NEWLY-appointed Namib Desert Diamonds (Namdia) chief executive officer Kennedy Hamutenya is accusing critics of the government diamond company of wanting control of the entity for their own benefit.
Namdia was established in August last year to sell diamonds worth N$2 billion per year for 10 years.
With the entity not yet a year in existence, there have already been calls for an independent forensic audit into its sale of diamonds at a significant discount to Dubai-based companies.
Hamutenya, who was diamond commissioner in the mines ministry from November 2001 until last month, was appointed Namdia CEO from 1 July 2017 to 30 June 2022.
His appointment was confirmed in a letter from mines minister Obeth Kandjoze last Tuesday after Cabinet approval.
Kandjoze has, however, not confirmed the contents of the letter, but told last week that the media would be informed about the appointment of the new Namdia boss in due course.
Hamutenya last week confirmed receiving the appointment letter from Namdia chairperson Shakespeare Masiza on Wednesday.
His appointment is already clouded by allegations of the underpricing of diamonds.
One senior government official told that the consistent underpricing of diamonds could be costing the cash- strapped government about N$1 billion or more per year.
People familiar with the diamond market say it could be that some of that N$1 billion was being channelled into the pockets of several highly-connected Namibians and their cronies.
Hamutenya told that allegations of underpricing were fictitious.
“We made a profit, and did not sell below what we got the diamonds for. We will be able to sell optimally as we grow,” he stated.
Hamutenya said such claims were being spread by people with vested interests in Namdia.
“They are trying to cause confusion so that they can benefit. It’s propaganda. They want to eat. It’s not going to happen under my watch,” he said without mentioning names.
He claimed that people alleging that Namdia diamonds were deliberately underpriced do not understand the diamond market.
Hamutenya said he has been flooded with calls from Namibians wanting to facilitate the sale of Namdia diamonds.
“I am approached by buyers every day. I don’t even want to answer my phone anymore,” he added.
Hamutenya said Namdia deals with 20 international companies, and handles diamonds valued at more than N$100 million per month.
“We have vetted these companies to make sure they are not involved in things such as blood diamonds, money laundering and other things,” he stated.
Blood diamonds is a term used for a diamond mined in a war zone and sold to finance an insurgency, an invading army’s war efforts, or a warlord’s activity.
Hamutenya said they picked the unnamed 20 companies from 50 applications after a government delegation went on a global trip last year to look for buyers.
He said he was part of the delegation of officials from the mines ministry, the attorney general’s office and the Bank of Namibia.
The other cloud which had formed over Namdia since its inception was a power struggle since March amongst board members over the appointment of the CEO.
The seven-member board was split into two camps, one favouring the director of business improvement at Swakop Uranium, Alex Gawanab, and the other pushing for Hamutenya.
Chairperson Masiza and deputy chair Tania Hangula were against appointing Hamutenya.
The board reportedly recommended Gawanab to mines minister Kandjoze for the position.
Hamutenya’s appointment could also be good news for officials such as attorney general Sacky Shanghala, who supported him secretly.
Chief legal adviser in the attorney general’s office, Chris Nghaamwa, who is also a Namdia board member, backed Hamutenya.
Shanghala and Nghaamwa are close associates.
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