Mpofu sidestepped the Zimbabwe Mining Development Corporation (ZMDC) and the Minerals Marketing Corporation of Zimbabwe (MMCZ) when he appointed the board of Condurango Resources, a joint venture diamond mining operation, amid allegations that he appointed his sister-in-law and his personal assistant to the board. Condurango Resources is a company trading as Mbada Diamonds. It is in a joint venture with the ZMDC and New Reclamation Group. Documents seen by the Zimbabwe Independent reveal that Mpofu appointed his personal assistant, Dingiswayo Ndlovu, and his brother's wife, Sitshengisiwe Moyo, to the board of the government company. Mbada Diamonds chairman Robert Mhlanga was also appointed to the board of the joint venture firm - Condurango Resources - a government and Mbada venture. Mhlanga is believed to be a shareholder in Mbada Diamonds and naturally represents his own interest on the board. It is not clear why Mpofu appointed Mhlanga to the board and whose interests he is representing apart from his own. Another director, Crystesona Kanjoma, was appointed as a director last year, according to documents seen by the Independent. Little is known about Kanjoma. Mpofu yesterday refused to comment saying he was on leave. His personal assistant refused to comment referring all questions to Mines secretary Thankful Musukutwa. Musukutwa referred all questions to Mpofu. It is unclear why Mpofu appointed Ndlovu and Moyo to the board and whose interests the two were representing. Other investigations revealed that government mining group ZMDC, which partnered Mbada Diamonds to form a joint venture, has no representation on the board. Apart from lack of representation on the board, the group does not have a representative in management and operations at the diamond mine. Mbada Diamonds CEO Alex Mukwekweza is said to have quit. Mbada last week attempted to sell diamonds without the approval of MMCZ and without notifying ZMDC and the government. Acting Mines minister Emmerson Mnangagwa stopped the sale and ordered Mbada to follow proper procedures in future. Speculation has been rife that Mhlanga who did business with New Reclamation Group, also shareholders in Mbada Diamonds for years, could have got into the diamond venture on the back of a prior relationship with Mpofu. Mhlanga and New Reclamation bought scrap metal from Zimbabwe Iron and Steel Company during Mpofu's term as Trade minister, a portfolio responsible for state enterprises. Mpofu was appointed Mines minister last year. Investigations by the Independent established that Mpofu did not float a tender for a diamond partner and gave mining rights to companies without proven mining experience. New reclamation had never been involved in any kind of mining venture before investing in the diamond mining operation. Mpofu allegedly recommended to cabinet last year New Reclamation Group and Canadille Mining, the other company exploiting diamonds at Chiadzwa. Canadille is represented locally by Lovemore Kurotwi. This is not the first time Mpofu has been involved in controversial deals. A few years ago he was grilled by a parliamentary committee on industry and commerce after awarding a management contract to Global Steel Holdings Ltd (GSHL) without going to tender. It emerged that GSHL had only been mandated to conduct a due diligence examination into Zisco and not empowered to manage the steel maker. Mpofu was found guilty of lying under oath after giving contradictory oral evidence on the GSHL debacle. He told the committee that the National Economic Conduct Inspectorate had conducted investigations into the situation at Zisco and compiled a report that implicated top government officials, including members of parliament. The following week Mpofu backtracked on his earlier statement, alleging that he was quoted out of context. Then committee chairman Enock Porusingazi moved a motion to charge the government official for lying under oath. Chris Muronzi
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