Police block Namdia diamond shipment

THE controversy over the valuation of Namib Desert Diamonds’ gems took a new turn last week after the police and customs officials bluntly refused to allow the parastatal to export diamonds worth N$150 million.

Last week’s police action triggered panic at Namdia and among senior officials at the Ministry of Mines and Energy.

Diamond commissioner Miina Auene-Gahutu, who effectively gave Namdia the green light to export the diamonds, had to meet police officials, Namibia Revenue Agency commissioner Sam Shivute and other senior government officials to allow the shipment.

Every month, customs and police officers – from the Protected Resources Division – gather at Namdia’s offices to verify the details of the diamonds set to be sold and exported.

They then seal the parcels for Namdia to send to buyers through the airport.

But last week Wednesday was different.

Police officers refused to sign off the consignments, because two valuation certificates allegedly did not accompany the diamonds.

Even though the matter was concluded yesterday after a meeting between the police and Auene-Gahutu, this episode points to an ongoing power struggle for Namdia’s diamond money.

The fight mainly involves the valuation of the parastatal’s diamonds.

The previous valuation was done by Nuska Technologies (previously known as C-Sixty Investments), owned by Doron Cohen.

But their five-year contract ended in early September this year.

Some at Namdia and the mines ministry believe there was no need for another external valuator, since the diamonds are already valued by the Namibia Diamond Trading Company (NDTC) Pty Ltd – a company that is co-owned by the Namibian government and De Beers.

Former mines minister Obeth Kandjoze has been one of the staunch supporters of adding a company like C-Sixty to the valuation process.

Others believe that Namdia – led by Kennedy Hamutenya – is still being used to enrich a clique of individuals in Namibia and Dubai, and that having an external valuator could stop the undervaluing of diamonds.

Hamutenya, who failed to answer questions sent to him on Monday, has in the past made it clear that Namdia did not need an independent valuator.

Industry players have questioned his move, saying it could increase secrets and the underpricing of Namibian diamonds.

Auene-Gahutu, who has replaced Hamutenya as diamond commissioner, is the Kimberley Process representative in Namibia.

She issued the Kimberly certificate for Namdia.

The Kimberley Process is an international initiative created to increase transparency and oversight in the diamond industry to eliminate trade in conflict diamonds – rough diamonds sold by rebel groups or their allies to fund conflicts with legitimate governments.

Sources familiar with the sector disagreed with the certificates Auene-Gahutu issued to Namdia.

“They have done wrong, because they used sale invoices as ‘certificates’, instead of having a valuation done and using a valuation certificate, and the ministry approved it,” a source said.

Auene-Gahutu on Monday said: “The matter is receiving our utmost attention in consultation with all the stakeholders.”

She referred questions to Ministry of Information and Communication Technology spokesperson Andreas Simon, who said: “There has been a delay in the authorisation to export Namdia’s shipment for Sight 7 of 2021 from Namibia to its clients.

“This was due to different interpretations of Section 45(3) of the Diamond Act of 1999 emanating from change management in the processes related to the exportation of rough diamonds.”

Simon said this matter has already been resolved through extensive consultations between key stakeholders, such as the Namibia Revenue Agency, the police, NDTC, the Ministry of Public Enterprises and the Ministry of Mines and Energy.

“Consequently, the ministry confirms that the shipment has been authorised for export on 30 September 2021,” Simon said.

Mines minister Tom Alweendo, who has in the past promised transparency in the affairs of Namdia, did not answer questions sent to him yesterday.

reported that officials at the mines ministry have been informed as recently as last month of Namdia’s continuous trend of underpricing diamonds.

One of the companies that have benefited from the current Namdia regime is SBMH Group DMCC from Dubai, and London-based diamond dealer Neil Haddock, who also operates in Dubai.