NDTC declines to renew LLD Diamonds Namibia sightholder contract

The Namibia Diamond Trading Company (NDTC) has turned down Lev Leviev Diamonds (LLD) Namibia’s bid to renew its sightholder contract for the next three years.
NDTC spokesperson Brent Eiseb was quoted by local media as saying that the diamond trader was not in a position to meet the needs of all companies wishing to receive rough diamonds due to intense competition.
He said they ran a selection process last year which was aimed at the long-term viability and sustainability of the cutting and polishing industry in Namibia.
However, LLD managing director Kombandayetu Kampwanga told Rough & Polished that the company disputes the reasoning behind the rejection of their application.
“Firstly, it should be emphasized that only 16 percent of the Namibian diamonds sold by NDTC are sold to factories in Namibia, while the remaining diamonds are purchased directly by DTC and sent to London, so the finite number of diamonds cannot be the reason for rejection of the application submitted by LLD Diamonds Namibia,” he said.
Kampwanga said his company was out-competed due to the fact it was a Namibian company, while other applicants applied via international companies.
He said of the 14 applications received by NDTC, only theirs was rejected.
LLD Diamonds Namibia had since sent its 150 employees home on unpaid leave for an indefinite period.
The National Union of Namibian Workers (NUNW) secretary general Evilastus Kaaronda said this amounted to an illegal retrenchment.
Kampwanga, however, said he was hopeful that LLD and NDTC would still reach an agreement.
He said LLD Diamonds was also considering other legal avenues to get its contract renewed.
Kapwanga, who gave an elaborate interview to Rough & Polished last month, admitted that he knew of the problem at that time but could not reveal it thinking that they would reach a consensus with NDTC.