allAfrica.com: Namibia: Uproar Over Diamonds (Page 1 of 2)

A DVD delivered at the New Era office and other media, suggests that diamonds suspected to have been mined in the contested Toscanini diamond licence area along the Skeleton Coast, were presented as though they were mined in Block B, an area apparently doubtful of its diamond yielding potential in the Karas Region.

The DVD, dated December 5, 2007, depicts a diamond valuation process within the valuation rooms of the Ministry of Mines and Energy.

A letter sent to a law firm, Lombard & Partners, in Pretoria, South Africa, from Nambib Resources, was submitted with the DVD.

The letter alleges that Nambib Resources, the Exclusive Prospecting Licence (EPL) holder of Toscanini, believed that Bret Investment moved diamonds from Toscanini to Block B "under false pretences".

Bret Investment is the contracting company that is conducting a bulk-sampling programme on behalf of Nambib Resources.

Nambib Resources claim that Bret Investment did so in an attempt to obtain a Kimberley Processing Certificate on November 22 last year without informing the rightful EPL holder. Following which, said a source, Nambib was only informed that the valuation was going to be conducted on December 3, when "the whole scam was video recorded".

A legal tiff had erupted between Nambib Resources and Bret Investment after Managing Director of Nambib, Dr Subramanian Ragubathi, questioned the legitimacy of Bret Investment on the manner in which the process of safekeeping of the diamonds, the transportation thereof and valuation was conducted.

Ragubathi also questioned the board of directors of Bret Investment among them Helmut Angula, Andimba Toivo ya Toivo, Naeman Imalwa and Nancy Mupinye - all board members - whom he argued in the letter, had invoked the contravention of Section 49 of the Diamond Act of Namibia. Ragubathi's urgent application before the High Court to terminate the operations agreement with Bret Investment in November 23 last year was denied on the basis of its urgency.

In the letter Nambib Resources questions: "How is it possible that the seals of Protected Resources Unit and the Diamond Inspector [of the Ministry of Mines and Energy] on the envelope which contained the diamonds of Toscanini reflected November 28, 2007 when it was supposed to be sealed on the November 22, 2007 when the valuation was conducted (without the knowledge of the EPL owner)?"

It goes on to ask: "What happened to the diamonds of Toscanini from November 22, 2007 to November 28, 2007? Why was Nambib Resources only informed via fax on the November 30, 2007, when the valuation had already been conducted on November 22, 2007?"

It asks from Lombard & Partners of Bret Investments: "How is it possible for diamonds from 'Block B' EPL 3218 of Rosh Pinah, Karas Region, which is approximately 1300 kilometres from Toscanini, Kunene Region, which falls under different diamond police jurisdiction, to appear in the same envelope with Toscanini diamonds?"

It suggests that this does not only question the legitimacy of Bret Investment, but contravenes the Diamond Act of Namibia and the measures recommended by the World Diamond Council, of which Namibia is a member and vice-chair.

It further questions the relationship of Block B with Bret Investment.

The Nambib letter further claims that the diamond ledger was not signed when diamonds were won on a day-to-day basis as required.

Clause 15.2 of the operating agreement requires that recovered diamonds be weighed, with the weight and description of each diamond to be entered into a diamond register daily. The operator and company are then supposed to sign the daily entries.

It said despite an agreement reached between Bret Investment and Nambib that all diamond mining companies should stop until the legal dispute is resolved between the two parties, mining continued unabated.

The source told New Era that an excess of 88 carats of diamonds were valuated in the ledger produced by Bret Investment.

"Where did this excess come from?" the source questioned.

The source said it seemed that the diamonds mined in Toscanini were taken all over the world to lure investors to Block B.

"If this was true then the implication could be devastating to the economy of Namibia," the source said.

Nambib Resources reported this case to the Inspector General of the Namibian Police in November last year.

New Era was unable to get a response from the Namibian Police, as the Inspector General was out of town, and a certain General Tjivikua was held up in meetings for most part of the day.

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