Africa-Press – Namibia. PROSECUTOR general Martha Imalwa has accused three Namibians of defrauding a British company of N$7 million by illegally selling diamonds without the relevant documents.
This is according to High Court documents filed between December last year and April this year.
Documents show that three Namibians, Heikki Kangonga, Erastus ‘Cabino’ Heita, and Ndawedapopendjebo Hamupolo, allegedly duped a British company called Lycia Limited – run by Mitesh Patel and his partner Bruno Manuel Silva.
Even though the prosecutor general says the amount paid to the three accused was around N$7 million, court documents state that the British firm paid close to N$10 million. Imalwa says the Namibian trio tricked the British company into believing they were conducting a legitimate gems transaction when in actual fact they had no right to sell diamonds.
“Kangonga, via Namibia Gemologist and Heita, via Cabino CC, intentionally pretended to sell unpolished diamonds to Lycia Limited under the auspice that Heita, Hamupolo or their entities are authorised diamond dealers, while they are not,” Imalwa said in her affidavit.
Imalwa added: “On reasonable grounds, neither of the accused persons or their entities has a licence authorising them to deal in diamonds.”
Imalwa declined to comment on the case when approached by The Namibian.
Two of the accused, Hamupolo and Heita, also declined to comment.
They have not been charged.
The other accused, Kangonga, who was charged and arrested, has denied any wrongdoing.
He is challenging the charges in court.
Imalwa went after the three and their bank accounts and properties in November under the Prevention of Organised Crime Act (Poca).
The High Court in December last year allowed Imalwa to confiscate their assets. The court also ordered that the confisticated money should be paid to the British company.
Silva – a partner in Lycia Limited – explained in court papers how he travelled to Namibia in October last year to seal the deal.
“My boss and I had been discussing the possibility of dealing in diamonds. I then met Cabino on LinkedIn and established contact with him, showing myself interested in buying diamonds from him,” Silva said in an affidavit filed in October last year.
He said his partner, Patel, then carried out a due diligence on Kangonga, of which he found he was a gemologist and “nothing but good things”.
Kangonga picked up Silva when he arrived in Namibia on 5 October 2021.
“We came straight to my hotel. I checked in, went for a quick shower, and came out to meet Kangonga, who was waiting for me in the car,” Silva said.
He added: “We left the hotel and went to pick up a diamond seller that was arranged by Kangonga.”
Hamupolo was the alleged diamond seller.
The three men allegedly went to Kangonga’s office situated on the fifth floor of the Atlas building in Windhoek. While there, Hamupolo allegedly took out three plastic bags of diamonds, which Silva observed were “already pre-sorted by Kangonga”.
“We went ahead, and according to the specifications of Patel, we picked a batch of 177 carats to start with, as we wanted to start small,” Silva said.
PAYMENTS
Even though the prosecutor general says the amount is valued at around N$7 million, court documents state the British company paid close to N$10 million.
Documents show that the British company paid N$3,7 million into Hamupolo’s bank account.
Around N$3,3 million was allegedly paid to Joat Trading, a company run by Hamupolo.
The company made two more payments – N$538 200 and N$237 000 to Cabino Financials, a company run by Heita, and N$3,5 million to Kangonga’s personal account.
While in the hotel on 18 October, Silva, the buyer, said the hotel manager informed him that a police officer wanted to speak to him.
“At the door was a big police officer with an official uniform and car. He introduced himself, saying he was working for the Ministry of Mines and Energy, and that he was picking up the diamond parcel I had with me for the protection of the buyer and the transaction,” he said.
Silva said he handed over both safe boxes.
He said it was “standard procedure” of the ministry to inspect the diamonds, according to Heita.
“This gentleman had a letter from Heita and told me not to worry, and that everything was fine. The police officer had a gun and everything, so I thought he really was with the ministry and all,” he said.
TRANSACTIONS
An investigation by the police into the payments made to the trio by the British company found that some funds were used to buy assets and were transferred to other people’s accounts.
The police obtained bank statements of their accounts between 20 September and 26 October 2021.
Part of Kangonga’s transactions include a transfer of N$58 000 for a Toyota Hilux, N$46 000 for a trailer, N$100 000 for a plot, and N$50 400 paid to various cellphone numbers.
His bank statements also show N$1,3 million was withdrawn in cash from a teller, and N$63 700 was withdrawn through ATMs during the period.
By 30 October, his account had a balance of N$2,3 million.
Heita’s company, Cabino Financial Services CC, transferred N$25 000 to his FNB bank account.
That account recorded cash withdrawals of N$690 000 at the teller, N$7 900 cash withdrawals at ATMs, and a purchase of N$60 500.
‘IT WASN’T ME’
Heita and Hamupolo have not defended the case.
Kangonga, who owns a 60% stake in Namibia Gemologist CC, has defended his case and denied wrongdoing. He filed court papers in April this year, saying he was contacted to provide services in September last year.
“I deny having committed any act of fraud or theft by false pretences against Lycia Limited or any other persons. I deny that I committed any acts of illegal possession or dealing with diamonds. I deny that I have committed any money laundering offences,” he said.
Kangonga said he is an experienced gemologist.
He said N$74 500 paid into his account involved professional fees, while N$4,1 million represents the full commission of the diamonds he evaluated.
“I evaluated the diamonds. I was paid a commission. That is what I studied for and I have qualifications for it. I am entitled to be paid for this work,” Kangonga said.
“The state alleges that I worked in common purpose with Heita and Hamupolo to commit theft under false pretenses and fraud against Lycia. Yet, only I have been arrested and charged in connection with the alleged offences.”
He added: “It is clear that the diamonds were taken by Heita. If anything, he should be the one facing prosecution.
“My job is to do diamond verification and valuation. I am not a dealer, and I am not familiar with the buying and selling processes.”
He said he has, on several occasions, approached the mines ministry for registration as a professional gemologist, but has been “turned away”.
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