Masisi’s seething fury towards De Beers
Mompati Tlhankane - Sharon Mathala | Tuesday September 5, 2023 06:00
Despite previous criticism for his use of Setswana phrases like 'pepere pere', Masisi didn't shy away from addressing the De Beers issue at the Botswana Democratic Party (BDP), threatening 'to spill beans' at the weekend event.
"Dilo di santse di tsile go kgokologa. (Things have gotten to the point of no return)," he asserted.
Masisi's agitation on this matter is palpable as if he's reliving the entire negotiation process, which he claims gave him many sleepless nights. In June this year, government and De Beers reached a significant agreement for a new 10-year sales arrangement for Debswana's rough diamond production until 2033, alongside the new 25-year Debswana mining licenses extending to 2054.
During his speech in Palapye, Masisi made a startling allegation, suggesting that Peter Magosi, the Directorate of Intelligence and Security (DIS) head, was dismissed from the Botswana Defence Force (BDF) due to the DeBeers diamond issue during Ian Khama's presidency.
Whenever Masisi discusses DeBeers, he deviates from his prepared remarks, seemingly keen to emphasise his role in achieving positive outcomes. However, beneath this bravado, it's evident that Masisi still feels the pain from the negotiations despite the ultimate benefits for Botswana.
He unveiled his unwavering commitment to making things right, even at the risk of his presidency and the country's well-being. He expressed his frustration with De Beers, asserting that they were "accustomed to getting their way", but he would no longer tolerate it. "I told them, you don't play with me. I had been observing and learning all this time that from the onset they have an attitude," he boldly stated. "Each time negotiations come they sing the same boring song. "I told them I don’t believe their stories and that if any of them still has the colonisation mentality which cheated and threatened my predecessors to sell rough Botswana diamonds, that has ended," he said.
Masisi criticised De Beers for hindering Botswana from maximising its gains from its own diamonds, emphasising that 70% of De Beers' value is attributable to Botswana diamonds. He made it clear that if Botswana were to withhold its diamonds, DeBeers would suffer. He acknowledged that the diamond industry might face challenges for a few years, but he was willing to jeopardise even the country's success for the sake of Botswana's "truth and prosperity". He revealed that Eric Molale, one of the negotiators, had fought for Botswana to secure a 10% share in previous dealings, and now Molale and former Attorney General Athaliah Molokomme had his permission to reveal the secrets of the 2011 DeBeers deal. The tide turned for the country since De Beers had been taking 100% of their diamonds to sell before the 2011 negotiations. Masisi admitted that Botswana didn't fully benefit from the 10% share because it was concealed. He recounted that, in 2019, as negotiations with De Beers loomed, he noticed they were undermining him. He initially tolerated their bullying tactics but eventually took a stand. "I told them these diamonds are ours," he emphasised.
He challenged De Beers' view that Botswana's reliance on diamonds made it desperate, asserting that they had long taken advantage of Botswana. Even until the last moment, Masisi stood firm, stating that if the deal didn't come through, Botswana would find another partner. Through strategic negotiation, they secured an additional 15%.
Under this agreement, the state-owned diamond trader, Okavango Diamond Company, will receive a 30% allocation of Debswana's output, rising to a maximum of 50% in the next decade. Additionally, a multi-billion pula Diamonds for Development Fund will be established, with De Beers committing an initial investment of P1 billion and further contributions of up to P10 billion over the next decade to boost the Botswana economy.