ONE of the eight constitutional functions of the Zimbabwe Anti-Corruption Commission (zacc) is “to make recommendations to the Government and other persons on measures to enhance integrity and accountability and prevent improper conduct in the public and private sectors”. The mandate of the Commission is two-pronged. It is prevention of corruption and investigation of corruption cases for prosecution. The function of making recommendations to the Government on measures to enhance integrity and accountability is critical in the prevention of corruption.
The Commission has been undertaking detailed research in a number of areas in order to make well-grounded recommendations to the Government on how to curb corruption. One of the areas of public interest is the mining sector.
The Commission recently examined the impact of corruption in the sector guided by the following research questions:
(1) What are the factors that perpetuate corruption in the mining sector?
(2) How does corruption impact on artisanal and small-scale miners?
(3) What is the nature and forms of corruption within the mining sector?
(4) What is the existing institutional framework that seeks to combat corruption within the mining sector?
(5) What are the existing mechanisms for administering mining activities to enhance the welfare of miners?
(6) What are the best possible recommendations and/or solutions to combat corruption in the mining sector in Zimbabwe?
The zacc study found out that corruption was rampant in the mining sector, and that its social and economic impact was devastating.
According to responses from those interviewed, corruption in the mining sector takes diverse forms including allocation of claims based on one’s ability to bribe Government officials, dispute resolution which favours those that pay kickbacks, tax evasion and transfer pricing.
The main form of corruption in the mining sector is said to be happening at contract awarding stage and issuing of claims.
Furthermore, side selling of minerals, double allocation of claims and unverifiable environmental impact assessments (EIAs) are some other forms of corruption bedevilling this sector, rich with 67 minerals.
In the area of mining licence application, a number of issues have perpetuated corruption.
First, delays in processing and issuing of licences have resulted in potential miners offering bribes to speed up the wheels of the processing wagon.
Second, the fact that ultimate processing is centralised in the Ministry of Mines and Mining Development Headquarters in Harare has contributed to the temptation to offer bribes for one’s application to be processed faster.
Thirdly, manual processing has meant that the whole application system is susceptible to manipulation. Lastly, unavailability of a computerised mining cadastre and digital mining register gives powers to officials to adjudicate, a situation that has fuelled manipulation and corruption.
A mining cadastre is the cornerstone of a secure and effective mineral rights system. It records the geographic location, ownership and time validity of mining rights. The system allows a mineral rights holder and small and large enterprises from other countries to consult and apply for these mineral rights.
This system improves the management of mining in a given country. While Zimbabwe has this system, it is unfortunate that it is still operated manually, hence susceptible to manipulation and consequently corruption.
An examination of the connections between natural resources, corruption and economic growth was made with the following conclusions: capital intensive natural resources are a major determinant of corruption; the existence of corruption always reduced growth, with the effect more pronounced in less developed economies where there is less likelihood of a significant industrial sector.
Furthermore, the study found out that the effectiveness of anti-corruption policies depended on the state of development of the economy. Institution building and improvements in monitoring technology tended to be more effective in developing countries, while stricter enforcement, i.e. increases in penalties, are more effective in more developed countries.
To give credence to these findings, a study by Leite and Weidman (1999) stressed the importance of strong institutions in the wake of natural resource discoveries as a way to curb the negative growth effects of corruption.
This is especially true in less developed countries where natural resource discoveries have a much higher impact on both the capital stock and the extent of corruption, and are confronted with generally weaker and less adaptable institutions.
In terms of recommendations to curb corruption in the mining sector, the zacc study recommends the following:
Revamping mining sector legislation such as the outdated Mines and Minerals Act which was enacted in 1964.
