10 Aug 2021

All the diamonds produced by Lerala mine are exported following due processes, Minister of Minerals Resources, Green Technology and Energy Security, Mr Lefoko Moagi, has said.

Answering a parliamentary question on Monday, Mr Moagi explained that the diamonds were valued by Government Diamond Valuer (GDV) and cleared by customs officials.

“All exported diamonds from Botswana are first valued by the Government Diamond Valuer, inspected by the Diamond Hub who then issues a Kimberly Process Certificate. All diamonds are cleared by customs before export,” explained Minister Moagi.

He added that all the diamonds sold from Lerala mine had been declared and where applicable, appropriate taxes paid.

He also told Parliament that he was aware of all the different consignments of rough diamonds totalling 53 755.9 carats, which were mined by Lerala Diamond Mine and exported before the liquidation process.

“Ministry officials, together with customs officials, remain vigilant to ensure there are no consignments of diamonds that can leave the country without proper declaration. Further, any goods purported to be diamonds coming in or going out, are inspected for authenticity, to ensure what category of diamonds they fall under, that is, natural or lab grown, so that appropriate levies and or taxes are commensurate.

This assists also to ward off any false provenance where diamonds gotten elsewhere could be construed to be coming from Botswana, which could taint our diamonds in bad light,” he added.

He also indicated that all mines in the country had to comply with Customs Act, Income Tax Act, as well as other relevant statutory instruments.

He added that the Large Tax Payer Unit of Botswana Unified Revenue Service (BURS) audited production and sales of all mines, including those producing diamond producing, for compliance with tax legislation.
Meanwhile, he said the ministry continually reviewed the minerals legislation to ensure gaps in legislation, such as those that can lead to loss of revenue to the country, were addressed.

Palapye MP, Mr Onneetse Ramogapi had wanted to know the procedure in auditing diamonds mined each day and how they were declared to BURS before and after sales.

Mr Ramogapi also wanted to know if the minister was aware that the Lerala mine diamonds were taken out of the country in large numbers before the liquidation process.

He asked if the said diamonds were declared to BURS and if not why. The MP further wanted to know if the country was not losing revenue through loopholes of failure to declare and/or true reporting and if so, what the ministry was intending to do to rectify the situation. ENDS