The State Diamond Trader has caused immense harm to the local diamond cutting and polishing industry. This is due to its failure to ensure access to rock diamonds to the local market. Its main purpose is the accessibility of rock diamonds locally, which objective we support in principle.
However, diamonds are illegally exported currently without such diamonds been cut and polished locally, by those to whom rough diamonds have been sold by the STD, the State Diamond Trader, against the purpose of the State Diamond Trader.
The chairperson of the State Diamond Trader is alleged to have imported rough diamonds valued at approximately US$1 million during March this year from the Marengo region in Zimbabwe. Due to human rights abuses, the purchase of diamonds from Marengo has been prohibited by the Kimberley Process, despite what the department says. The credibility of the Kimberley Process is in danger of being irrelevant. The hon Minister is not taking any steps against the chairperson, despite having been informed during the Budget debate three weeks ago.
The hon Minister's alleged insistence that the minutes of the SA Precious Metals and Diamond Regulator be amended to exclude the fact that the illegal importation of diamonds from Marengo raises many questions, inter alia, where those diamonds are currently located; whether the chairperson has an operational business licence; and whether there is in fact a licence to do so.
The chairperson of the State Diamond Trader's action reveal a conflict of interest in that she has either acted illegally for her own personal account or to the benefit of the State Diamond Trader without the Act providing for the State Diamond Trader to import diamonds. On both scores it is alleged that the chairperson's actions should be investigated.
The apparent answer for the Minister's failure to take action against the chairperson appears to be the fact that the chairperson of the State Diamond Trader has strong political ties with the hon President Zuma, was at one stage his legal advisor, is now a member of the Jacob Zuma Children's Fund and a co-director of the Deviate Information Technology with the President's son, Duduzane.
The DA will therefore not support a budget where the hon Minister is seemingly not prepared to take steps against alleged illegal actions. [Applause.]