Minister of Minerals and Energy: Allegations of Impropriety Unfounded

18 April 2002

Following an investigation pertaining to the purchase of pieces of jewellery by the Minister of Minerals and Energy, the Public Protector, Adv S A M Baqwa SC, has found that allegations of impropriety in this regard were unfounded.

After several press reports alleging improper conduct by the Minister in connection with the purchase of a traditional headpiece adorned with a gold and diamond band, the Director-General of the Department of Minerals and Energy approached the office of the Public Protector to investigate the matter.

The following allegations were made:

• That the Minister had received a substantial discount for a piece of jewellery from the supplier;
• That the supplier had secured his selection to the South African Diamond Board as a result of the discount received; and
• That the Minister had failed to declare the discount received and/or that she had received the item as a gift.

The investigation revealed that the Minister had commissioned the supplier, Mr Temane, to produce the piece in her personal capacity and that a final quotation had been agreed on. She paid for the item from her personal resources.

The investigation further revealed that whilst Mr Temane is a lawful and active dealer in the diamond industry, he has more substantial connections with the De Beers diamond company than the Department of Minerals and Energy. He belongs to a company that is a "sightholder" or preferred client of the diamond giant. He had indeed been appointed to the South African Diamond Board through normal procedures, but this Board holds four meetings per annum, at an allowance/stipend of R812.00 per meeting.

Finding

"Allegations of conflict of interest are not substantiated by the investigation and the evidence before me," said Adv Baqwa. He stated further that there was no evidence that the Minister had promised the supplier any benefit, other than the agreed price. "This was a normal purchase and sale agreement with no undue benefit envisaged in the agreement," he said.

Regarding the Minister's duty to declare the purchase, the report states that there is no legal requirement for such a declaration as the items were neither a gift nor a donation and were acquired through a personal purchase.

"The above findings are further supported by the fact that the impending de-establishment of the Board diminished any prospect that any person could have been granted a position of influence over the industry by the Minister," he said.

"I accordingly find that the allegations are unfounded and in fact, on the proven facts, border on the mischievous," he concluded.

Enquiries: Nicolette Teichmann
Tel: (012) 322-1190
Cell: 082 333 5624

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