/ 11 August 2022

Whistleblower helps SIU in diamonds corruption raid

Graphic Tl Calland Whistleblowers Twitter
(John McCann/M&G)

A whistleblower assisted the Special Investigating Unit (SIU) get the green light to raid Alexander Bay Diamond Company, which is suspected of corruption and maladministration around the marketing, valuation, sale and beneficiation of diamonds with state mining company Alexkor. 

The SIU’s probe follows President Cyril Ramaphosa’s proclamation for the investigation to begin. 

“Alexander Bay was appointed by Alexkor in 2015, as an external service provider, to perform marketing, valuation, sale and beneficiation in respect of Alexkor Diamonds,” the SIU said on Thursday. 

“The company was allegedly appointed to improve the sales of diamonds, as Alexkor believed the diamonds were sold below the market value by approximately 30%. The circumstances and procurement process that led to the appointment of Alexander Bay are subject to SIU investigation.”

The SIU said a whistleblower tip-off had given it enough information of alleged graft to approach the Johannesburg magistrate’s court for a warrant to search Alexander Bay’s offices after its executive management allegedly withheld information from both the unit and the Zondo commission of inquiry into state capture.

“The SIU is empowered by the Special Investigating Unitand Special Tribunals Act 74 of 1996 to subpoena bank statements and cellphone records, search and seize evidence, and interrogate witnesses under oath in order to fully investigate allegations brought before the unit,” the SIU said. 

“The SIU is also empowered to institute civil action in the high court, or a special tribunal in its name, to correct any wrongdoing uncovered during both investigations caused by acts of corruption, fraud or maladministration. In line with the SIU Act, the SIU will refer any evidence pointing to criminal conduct it uncovers to the National Prosecuting Authority.”