The recent Auditor General’s report has unveiled shocking lapses in the mineral export process, raising concerns about the authenticity of mineral content and the potential loss of significant revenue for the country.
According to the report of the Auditor General on the accounts of the republic for the financial year ended 31st December 2023, crucial X-ray fluorescence spectrometer (XRF) machines meant to verify mineral content in consignments, were either missing or non-functional at key border posts.
This is contrary to the existing procedures where minerals are required to undergo inspection using an XRF machine at the port of exit to ensure that their mineral content matches the accompanying documentation.
However, it was discovered that the Victoria Falls border post lacked an XRF machine, while the machine at the Chirundu border post was reported to be non-functional.
This oversight meant that mineral exports were not properly inspected to confirm their conformity with valuation certificates issued by the Ministry of Mines and Minerals Development, raising serious doubts about the accuracy of the exported mineral content.
Furthermore, a review of transit documents from March and April 2024 exposed a staggering inconsistency in the transit declarations as a total of 194 transit declarations, with guaranteed amounts totaling K53,980,245, had entered the country through various ports with the intention to exit through different ports, but had not actually exited the country.
The reports indicate that alarmingly, there was no evidence that the relevant authority had redeemed the bonds associated with these unaccounted transits as of August 31, 2024.
The implications of these findings are deeply concerning, as they point to potential irregularities and significant revenue losses in the mineral export process.
The lack of oversight and enforcement in ensuring the proper inspection of mineral consignments, combined with the failure to track and account for transit declarations, raises serious questions about the integrity of the country’s mineral export operations.
The revelation of these lapses also underscores the urgent need for comprehensive reforms and heightened oversight in the mineral export sector.
Without swift and decisive action to address these glaring deficiencies, the country risks further erosion of its mineral resource management and potential loss of vital revenue.
