Niël Terblanché
The Namdia board of directors has acknowledged the employees’ concerns over revenue losses amounting to approximately N$230 million, leading to a vote of no confidence in the company’s chief executive officer (CEO), Alisa Amupolo.
Last week, the employees, under the auspices of the Mineworkers Union of Namibia (MUN), in a letter addressed to the board of directors and dated 18 July, requested Amupolo’s removal.
They cited her alleged incompetence and mismanagement as the primary reasons for the drastic financial downturn.
On Monday, the company board assured that they, supported by a governance committee, are committed to addressing these issues through proper corporate governance practices.
“We value the trust and confidence placed in us by our stakeholders and remain committed to upholding the highest standards of corporate governance. While we understand the interest these matters may generate, we ask for understanding as we proceed in a manner consistent with our commitment to confidentiality and due process,” said the board.
In their letter, the employees pointed to several key issues, including the degradation of diamond sales and strained international client relationships.
The employees claimed that Amupolo does not have the necessary expertise and understanding of the diamond industry, resulting in the company’s inability to purchase diamonds for resale to its global clientele.
The employees stated that the financial health of Namdia has deteriorated to the extent that it has transitioned from a billion-dollar entity to a “hand-to-mouth” operation.
They also indicated periods where no purchases or sales were made due to financial constraints, which have led to forfeiting diamond parcels to competitors and selling others at a loss.
Namdia, which was established to determine Namibian diamond market pricing, has faced operational challenges under Amupolo’s leadership, according to the employees.
The employees claimed that the company could not afford to collect diamond parcels from the Namibia Diamond Trading Company (NDTC) towards the end of 2023 and the beginning of 2024, resulting in missed shipments and a subsequent drop in sales.
The Namibian government and De Beers formed Namdia in 2016 with the goal of marketing and selling Namibian diamonds abroad.
Despite facing transparency issues and allegations of selling diamonds cheaply, Namdia has played an important role in the diamond industry while contributing to the national economy.
The NDTC’s mandate is to develop a sustainable downstream diamond industry, with a focus on beneficiation and value addition.
The NDTC also plays a critical role in supporting local entrepreneurship and advancing Namibia’s diamond trade on the global stage.
