Minister of mines and energy Tom Alweendo won a High Court case on Friday in which he challenged a decision by an arbitration tribunal that forced the government to renew Nuska Technologies’ five-year N$200-million contract to valuate diamonds for Namibia Desert Diamonds (Namdia).
Namdia in 2016 found itself tied to an automatic renewal of a N$200-million contract without any say or control, as the agreement had been executed between Nuska Technologies (formerly known as C-Sixty Investments) and the Ministry of Mines and Energy, with approval from the then attorney general, Sacky Shanghala.
C-Sixty Investments/Nuska Technologies was allegedly hand-picked in 2016 by former mines minister Obeth Kandjoze to valuate Namdia’s diamonds.
Kandjoze has previously denied any wrongdoing in the matter.
The new five-year period would have commenced on 1 August 2022 until 31 August 2027.
Alweendo and technocrats at the mines ministry informed Nuska Technologies in 2020 that they would not renew the contract.
Nuska Technologies, owned by Israeli diamantaire Doron Cohen, took the matter to an arbitration tribunal and won.
Cohen insisted that the 2016 agreement – signed off by Shanghala as chief government lawyer at the time – entitled their company to five more years if they were not informed on time.
Alweendo, represented by lawyer Sisa Namandje, filed High Court documents on 23 August 2022 to overturn a decision by an arbitration tribunal.
For an arbitration tribunal decision to be effective in Namibia, it has to be confirmed by a court of law.
On Friday last week, the High Court ruled in favour of the minister and ministry.
“An application for an arbitration award to be made an order of court dismissed with costs,” the court said.
Only the outcome was read out on Friday.
The court order and judgement are expected to be read out today.
Alweendo yesterday told The Namibian he was relieved that the court ruled in the ministry’s favour.
“Of course I am relieved. We believe in the rule of law, and the independence of the judiciary is of primary importance. The ministry is at the heart of the economy, and to have an efficient economy, one requires the rule of law, transparency and enforceable property rights.
“We will continue to apply the laws under the ministry fairly, equally and without fear or favour,” he said.
Alweendo described the valuation contract as unnecessary and has criticised a tribunal ruling, saying it is contrary to national procurement laws.
Namdia chairperson Bryan Eiseb, whose organisation was bound to the N$200 million contract and had no say in it, yesterday welcomed the outcome of the judicial process.
“Namdia was not a party to the agreement. We want to assure you that Namdia has the internal capacity to valuate our diamonds,” he said.
Businessmen John Walenga, Tironenn Kauluma and Cohen were key beneficiaries of around N$138 million in taxpayers’ money from a deal which lasted from 2016 to 2021.
THE TIES THAT BIND
Former mines minister Kandjoze allegedly hand-picked Nuska Technologies, previously known as C-Sixty Investments, to valuate Namdia’s diamonds in a deal worth around N$200 million.
It was signed off by Shanghala as chief government lawyer at the time.
Alweendo flagged this Namdia transaction in 2018 after he took over from Kandjoze as mines minister.
Alweendo said he decided that the agreement to allow Nuska Technologies to valuate Namdia diamonds would not be renewed.
Nuska Technologies then took the matter to an arbitration tribunal and won.
The tribunal consisted of lawyers Slysken Makando, Shimue Mbudje and Lucius Murorua.
Murorua was former justice minister Shanghala’s lawyer in the Fishrot bail hearing, while Mbudje also represented Shanghala when the politician’s assets were confiscated from his house after his arrest in 2019.
Alweendo questioned the appointment of some panel members.
“We submit that there was a complete failure of justice before the three arbitrators and that their conduct of the arbitration prevented the ministry from having a fair trial of issues,” Namandje said in court documents.
At some point, there was a plan to bring in lawyer Eliaser Nekwaya as arbitrator on this case, but this plan failed.
Alweendo refused to entertain Cohen’s demands and filed court documents, explaining why the government cannot be forced to give Cohen’s company the valuation deal.
In High Court documents, the minister said the arbitration award “made on 12 July 2022 is effectively meant to impose a five-year contract onto Namdia (without its say) in the same manner as it unfortunately occurred during 2016”.
“This is clear from the fact that as soon as the award was made, Nuska wasted no time and started steps to enforce the award against Namdia prior to the confirmation by this court.”
Alweendo said Nuska’s role was not needed in the first place.
“I contend that the valuation services were not required as the valuation of diamonds statutorily required under Section 45 of the Diamond Act was already being carried out by another party through Namibia Diamond Trading Company.
“This was an unfortunate state of affairs.”
Cohen yesterday asked The Namibian to send him questions, but did not reply by the time of going to print.
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