PUBLIC Protector Selby Baqwa has cleared Minister of Mineral and Energy Affairs Phumzile Mlambo-Ngcuka of impropriety regarding her purchase of a diamond tiara, reportedly at a hugely discounted price.
”Allegations of conflict of interest are not substantiated by the investigation and the evidence before me,” he said in a statement on Thursday. According to a Mail & Guardian report (”Diamonds on the crown of her head”, January 25), Mlambo-Ngcuka had paid R6 000 for the piece, which was estimated to be worth at least R80 000.
The dealer from whom she bought the tiara is Macdonald Temane, who belongs to a company that is a sightholder – or preferred client – of diamond giant De Beers.
The M&G reported that Temane was also chairperson of a Diamond Board committee presiding over a system giving diamond producers like De Beers exemption on export duty. The ministry had launched an investigation into the committee after concerns about the exemption system surfaced.
According to the ministry, it had wrapped up the investigation by the time the transaction took place.
Mlambo-Ngcuka had initially ordered the tiara to promote local jewellery design. Subsequent to the publicity it received, she had decided to get rid of it, partially because it posed a security risk.
The ministry was to hold a news conference on the matter on Thursday, but cancelled it due to ”pressing engagements” and issued the public protector’s statement instead.
”The investigation revealed that the minister had commissioned the supplier, Temane, to produce the piece in her personal capacity and that a final quotation had been agreed on. She paid for the item from her personal budget.”
There was no evidence that the minister had promised Temane any benefit, other than the agreed price, the statement said.
Baqwa said there was no legal requirement on Mlambo-Ngcuka to declare the purchase, as she had acquired the jewellery in a private purchase, and not as a gift or donation.
”The above findings are further supported by the fact that the impending de-establishment of the board diminished any prospect that any person could have been granted a position of influence over the industry by the minister.” – Sapa