Here we go again:
Diamond exports halted
Business Day (Johannesburg)
November 11, 1999
By Ilja Graulich
Johannesburg - The government diamond valuator has halted diamond exports for a second time
this year, with the stipulation that the bar will not be relaxed unless stiff demands are met.
One of the most serious requirements recently added to an existing set of demands is that De
Beers must pay the costs of the valuator, which is headed by Claude Nobels.
The row dates back to April when the then newly appointed valuator, Nobels' company, DVIC
Valuations, disputed the valuation process that had been used for decades and refused to sign
off diamond parcels for export.
BoE diamond analyst Hilton Ashton says in an industry report that the valuator "is holding De
Beers to ransom on three counts".
The first is that De Beers must pay the valuator's costs, which would normally be the
responsibility of the SA Diamond Board.
The board, which appoints the valuator by tender process under the Diamond Act, falls under
the Department of Minerals and E minerals and energy affairs department. Government obtains
revenue through duties levied on the diamonds destined for export according to a value agreed
on by the producer and the valuator.
Ashton says that it is "incredulous that a private company can be called to pay costs of an
organisation appointed, indirectly, by government". He called for a full investigation of the
diamond industry and the board in particular.
The valuator's demand is in contrast to statements by Nobels, who said recently that he was not
interested in money and could not be bought. The money questions came up after it was
confirmed that Nobels was the highest paid valuator in the history of the post.
Nobels said that De Beers could not go on challenging the state and "must become a good
corporate citizen".
The valuator is also demanding that SA diamonds held in London be returned and that De Beers
become a joint venture partner in developing a black empowerment cutting industry.
Ashton says that the SA Diamond Board, the body responsible for the valuator's fee, is almost
bankrupt, following extensive refurbishment of board offices and alleged mismanagement of
board affairs.
The report says that blame should be laid at the door of Phakamile Ngaki, deputy CEO of the
board, who has been suspended in connection with overexpenditure issues.
"The board's operation has become something of a circus," says Ashton.
De Beers spokesman Tracey Peterson has confirmed that there has been a delay with the
export of the series "97", but that De Beers is in the final stages of concluding export
arrangements.
Ashton says De Beers' results for the year will be negatively affected by the dispute.
PHIL |
