Zimbabwe Charges Diamond Firm With Fraud

Zimbabwe Charges Diamond Firm With Fraud

A mining company in Zimbabwe , African Consolidated Resources Plc (ACR) has been charged with fraud and violating Zimbabwe 's precious stones laws.

African Consolidated Resources, which will soon appear in court, faces allegations of unlawfully acquiring diamond claims in Marange by using subsidiary companies that were unregistered at the time, a process the authorities considered fraudulent.

“ACR has been legally advised that this should make no difference to the validity of the Marange Claims and accordingly that the charges are groundless," the company said.

London-listed ACR was equally involved in a court battle with the Zimbabwean government, which cited irregularities in the acquisition and registration of claims.

This led to a cancellation of the company's claims in the Marange fields in the east of Zimbabwe in 2006.

Harare rescinded that decision this year.

REUTERS/Evelyn/Williams/Yinka