MINISTER of mines and energy Tom Alweendo will challenge a decision by an arbitration tribunal which forced the government to renew a five-year N$200-million contract to valuate Namibia Desert Diamonds (Namdia) diamonds.
Alweendo has described the valuation contract as unnecessary and has criticised a tribunal ruling, saying it is contrary to national procurement laws.
The minister, represented by lawyer Sisa Namandje, filed High Court documents on 23 August to overturn a decision by an Arbitration Tribunal, which ruled in favour of Nuska Technologies – owned by Israeli diamantaire Doron Cohen.
“The agreement concluded between the parties on 20 October 2016 is ordered to have auto renewed for a further period of five years, effective from the date of this award,” the tribunal said on 11 July.
The judgement added that “the new five-year period is ordered to commence on 1 August 2022 and shall remain in force until 31 August 2027”.
Nuska Technologies, previously known as C-Sixty Investments, was controversially hand-picked in 2016 by former mines minister Oberth Kandjoze to valuate Namdia’s diamonds in a deal worth around N$200 million.
Businessmen John Walenga, Tironenn Kauluma and Cohen were key beneficiaries of around N$138 million in taxpayers’ money from a deal which lasted from 2016 to 2021.
Alweendo and technocrats at the mines ministry informed Nuska Technologies in 2020 that they would not renew the contract.
Cohen, who subsequently removed Walenga and Kauluma from the company in 2021, started applying pressure on the government to renew the diamond-valuation deal.
The Israeli businessman is using possible technical loopholes to get the deal back.
Cohen insisted that the 2016 agreement – signed off by Sacky Shanghala as chief government lawyer at the time – entitled their company to five more years if they were not informed on time.
Alweendo refused to entertain Cohen’s demands.
Nuska subsequently sued through an arbitration tribunal, to force the government to hand them another five-year deal.
The tribunal sided with him, forcing Alweendo to seek a court order to block the enforcement of the ruling.
The tribunal consisted of lawyers Slysken Makando, Shimue Mbudje and Lucius Murorua.
Murorua was former justice minister Shangahala’s lawyer in the Fishrot bail hearing, while Mbudje also represented Shanghala when the politician’s assets were confiscated from his house after his arrest in 2019.
The mines minister questioned the appointment of some panel members.
At some point, there was a plan to bring in lawyer Eliaser Nekwaya as arbitrator on this case, but this did not happen.
STATE OF AFFAIRS
Alweendo filed court documents, explaining why the government cannot be forced to give Cohen’s company the valuation deal.
The minister said the arbitration award “made on 12 July 2022 is effectively meant to impose a five-year contract onto Namdia (without its say) in the same manner as it unfortunately occurred during 2016”.
“This is clear from the fact that as soon as the award was made, Nuska wasted no time and started steps to enforce the award against Namdia prior to the confirmation by this court.”
Alweendo said Nuska’s role was not needed in the first place.
“I contend that the valuation services were not required as the valuation of diamonds statutorily required under Section 45 of the Diamond Act, was already being carried out by another party through Namibia Diamond Trading Company. This was an unfortunate state of affairs.”
The minister said he became concerned about this Namdia transaction when he became mines minister in 2018, replacing corruption-tainted Kandjoze.
Alweendo said he decided that the agreement to allow Nuska to valuate Namdia diamonds would not be renewed.
The minister said even though Nuska accepted the termination, they submitted a new proposal to get a five-year deal, because they were under new management.
Alweendo said Nuska wrote another letter on 15 February 2021 to the diamond commissioner with reference to a new proposal.
“It is clear from the letter of 15 February 2021 that Nuska was simply trying to make a new proposal and convince the ministry that it may be a win-win situation if the ministry were to give Nuska another opportunity,” the minister said.
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