OPC sources warn of “grave risk” to national diamond reserves
A controversial diamond marketing agreement has sparked outrage within government circles, with senior officials warning that Zimbabwe’s precious gems may be at risk following what many are calling a reckless and poorly vetted deal.
Government insiders say the agreement — signed between the Zimbabwe Consolidated Diamond Company (ZCDC) and Dubai-based firm TAGS — was concluded hastily, without proper due diligence. Critics argue the move has exposed the country’s vast diamond wealth to potential financial and reputational disaster.
Officials close to the matter say the government is now scrambling to contain the fallout. The Mines Ministry, however, insists the contract includes sufficient safeguards to protect national interests.
According to Mines permanent secretary Zimbango, the deal carries “robust safeguards” designed to ensure TAGS has no ownership over the diamonds and maintains full insurance coverage throughout the marketing process.
He also proposed the creation of an escrow account to handle diamond sale proceeds — a mechanism he described as “the most cost-effective and operationally practical” approach to secure Zimbabwe’s revenue.
Adding to his defense, TAGS founder Anthony Peter reportedly sent a letter pledging to open a joint-signatory account with ZCDC, where both parties must authorise any movement of funds.
But sources in the Office of the President and Cabinet (OPC) believe the damage has already been done. They argue that by sealing a binding agreement with a financially unstable partner first and only conducting due diligence later, the government has jeopardised control over the nation’s diamond trade.
“The stakes are high,” a senior OPC official said. “There is serious concern that Zimbabwe’s diamond wealth could slip away due to a deal signed in haste, with devastating financial and reputational consequences.”
As doubts grow over TAGS’ financial capacity and transparency, pressure is mounting on the Mines Ministry to review — or even suspend — the deal before Zimbabwe loses more than just its diamonds.