Mungo Soggot
The assets and accounts of the South African Diamond Board were frozen on Thursday after the board violated a court order obliging it to pay one of its main contractors.
The company accusing the board of not paying up is Diamond Valuation International Company (DVIC), the government diamond valuator. It has been in a dispute with the board for several months. The Diamond Board is a statutory body that, among other things, regulates the diamond industry and ensures that the correct taxes are paid on exported diamonds.
Brian Frank, of attorneys Frank-Tanner Inc and director of DVIC, said the board owed DVIC R300 000 on November 30 one part of a settlement of about R3,7-million, which was to be paid back in instalments. Frank said the settlement, reached in March, was turned into a court order in July. He said on Thursday: “I issued a warrant of execution, and the sheriff [of the court] today attached the board’s moveables and current account.”
Abbey Chikane, the chair of the diamond board, was unconcerned about the development. “One can reduce this to a dispute over office space and telephones. It is not a major issue. It will not affect the relationship between the DVIC and the diamond board. It will be resolved in 72 hours. It is just a misunderstanding.”