SIU raids Alexkor’s sale agent’s offices
The Special Investigating Unit (SIU) and the Hawks yesterday raided the offices of Alexander Bay Diamonds Company in Johannesburg as part of an ongoing investigation into Alexkor, the state’s diamond mining company.
“The SIU received a tip-off from a whistle-blower on alleged maladministration in Alexkor in respect of the marketing, valuation, sale and beneficiation of diamonds.
“The raid of Alexander Bay offices is crucial for the SIU to complete its investigation in the affairs of Alexkor,” the SIU said yesterday.
The SIU was authorised by President Cyril Ramaphosa, under Proclamation No R 45 of 2021, 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.
On Wednesday, the Johannesburg Magistrate’s Court granted the SIU a warrant to conduct a search and seizure operation at the premises of Alexander Bay, previously known as Scarlet Sky Investments, and related companies.
Alexander Bay was appointed by Alexkor in 2015 as an external service provider to perform marketing, valuation, sale and beneficiation in respect of Alexkor Diamonds.
The company was allegedly appointed to improve the sales of diamonds, as Alexkor believed that the diamonds were being sold about 30% below market value.
The circumstances and procurement process that followed led to the appointment of Alexander Bay is a subject of the SIU investigation.
“Alexander Bay has refused to disclose the identity and details around the sale of diamonds to Alexkor and its chief executive officer, citing none disclosure agreement signed with buyers of state diamonds.
“The company also failed to disclose the details around the sale of diamonds to the Commission of Inquiry into State Capture.
“The SIU deemed it necessary to approach the Johannesburg Magistrate’s Court for a search warrant to seize documents and computers in order to assist with an ongoing investigation, as normal processes to request information was likely to be met with the same attitude,” the SIU said.
The SIU is empowered by the Special Investigating Units and Special Tribunals Act 74 of 1996 (SIU Act) to subpoena bank statements and cellphone records, search and seize evidence, and interrogate witnesses under oath in order to fully investigate allegations brought before it.
In line with the SIU Act, the SIU will refer any evidence pointing to criminal conduct to the National Prosecuting Authority. –