Pretoria | Thursday
PUBLIC Protector Selby Baqwa has cleared Minerals and Energy Minister Phumzile Mlambo-Ngcuka of impropriety regarding her purchase of a diamond tiara from an SA Diamond Board member, 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 published earlier this year, Mlambo-Ngcuka had paid R6 000 for the piece, which the weekly paper’s diamond industry sources estimated was 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 chairman 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.
In a statement issued following the initial M&G report, the ministry said Temane had said the diamonds were flawed.
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.
She had decided to donate it to an educational jewellery design project, the statement said.
It said the minister had asked the Public Protector to investigate the transaction.
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, Mr 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.”
Temane was a lawful and active dealer in the diamond industry, and had been appointed to the Diamond Board through normal procedures. There was no evidence that the minister had promised Temane any benefit, other than the agreed price, the statement said.
”This was a normal purchase and sale agreement with no undue benefit envisaged in the agreement.”
Baqwa said there was no legal requirement on Mlambo-Ngcuka to declare the purchase, as she had acquired the jewellery from Temane 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