Did Debswana Support Efforts to Water Down Anti-Conflict Diamond Bill? (Updated)
January 20, 08Debswana allegedly funded trips to
According to charges filed in Botswana against Louis Nchindo, former managing director of Debswana, Jefferson and his family allegedly were the recipients of illegally funded trips to Botswana in 2001 and 2002.
The House of Representatives passed the legislation in November 2001, after an extended battle. When the Clean Diamonds Act was finally passed, it was a watered down, compromised legislation.
It would be expected that Debswana, as a 50/50 partnership between De Beers and the Botswana government, would act to support the legislation both as a pro-Africa move and due to the official supportive stand of De Beers on the matter.
If Rep. Jefferson, who is also on trial for 16 counts of bribery, racketeering, money laundering and obstruction of justice, is found to have acted on behalf of Debswana in opposing the legislation, it would be at the very least a great embarrassment for Debswana and its owners.
Jefferson eventually voted in support of the bill in its watered down version, after arguing that tough restrictions on rough diamond imports would hurt legitimate diamond miners.
Botswana prosecutors are accusing Nchindo of illegally spending $102,000 of Debswana money to host Jefferson and his family on three trips to the country and of fraudulently seeking to obtain public land.
If the trips to Botswana were private, Jefferson is not required to report them, but then that would stand in contrast with Nchindo’s claim that they were business trips. If those trips were business-related, Nchindo could be in the clear, but
Federal prosecutors allege that Jefferson orchestrated business deals for American companies seeking to do business in Africa in exchange for hundreds of thousands of dollars in bribes.
In a written response, Debswana spokesperson Esther Kanaimba said, “The diamond industry and Botswana in particular, were fully and actively supportive of the United States’ Clean Diamond Act. The Act, which prohibits the import of diamonds used to fund rebels in war-torn countries to the United States, is important legislation that works to safeguard a legitimate industry that employees nearly 10,000 Batswana, accounts for 33 percent of the country’s GDP, and is largely responsible for the country’s sustained economic growth. Botswana has never been subject to war or violent conflict nor has it ever traded in “conflict diamonds.”
Furthermore, 74 countries, including the United States and Botswana, are subject to the Kimberley Process, which was established through close collaboration between the UN, national governments, NGOs and the diamond industry. The Kimberley Process has reduced the prevalence of “conflict diamonds” to 0.02 percent of total world supply.
The charges brought against Mr. Nchindo in Botswana relate to the alleged misuse of company office for personal gain prior to and including 2002. There is no suggestion that Mr. Nchindo’s actions were taken on behalf of Debswana, or that they were in anyway associated with the passage of the Clean Diamond Act in the United States, or diamonds in general. To the contrary, the charges have been brought specifically because Mr. Nchindo’s alleged use of company office and funds were disassociated from Debswana business and diamonds in general.”
(Last updated January 21, 2008, 4:13 am)