Government insiders said the raid, which occurred two weeks ago, sparked a fierce confrontation between the c ommission's investigators and the state-owned entity's armed security officers. C lashes threatened to break out during the operation in which investigators seized documents and computerised data.

The swoop on the company came as four senior ZMDC officials were suspended over alleged corruption involving the siphoning-off of -million in gold and diamonds proceeds. Their arrests are expected after Minister of Mines Obert Mpofu returns from India next week.

Though police were not available for comment, a senior government official said: "ZMDC has been investigating corruption and forensic auditors were called in to probe the issue, so we expect some people to be arrested over missing funds."

ZMDC has suspended its chief executive and general manager, Dominic Mubayiwa, over the issue. Mubayiwa was sent on forced leave, together with his group financial director, Robert Karemba, group technical services manager Albert Chitambo and the corporate secretary and legal adviser, Tichaona Muhonde. This was to facilitate the probe into how top management used ZMDC's gold and diamond revenues.

ZMDC board chairman Goodwills Masimirembwa suspended the four just a month after coming into office.

ZMDC also began to specifically probe Mubayiwa over a mansion he is building in the posh suburb of Borrowdale in Harare.

Repeated efforts to contact Mubayiwa on Friday were unsuccessful.

ZMDC is also investigating why the suspended managers invested -million in money markets while its mines were closing down due to poor capitalisation. It is suspected that the money was invested at selected banks as part of mutually beneficial deals.

The current ZMDC management is also complaining that Mubayiwa and his team failed to pay government dividends, although they had money available in fixed-return securities.

ZMDC said Mubayiwa's management paid a dividend of only -million this year, despite the fact that the company generates millions of US dollars.

http://www.timeslive.co.za/sundaytimes/article697824.ece/Graft-probe-at-ZMDC