Mmegi

De Beers’ new owner should be the one who can fix it

New pathways: De Beers’ shareholding is set to change
New pathways: De Beers’ shareholding is set to change

As the debate rages on who should be De Beers’ new majority shareholder, the real question is who can fix a company estimated to be losing up to $2 million a day? Experts say whoever can do that is the right entity needed on the share registry. MBONGENI MGUNI writes

It has become generally known that at least three entities are bidding for Anglo American’s 85% stake in De Beers. These include former De Beers’ executive-led consortiums, as well as sovereigns, being Botswana and Angola. Namibia, which was initially reported to be in the hunting, has since officially stated that it is still considering its position.

Botswana and Angola, De Beers’ biggest producer and its most prospective ground respectively, met recently in Gaborone to iron out an apparent clash over their individual desires to both take up a majority stake in De Beers. Ministers exclusively told Mmegi recently that the two were “perfectly aligned.”

Editor's Comment
Justice delayed is development denied

The P300 million internal roads tender is a case study. A bidder’s complaint revealed alleged irregularities. A tribunal ordered a re-evaluation.The council and the initial winner appealed to the High Court. Now, the Ministry of Local Government and Traditional Affairs, frustrated by the delay, writes to the council suggesting the tender be cancelled, and an alternative procurement model be explored, while the matter is still before the courts....

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