Congolese entrepreneur Sindika Dokolo has taken Sodiam – the Angolan National Diamond Trading Company – to the London Court of International Arbitration.
He is seeking compensation from the Angolan State for Sodiam’s role in the collapse in value of Swiss luxury jewellery brand De Grisogono. Sodiam and Sindika were equal partners in the business – which they took over in 2012 – and he says its losses have cost him $120m.
Sindika, who is married to Angolan businesswoman Isabel dos Santos, started legal proceedings on Wednesday (December 11). He claims Sodiam’s actions are politically motivated because his wife Isabel is the daughter of former Angolan president Jose Eduardo dos Santos.
Sindika alleges that Sodiam managers hacked into his email account and stole documents containing confidential information about employees. The lawsuit states that Sodiam managers leaked the contents of the documents and are therefore in breach of confidentiality under the terms of the De Grisogono shareholder agreement.
Entrepreneur and art collector Sindika said: “They have destroyed the value of my investment. I’ve lost 120 million dollars. There’s a political game trying to blame the dos Santos family for all the issues in Angola. It is a witch-hunt.
“The co-owner of De Grisogono is effectively the Angolan State. I am fighting for the value of a company I worked hard to build and in which I invested money in a legitimate way.
“I cannot stand back and allow myself and the dos Santos family to be the target of a political campaign. I have to defend myself.”
The dispute dates back to November 2017 when Sodiam, a state company which runs the Angolan diamond industry, indicated it wanted to exit the De Grisogono agreement.
Sodiam released a statement to say they were withdrawing from the Maltese holding company Victoria Holding Limited after a series of losses.
Sindika, however, says that minutes before this public announcement, he met representatives from Sodiam in Luanda to try and negotiate a structured exit for them which would maintain De Grisogono’s value and reputation. He wanted to recover as much value as possible from a sale.
But he says the fact Sodiam released a statement so soon after proved they had no desire to allow the business to be sold. Sodiam never did sell its shares in De Grisogono and the statement made it impossible for the company to be sold.
Sindika said: “If you are selling a car you don’t say in the advert that it is broken down and it needs to go to the garage. You would have completely destroyed the value.”
In 2016, De Grisogono bought the largest diamond ever found in Angola, which was transformed into a rare 163.41 carat jewel. It was auctioned by Christie’s for $33.4 million dollars (£25.6m).
The diamond, which was the 27th largest in the world, was 404.20 carats and 2.76 inches long when it was discovered in Lulo’s field, north of Luanda, Angola, in February 2016.
The current President of Angola, João Lourenço, has been blocking and reversing various deals made under the previous government – including those involving the children of former President José Eduardo dos Santos.
Sindika says there was a currency exchange agreement that allows Sodiam to pay in kwanzas (the currency of Angola) – so their losses are much less than his. According to Aindika, they have to repay “less than twenty million dollars.”
He added: “Had we sold the company we would have recouped 60 million or 70 million dollars. Sodiam would have received half that value, repaid its bank debt and made a profit.”
Sindika and Sodiam purchased De Grisogono in 2012 from its founder Fawaz Gruosi in order to boost sales of Angolan diamonds around the world. Five years later it was breaking even. But relations with staff and customers deteriorated.
Sindika said: “When one of the shareholders does not want the project to go forward, does not want to give confidence or support, it is very difficult. Especially in the diamond business where everyone knows each other. Potential buyers were happy to sit back and wait for the company to die – then buy the brand for almost nothing
“It’s a shame for me because I owe a lot to Angola. It’s a country that welcomed me. I don’t want to have to do this. But I can’t let people destroy value like this nor harm people because of their name. They are trying to rewrite the story for their own political ends.”
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