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Botswana: Diamond mine’s secretive financial systems raise eyebrows

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A new report by the Natural Resource Governance Institute (NRGI) has raised the red flag over Debswana’s secretive financials relating to the sale of diamonds, APA learnt here Monday.The report noted that while Debswana appears to have good corporate governance structures in general, the rules describing how the company operates are less clear than those of most other state-owned enterprises evaluated in the RGI.

Describing Debswana as Botswana’s most significant diamond mining enterprise, the report said the company does not disclose the transfers of funds to the government and details relating to the sale of diamonds.

“Furthermore, while the company provides much information in its annual reports, our researchers could not find the core financial details that analysts require to provide effective independent oversight of the company,” says the report.

The report stated that Debswana has a failing score, but can improve its performance by improving annual reports.

Debswana is a joint venture between the government of Botswana and De Beers.

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