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Govt silent on mystery of vanished diamond parcel

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The main entrance to De Beers-Tanzania Williamson Diamonds Ltd at Mwadui in Shinyanga.  Photo/LEONARD MAGOMBA

The main entrance to De Beers-Tanzania Williamson Diamonds Ltd at Mwadui in Shinyanga. Photo/LEONARD MAGOMBA 

By MIKE MANDE and ABDUEL ELINAZA  (email the author)
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Posted Monday, March 15 2010 at 00:00

Mystery surrounds the disappearance of a consignment of 14,931 carats of diamonds worth nearly $3 million, belonging to Williamson Diamonds Ltd of Tanzania.

The consignment disappeared at the Oliver Tambo International Airport in South Africa, enroute to Belgium late last year.

The theft, which has been kept secret from the oversight Parliamentary Committee on Energy and Minerals, will impact negatively on the royalty earned by the government, which owns 25 per cent stake in the firm. The rest is owned by Petra Diamonds Ltd.

The government however, reported the mysterious theft, which occurred on October 22, to the Kimberly Process, a body set up to monitor the trade in conflict diamonds.

A letter from Tanzania’s Ministry of Energy and Minerals to Bernard Esau, chair of the Kimberley Process at the Kimberley Process Certification (Scheme Secretariat in Namibia) dated November 17, 2009, and signed “Salim R. Salim for Permanent Secretary,” states:

“We would like to bring to your attention that a diamond parcel from Tanzania, which was sealed on October 19, 2009 weighing 14,931.35 carats with an estimated value of $2,880,257.42 was stolen on October 22, 2009 whilst in transit through O.R. Tambo international airport, Johannesburg en route to Belgium. We issued a Kimberley Process Certificate (KPCS) No. TZ 00000939 dated 19/10/2009 for export of rough diamonds (Annex 1). This parcel was exported by the Williamson Diamonds Limited (WDL) company to Antwerp, Belgium and followed all the procedures under KPCS.”

“The theft has been reported to the South African Police Services Organised Crime Unit (case no. 354/10/2009) on October 22, 2009 and efforts were made to try to recover the diamond parcel but until now they have not been recovered.”

“We take this opportunity to inform you so that the KP family could be informed and cautioned to be aware of the stolen diamonds produced from the WDL mine at Mwadui, Shinyanga, Tanzania.”

But the Tanzania police spokesman, assistant Commissioner Abdallah Msika, said they were not aware of the theft but would follow up the issue with their South African counterparts.

Inside police sources however, said that indeed, the police were aware of the matter and had discussed it in several quarters, with some detectives being sent to South Africa.

South African Police, divisional commissioner for Detective Services and Crime Intelligence Raymond Lalla, told The EastAfrican from Johannesburg that they are working with Interpol and Tanzania detectives to pursue the internationally organised criminals.

Meanwhile, Adonis Pouroulis, the chairman of Petra Diamonds Ltd, said the company has already lodged an insurance claim and that Petra would update shareholders including the government of Tanzania when appropriate, on the claim progress.

He remained confident that it will be reimbursed for the loss.

“It is not Petra’s policy to discuss the precautions it takes to safeguard its very valuable product or to disclose the details of such a theft, but a review of all third party procedures has been undertaken with regard to all future shipments,” he said.

The sales value of the diamond parcel has not been recorded as Group revenue due to the theft, therefore reducing revenue for the period.

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