“Lily-White” De Beers Remark Raises Storm

Remarks made in the South African parliament by Deputy Minister of Minerals Lulu Xingwana, who criticized Gareth Penny’s appointment to head De Beers and calling its board of directors “lily-white”, raised a storm in the country.

Xingwana said, “Today again we want to express our exasperation and disappointment by De Beers' announcement that it will replace one white managing director with another white managing director”.

“This is the same company whose board of directors is lily-white and male dominated,” she added during a debate on the ministry’s budget vote in parliament last Thursday. Her remarks were reportedly met with laughter.

Reactions to her statement were quick to follow. Democratic Alliance leader Tony Leon said she threw a “racist tantrum”.

However the Deputy did not stop at De Beers. Attacking Anglo-American, she asked “Why should there be a CEO in London who is not the same as the CEO in South Africa?” referring to Tony Trahar who is based in London and Lazarus Zim, based in South Africa. “There is a CEO for whites and a CEO for blacks.”

Relations between Anglo American and diamond miner De Beers, formerly the country’s biggest public company, with the South African government are complicated. The country wants to see mining companies partially held by local blacks, while the companies are trying to convince the government that proposed laws might create greater harm then good.

Trahar was quoted last year saying South African has “political-risk” issues, a remark that reportedly infuriated President Mbeki.