The South African parliament is moving to open a formal inquiry into embattled state-owned diamond miner Alexkor SOC Ltd amid corruption allegations tied to controversial contracts awarded to a private company over a decade ago, as investigators dig deeper into suspected governance failures at the state entity.
The move follows progress in a probe by the Special Investigating Unit (SIU) into suspicious procurement processes and diamond marketing arrangements linked to Alexkor’s joint venture operations.
Digging deeper
The portfolio committee on mineral and petroleum resources said it would now initiate a parliamentary inquiry to determine whether deeper governance failures occurred within the state mining company.
“Our committee is deeply committed to ensuring that all levels of governance within the state mining company adhere to the highest standards of accountability and transparency,” committee chairperson Mikateko Mahlaule said.
“It is essential that the full extent of any wrongdoing is uncovered and that those responsible are held accountable.”
Whistleblower tip-off
The parliamentary intervention follows a petition submitted by whistleblower Gavin Graythorne, which was referred to the committee by the Speaker of the National Assembly of South Africa on February 28, 2025.
Graythorne asked Parliament to investigate alleged corruption and governance failures at Alexkor, triggering a series of oversight actions by lawmakers.
According to Parliament, the SIU probe has focused primarily on procurement processes involving Scarlet Sky Investments, also known as the Alexander Bay Diamond Company (ABDC), which secured contracts in 2014 and again in 2016 to market, value and sell diamonds on behalf of the Alexkor Richtersveld Mining Company Pooling and Sharing Joint Venture.
“The SIU’s investigation primarily focused on the procurement processes related to Scarlet Sky Investment, also known as Alexander Bay Diamond Company, in 2014 and 2016,” Parliament said in a statement.
“Furthermore, the investigation looked into the marketing, valuation and sale of diamonds by ABDC, which has raised concerns about possible mismanagement and corruption.”
Investigators have already referred matters for civil recovery, disciplinary action and criminal proceedings against officials who were involved in the Pooling and Sharing Joint Venture between Alexkor and the Richtersveld Mining Company when the contracts were concluded.
The probe is also examining decisions by bidders or the State Diamond Trader not to purchase diamonds, agreements between traders, auctioneers and buyers, and a contract concluded between Alexkor and Regiments Capital, particularly where potential conflicts of interest may have arisen.
In response to the petition, the committee adopted a two-pronged approach to assess the allegations.
Oversight report
Lawmakers first engaged directly with Graythorne before undertaking a three-day oversight visit to Alexkor’s operations in Alexander Bay in the Northern Cape.
Parliament said the visit provided MPs with firsthand insight into operational challenges and governance weaknesses affecting the mine.
The committee’s oversight report, later adopted by the National Assembly, recommended that Parliament proceed with a formal inquiry into Alexkor.
Mahlaule said the inquiry’s terms of reference would be designed carefully to complement the SIU investigation.
“The terms of reference will be carefully crafted to ensure that they complement and do not duplicate the work already being done by the SIU,” he said.
Once finalised, the terms of reference will be made public as Parliament moves to uncover the full extent of governance failures and alleged corruption surrounding the state-owned diamond company.
