MINING giant RioZim Limited is facing mounting pressure after the Zimbabwe Diamond and Allied Minerals Workers Union (ZDAMWU) filed a formal complaint with the Zimbabwe Anti-Corruption Commission (Zacc), alleging serious corporate misconduct, including tax evasion, asset stripping, and financial misrepresentation.
The union submitted the complaint in the form of a detailed whistle-blower report dated June 24, accusing RioZim of diverting public funds, misleading investors and authorities about its financial position, and engaging in unauthorised asset disposals in defiance of government directives.
Zacc Commissioner Kindness Paradza confirmed receipt of the complaint, stating: “We can confirm that we received the report on the 24th of June, and it is under investigation.”
According to the union, RioZim allegedly proceeded to dispose of coal claims under special grant number 849 related to Sengwa Colliery, despite having been formally notified by the Ministry of Mines and Mining Development on August 15, 2024, of the government’s intention to cancel the grant.
The disputed transaction allegedly took place on November 11, 2024, three months after the cancellation notice, without disclosure to the contracting parties.
ZDAMWU claims the proceeds from the alleged sale could not be traced back to the company’s accounts, and says the conduct violated government orders and undermines regulatory authority.
“We are writing to formally inform you that we have lodged a criminal complaint against RioZim Limited with the Zimbabwe Anti-Corruption Commission,” ZDAMWU said.
“We, therefore, enclose the report we submitted to Zacc. We are concerned that RioZim Limited has not issued a statement clarifying its position on the issues raised in The Herald of 20 June 2025, which suggests that these issues are authentic.
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“The company proceeded to dispose of certain coal claims on November 11, 2024, three months after such notification, withholding the true circumstances and status on the special grant, from the respective contracting parties.
“This behaviour constitutes a serious offence as it undermines the government’s authority. The funds from selling these claims cannot be traced back to the company. A criminal complaint was also filed with the Highlands Police and the Commercial Crime Division in 2024, but these matters were closed under questionable circumstances. We attach a report record,” it alleges.
ZDAMWU further alleges that following garnishment of RioZim’s accounts by the Zimbabwe Revenue Authority (Zimra) over unpaid taxes, the company began diverting revenue through alternative accounts held by its subsidiary, RioGold Private Limited.
“Bank details of the alleged transactions are provided in the report under Annexure R03,” it further states.
The union argues that these alleged activities form part of a broader scheme of “financial engineering” aimed at shielding executives and insiders from accountability, while exposing employees and minority investors at the risk of collapse.
The report cites the alleged sale of One Step Mine as an example where only a fraction of the proceeds was disclosed.
Among the most serious claims is that insiders allegedly created new companies to act as fronts for laundering funds and stripping assets.
Corporate documents and loan agreements tied to these entities are included in the complaint, with the union alleging these shell companies were set up to reroute payments off the company’s books.
ZDAMWU is urging Zacc to launch a full-scale investigation and act swiftly to prevent what it describes as ongoing “financial haemorrhage” and unchecked asset stripping.
The union’s letter states that if the allegations are substantiated, they could have serious implications for workers, the fiscus, and the investing public.
“We respectfully urge the Commission to investigate these allegations, which, if confirmed, could significantly impact the welfare of employees at large and other key stakeholders such as the government and the investing public,” the letter states.
The complaint comes as ZDAMWU pursues parallel legal action to place RioZim under corporate rescue, having filed an application on April 28 citing deteriorating financial and operational conditions.
The union says it has received legal advice confirming it can pursue both civil and criminal remedies concurrently under Zimbabwean law.
RioZim group corporate affairs director Wilson Gwatiringa declined to comment.
