The successful appeal of the
Anti-Corruption Commission’s conviction of the
prominent former Minister for Transport and Communications
and Kailahun District M.P. Momoh Pujeh illustrates
the pitfalls of legitimately prosecuting illegal mining
and diamond smuggling in Sierra Leone as well as the
need for the reform of this critical sector of the
economy.
The importance of diamonds to Sierra Leone’s
future is obvious and cannot be overstated. It is
the country’s most valuable asset and its revenue
vital for national development. However, the plague
of widespread illegal mining and smuggling drastically
reduces much-needed income for the state and people,
as the Ministry of Mineral Resources estimates that
roughly half of the country’s potential diamond
revenue is lost through illegal activities.
The recent highly politicised Pujeh case proved to
be a high-profile battleground over this critical
issue of illegal mining, and in particular the issue
of licensing. In the year 2001 Momoh Pujeh was arrested
and investigated by the Sierra Leone Police and charged
by the Anti-Corruption Commission for the illegal
possession of Le 73,000,000 (US$26,000) worth of diamonds.
Pujeh
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had bought and sold the diamonds
without a valid licence, having instead used the licence
of his colleague, John Ndomawa. He was then convicted
in accordance with existing legislation in September
2003 after a 13-month trial, and Pujeh immediately
appealed the verdict to the High Court. Interestingly,
Mr. Pujeh was issued mining licences by the Ministry
of Mines while he was standing trial.
In his appeal, Pujeh claimed that the deal had been
legitimate since he was given Mr. Ndomawa’s
licence “to travel with the diamonds for onward
sale,” claiming that the law did not require
him to register with the Ministry of Mineral Resources
or to possess a license to export, deal, or mine diamonds
in his own name. This erroneous assertion would imply
that the mere physical possession of another’s
licence conferred its rights, in clear contravention
of existing laws and even the rules printed on the
front of each mining licence, which clearly state
that “This licence is not transferable.”
The judge’s unfortunate decision to uphold the
appeal and overturn the conviction was made in blatant
disregard of existing laws designed to ensure that
diamond miners, sellers and
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exporters contribute to national
revenue and thus development through the purchase
of licenses and the legal sale of diamonds. This case
was surely a litmus test of mining legislation and
its effectiveness was seriously undermined, while
a dangerous and unfortunate precedent was set. Thus,
the informal “customs and practices” of
dealers to not abide by licensing regulations are
upheld, allowing diamond sellers free reign to operate
without a licence.
Another issue that arose from the proceedings concerns
the Government Gold and Diamond Office’s (GDDO)
system of diamond valuations, as it was revealed that
Pujeh was able to have his diamonds valued despite
not possessing evidence that they were legally in
his possession. This points to the need for greater
scrutiny of persons wishing to value their diamonds.
In the Pujeh case, surely a travesty of justice prevails,
which indicates a pressing need for the reform of
mining legislation, for as long as blatant perpetrators
of corruption remain free from effective prosecution,
particularly in the all-important diamond sector,
meaningful progress in the country will remain elusive.
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A
Remedy
The Extractive IndustriesTransparency
Initiative |
mining
areas, while revenue generated from mining companies
to the government is minimal and fraught with allegations
of corruption.
To address this pressing global predicament, British
Prime Minister Tony Blair
announced in September 2002 the establishment of the
Extractive Industries Transparency Initiative (EITI)
at the World Summit on Sustainable Development in
Johannesburg. This global multi-stakeholder initiative
brings together developing countries’ governments,
donors, companies, investors and civil society organizations
in an effort to reduce corruption in the extractive
sector through increased transparency of extractive
companies and government.
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next page)
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The sensible use of natural resources
is necessary for a country’s sustainable economic
growth, development and poverty reduction. However,
many countries possessing a wealth of resources, particularly
in the developing world, suffer gross mismanagement
and the diversion of funds at the hands of business
and government, who often collaborate toward their
own private interests at the expense of the general
population who must bear the subsequent negative economic,
social and environmental impacts.
Nowhere are the effects felt as deeply as in Sierra
Leone, whose
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history of the
misuse of its mineral resources is notorious worldwide,
and indeed its wealth of diamonds (and to a lesser
extent rutile, gold, bauxite and timber) has been
more of a curse than a blessing as corrupt politicians
and others have enriched themselves from illicit dealings
virtually since their discovery. The collapse of the
state was largely precipitated by rampant corruption,
and the consequent decade-long civil war was continually
fueled by the illegal diamond trade. Even after the
restoration of democratic rule, government continues
to lack the capacity to secure and monitor the extensive
diamond
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