LLD slams De Beers’ deal with state

JOHANNESBURG – LLD Diamonds Namibia laid into De Beers this week for its involvement in South Africa’s state diamond trader (SDT) as well as its agreement with the Namibian Government.

Kombadayedu Kapwanga, the managing director of LLD, said De Beers’ involvement in the SDT was a clear conflict of interest. “We see a conflict of interest when the cat watches over the milk.”LLD is a subsidiary of the Leviev group.LLD, an archrival of De Beers, operates the largest diamond cutting and polishing facility in Africa.In February, South African President Thabo Mbeki said the state would establish an SDT that would buy 10 per cent of locally produced diamonds and sell them to local cutters.He announced that De Beers would assist, for no charge, with management, technical skills and asset provision for a period of three years.It would be problematic for De Beers to be involved in the SDT as all De Beers’ competitors would have to sell their diamonds to the SDT.Kapwanga said the pact would result in lost opportunity for the Namibian cutting and polishing sector because of the price at which De Beers sold diamonds to the industry.”Local manufacturers should buy Namibian diamonds at the same export prices as (De Beers) rather than the London price.”Business Report”We see a conflict of interest when the cat watches over the milk.”LLD is a subsidiary of the Leviev group.LLD, an archrival of De Beers, operates the largest diamond cutting and polishing facility in Africa.In February, South African President Thabo Mbeki said the state would establish an SDT that would buy 10 per cent of locally produced diamonds and sell them to local cutters.He announced that De Beers would assist, for no charge, with management, technical skills and asset provision for a period of three years.It would be problematic for De Beers to be involved in the SDT as all De Beers’ competitors would have to sell their diamonds to the SDT.Kapwanga said the pact would result in lost opportunity for the Namibian cutting and polishing sector because of the price at which De Beers sold diamonds to the industry.”Local manufacturers should buy Namibian diamonds at the same export prices as (De Beers) rather than the London price.”Business Report