Diamond deal dents Stanchart profits
Friday, April 08, 2016
Although the bank did not reveal the identity of the client, industry sources told BusinessWeek that about $7 million (P77 million) of the total impairment charge can be attributed to Motiganz Diamond Company Botswana. Motiganz’s cashflow is hampered by the purchase of a huge multi-million dollar rough stone, which it now finds difficult to sell in the current depressed market.
Stanchart gives credit lines to finance De Beers’ sights and reports say Motiganz used part of its credit line to purchase the stone, which is now part of the bank’s collateral.
The findings reveal a disturbing pattern of misconduct and lack of transparency that cannot be ignored.The Tribunal, led by Judge President Justice Kabelo Lebotse, has rightly condemned the Ministry for its eyebrow raising conduct in awarding a P1.8 billion water tender to China Civil Engineering Construction Corporation (Pty) Ltd and Zhong Gan Engineering & Construction Corporation (Pty) Ltd.The award was made despite alleged clear evidence that...