Future Headline: ‘DTC Sightholder Jailed for Attending Sight’

This headline is not imaginary, just premature. No foreign DTC Sightholder has yet been jailed in South Africa for attending his own company’s Sight. However, technically De Beers and some of its Sightholders were definitely in legal jeopardy as they all violated the law.

Under the new law, foreigners coming to buy rough in South Africa can only purchase at the State Diamond Exchange and Export Centre. There is no other option.

Simon Sikhosana, general manager of the Diamond and Precious Metals Department and the Diamond Regulator, says unequivocally, “unlicensed exporters and Tender Houses will not be allowed to do business with unpolished diamonds in our country. Our inspectors will be out there to monitor the situation and will not hesitate to call the police when necessary to deal with the illegal activities.”

Sikhosana adds that they “strongly advise the law-abiding business people to stay away from such illegal activity to avoid the strong might of the law,” suggesting that the police may be called in.

We would caution foreign traders and almost suggest that they “stay away” from South Africa’s tender houses until there is greater legal clarity. In fact, at mid-week, it became clear that dozens of foreign buyers had cancelled their trips.

The full story will appear this Thursday in Chaim Even-Zohar’s Memo.