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Chinese-Owned Diamond Cement Faces Major Legal Troubles Over Tax Evasion and Policy Violations

Chinese-Owned Diamond Cement Faces Major Legal Troubles Over Tax Evasion and Policy Violations

Redcliff – Diamond Cement, a subsidiary of Livetouch Investments, is under scrutiny for multiple alleged violations of national laws and policy frameworks.

Key allegations against the company include tax evasion, non-compliance with Safety, Health, and Environment (SHE) regulations, failure to adhere to salary scales set by the National Employment Council (NEC), and not registering employees with the National Social Security Authority’s (NSSA) Workers Compensation Insurance Fund (WCIF) and National Pension Scheme (NPS).

Investigations reveal that Diamond Cement has neglected to pay Value Added Tax (VAT), failed to contribute to the NSSA employees’ compensation fund, and allegedly colluded with NEC officials to dismiss workers’ grievances regarding underpayment and abuse.

“The management is abusing workers, underpaying salaries, and evading VAT. Recently, some employees approached the NEC, but the human resources department, in collusion with NEC officials, paid kickbacks to cover up the issue. It’s disheartening, and the Chinese management seems untouchable,” an insider reported.

A two-week investigation uncovered solid evidence that employees Progress Haruperi, Prince Kaitano, and Tendai Muriro reported salary grievances to the NEC. However, director Kyle Wang allegedly instructed a subordinate to bribe an NEC official to suppress the issue.

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Diamond Cement has a history of non-compliance, which led to NSSA issuing a prohibition order after a worker’s death in 2020 due to inadequate safety measures. The company is accused of prioritizing profits over health, a stance condemned by President Mnangagwa’s administration.

“The management flaunts strong political connections, intimidating employees who question their conduct. They seem to have also influenced the Redcliff Municipality,” a source revealed. “We urge President Mnangagwa to intervene and address this corruption.”

Also read: Nyandoro Acquitted as State Fails to Prove Theft Case

Currently, two cases are pending before the NEC. When contacted, spokesperson George Makonese denied the allegations and invited inquiries to NSSA and Zimra to verify the company’s compliance records.

“We operate within the law and have never bribed any NEC or NSSA officials. Our records are transparent,” said Makonese in a phone interview.

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Despite Makonese’s denial, sources indicated he was involved in the bribery, further muddying the company’s reputation.

Analysts expressed concern over the situation. “This is serious. Allegations of tax evasion, safety violations, and worker underpayment need thorough investigation. The government must prioritize citizen welfare over profit and crack down on illegal business practices. Authorities must address the issues at Diamond Cement promptly,” said economic analyst Tawanda Benie.

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