Published: 04 February 2014

An audit carried out on the wholly State-owned Marange Resources Diamond Company has disclosed that the government was prejudiced of millions of dollars as management raised inflated procurement receipts and pocketed the difference.

The firm bought heavy duty mining equipment which cost millions of dollars, but management would generate receipts inflating the figures to "alarming levels".

Mines and Mining Development Minister Walter Chidhakwa last month ordered a probe into the firm's operations following allegations of malpractices, poor corporate governance and non-compliance with laid down procedures.

The audit was expected to focus on diamond sales, production, technical and operational management.

Top management at the firm were sent on leave to pave way for investigations.

The team is expected to submit the audit report with disclosures of the abuse of funds to Chidhakwa at the end of the week when he returns from the Mining Indaba in South Africa.
- herald

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