Diamond tender race heats up

ELEVEN companies are chasing a N$500 million contract to evaluate Namdeb diamonds over the next five years. However, insiders told last week that the tender rules appear to have been tailor-made to suit a specific company to win the contract.

The state, through the mines ministry, appoints a government diamond valuator to ensure that a fair market value is put on Namibian diamonds before they are sold and exported.

Under this system, the government valuator receives and values the diamonds from the entire production line of Namdeb, which is jointly owned by the government and De Beers.

The diamonds are then passed on to the Namibia Diamond Trading Company (NDTC) – another joint venture between the government and De Beers.

NDTC then supplies 85% of the diamonds to special customers called sightholders, while 15% is sent to Namib Desert Diamonds (Namdia).

The diamonds are, according to calculations, worth a total N$10 billion a year. The state introduced the government evaluation contract to make sure that it is not underpaid from the sale of its diamonds.

The current contract is held by Global Diamond Valuators Namibia, a company that has held the tender since 2007.

The company’s directors, according to its website, are Andries Eiseb, Karl Izaaks, Albino Prungu and Timotheus Mujeu.

Now, 10 other companies want to snatch away the lucrative contract from them. The Tender Bulletin, a weekly newsletter which monitors procurement across the country, reported that there are 11 companies who want that tender, including Global Diamond Valuators Namibia.

“Bidders had to state the percentage they intend to charge on the value of each parcel of diamonds to be valued,” the Tender Bulletin said.

Global Diamond Valuators Namibia asked for 0,20% of every parcel, the newsletter added.

The Central Procurement Board will award this contract.

Even though the deadline for applying this contract ended last month, insiders claimed that Global Diamond Valuators Namibia stands a high chance of retaining the contract because of the way the tender requirements were structured.

One of the requirements is that the company should have a contract manager with five years’ experience in services of “an equivalent nature and volume”.

Unlike other companies, Global Diamond Valuators Namibia appears to be the only valuation company that has the experience of working with the volume (N$10 billion) worth of diamonds a year.

Another possible advantage, sources said, is a clause in the tender requirements that the contract will be given to a company that is “substantially responsive to the bidding documents, and who has offered the lowest evaluated bid price”.

Diamond insiders familiar with this tender said the above clause gives Global Diamond Valuators Namibia a headstart because the company offered free hours of expertise work, which is an advantage over the other companies.

Global Diamond Valuators director Eiseb told yesterday that allegations that the requirements are crafted to suit their company “are void of any truth”.

“The bid was crafted in such a way that it allowed every eligible Namibian to participate in the tender. We had no prior knowledge of any of the requirements as set out by the procurement board,” he added.

Eiseb said the fact that they zero-rated some of the services indicates that they never charged for these services anyway.

Asked whether the company uses technology to ensure that Namibia detects the high value of diamonds, Eiseb said: “Yes, we still use the internationally accepted method of valuing the diamonds, which is a worldwide methodology to appraising diamonds”.

Eiseb also said the company followed three effective processes, including understanding the procedures and consulting their legal advisers for an opinion on some of the legal requirements in the bidding documents.

Another company interested in this deal is United Diamond Trading Company, whose directors include businesswoman Martha Namundjebo-Tilahun. The company asked for 0,15% and N$2 000 per hour for expert services.

Welwitschia Diamond Valuers Pty (Ltd), created on 22 October 2018, is also among the bidders.

The company directors include Namibia Trade Forum chief executive Nditah Nghipondoka-Robiati, businessman Ndeulipula Hamutumwa, Leefa Ndilula, Hausiku Jacko Wakudumo and Nalutsehoo Olyetuyene Lina Ausiku.

That company asked for 0,23% of the total value of each parcel, while expert services are free.

The company submitted a bid of 0,60% of the total value of diamond parcels, and N$2 500 for expert services. Gem Diamonds Namibia, whose director is businessman David Shimwino, asked for 0,25% and N$2 500 for expert services.

Target Diamond Services also submitted a bid for this tender. One of the company’s directors is Severia Weyulu.

Real estate businessman Adam Ivo dos Santos was a director of Target Diamond Services from 2014 until October 2017. He was also a director of Demushuwa Property Developers, which owned Lady Pohamba Private Hospital in Windhoek. The other companies that want the contract are Ondjarera Diamond Valuators, Hompa Investment, Prestige Diamond Services, Sinco Investment and Metcor Diamonds.

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