Diamond shortfall could shut Zimbabwe government

Zimbabwe Finance Minister Tendai Biti on Wednesday warned the government could shut down, as new diamond sales from the controversial Marange fields are falling far short of expectations.

"Diamonds have to deliver, otherwise the only thing we will be able to do is to pay wages, which means government will virtually close down," Biti told a news conference.

"That's an unacceptable situation, that's an unhealthy situation and that's cause for concern because we are back again to days of a fragile state that cannot look after its citizens in terms of education, health, roads and clean water."

Zimbabwe anticipated $77.5 million from diamond sales during the first two months of the year, but only received $19.5 million, Biti said, attributing the shortfall to the fact that there has not been any diamond auction since the beginning of the year.
 

In his budget for this year, Biti projected earnings of $600 million for 2012.