P. Sarojini
Tanzania (CWBN)_ On Saturday, the Tanzanian government announced that they have officially nationalized the $29.5 million diamond consignment that were confiscated three years ago in a case that illustrates a tug-of-war with economic saboteurs. In 2017, the airport authorities of Julius Nyerere International Airport initially confiscated 71,654 carats of diamonds, which were ready to be shipped to Belgium.
According to a local daily newspaper, the change came following the order from a court in the capital of Dar es Salaam that the two former government officials had to pay penalties or spend three years in prison for inducing losses to the government. The statement from the police said that the two officials acknowledged their misconduct in undervaluing the diamond consignment and then the state wanted to nationalize the confiscated diamonds.
This judgement is considered as a landmark and a turning point in the East African country’s battle against bribery and natural resource theft. Approximately 4% of Tanzania’s GDP is contributed by mining. The mining sector has been reevaluated by President John Magufuli, in view of the government’s aims to increase its contribution to GDP to 10% by 2025.
In 2017, the government imposed laws to allow the state to negotiate again the agreements with mining and energy firms. According to the statement from the officials, the seized diamonds, which were owned by Williamson Diamonds, were originally confirmed to be valued around $15 million, but later, a government audit found that they were worth almost double the amount.
