A South African consulting firm, Bravo Compliance, has sued Namib Desert Diamonds for N$2,1 million ($152, 000) for terminating a contract that was meant to help improve the Namibian state-owned diamond trader improve its governance systems.
The Namibian newspaper reports that Namdia had informed Bravo on 1 June 2018 that it had cancelled the contract because it was awarded based on misinterpretation, and that the tender process should start afresh.
However, Bravo was said to have concluded that the contract was terminated after it raised red flags about how Namdia was selling its diamonds to foreign companies.
The company was previously accused of selling Namibian diamonds below value to dealers in Dubai.
It, however, denied the allegations.
Namdia offered Bravo N$400 000 ($29,000) as a settlement for cancelling the contract and the South African consulting rejected the offer.
It then approached the court seeking to get N$2.1 million.
Namdia advertised the tender in January 2018 seeking a private company to establish a system meant to evaluate and improve its risk management, control, compliance and governance processes.
It awarded the contract to Bravo on 22 March 2018.
The Namibian newspaper reports that Namdia had informed Bravo on 1 June 2018 that it had cancelled the contract because it was awarded based on misinterpretation, and that the tender process should start afresh.
However, Bravo was said to have concluded that the contract was terminated after it raised red flags about how Namdia was selling its diamonds to foreign companies.
The company was previously accused of selling Namibian diamonds below value to dealers in Dubai.
It, however, denied the allegations.
Namdia offered Bravo N$400 000 ($29,000) as a settlement for cancelling the contract and the South African consulting rejected the offer.
It then approached the court seeking to get N$2.1 million.
Namdia advertised the tender in January 2018 seeking a private company to establish a system meant to evaluate and improve its risk management, control, compliance and governance processes.
It awarded the contract to Bravo on 22 March 2018.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
