Botswana to transform into world class diamond centre
Amendment Bill gets overwhelming support
Members of Parliament from across the aisle have overwhelmingly supported the proposed Diamond Cutting Act Amendment Bill, which stands to empower Batswana in the diamond industry.
The Diamond Cutting Act Amendment Bill, 2021 ( No. 5 of 2021) which was read for the second time is currently at Committee level for its finalisation stage. However, MPs across the aisle who supported it, raised concerns and called on government to ensure that all stumbling blocks such as delay in availing serviced land where Batswana will build diamond polishing factories, is done timely.
They also asked government to ensure that aspiring diamond polish dealers who have previously rubbed the law the wrong way are not disadvantaged by the heavy penalties previously imposed on them. Tabling the amendment, Minister of Mineral Resources, Green Technology and Energy Security, Lefhoko Moagi said the Act regulates the manufacturing of diamond products in the country. He said the amendments seek to ensure that some of the diamonds mined in Botswana are beneficiated in Botswana.
He said the intention is to stimulate employment generation, skills and industry development, as well as citizen empowerment and transform Botswana into a world class diamond centre.
Moagi said the amendments to the Act are being proposed to among other things; ensure that only credible and legitimate companies are licensed in diamond manufacturing in Botswana.
He said through the amendments, government is able to tighten regulatory control of downstream beneficiation of all the diamonds in the country. The Bill seeks among others to ensure that diamond cutting licenses are issued to companies as opposed to nominees or individuals from companies. It also seeks to remove clauses that created barriers to business operations and to encourage participation in business by citizens, as well as to introduce stiffer penalties or fines to align with the magnitude of offences. Moagi said Clause 4 substitutes a new Section 8 of the Act with the following changes; the word “nominee” has been removed as licenses would be issued to companies only, and not a nominee.
He said they introduced a new provision that no person under 18 years would be issued with a diamond cutting license. They have also made a provision that an applicant must have secured access to adequate financial resources and have the technical competence required to carry out the business of cutting and polishing.
Further Clauses 5 to 8 and 13 of the Bill delete reference to the word “nominee” as a consequence of introducing a new Section 8, and Clause 10 and 11 have deleted Sections 18 and 19 in order to remove barriers to business operations. Clauses 15 to 17 have increased the fines in Sections 11, 12, 15, 25, 28, 33 and 34 to match the magnitude of the offences. Member of Parliament for Serowe North, Baratiwa Mathoothe supported the Bill but cautioned that since it encourages Batswana to be involved in diamond beneficiaion business, government must ensure that serviced land is available where such factories can be built by interested parties. Molepolole North MP Oarabile Regoeng expressed worry that the debate on diamond beneficiation has been discussed and agreed upon long time but very little action has taken place.
Tonota MP Pono Moathodi said Botswana diamonds by virtue of being mined locally means they belong or should belong to Batswana, and whatever dues or benefits therefore, must benefit Batswana. “Proceeds from our diamonds have been put to very good use in the past, and still continue to be put to very good use in developing this country, as we boast of very good regional, as well as international roads, schools, hospitals and many more. “Our national income generating resources are today very minimal because of the COVID- 19 scourge. Hence, all income, generated from diamonds or wherever, should singularly and directly be in the hands of Batswana”. Kenny Kapinga, MP for Okavango raised concern on Section 4 ( 2) which relates to disqualification on license holders after they had been found guilty of wrongdoing. He cautioned that at times people are led by emotions when they legislate, as 10 years is a long time which can unintentionally, end up leading to the exclusion of people from participating in the diamond industry.