Catherine Sasman
15 February 2008
Windhoek — Bret Investments and Nambib Resources are bulging their fists as the warring parties prepare for what could become a nasty court battle.
Nambib Resources last week dropped off a letter directed to the South African-based legal firm Lombard & Partners, together with a DVD, that suggests that Bret Investments, the operating company at Toscanini, transported diamonds from the site illegally, and that the diamonds eventually ended up in the same envelope as that of Block 3 [EPL 3218 of Rosh Pinah] in the Karas Region when it was valuated at the Ministry of Mines and Energy (MME) offices towards the end of last year.
Managing Director of Bret Investments, Michael van der Merwe, rubbished the allegations "with the contempt that they deserve".
Instead, said Van der Merwe, Managing Director of Nambib Resources, Dr Subramaniam Ragubathi, was in fact the one who had transported another set of diamonds illegally from the site to Windhoek earlier on at the beginning of last year.
"We were with him when he took the diamonds. We told him he could not do that, but he said, 'Well, I'm the owner, I'm the boss here'. He took the diamonds and brought them to Windhoek without following the correct procedures," said Van der Merwe.
As a result of this alleged transgression, said Van der Merwe, Ragubathi lost his K27, documentation required to enter a diamond mining and exploration site.
Van der Merwe and director/shareholder of Bret Investments, Neaman Amalwa, vowed that the operator had taken all prescribed procedures when it did transport the Toscanini diamonds.
They further claimed that the mentioned Block 3 had not yet yielded any diamonds so far, dispelling claims made by Ragubathi that diamonds from Block 3 and Toscanini ended up in the same envelope, and also denying Ragubathi's allegation that they have taken diamonds to possible investors.
The Toscanini diamonds are currently still under lock and key in Windhoek, with neither party able to sell these because a Kimberley Process Certificate has not been issued.
This has angered Bret Investments that wants to recover its expenses on Toscanini.
Since the signing of the agreement between Nambib Resources and Bret Investments in February 2006, said Van der Merwe and Amalwa, the company has paid and advanced amount of US$50000 per month to Ragubathi. This amount has grown to N$7 million, which Bret Investments claims back if the contract is to be ended.
Bret Investments has reportedly also invested N$60 million in machinery used at Toscanini for exploration.
Ragubathi and Nambib Resources, said Van der Merwe and Amalwa, has not invested anything, except for the fact that it is the EPL holder of Toscanini.
"Ragubathi has nothing to lose; because he has been paid in advance, he knows he will not make any money in the next six months. That is why he refuses to sign the Kimberley Process Certificate. The only people prejudiced, are us. The day when there are enough diamonds in stock, he will sign the Kimberley Process Certificate, because then he'll know he'll get his small change," said Van der Merwe.
Van der Merwe further claimed that Nambib Resources sabotaged its mining equipment. This claim was corroborated in a police statement made by Robert Visser who was formerly employed at Toscanin, in October last year.
Among others, Visser's statement reads: "Ragubathi told me that he would financially look after me if I continue to assist them [presumably Ragubathi and two other Malaysians by the names of Vasu and Narien] in sabotaging the operation of Bret Investments."
Visser's testimony goes on to say that Ragubathi would then supply the MME with "proof" that Bret Investments is "incompetent to be the contractors at Toscanini and that their contract should be cancelled".
Visser in the deposition further claims that Ragubathi had in the meantime "concluded a new agreement" with another contractor to start when the Bret Investment contract is terminated.
"I realised from the start that this is a game above my league and that I do not want to be part of such a game," said Visser's statement.
A Nambib source, however, claimed that Ragubathi was out of the country at the time of the alleged incident, suggesting therefore that he or any other Nambib member could not have been involved.
According to Van der Merwe and Amalwa, Nambib Resources has concocted a series of incidents to frustrate the operator with the ultimate aim to have the contract between the two parties annulled. Amalwa also speculated that Ragubathi had already received money from the supposed new operator, and that he was now under pressure to end the contract with Bret Investments.
"He [Ragubathi] has no right to cancel our contract; we did nothing wrong," emphasised Van der Merwe.
Van der Merwe further said that Bret Investments is now pursuing a criminal lawsuit against Ragubathi for sabotaging the mining equipment at Toscanini.
Amalwa questioned how Nambib Resources could have been issued with and EPL, and doubted if the company has any Namibian partnership.
Bret Investments' directors include Amalwa, Van der Merwe, Philipine Angula, Christipher Aberdein and Andimba Toivo ya Toivo. Helmuth Angula and Nancy Mupiya - contrary to an earlier report on the matter in New Era - are shareholders in the company.
Shareholders in Nambib Resources, said Ragubathi, include himself and two other Malaysians.
Approached for comment on the allegations, Ragubathi said his company wants to terminate the contract with Bret Investments because Stephanus (Fanie) Nel, who he said is representing Bret Investments, has prior criminal convictions, which contravenes the Diamond Act. This fact, he said, might jeopardise Nambib Resource's EPL.
Nel had, however, told New Era earlier that he sold off his Bret Investments shares early last year. Ragubathi questioned: "Who is Michael Van der Merwe?
How did Michael get on board Bret Investments without the approval of the EPL owner ?"
He denied that his company had approached another contractor, urging Bret Investments to substantiate this claim with documentary evidence.
On the claim that Nambib sabotaged machinery at Toscanini, Ragubathi responded: "Why would anybody of Nambib sabotage any equipments of Bret when we could terminate their contract?"
And on the allegation that he removed diamonds illegally from Toscanini, Ragubathi said diamond police 'Inspector Secret', who was sent along by Diamond Commissioner with the MME, Kennedy Hamutenya, accompanied him. "[The] diamond department has proof to that effect."
On the matter of the contract as it relates to profit-sharing, Ragubathi said: "The agreement between Nambib Resources and Bret Investments states that 'x-dollars' be paid to Namibib Resources as cash float (sic) for administrative purposes and that would be reimbursed upon the sale of diamonds because we as Nambib Resources did not claim any entry fee from Bret Investment who was supposed to conduct a proper bulk sampling programme (in a diamondiferous area). This payment was stopped by Bret Investment in February 2007."
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