Commissioner slams ‘diamond cowboy’

DIAMOND Commissioner Kennedy Hamutenya has slammed alleged attempts by Malaysian businessman Subrmanian Ragubahti to discredit the Ministry of Mines and Energy, warning that the fight for control of the Skeleton Coast diamonds amounted to playing Russian roulette with Namibia’s international reputation for clean diamonds.

In a strongly worded press release issued late last week, Hamutenya called on the Government to bring an end to the fight for control of the so-called Toscanini claim “…before it is too late because Toscanini has become a liability for our industry’s reputation”. Hamutenya, who is currently the vice chairman of the international Kimberley Process diamond certification body, rejected claims that his office and the Nampol Protected Resources Unit (PRU) were involved in any irregular handling of diamonds.The accusation, made in unsigned letter and DVD dropped off two weeks ago at all Windhoek- based media outlets, held that the operators at Toscanini and the Police had conspired to pass off Toscanini’s November production as that originating from another mine on the Orange River.The Exclusive Prospecting Licence for Toscanini is held by Ragubathi, whose Nambib company has been involved in an increasingly acrimonious fight with its contractor, Bret Investments.Ragubathi is currently refusing to allow Bret to sell Toscanini’s production, the latest twist in the saga that has paralysed the full development of Toscanini after operator Bret had invested over N$60 million.Bret Investments is a joint venture between South African miner Pure Africa Minerals, who also owns three other diamond mines in South Africa, and local shareholders comprising of Andimba Toiva ya Toiva, Helmut Angula, Naeman Amalwa and Nancy Mupinye.Bret had paid Ragubathi in excess of N$7 million to secure the contractor’s agreement since beginning 2007, but the Malaysian has now tried virtually every trick in the book to cancel the agreement, without success.Ragubathi in November failed in his bid to have an agreement between Nambib and Bret cancelled when the High Court rejected his application to have the contract set aside.Although Ragubathi has not invested any money himself – in spite of claims of having invested anything between N$12 and N$19 million – he holds a 35 per cent share in the proceeds, an arrangement he has become increasingly desperate to wriggle out of.Although Ragubati has denied in other media that he had anything to do with the accusation, all the identical envelopes, containing a letter and DVD, were dropped off by the same women believed to be his personal assistant, Leonie De Vries.Although Hamutenya stopped short of naming Ragubathi as the source for the scurrilous “evidence” given wide local coverage, he made it clear that he held the Malaysian responsible for sullying Namibia’s reputation.”It is very sad that patriotic, hardworking Government officials are being publicly vilified and their reputations sullied by a diamond cowboy and Mafioso who thinks that Namibian diamond resources are his birthright,” he said in his hard-hitting press release.Hamutenya in great detail set out the legal mechanisms for transporting and evaluating local diamond production, which he said made it clear that the accusation were “…delusional and ludicrous hogwash”.The diamonds from Toscanini and Block 3 on the Orange River were handled as required by law, and were never mixed together as alleged.There also had been no request to export any of the diamonds, and he therefore had not been required to issue a Kimberley Certificate, Hamutenya said.Hamutenya said he and Minister Errki Nghimtina last year had urged both Nambib and Bret to concentrate on developing the diamond resources at Toscanini instead of fighting each other and dragging Namibia’s national heroes and the country’s reputation through the mud.”These [diamond] resources are the heritage of the Namibian people but unfortunately they are now being sterilised by a legal quagmire between Nambib and Bret.This is the genesis of all the innuendo,” Hamutenya said, adding that the fight was “fuelled by greed and ego”.This was done at the cost of generating taxes and royalties to the Namibian Treasury that could be spent developing Namibia and alleviating poverty, he pointed out.The Malaysian’s latest gambit may well have been a mistake, as Hamutenya made it clear that he now wanted the Government to end Ragubathi’s leaseholder rights.”This so-called investor has brought nothing to Namibia.He has a concession that is the heritage of the very Namibians he is vilifying and spitting on.He wants to get rich quick on this concession by speculating with it and playing off other investors [against each other], and he sees us Namibians only as pawns to be used or as stumbling blocks to be squashed,” Hamutenya said.”Enough is enough! I hope our Government will put this sad saga to an end once and for all before it is too late because Toscanini has become a liability for our industry’s reputation and its diamonds a curse and not a blessing to Namibia,” he concluded.Neither Bret or Ragubathi could be immediately reached for comment.* John Grobler is a freelance journalist; 081 240 1587Hamutenya, who is currently the vice chairman of the international Kimberley Process diamond certification body, rejected claims that his office and the Nampol Protected Resources Unit (PRU) were involved in any irregular handling of diamonds.The accusation, made in unsigned letter and DVD dropped off two weeks ago at all Windhoek- based media outlets, held that the operators at Toscanini and the Police had conspired to pass off Toscanini’s November production as that originating from another mine on the Orange River.The Exclusive Prospecting Licence for Toscanini is held by Ragubathi, whose Nambib company has been involved in an increasingly acrimonious fight with its contractor, Bret Investments.Ragubathi is currently refusing to allow Bret to sell Toscanini’s production, the latest twist in the saga that has paralysed the full development of Toscanini after operator Bret had invested over N$60 million.Bret Investments is a joint venture between South African miner Pure Africa Minerals, who also owns three other diamond mines in South Africa, and local shareholders comprising of Andimba Toiva ya Toiva, Helmut Angula, Naeman Amalwa and Nancy Mupinye.Bret had paid Ragubathi in excess of N$7 million to secure the contractor’s agreement since beginning 2007, but the Malaysian has now tried virtually every trick in the book to cancel the agreement, without success.Ragubathi in November failed in his bid to have an agreement between Nambib and Bret cancelled when the High Court rejected his application to have the contract set aside.Although Ragubathi has not invested any money himself – in spite of claims of having invested anything between N$12 and N$19 million – he holds a 35 per cent share in the proceeds, an arrangement he has become increasingly desperate to wriggle out of.Although Ragubati has denied in other media that he had anything to do with the accusation, all the identical envelopes, containing a letter and DVD, were dropped off by the same women believed to be his personal assistant, Leonie De Vries.Although Hamutenya stopped short of naming Ragubathi as the source for the scurrilous “evidence” given wide local coverage, he made it clear that he held the Malaysian responsible for sullying Namibia’s reputation.”It is very sad that patriotic, hardworking Government officials are being publicly vilified and their reputations sullied by a diamond cowboy and Mafioso who thinks that Namibian diamond resources are his birthright,” he said in his hard-hitting press release.Hamutenya in great detail set out the legal mechanisms for transporting and evaluating local diamond production, which he said made it clear that the accusation were “…delusional and ludicrous hogwash”.The diamonds from Toscanini and Block 3 on the Orange River were handled as required by law, and were never mixed together as alleged.There also had been no request to export any of the diamonds, and he therefore had not been required to issue a Kimberley Certificate, Hamutenya said.Hamutenya said he and Minister Errki Nghimtina last year had urged both Nambib and Bret to concentrate on developing the diamond resources at Toscanini instead of fighting each other and dragging Namibia’s national heroes and the country’s reputation through the mud.”These [diamond] resources are the heritage of the Namibian people but unfortunately they are now being sterilised by a legal quagmire between Nambib and Bret.This is the genesis of all the innuendo,” Hamutenya said, adding that the fight was “fuelled by greed and ego”.This was done at the cost of generating taxes and royalties to the Namibian Treasury that could be spent developing Namibia and alleviating poverty, he pointed out.The Malaysian’s latest gambit may well have been a mistake, as Hamutenya made it clear that he now wanted the Government to end Ragubathi’s leaseholder rights.”This so-called investor has brought nothing to Namibia.He has a concession that is the heritage of the very Namibians he is vilifying and spitting on.He wants to get rich quick on this concession by speculating with it and playing off other investors [against each other], and he sees us Namibians only as pawns to be used or as stumbling blocks to be squashed,” Hamutenya said.”Enough is enough! I hope our Government will put this sad saga to an end once and for all before it is too late because Toscanini has become a liability for our industry’s reputation and its diamonds a curse and not a blessing to Namibia,” he concluded.Neither Bret or Ragubathi could be immediately reached for comment.* John Grobler is a freelance journalist; 081 240 1587