De Beers has ended its supply agreement with manufacturer Brilliant Star amid allegations the manufacturer has been bribing officials at the Namibia Diamond Trading Company (NDTC) and the Ministry of Mines.
“We can confirm that following a separate investigation, NDTC has terminated Brilliant Star’s supply agreement, and consequently, Global Sightholder Sales (GSS) has terminated its supply agreement with Brilliant Star,” a De Beers spokesperson told Rapaport News Monday.
Namibian social and political activist Michael Amushelelo claimed on his Facebook account that the Namibian manufacturer bought two houses in the country, which remained in its name, but NDTC CEO Brent Eiseb used one and a diamond controller inspector the other. He also alleged that a ministry official was using a Brilliant Star bank card to withdraw cash instead of receiving money in envelopes. Amushelelo maintained that the bribes reportedly helped the company export rough diamonds without processing them locally. The activist also posted documents he said supported his claims.
Brilliant Star is purportedly flying officials around the world, including to sporting events and parties in Belgium, Amushelelo claimed. Additionally, it is allegedly exporting large diamonds without processing them at its factory, and declaring artificially low values to reduce export taxes, while the actual figures may be millions of US dollars higher.
A company manager for Brilliant Star claimed that Eiseb bought a car using the manufacturer’s foreign bank card, according to Amushelelo’s post.
Meanwhile, Amushelelo reported that he has heard claims that Brilliant Star may be importing, polishing and presenting lab-grown diamonds as diamonds purchased from NDTC.
A former head of administration at Brilliant Star has also alleged that, since 2023, more than 100 Indian nationals were brought into Namibia to work at the company. Those individuals were issued medical and X-ray reports without undergoing the required examinations, and the reports were then submitted to Home Affairs in support of work-permit applications, Amusheleo noted her as saying.
Modestus Amutse, Namibian minister of Industries, Mines and Energy, has referred allegations of misconduct involving an official in the Directorate of Diamond Affairs and employees of NDTC to the Anti-Corruption Commission (ACC), according to a report from the Namibian Sun.
Meanwhile, the De Beers spokesperson told Rapaport News that “NDTC takes such matters extremely seriously and is initiating an independent investigation under the oversight of the Board Audit Committee. This was confirmed by NDTC.
“The board of NDTC has accepted a request from Mr. Brent Eiseb, CEO of NDTC, to take a voluntary leave of absence until the Board Audit Committee has concluded an independent investigation,” the company said in response to a request for comment on the matter.
The NDTC is a 50/50 joint venture between the government of Namibia and De Beers, established in 2007.
However, Brilliant Star has maintained its innocence in all matters.
“Brilliant Star categorically denies that it, or any of its subsidiaries has paid a bribe to any official in Namibia, including at the Namibia Diamond Trading Company,” the company told Rapaport News. “The allegations you refer to appeared in social media posts. We have not been shown any evidence to support them and no charge has been brought against Brilliant Star or any of its entities in connection with any bribery allegation. Brilliant Star Diamonds Namibia has been manufacturing diamonds in Namibia for many years and currently employs over 100 people, 71 of them Namibians, reflecting our continued commitment to local manufacturing in Namibia.”
Image: Polished diamonds. (Brilliant Star)
