Zimbabwe Waited One Month for Dubai Auction Sales Transfer
April 27, 14Zimbabwe held its first tender of 380,626.24 carats at the Dubai Diamond Exchange Centre on March 24, with sales of $29.3 million.
But the facilitator of the sale, Global Diamond Tenders, had problems transferring the money to Zimbabwe, according to state-owned newspaper The Herald, with proof of cash transfer only being received on April 24.
Mines and Mining Development Minister Walter Chidhakwa confirmed the delay saying: "They were supposed to have transferred the money before Easter; maybe due to inefficiency on the part of the facilitator hence the delay," the newspaper reported.
Marange Resources acting chief executive Mark Mabhudhu said, "It has taken long for the payment to come through. We do not know the logistical problems the facilitator had, but he has just sent proof of transfer today (April 24)." Mabhudhu said the facilitator did not explain the reason for the delays.
Sources said diamond mining firms that sent their consignments to Dubai were now facing operational challenges with most of them struggling to settle debts and pay salaries as a result of the delay.
"This delay has had a negative effect on companies because they were expecting payment immediately after the sale," said a source. "Usually the payments should come after a few days like what happened with the Antwerp (Belgium) tenders but this one took a month."
Zimbabwe held a tender in Antwerp in December 2013 and one in February this year, earning $79.8 million from 1,237,734 carats sold.
Zimbabwe is considering expanding the number of auctions held in the United Arab Emirates. Zimbabwe President Mugabe visited Dubai two weeks ago indicating that the country would continue trading its gems at the Dubai Diamond Exchange to gain experience in the complex business before starting its own local auctions.