ENQUIRY INTO THE SA DIAMOND INDUSTRY

Issued by: Minister of Mineral and Energy Affairs

MEDIA STATEMENT BY THE MINISTER OF MINERAL AND ENERGY AFFAIRS, MR R F (PIK) BOTHA

Pretoria

Wednesday, 18 October 1995

CABINET APPOINTS A COMMISSION OF ENQUIRY INTO THE SOUTH AFRICAN DIAMOND INDUSTRY

The Cabinet today approved the appointment of a Commission of Enquiry into the South African Diamond Industry.

The terms of reference of the Commission will be "to investigate and report on all aspects of the South African Diamond Industry, in particular:

• Government regulation of and involvement/intervention in the industry, including the provisions of the Diamonds Act of 1986 and the Minerals Act of 1991; the role of the South African Diamond Board; the effectiveness or otherwise of illegal diamond buying (IDB) provisions; and related matters;
• the supply of rough and unpolished diamonds to the local processing industry;
• the industry's contribution to state revenue and the balance of payments as well as to job and wealth creation;
• international models relevant to the local industry;
• the influence of foreign companies and international diamond combines on the supply of diamonds to the South African Diamond Industry and the export of diamonds from South Africa; and
• any other matter considered relevant by the Commission."

The Commission will be headed by a judge assisted by two assessors. Their names will be made public as soon as they have been nominated.

The last Commission of Enquiry into the South African Diamond Industry was completed more than 20 years ago. Since that time there have been many important changes and developments in the diamond industry. A new investigation is now required in view of concerns of parties both within the industry and those outside it. There is also a need to scrutinise and evaluate existing policy, legal provisions and regulatory measures.

These concerns include: Government regulation of and involvement in the industry; the lack of rough diamond supplies for the local cutting industry; certain provisions of the Diamonds Act 1986 and Minerals Act 1991; the role and composition of the South African Diamond Board; the ineffectiveness of existing IDB laws; the role of the South African Police Service's Gold and Diamond Branch and the police trapping system; the role of De Beers; certain practices in the industry; taxation issues; the minimal role in the diamond industry of the previously disadvantaged; and in general the manner in which the industry is being developed and administered.

Enquiries: Roland Darroll

Phone: (o) (012) 322 8695 (h) (012) 43 3394 (cellular) 082 55 27994