RETURNING BENEFITS FROM DIAMOND MINING TO THE LOCAL COMMUNITY: The Diamond Area Community Development fund (DACDF)

The Diamond Area Community Development Fund was initiated in 2001. Financed by a portion of diamond export tax revenue (.75% of 3% royalty rate), the Fund was intended to be a vehicle for community development. More than 60 Chiefdoms are eligible to apply for the Fund although the majority of Chiefdoms that benefit are located in the Kono district, due to the high level of artisanal mining in the area.

The Ministers of Mineral Resources and Internal Affairs have noted that the Fund is not producing the intended development results anticipated. In addition, a number of involved stakeholders have indicated concerns with the way the Fund is currently administered. These concerns include:

• The method of determining the amount to be allocated to the Fund.

• Lack of clarity around the roles and responsibilities of the various local authorities including the District Council, City Council and Chiefdom, particularly in terms of implementing a development agenda.

• Constitution of the Chiefdom Development Committee

• Absence of project selection criteria and application guideline

• Lack of oversight mechanisms to ensure that the funding is reaching the intended beneficiaries

• Lack of reporting/monitoring of project implementation

Based on the concerns listed above, the Ministry of Mineral Resources, together with the Ministry of Internal Affairs, have recently completed a review of the DACDF and have now published a new set of DACDF Policies, Procedures and Guidelines document.

From 2001 until 2006 the Government has disbursed Le 9,946,856,325 to Chiefdoms and District and Town Councils. For a breakdown of disbursements please click here

Background Paper on the establishment of the Diamond Area Community Development Fund (DACDF), current issues and options [PDF, 33.1KB]