Examination of Witnesses (Questions 60
- 61)
TUESDAY 14 FEBRUARY 2006
MR JOE
MATOME
Q60 Mr Davies: You have to sell the
diamonds presumably through the De Beers central selling organisation,
through the Diamond Corporation?
Mr Matome: Unless you make your
own arrangements with them. We have a special contract with them
so other people who are there and other companies—there
are some Canadian interests also—do not have to sell to
De Beers at all. They can choose to do so. The unique thing about
Debswana is that it is a company formed under the Companies Act
and therefore with all the issues around the transparency required
by the Companies Act and all the obligations of the Companies
Act. When they decided to go into partnership, thank goodness
it was not to have it as a parasitical act which could be a problem
but to have it as a company. There was great foresight from that
point of view because it opens you up to being able to be scrutinised.
Other companies may or may not choose to go with De Beers. They
do not have to. They can do it on their own and have their own
agreements and arrangements. Even if they did go into bed with
government on this issue, they may still choose not to sell through
the central selling agencies. There is a great deal of latitude
in the diamond industry or any industry to sell whichever way
they want. We choose to sell through De Beers.
Q61 Chairman: That was a very interesting
exchange. Members of the Committee will be looking forward to
seeing your counterparts and contractors when we are in Gaborone.
You have given a very clear account not only of that model but
of the fact that it could be transferable. That is of interest
to us. When you see success you want to know how you can translate
that success somewhere else and spread the benefits. We have been
on the borders of the Democratic Republic of the Congo where all
you see is rape, pillage and plunder and no sense of minerals
being developed for the benefit of the people, so it is good to
see one country that has that arrangement. Thank you very much
indeed for taking the time and trouble.
Mr Matome: We look forward to
seeing you and your Committee when you come to Botswana. I will
make sure I am available.
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