Diamonds
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WDC, U.N., NGOs concerned over Ivory Coast rough-diamond smuggling
October 09, 2006
New York—The World Diamond Council (WDC), the United Nations and several non-governmental organizations (NGOs) have stated concern over reports that rough diamonds from the Ivory Coast—which in December 2005 was banned by the United Nations from exporting diamonds—are being smuggled into Ghana.
Eli Izhakoff, chairman of the WDC, recently appealed to all Kimberley Process (KP) participants to "act swiftly to resolve the serious issue of reports that rough diamonds from the Ivory Coast are being smuggled into Ghana, bypassing KP procedures."
He sent a letter from the WDC to Kago Moshashane, chair of the KP, and KP participants expressing concern and urging swift action to ensure the integrity of the KP. The letter, dated Sept. 29, stated: "We, the World Diamond Council, would like to express our grave concerns regarding the current situation in West Africa amid reports that rough diamonds from the Ivory Coast are being smuggled over the border into Ghana and exported from Accra with the validation of a Kimberley Process Certificate. We appeal to the Chair and participant nations of the Kimberley Process to act swiftly, decisively and in unison, to resolve this serious situation to safeguard the integrity of the Kimberley Process itself and protect the industry from diamonds that have potentially originated from prohibited sources.
"We appeal to the government of Ghana to consider whatever actions it deems necessary to ensure that diamonds from the Ivory Coast are not exported using Ghanaian Kimberley Process Certificates, including—if necessary—the temporary suspension of all rough-diamond exports from Ghana. In addition, we appeal to all rough-diamond importing countries to carry out appropriate inspections of all parcels of rough diamonds emanating from West Africa to ensure that they do not contain Ivory Coast production, prohibited under UNSC Resolution 1643."
Izhakoff's letter came in advance of a U.N. report being released this week which charges that a significant volume of "conflict diamonds" from the rebel-held area of the country is entering the legitimate diamond trade, according to a joint release from Global Witness and Partnership Africa Canada.
The report—from the U.N. Group of Experts on Ivory Coast to the U.N. Security Council—finds poor controls are allowing the diamonds to enter through Ghana, where they are being certified as conflict-free. In addition to recommending stronger controls, the group proposes that international trading centers introduce better systems for identifying suspicious shipments of rough diamonds.
Last month, the U.S. government stated improvements to its own controls. Responding to a recent Government Accountability Office (GAO) report that the United States must do more to ensure conflict diamonds are not entering the country, the government has already taken action. For example, the Department of Homeland Security said it will institute a periodic and random selection process for imports in response to the GAO's findings that rough-diamond imports and exports are not regularly inspected.
Despite measures taken, both Global Witness and Partnership Africa Canada stated continued concern over the effectiveness of the KP. The U.N.-mandated process is currently undergoing a review intended to make it more effective, but the NGOs said there is resistance by some governments to make any meaningful change. For example, in their joint statement, they said NGO investigations uncovered significant diamond fraud in Brazil and Guyana not uncovered by the KP.
The NGOs said the KP must demonstrate in its meeting next month that it has closed loopholes.
"We are extremely concerned about the findings contained in this U.N. report," said Ian Smillie of Partnership Africa Canada.
Susie Sanders of Global Witness said, "The Kimberley Process must demand stronger and more comprehensive government controls across the diamond pipeline to make sure conflict diamonds cannot enter the legitimate diamond trade."
For its part, the WDC has been vocal about addressing any possible problems with the KP.
"It is our hope that by addressing the issue of conflict diamonds at its source, the WDC, along with our partners, will be able [to] further improve upon the KP," Izhakoff said in a statement.
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Diamonds
Jewelers of America is calling on the Kimberley Process to fully and quickly implement a work plan to address the serious concerns surrounding Zimbabwe's non-compliance with the Kimberley Process Certification Scheme, the system designed to keep conflict diamonds out of the international trade, and the reported human rights abuses in the Marange diamond fields. Read More
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