Canadian Diamond Traders Accused of Running Pyramid Scheme in Swaziland

Canadian Diamond Traders (CDT), a Canadian based loose diamond wholesale distributor and a broker company working with CDT – Diamond Africa - have been accused of operating illegally in Swaziland and running a get-rich-quick pyramid scheme in the country.

The Swazi Observer reported recently that CDT, which the publication describes as a diamond investment company, has allegedly swindled hundreds of Swazis, promising to turn them into millionaires after making upfront cash payment.

The paper further reported claims that the company does not have a license from the department of geology and mines, which is a prerequisite for all mineral traders in the country, nor has it received a trading license from the Ministry of Enterprise and Employment or declared its business dealings in the country.

According to the report, the directors of Diamond Africa spoke out in defense of their operations, saying that they were neither running a pyramid scheme nor selling diamonds but rather acting as brokers for CDT.

Sicelo Sibisi, Arlindo, Tembe and Raymond Hlophe explained that they received a brokering license from the government a month ago and were brokering genuine GIA-certified diamonds. “We also want to dispel the notion that we are making millionaires. In any business, you can be a millionaire if you work hard,” Hlophe said.

The Minister of Enterprise and Employment, Lutfo Dlamini, issued a warning to be wary of such schemes. "The CDT is relatively unknown to government and we have no idea of its operations," said Dlamini.

"This warning is not aimed at forcing anyone out of business, but we are challenging the directors of this company to come out in the open and discuss their business dealings with government. They should also clearly state where they get these diamonds, because there is no diamond mine in Swaziland," Dlamini concluded.