【Madagascar】UK spies, a bribe, and sapphires: How Gemfields exposed corruption at the top in Madagascar

Editor’s Note

This investigation, based on a joint analysis by CW and Stellenbosch University, reveals systemic corruption within Madagascar’s sapphire mining sector, implicating high-level officials. The findings underscore the critical need for transparency and accountability in natural resource governance.

The report, compiled by CW and Stellenbosch University procurement law expert Professor Geo Quinot, analysed reports submitted to National Treasury by organs of state. (TheaDesign/Getty Images)
The Investigation

A report compiled by CW and Stellenbosch University procurement law expert Professor Geo Quinot analyzed reports submitted to National Treasury by organs of state. The investigation uncovered a complex web of corruption involving high-level officials in Madagascar’s sapphire mining sector.

The Bribe and the Spy Connection

The core of the scandal involves a substantial bribe allegedly paid to secure mining licenses for sapphire-rich areas. UK intelligence services reportedly played a role in uncovering the illicit payments and tracing them back to senior figures within the Malagasy government.

Gemfields’ Role

Gemfields, a prominent gemstone mining company, was instrumental in bringing the corruption to light. The company’s internal compliance mechanisms and cooperation with international investigators were key to exposing the scheme.

“This case demonstrates the critical importance of corporate vigilance and international cooperation in combating resource-sector corruption,” a source close to the investigation stated.

The exposure of this corruption has significant implications for governance, foreign investment, and the ethical sourcing of precious stones from Madagascar.

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⏰ Published on: February 10, 2025