By Victor Fanuel
HARARE — The Office of the President and Cabinet (OPC) has ordered an urgent investigation into senior executives at Zimbabwe’s state-owned diamond and mineral marketing companies.
The probe follows allegations that they signed a multimillion-dollar deal with a financially troubled Dubai-based firm without conducting proper due diligence.
The deal, concluded in August 2025, involved the Zimbabwe Consolidated Diamond Company (ZCDC), the Minerals Marketing Corporation of Zimbabwe (MMCZ), and TransAtlantic Gem Sales FZCO (TAGS).
It was designed to facilitate offshore diamond sales but has since triggered allegations of corruption and gross negligence.
According to a directive seen by this publication, the OPC instructed an immediate probe into the conduct of ZCDC and MMCZ executives, Dr Douglas Zimbango and Nomusa Moyo.
“A directive was issued recently for an investigation to commence with immediate effect.
“The Zimbabwe Anti-Corruption Commission (ZACC), has also started sniffing around,” a source at the OPC said.
Sources allege the agreement was pushed through without the necessary board resolutions from either entity, in breach of corporate governance procedures.
“In their rush for profit, the executives neglected standard protocols, a lapse that would soon come back to haunt them,” another source said.
Concerns first arose when an MMCZ official questioned TAGS’s financial position before the initial diamond shipment.
It later emerged that due diligence was carried out only after the contract had been signed — by which point the Dubai firm’s financial instability had become evident.
In a letter dated October 7, 2025, Moyo warned Zimbango that TAGS had posted consecutive annual losses and that its liabilities exceeded its assets.
“The company’s bank statements showed very low balances,” she wrote, warning that TAGS might fail to remit proceeds from diamond sales, complicating recovery efforts.
Audited financial statements revealed TAGS recorded a net loss of US$507,675 for the year ending February 28, 2025, following a US$783,046 loss the previous year.
The firm’s current liabilities stood at US$1,304,068 against assets of US$447,145.
Responding to the concerns, Zimbango acknowledged the risks but sought to reassure stakeholders, citing “robust safeguards” in the agreement.
He noted that TAGS would not assume ownership of the diamonds and proposed an escrow account to secure sales proceeds.
However, senior government sources remain sceptical.
“The damage has already been done,” one official said.
Officials fear Zimbabwe could suffer major financial losses and reputational harm if TAGS fails to honour its obligations.
With 1.6 million carats of diamonds already prepared for shipment, the OPC’s capacity to reverse the binding agreement appears limited.
“The stakes are high.
“There is grave concern within government circles that Zimbabwe’s diamond wealth may be lost to a dubious deal, signed in haste and now threatening to inflict immense financial and reputational damage,” another OPC source warned.
