Namib Desert Diamonds has faced several challenges and it appears as though Minister of Industries, Mines and Energy, Modestus Amutse has allowed the company to slide deeper into trouble.
A month ago, the minister refused to intervene and investigate allegations and counter allegations of corruption and criminality at the company.
“Namibia has dedicated institutions that deal with investigating issues of corruption and related activities,” he said, adding that his ministry is not mandated to undertake such activities. He referred The Issue to the institutions mandated to investigate corruption. Amutse’s stance on addressing corruption and wrongdoing appear to be in direct contrast to his Cabinet colleagues like works minister Veikko Nekundi and urban and rural development minister James Sankwasa.
The Issue has learnt that senior employees at the parastatal are accusing each other of corruption, conflict of interest, and the deliberate underselling of diamonds at lower prices. Some senior employees were also accused of attempting to ensure companies belonging to their friends and relatives are included on the sought after Namdia buyer’s list.
The finger pointing has been making the rounds since last year and refuses to go away. The Issue has it on good authority that some of the allegations have been reported to law enforcement agencies but no action has been taken so far.
These internal conflicts are believed to be the reason behind Namdia’s run-ins with the law this year. In June The Issue reported that the company had to deal with authorities seizing its consignments destined for export on two occasions, due to alleged non compliance with the law dealing with handling, valuation and exportation of diamonds. In April the Namibia Revenue Agency (NamRA) blocked a Namdia consignment, worth approximately N$160 million, from being exported. Then in June the Police did the same. The two incidents were triggered by allegations that Namdia was unable to provide the relevant documentation proving that the parastatal was in compliance with the laws governing the valuation and selling of unpolished diamonds before they are exported out of the country, as well as provisions in the law dictating that only entities or individuals approved by the Ministry of Mines and Energy may handle, mine, sort, or trade in diamonds.
The development roping NamRA and the police into the fray originates from the government’s 2020 decision not to renew its diamond valuation contract for Namdia with C-Sixty Investment, later renamed Nuska Technologies.
Then mines minister Tom Alweendo decided that the N$200 million valuation contract was not necessary and a waste of taxpayer money.
As a result, Namdia started using their own employees as internal valuators. This development is what led to the accusation that the use of internal valuators was in contravention with the law, specifically the Diamond Act.
To remedy this dilemma, Amutse in July appointed a ministry official to act as an independent valuator of Namdia’s diamonds. This move did not sit well with industry players and some at Namdia. Those opposed to the appointment claim that the law should be read to mean that the minister must appoint an independent valuator and a ministry official would not be fit to be classified as independent. Amutse defended his decision telling The Issue that section 79 of the Diamond Act empowers him to appoint or delegate any ministry official to carry out the valuation function on his behalf.
“The minister has therefore exercised his powers by delegating a staff member with the relevant skills and competency to perform duties and functions as stipulated under section 45 of the Diamond Act on his behalf,” he said in his emailed response.
These turbulences come at a time when the company is functioning with no board of directors to oversee its governance processes.
The Issue understands that this has been the case since April when the board’s term ended. Amutse, confirmed to The Issue that a new board will be appointed as soon as the internal processes have been finalised. He said the ministry has advertised the board vacancies in the local media and other platforms. “But it should be noted that the Articles of Association of Namdia allows the remaining board members whose term didn’t expire to direct the policy function of the institution,” he said in his response.
While the dust is yet to settle, the company is also anxiously waiting on prosecutor general Martha Imalwa to pronounce herself on whether to charge the company and its management for negligence in relation to last year’s heist which left two people dead and over N$300 million worth of diamonds stolen. Imalwa told The Issue in June that a docket in this regard was in her office but a decision on whether to institute criminal charges related to alleged negligence has not yet been made. She also added that if a decision is made then her office will also have to determine who should be charged in the case.
