By Kovedzayi Takawira
Harare – RioZim Limited is facing a fresh criminal complaint lodged with the Zimbabwe Anti-Corruption Commission (ZACC), over allegations that could have far-reaching implications for its shareholders, employees, and investor confidence on the Zimbabwe Stock Exchange (ZSE).
The complaint, filed by the Zimbabwe Diamond and Allied Minerals Workers’ Union (ZDAMWU), accuses the listed mining giant of fraud, tax evasion, deliberate fund diversions, and misrepresentation of key financial and operational matters.
In a letter dated 24 September 2025, ZDAMWU General Secretary Justice Chinhema urged ZACC to investigate what he described as a “pattern of financial irregularities” at RioZim.
These include secret banking arrangements, questionable asset disposals, and the use of proxy companies allegedly established to conceal transactions.
According to the union, after the Zimbabwe Revenue Authority (ZIMRA) garnished RioZim’s official bank accounts, the company allegedly began channeling proceeds from its trading activities through an alternative account belonging to Rio Gold (Private) Limited, a related entity.
The account, held at the CABS Northridge branch (Account No. 1125351888), was allegedly used to conceal funds from tax authorities. ZDAMWU has questioned whether ZIMRA was ever notified of these diversions.
Another central allegation involves the Sengwa Colliery Special Grant (No. 849). On 15 August 2024, the Ministry of Mines formally notified RioZim of its intention to cancel the grant.
Despite this, papers seen by this publication show the company went ahead three months later, on 11 November 2024, to dispose of coal claims under the same grant.
ZDAMWU argues that RioZim withheld the true status of the grant from contracting parties, thereby defrauding them. The proceeds from this disposal, the union says, remain unaccounted for in the company’s financial records.
The complaint also references an earlier matter filed with ZRP Highlands and the Commercial Crimes Division in 2024.
According to Form 66 signed at ZRP Highlands, with a prosecutor’s reference number 11700/24, those cases were later closed “under questionable circumstances,” raising concerns about potential interference in law enforcement processes.
Further, the union alleges that only a fraction of the proceeds from the sale of RioZim’s One Step Mine were declared to stakeholders and ZIMRA.
The creation of proxy companies under false pretences also features prominently in the complaint. One such entity, Takaoma Investments (Private) Limited (Reg. No. 28684A0212025), is cited as having been used to divert funds under the guise of a loan agreement meant to legitimise questionable financial flows.
“These entities are being utilised to serve the interests of a few stakeholders of this publicly listed entity,” the union said, stressing that minority shareholders and employees were the biggest losers.
Speaking on behalf of RioZim’s workers, Chinhema said the matter was urgent not only for employee welfare but also for Zimbabwe’s broader investment environment.
“The actions of RioZim represent a company defrauding not only its minority shareholders and the investing public at large but also the Zimbabwe Revenue Authority,” the letter reads.
ZDAMWU has also applied to place RioZim under corporate rescue, citing the company’s worsening financial situation.
When contacted for comment, RioZim Group Corporate Affairs Executive, Wilson Gwatiringa, said
“I have no comment on the allegations.”
