Probe exposes chrome export ‘heist’ in Zim

A meticulously planned chrome heist orchestrated by corrupt border officials, is reportedly bleeding millions from Zimbabwe’s economy after an investigation unearthed some irregularities in the country’s chrome exports, Business Weekly can reveal.

As part of our ongoing investigation into the chrome heist (value not disclosed), Business Weekly this week reveals how Zimbabwe Revenue Authority (Zimra) officials are allegedly forging documents meant for chrome producers with special export permits that are being used to facilitate illegal export of the raw chrome.

In a bid to promote investment in domestic processing plants, in line with the beneficiation agenda, Zimbabwe has imposed a ban on raw chrome exports, encompassing both lumpy and concentrates.

However, exemptions allowing raw chrome exports require quotas set by the Ministry of Mines and Mining Development.

Once a producer exhausts its export quota, it must reapply for a new permit and allocation.

The system has, however, become a gaping hole.

Our investigation can reveal a shocking scheme where Zimra officials are reportedly taking advantage of the loophole.

They are allegedly forging documents linked to lapsed licences of legitimate chrome concentrate exporters. And here is the twist; these forged documents are not being used to benefit the original quota holders. Instead, they are being used by entirely new players to smuggle out hundreds of truckloads of the mineral.

This not only undermines legitimate exports, but also creates a channel for externalisation.

Since the proceeds from the smuggled chrome are unlikely to be repatriated, the foreign currency earned is lost and the Zimbabwean economy is left bleeding.

During the investigations, this publication uncovered a disturbing instance where Zim Alloys, a leading domestic ferrochrome producer has fallen victim to the smuggling ring.

The story

Zim Alloys had a contract to supply chrome concentrates to Zopco SA, a Geneva-based company.

To ensure smooth delivery, they utilised the services of Camico, a South African logistics firm specialising in commodity supply chain management.

Camico handled every consignment from inland transport within Zimbabwe to arranging sea vessels at the Durban Port, ultimately delivering the chrome concentrates to final destination in Geneva.

Multiple sources said sometime in February 2023, Zim Alloys applied to Minerals and Marketing Authority of Zimbabwe (MMCZ) for export documents to move chrome concentrates to Zopco. MMCZ is responsible for marketing Zimbabwe’s mineral resources, excluding gold and silver, which fall under the Reserve Bank Zimbabwe’s (RBZ)’s purview.

The documents were processed and issued to Zim Alloys by MMCZ on February 6, 2023, the sources said.

Zim Alloys’ licence allowed the mining firm to move 153 truckloads of chrome concentrate.

Sources allege that additional trucks beyond those authorised by Zim Alloys’ licence carrying chrome concentrate left the country using fraudulent documents mimicking Zim Alloys’ permits.

The investigation determined that MMCZ did not issue invoices beyond the originally permitted 153 trucks.

Crucially, an oversight by the alleged forgers revealed that the consignment notes displayed the altered reference number at the top of the forged document but retained the original reference at the bottom.

While Zim Alloys confirmed the authenticity of the original documents and that the Bill of Entry for their shipment had expired on May 15, 2023, ZIMRA official Tawanda Mupingo stationed in Harare allegedly extended the validity to June 14, 2023.

Mupingo has since appeared before Harare Magistrate Courts facing the charges fraudulently extending Zim Alloys Bill of Entry E2596.

Alarmingly, BOE E2159 remains active in Zimra’s ASYCUDA system, potentially enabling further illicit exports.

This is evidenced by suspicious several truck entries for this year linked to the same BOE E2159.

Border authorities are collaborating with MMCZ inspectors to establish the exact dates the suspicious chrome shipments crossed the border, the sources said.

In addition, authorities will seek the identities of the 15 Zimbabwean-registered trucks that carried the contraband from the Harare Central Vehicle Registry.

“The concern lies with the potential misuse of expired documents to facilitate the export of chrome beyond authorised quantities,” said a source who requested anonymity due to the ongoing investigation.

Who is involved?

A South Africa-based Indian national, only identified as Warjukar is alleged to have funded a broker to buy chrome concentrates from Mvurwi and Mutorashanga between October 2023 and May 2024.

The broker then conspired with clearing agents at the Beitbridge Border Post and ZIMRA officials to smuggle unspecified truckloads using a forged and extended Zim Alloys Bill of Entry E 2159.

In a statement, MMCZ said a joint operation by the corporation, the ZRP’s Minerals, Flora and Fauna Unit (MFFU) led to the arrest of ZIMRA officials in connection with chrome concentrate smuggling.

MMCZ acting general manager, Dr Nomusa Moyo, said the corporation, in conjunction with the MFFU, deployed a crack team to Beitbridge Border Post to close in on the matter. One accused ZIMRA official is currently out on bail.

“It is alleged that a South African-based broker, through a local agent, procured chrome concentrates in Mvurwi and Mutorashanga between October 2023 and May 2024 and connived with clearing agents in Beitbridge as well as ZIMRA officials before smuggling the concentrates,” said MMCZ.

Three clearing agents who facilitated the paper work to smuggle the chrome were arrested and taken to Beitbridge court in June 2024 and released on US$100 bail each.

The investigation are still ongoing and are expected expand beyond borders, potentially seeking access to seized chrome concentrate outside the country to initiate legal proceedings, the source said.

Despite boasting a robust inspectorate department, Dr Moyo, during a media workshop in April this year, acknowledged that mineral revenue losses due to smuggling remain a significant challenge.

Dr Moyo revealed several cunning methods used to smuggle minerals out of the country. These included under-declaring the quantity, falsifying documents, undervaluing the quality, fraudulently loading shipments, and even collusion between producers and state agencies.

She added that advanced technology has emboldened some producers. They are using sophisticated forgeries, like fake documentation complete with MMCZ letterheads, to create a false impression of legitimacy for illegal mineral shipments.

These illegal practices significantly impact the revenue Zimbabwe receives from its minerals. Minerals accounts for roughly 80 percent of the country’s export earnings and accounts for 13 percent of the GDP.

Dr Moyo revealed that during the first quarter of the year, various state agencies handled roughly seven cases involving lithium smuggling.

Dr Moyo said the MMCZ was planning to incorporate new technologies like drones for enhanced monitoring and surveillance of mineral resource movement as well as capacitating the Zimbabwe School of Mines metallurgy laboratory to reduce reliance on private laboratories crucial for testing the minerals.-ebusinessweekly