SA commission recommends criminal probe of diamond miner

A commission investigating the so-called state capture in South Africa has recommended a criminal investigation into a suspicious tender awarded to Scarlet Sky Investments 60 (SSI) by the diamond mining company Alexkor in 2015.
The move gave SSI exclusive rights to market and sell diamonds produced by the Pooling and Sharing Joint Venture (PSJV), a joint venture (JV) between Alexkor and the Richtersveld community, according to the Daily Maverick.
The Zondo commission said in a report that SSI was awarded the contract although it had no diamond licence.
It was alleged that the diamonds marketed by SSI were undervalued much to the disadvantage of the Richtersveld community and Alexkor.
The local diamond dealers allegedly bought Alexkor diamonds at heavily discounted prices and resell them at big markups.
Members of the Alexkor tender committee – Rafique Bagus, Roger Paul and Duncan Korabie – were also in trouble.  
“It is recommended that the law enforcement agencies conduct such further investigations as may be necessary with a view to the possible prosecution of Bagus, Paul and Korabie for fraud … by deliberately making a misrepresentation regarding SSI’s compliance with the tender requirements,” the commission was quoted as saying.  
The commission also said Alexkor’s decision to get into the coal business and supply Eskom was part of a “strategy of the Gupta enterprise to position itself to control Alexkor coal business”.

Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished