By Fanuel Chinowaita
MUTARE , 5 June 2025 – The Zimbabwe Consolidated Diamond Company (ZCDC) has dismissed as false and malicious social media claims that the state-owned entity has been taken over by an Italian-led mafia syndicate.
Speaking to The Wasu Post yesterday morning, ZCDC Corporate Affairs Executive Sugar Chagonda said, “Good morning chief. Blatant lies and no ways,” in reference to the growing claims circulating online that the company is now under the control of an Italian national, Paulo Pessico.
The allegations gained traction following a post by Farai Maguwu, the Executive Director of the Centre for Natural Resource Governance (CNRG), who claimed that a mafia syndicate allegedly involving Pessico, a former army general, and a police commissioner has effectively seized control of the diamond mining company.
Maguwu’s post, shared on X (formerly Twitter), alleged that the syndicate has access to ZCDC’s vaults without the knowledge of the Minerals Marketing Corporation of Zimbabwe (MMCZ). He further claimed that diamonds were being bought at as little as US$22 per carat and resold for up to US$204 per carat—allegedly bypassing regulatory oversight.
“These are serious allegations that require urgent attention,” said Malven Mudiwa, a Chairoerson of the Marange Development Trust (MDT). “We urge ZCDC to make a public response to either refute or investigate them.”
Mudiwa emphasized the need for transparency, especially in light of ongoing concerns over the lack of development in Marange, where the diamond fields are located. “It’s high time we united as the Marange community to seek answers on why there is no visible benefit from the diamonds. Workers are not being paid. We need a public inquiry into the entire ZCDC board.”
The ZCDC, established in 2016 to centralize diamond mining operations in Marange, has previously faced criticism for alleged mismanagement and lack of accountability. A 2019 report by Auditor-General Mildred Chiri highlighted that the company failed to account for $400 million in revenue and over 350,000 carats of diamonds.
Maguwu has been a vocal critic of what he calls the “systematic looting” of Zimbabwe’s natural resources. In previous statements, he has called for stronger public oversight and institutional reforms to ensure local communities benefit from resource extraction.
The latest claims come at a critical time for Zimbabwe’s diamond sector. In April 2025, Russian diamond giant Alrosa announced plans to double its investment in a joint venture with ZCDC, although details of the agreement remain unclear. Observers fear that such deals could be jeopardized if allegations of corruption and foreign interference are not addressed transparently.
Neither the ZCDC, MMCZ, nor the Ministry of Mines and Mining Development have issued official statements on the mafia takeover claims.
As public pressure mounts, civic groups and watchdogs are calling for a formal investigation and the release of information to clarify the ownership structure and operations of ZCDC.