Ex-Robben Islanders in diamond fight

THE Namibian Former Robben Island Prisoners Trust (NFRIPT) has moved to seize control of a small amount of diamonds produced on Block 3 on the Orange River after it emerged that its South African partners were attempting to sell these to cover outstanding wages.

NFRIPT Director Helao Shityuwete expressed concern over the moves of Pure African Holdings’ Michael van der Merwe to sell these diamonds, which it would appear are now the only assets left in Deva Investments.Some of the diamonds were still being held at the mining site – now standing still after their power generator was seized by the liquidators of Wextrust – while more were being held at a local bank in Rosh Pinah. ‘We have already communicated with the relevant authorities. Those stones will not be sold by anyone until we have not cleared this all up,’ he said.Shityuwete, who pointed out that they had entered a joint venture as opposed to leasing the mining property to the South African-American PAH/Wextrust outfit, said they were shocked to discover that their agreement appeared to have been largely bypassed by Van der Merwe.In terms of the agreement, NFRIPT was to receive 30 per cent of the profits from diamond mining on Block 3. However, the share register held with auditors BDO Spencer Steward gives no indication of the NFRIPT interests, which were to be held in a company called Boom River Mining Company.Instead, Van der Merwe appeared to have diluted the NFRIPT interests to a fraction of its agreed shareholding: as matters stand now, the liberation veterans would have only received 30 per cent of PAH’s 30 per cent shareholding in Deva – amounting to nine percent of the profits.The balance of the shares were sold to an American security contractor, Larry Costa, via a company called Juno Investments (20 per cent), while the rest of the shares were allocated to another PAH vehicle, RZT Zelpy (also 20 per cent), with the American investors holding the balance via company called Block III Mines and Minerals LLC.No mention is made of the joint-venture vehicle Boom River Mining, named after a small river that flows through the Block 3 concession area. It would appear if Van der Merwe had from the onset set out to keep the liberation war veterans out of the picture, as the JV contract explicitly bars the war veterans from being involved in the actual operations of the mine.Van der Merwe and his accountant Sybrand Hanekom are currently facing a judicial inquiry into the whereabouts of about N$400 million they had received from Wextrust, currently under liquidation after being accused of being a pyramid scheme.This inquiry, held in Pretoria, also brought to light that Hanekom was convicted in 2001 for defrauding a previous client of N$1 million. In spite of this, Hanekom was appointed as director of Deva – a clear breach of the Companies Act, which bars people with criminal records from serving as directors in any company.Van der Merwe and Hanekom have so far denied any culpability in the disappearance of the N$400 million, but sources close to the investigation said criminal charges cannot be excluded at this stage. Their US partners, Wextrust principals Steve Byers and Joe Shereshevsky (who also has a criminal record for bank fraud in 1991), are currently facing criminal and civil charges in the United States in connection with the collapse of Wextrust.Meanwhile, Shityuwete have pointed out that Andimba Toivo ya Toivo is the chairman of NFRIPT, while Shityuwete is its director.* John Grobler is a freelance journalist; 081 240 1587