3.       Control of diamond cutting

            (1) No person shall cut any rough or uncut diamond unless he is-

     (a)     the holder of an appropriate licence prescribed by section 4; or

     (b)     an employee acting in the course of his employment with the holder of such a licence.

            (2) Any person whose licence has been suspended under any provision of this Act shall during the period of such suspension be deemed not to be the holder of a licence.

            (3) Any person who contravenes the provisions of subsection (1) shall be guilty of an offence.

4.       Classification of licences

            Licences which may be issued under this Act shall be-

     (a)     a diamond cutter's licence which shall entitle the licensee to carry on diamond cutting for purposes of business or trade;

     (b)     a diamond research licence which shall entitle the licensee to conduct research into the physical properties of diamonds, the uses to which diamonds can be put and cognate matters, but shall not entitle the licensee to carry on diamond cutting for purposes of business or trade; or

     (c)     a diamond toolmaker's licence which shall entitle the licensee to set rough or uncut diamonds, not suitable for polishing, in tools or implements, or to crush or alter such diamonds for that purpose or for purposes of trade.

5.       Duration of licences and fees payable

            (1) A licence shall be issued for such period as the Minister may determine.

            (2) There shall be due and payable to the Government by every holder of a licence an annual charge in such amount as the Minister may determine or as may be prescribed.

            (3) The annual charge under subsection (2) shall be payable on the issue of a licence and thereafter annually on the anniversary thereof until the termination of such licence.

6.       Application for licences

            (1) An application for a licence shall be made to the Minister in the prescribed form.

            (2) An applicant shall, in addition to completing an application form in accordance with subsection (1), furnish such other particulars in connection with his application as the Minister may require.

            (3) The Minister may cause such investigation to be made or such negotiations or consultations to be carried on as he may deem necessary to enable him to decide whether or not to grant a licence.

7.       Grant or refusal of applications for licences

            (1) Subject to the provisions of this Act, and after considering an application for a licence, the Minister may issue a licence in a prescribed form on such terms and conditions as he may in each case determine, including in particular-

     (a)     a condition requiring the applicant to agree to the Government or a person nominated on behalf of the Government acquiring or having an option to acquire an interest in the operations to be carried out under the licence; and

     (b)     conditions concerning the cutting of diamonds, disposal or sale of the product of the cutting operations.

            (2) The Minister shall cause the applicant to be notified of his decision on such application and, if the grant of a licence is approved, the notification shall include the terms and conditions, if any, upon which the licence will be issued.

8.       Issue of licence to a partnership, company or association of persons

            (1) In the case of a partnership, company or association of persons, whether incorporated or not (hereinafter referred to as "bodies" or individually as "a body"), the licence shall be issued to one or more natural persons nominated by that partnership, company or association of persons and approved by the Minister.

            (2) If any person ceases to be associated with a body, such body shall forthwith apply to the Minister for the name of a new nominee to be substituted for that of the former nominee.

            (3) On such application being made in accordance with subsection (2) the Minister may, if he considers the new nominee suitable, cause the substitution of the name of the new nominee in the licence for that of the former nominee, subject to a fresh recognizance entered into by the new nominee in the manner provided by section 11 being furnished.

            (4) If the substitution of the name of a new nominee is not accepted by the Minister as is provided in this section within three months after the date on which a former nominee ceased to be associated with a body, the licence shall lapse unless the Minister otherwise directs:

            Provided that such body may propose other nominees until a nominee is acceptable to the Minister or the three months period expires, whichever occurs first.

            (5) No person shall dispose of and no person shall acquire, directly or indirectly, any interest in a body whose nominee is licensed under this Act, without the approval of the Minister, which approval shall not be unreasonably withheld.

            (6) Any person or body contravening the provisions of subsection (2) or (5) shall be guilty of an offence.

9.       Transfer of licence

            (1) If during the currency of a licence the licensee is, for any reason deemed sufficient by the Minister, unable personally to carry on or to supervise the diamond cutting operations in respect of which the licence was issued, such licence shall lapse unless the Minister has, on application by the licensee or a body whose nominee is licensed under this Act, authorized by endorsement on the licence any other person whom the Minister deems fit to carry on such diamond cutting operations for the unexpired term of such licence or for any lesser period, subject to the last-mentioned person furnishing a fresh recognizance in the manner provided by section 11.

            (2) Any person to whom a licence has been transferred in terms of subsection (1) shall for the purposes of this Act be deemed to be the licensee for the unexpired term of such licence, or for such lesser period.

10.     Renewal of licences

            (1) Subject to the provisions of this Act, any person to whom a licence has been issued under this Act shall be issued with a new licence if such person-

     (a)     applies to the Minister for a new licence within 30 days before the expiry of the licence so issued; and

     (b)     pays such an amount as the Minister may determine or as may be prescribed.

            (2) The Minister may direct-

     (a)     that there be attached to a new licence any conditions which he may deem fit, either in addition to or in substitution for any conditions imposed in respect of the previous or existing licence, or that any condition so imposed, or any restriction, undertaking, qualification or any condition in force in terms of section 7, be cancelled; or

     (b)     in the case of a body whose nominee is licensed under this Act, that a new licence be not issued in the name of any person in whose name the previous or existing licence was issued or in the name of any other person not considered suitable by the Minister:

            Provided that such body may be allowed to substitute a new nominee in accordance with the procedure laid down in section 8.

11.     Recognizance

            (1) Subject to subsection (2), no licence shall be issued unless the applicant or the nominee, as the case may be, has, together with one or more sufficient sureties, entered into a recognizance in the form and manner and on conditions and for amounts as the Minister may determine or as may be prescribed.

            (2) The Minister may exempt any applicant or nominee from any or all of the provisions of subsection (1) where, in his opinion, special circumstances exist justifying such an exemption.

12.     Cancellation, suspension and renewal of licences

            (1) Subject to subsection (2), the Minister may cancel a licence forthwith, suspend a licence for a specified period or refuse to renew a licence or, in the case of a body, require that such body should substitute a new nominee for the present nominee in accordance with the procedure laid down in section 8.

            (2) No such licence shall be cancelled, suspended or renewal of such licence refused or a requirement for the substitution of a new nominee made unless the Minister is satisfied that the licensee-

     (a)     is or has at any time either before or after the commencement of this Act been engaged in illicit trade in diamonds or other precious stones in contravention of this Act or any other law relating to precious stones whether in Botswana or elsewhere, or is suspected of assisting or having assisted in such trade either in Botswana or elsewhere;

     (b)     has been convicted of any offence of which dishonesty is an element and sentenced to a term of imprisonment exceeding 14 days without the option of a fine or to a fine exceeding P100 whether in Botswana or elsewhere, if such conviction in the opinion of the Minister renders the licensee unfit to carry on the diamond cutting authorized by the licence issued to the licensee;

     (c)     has failed or is unable to comply with any of the provisions of this Act; or

     (d)     has failed to comply with any condition imposed in respect of the licence issued to such licensee or renewal thereof.

13.     Return of cancelled or suspended licence

            (1) Any licence which has been cancelled or suspended under any provision of this Act shall be returned by the person to whom it was issued to the Minister within seven days or such other period as the Minister may stipulate after the Minister has requested its return in writing for such action as the Minister may deem fit.

            (2) Any person who contravenes the provisions of subsection (1) shall be guilty of an offence.