Mbada Diamonds in diamond under-pricing scandal

Mbada Diamonds, which is one of the companies that resisted a forensic audit of Chiadzwa diamond mining operations initiated by Government, could have prejudiced the State of millions of dollars by under-declaring its diamond sales over the years after it emerged its average price per carat was about three times lower than that of other firms extracting the same gems from Chiadzwa.

The underpricing scandal emerged during a tour of the Maranga diamond fields by the Parliamentary Portfolio Committee on Mines and Energy chaired by Zanu-PF MP for Masvingo Urban, Daniel Shumba on Friday where officials indicated that Mbada’s average price was $23 per carat although the company was awarded claims with the best gems, while Jinan sold diamonds for an average of $89 per carat.

Zimbabwe Consolidated Diamond Company acting chief executive officer, Dr Ridge Nyashanu, told the committee that it was important to consolidate diamond mining to stop under-declaring of sales.