Mining giant RioZim Limited is under intense scrutiny after the Zimbabwe Diamond and Allied Minerals Workers Union (ZDAMWU) lodged a formal complaint with the Zimbabwe Anti-Corruption Commission (Zacc), accusing the company of serious corporate misconduct including tax evasion, asset stripping, and financial misrepresentation.
The whistle-blower report, dated 24 June 2025, alleges that RioZim diverted public funds, misled investors and authorities on its financial status, and unlawfully disposed of assets in defiance of government directives.
Zacc Commissioner Kindness Paradza confirmed receipt of the complaint, stating, "We can confirm that we received the report on the 24th of June, and it is under investigation."
According to ZDAMWU, RioZim proceeded to sell coal claims linked to Sengwa Colliery under special grant number 849, despite receiving formal notice from the Ministry of Mines and Mining Development on 15 August 2024 about the government's intention to cancel the grant.
The union claims that this sale occurred on 11 November 2024-three months after the cancellation notice-and that details of the transaction were not disclosed to contracting parties.
ZDAMWU alleges that proceeds from the sale have not been accounted for in the company's financial records, describing this conduct as a serious breach that undermines government authority.
"We have lodged a criminal complaint against RioZim Limited with the Zimbabwe Anti-Corruption Commission," the union said in a letter accompanying the report.
The union expressed concern that RioZim has yet to issue a public statement addressing reports published in The Herald on 20 June 2025, which suggest the validity of the allegations.
Further, ZDAMWU alleges that following garnishment of RioZim's accounts by the Zimbabwe Revenue Authority (Zimra) over unpaid taxes, the company began channeling revenue through alternative accounts held by its subsidiary, RioGold Private Limited.
The report includes bank details of these transactions as evidence.
The union contends these actions form part of a broader "financial engineering" scheme designed to shield company executives and insiders from accountability while exposing employees and minority investors to financial risks.
The complaint cites the sale of One Step Mine as an example where only a fraction of the proceeds was disclosed.
ZDAMWU also alleges that insiders created shell companies to launder funds and strip assets, supported by corporate documents and loan agreements included in the report. These companies purportedly rerouted payments off RioZim's books.
ZDAMWU is urging Zacc to launch a full-scale investigation to halt what it describes as ongoing "financial haemorrhage" and unchecked asset stripping.
The union warned that if substantiated, the allegations could have grave consequences for workers, government revenue, and the investing public.
"We respectfully urge the Commission to investigate these allegations, which, if confirmed, could significantly impact the welfare of employees at large and other key stakeholders such as the government and the investing public," the letter states.
The complaint coincides with ongoing legal action by ZDAMWU seeking to place RioZim under corporate rescue due to deteriorating financial and operational conditions, with an application filed on 28 April 2025.
The union says legal advice confirms it can pursue civil and criminal remedies simultaneously under Zimbabwean law.
RioZim's Group Corporate Affairs Director Wilson Gwatiringa declined to comment when approached for this story.
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