The Diamond Board’s chief executive officer was suspended this week and replaced by a man who presided over a government office that was raided after allegations of corruption and fraud this month.
The state’s diamond regulator this week sought to conceal Victor Sibiya’s suspension, saying only that the former special adviser to the Minister of Mineral and Energy Affairs Phumzile Mlambo-Ngcuka was on “special leave”.
Diamond Board chairperson Abbey Chikane said Sibiya had been given the “special leave” by Mlambo-Ngcuka, but he had not seen the conditions of this leave.
The Mail & Guardian, however, has a memo that was sent to board members by Chikane, announcing that the minister had suspended Sibiya on eight charges, some of which relate to his dealings with businesses in the diamond industry.
Chikane’s memo said Mlambo-Ngcuka had suspended Sibiya “pending an outcome of an investigation and possible hearing concerning his conduct and performance as executive officer of the board”.
The charges, listed in the memo, contain no allegations of impropriety, but rather allegations that Sibiya did not do his work properly and had “antagonised” the diamond industry.
Sibiya has been back at the board for about two months, after a stint as special adviser to Mlambo-Ngcuka. He was sent back earlier this year, apparently to save the board from unprecedented turmoil.
There is widespread speculation that Sibiya has angered players in the industry by trying to enforce regulations governing the declaration and valuation of diamond exports.
The man appointed this week to act in Sibiya’s position, Louis Selekane, is the head of the Department of Mineral and Energy Affairs in the Northern Cape. His Kimberley office was raided earlier this month by the special investigation unit, the Scorpions, for allegedly handing out irregular mining permits.
Selekane this week refused to discuss the details of his new appointment and referred all queries to Chikane and the mineral and energy affairs department. Chikane in turn refused to be drawn into a discussion about Sibiya’s suspension, insisting that the civil servant was on “special leave” and Selekane was seconded by the department to act “for the duration of this leave”.
Chikane’s memo to his 17-member board gives some insight into management turmoil within the state diamond regulator. Some of the charges against Sibiya show that all is not well between him (Sibiya) and Chikane.
Sibiya is charged with, among other things, “having made unfounded allegations designed to discredit the chairman [Chikane] and the Diamond Board”.
The memo says Sibiya’s alleged allegations “were not conducive to a harmonious and efficient functioning of the board”. Sibiya is also accused of insubordination, inefficiency and antagonising the diamond industry. The memo, however, does not give details of the charges. It also does not reveal what sort of allegations Sibiya had allegedly made against Chikane and the board.
Some of the charges against Sibiya include: