SIU raids alleged Gupta-linked Alexander Bay Diamonds company

The Special Investigating Unit (SIU) conducted a search and seizure raid at the Gupta-linked entity, Alexander Bay Diamonds, at its Killarney offices in Johannesburg on Thursday.

The raid is part of an investigation by the SIU into maladministration in the contract between the diamond company and the state-owned diamond mining enterprise Alexkor.

The SIU was granted an order by the Johannesburg Magistrate’s Court on Wednesday to seize evidence at the company.

SIU spokesperson Kaizer Kganyago said the investigating unit wants to determine whether the lucrative ocean diamond mining contract was awarded lawfully to Alexander Bay Diamonds.

Alexander Bay selling diamonds below market value

The joint venture between Alexkor and Alexander Bay Diamonds was investigated by the Zondo Commission.

It heard allegations about the joint venture providing services to a company linked to the Guptas.

“The SIU was authorised by President Cyril Ramaphosa to investigate allegations of corruption and maladministration in respect of marketing, valuation, sale and beneficiation of diamonds, pursuant to agreements concluded between Alexkor and service providers,” said the SIU in a statement.

There are also reports that diamonds from the company were sold at 30% below market value to syndicates.

“We are looking at different facets, the first part is the contract that was entered into between Alexander Bay. And whether the contract was entered into in a fair manner. Whether everybody was given an opportunity.

“And we are also looking into this devaluing of the diamonds because those diamonds belong to the people of this country. And the third thing we are looking at is who are the people who are buying these diamonds,” said Kganyago.

Kganyago said the CEO of Alexkor in an affidavit said they entered into a non-disclosure contract about the people who bought the diamonds.

Alleged Gupta links

“We want to know because there are links that might be really problematic of the kind of people they are selling to, where are these people and why are they selling it at the lower amount.

“And what do they do with these diamonds when they sell them at a lower amount because the profit margins of this company are going down because the company that they are selling to is supposed to give them profit and sell more at a lesser price,” added Kganyago.

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