Corruption in Zimbabwe
Transparency International issued a briefing this week claiming that corruption is costing Zimbabwe $1 billion a year. I have no doubt that they are right. The question that needs answering is how, where and who is involved. This is not an easy question to answer. Corrupt activities are very difficult to tie down in any sort of legal sense and most anti corruption activists advise that we go after the money and do not try to secure the prosecution of the culprits.
I can sympathize with that view. In 1983/85 I discovered a $6 million theft from the Company I managed and I spent three years trying to get justice and to recover the money. Eventually all we recovered was the cost of the exercise and the satisfaction of knowing how they did it and who was involved. Bank secrecy was a problem, the protective shield that many countries have erected around funds held by Banks and other financial institutions and extended to the perpetrators were all obstacles.
In the same period the company I led concluded a contract to supply product to the Angolan Government. The contract was worth many millions of dollars and when I tried to close the deal with letters of credit, a demand was made to me by an official to pay 15 per cent into a Swiss Bank account. I objected and was instructed by the Reserve Bank in Harare to “negotiate”. I did so and got the deal down to 5 percent and it went ahead without any further problems.
In 2012 I did an expose on the Marange diamond fields and disclosed that raw diamond production had exceeded 35 million carats in one year worth over $4 billion. The President has subsequently admitted that $15 billion has “disappeared”. Transparency International estimate that African States lose perhaps $60 billion a year to corrupt practices and this might actually be an underestimate.
In Angola about a third of the total gross earnings of the oil industry is skimmed off by the regime in power. Angola supplies about 8 per cent of global crude oil needs and this involves many billions of dollars in revenue every year. The daughter of the President of Angola is reputed to be the richest women in the world. She has her own executive jet and owns major assets all over the world. Nigerian corruption is massive and also involves the oil industry. Many major Western companies are complicit.