President of the Diamond Exporters Association of Sierra Leone, Fasally Tarawally, Tuesday 18 October 2022, hosted a high-powered delegation from the Kimberley Process Certification, KPC, scheme to discuss ways to engage and appeal to the Government of Sierra Leone to lower tax rates for diamond exporters.
The KPC scheme was established in 2003 to prevent “conflict diamonds” from entering the mainstream rough diamond market by United Nations General Assembly Resolution 55/56 and following recommendations in the Fowler Report.
Mr. Tarawally acknowledged that it was the duty of the KPC to review their counterparts in Sierra Leone on certification, import and export regimes and systems of internal control, self-regulation and statistics.
“We are very hopeful that Government will look into this concern and lower tax rates like other countries in the sub-region are doing to discourage smugglers from taking their countries’ precious minerals out through neighbouring countries. I know the industry is doing fine because there is a strong bond of trust that exists among miners, dealers, and exporters,” he said.
Fasally Tarawally also emphasised that fair prices, proper service and good relationships had attracted investors into the country, adding that most diamonds leaving the shores of Sierra Leone were unique and of high quality. He maintained that the Diamond Exporters Association was also contributing greatly to the country’s economy and the development of host communities.
Mr. Tarawally concluded by assuring the visiting team that they in Sierra Leone had already partnered with the government to address the perennial issues of fake certificates, and fake licenses and to effectively counter illicit mining across the country.
Meanwhile, the KPC delegation acknowledged the warm reception given to them by the President of the Diamond Exporters’ Association. They further explained that there were several concerns relating to illicit mining, smuggling, and processes of acquiring export certificates, as well as fake certificates among other things.
Head of the KPC Review Team, Dr. Engineer Mercy Manyuchi, disclosed that they were pleased with the legal and institutional framework relating to Sierra Leone. She went on to say that the legal framework of every country was the very fabric on which transparency and accountability thrived, adding that it would also pave the way for smooth transactions with the international community.
Director of Precious Minerals Trading, National Minerals Agency, Mohamed Bah, said that the government had put measures around the acquisition of a Kimberley certification to export diamonds, noting that that was already effectively discouraging smugglers from their illegal practices.
Director Bah further noted that there had been an improvement in the fast-tracking processes of export certification for exporters. He added that efforts were being made to increase the annual gross profit of mining companies to one percent, to improve the business transaction in communities, and to ensure that community development agreements were fully implemented.
The meeting climaxed with pleasantries and an agreement to pursue a targeted goal.
