05 Dec 2016

Minister of Mineral Resources, Green Technology and Energy Security, Advocate Sadique Kebonang says De Beers Sightholder Sales operates via an international network of entities.

Answering a question in Parliament, Advocate Kebonang said the entities include Global Sightholder Sales and the Diamond Trading Company Botswana (DTCB), both based in Botswana, the Namibia Diamond Trading Company (NDTC) based in Namibia and Sighthholder Sales South Africa (SSSA), based in South Africa.

He said this network approach enables the effective delivery of its activities in each Southern African producer country, as well as efficient operations across the four distinct trading entities.

The minister further said each of the aforementioned corporate entities (DBGSS, DTCB, NDTC and SSSA) has its own independent board of directors where corporate, governance and strategic decisions are made, as well as its own Executive Committee(or ExCo), where key operational decisions are made. He explained that the board of directors of each entity is distinct from the ExCo.

Advocate Kebonang said the network-based approach to Sightholder Sales also requires the head of each distinct operation to have a seat at the table which address operational issues at the network level (i.e. a broader Midstream Executive Committeee, or ExCo).

The managing director of the Diamond Trading Company Botswana (DTCB), alongside colleagues at the equivalent level from NDTC in Namibia and SSSA in South Africa sits as member of the Midstream ExCo so as to ensure the smooth operational effectiveness of the diamond pipeline. He said the participation of the MDs of DTCB, NDTC and SSSA ExCo was accordingly fully aligned with good corporate governance principles.

He stated that De Beers Global Site Holders are also De Beers’ representatives and DTCB board members.

“DTCB is a joint venture between the government of Botswana and De Beers, with each party holding a 50 per cent share in the business.

Each shareholder therefore appoints directors to the DTCB board in line with this shareholding,” he said.

Mr Kebonang said ‘De Beers Global Sightholder Sales is a wholly owned De Beers subsidiary and as such, it is entirely up to De Beers to appoint individuals they find suitable to be their representatives/ directors on the boards of businesses in which it has a shareholding, including DTCB.’

MP for Boteti East, Mr Sethomo Lelatisitswe had asked the minister to state whether the arrangement where the Diamond Trading Company Botswana(DTCB) managing director sits in the De Beers Midstream Executive Committee where decisions are made meets corporate governance principles.

He also wanted to know if the minister was aware that some senior managers of the De Beers Global Site Holders are also De Beers representatives and DTCB Board members. ENDS