Namdia's ugly power struggle

THE fight for control of state-owned Namib Desert Diamonds took another twist this week with news that the board is investigating claims of diamonds deliberately being sold cheaply abroad.

A letter that shows the hand of middlemen in Namdia diamond deals has also emerged. Namdia was created by government last year to sell diamonds worth over N$2 billion per year on the international market, but the entity's short existence has been mired in fierce tussles over control of the parastatal. The two skirmishing groups are, on one side, led by Namdia chairperson Shakespeare Masiza and his deputy Tania Hangula, while the other camp is headed by acting Namdia chief executive Kennedy Hamutenya and his supporters. Masiza's camp wants another chief executive appointed, while Hamutenya and others accuse the other side of trying to sabotage Namdia's management in order to control diamond sales. Hamutenya's camp also claims that some board members did not have any knowledge of the diamond trade, and just wanted to line their pockets. At the centre of the conflict is a smouldering allegation that Namdia has been deliberately underpricing its diamonds offered for sale in Dubai, an allegation rejected by the Hamutenya group. The latest round of Namdia infighting was triggered by a letter from prominent lawyer Richard Metcalfe, who apparently represents two foreign companies which wanted to buy diamonds from Namdia. Metcalfe has alleged that a middleman offered his clients Namdia diamonds. The middleman allegedly appeared while Metcalfe was waiting for feedback from Namdia on his clients' proposal. Metcalfe's letter states that his clients were contacted by a diamond broker named Morne Openshaw, who offered them Namdia diamonds for US$1 600 per carat.