Western diplomats who toured the Marange diamond fields on Tuesday were misled on the revenue generated from the fields, a pro-democracy activist said on Thursday.

Dewa Mavhinga, a lawyer and regional director for the Crisis in Zimbabwe Coalition, told SW Radio Africa that as long as the issue of accountability is not addressed at the diamonds fields, the truth will never be known.

'There hasn't been any proper information on the revenue flows and no one knows of the shareholding structure at Marange because of lack of transparency and accountability,' Mavhinga said.

When the Ambassadors from Australia, Belgium, Canada, Czech Republic, Denmark, France, Germany and Spain visited the fields this week, they were told Anjin has yet to break even and recover the $400 million invested by the Chinese into the operation.

Munyaradzi Machacha, a director at Anjin who doubles up as ZANU PF's director for publications, told the envoys that the projection by the Finance Minister that earnings from diamond fields would contribute $600 million to state coffers was incorrect.

Finance Minister Tendai Biti also said recently that the government is not receiving any money from the joint venture at Anjin between Zimbabwe's army generals and the Chinese, which was meant to be a cash-cow for the state.

The 2009 agreement between Anjin and the government was meant to ensure that a sizeable portion of profits from the lucrative alluvial mine went to the Finance Ministry, but most of the revenue is going direct to the country's military elite.

Finance Minister Tendai Biti last year pegged the national budget on potential remittances of $600 from diamond sales by the Mines Ministry.

But half-way through the financial year, Prime Minister Morgan Tsvangirai was forced to admit that only US$25 million of diamond money has been remitted to treasury.

Contrary to what Machacha told diplomats that Anjin is yet to break even and recover it's investment, a Mutare based MDC-T MP said there's clear evidence of mass corruption and theft of diamond money.

'To be honest, money generated from the diamond fields from 2009 up to date can easily surpass the $2 billion mark which is a conservative figure. We have ministers from ZANU PF on a property buying spree all over the country.

'Recently the Minister of Mines Obert Mpofu gained control of the Zimbabwe Allied Banking Group after injecting $22.8 million into the bank. This is an individual who earns less than $1,000 a month. Tendai Biti is also on record telling us that some people in government were now buying private executive jets. This is all money from diamonds fields,' the MP said.

The Mines Minister has admitted that Zimbabwe can earn as much as $2 billion from diamonds annually. However events unfolding on the ground suggest that a sizable percentage of diamonds coming out of Marange is also smuggled out of the country by syndicates.

Two months ago, Indian authorities arrested two men for smuggling $2 million worth of diamonds from the Marange field into the city of Surat. Zohra Desai and Prema Desai smuggled the diamonds from Zimbabwe through Kenya to Mumbai and were caught trying to sell the stones.

Surat is a world diamond trading and cutting center and was the scene of a similar arrest in 2008 when Robai Hussain and Yusuf Ossely were apprehended with $1 million worth of smuggled Marange diamonds. The two were sentenced to four years in prison.