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WDC stands by PAC KP concerns

October 31, 2006

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New York—The World Diamond Council (WDC) said it's in agreement with a recent report from Partnership Africa Canada (PAC) that states that although the Kimberley Process Certification Scheme (KPCS) has been successful, key issues must be addressed to improve the initiative.

The WDC noted that recent events—such as allegations that rough diamonds are being smuggled from the Ivory Coast, which is banned from exporting diamonds by a U.N. Security Council Resolution—highlight the importance of dealing with these issues immediately. The organization renewed its call to Kimberley Process (KP) participants to act swiftly and effectively to resolve the situation and to take appropriate action to protect the future integrity of the KP.

The PAC report, Killing Kimberley? Conflict Diamonds and Paper Tigers shows that despite having success, implementation of the Kimberley Process in some countries has been poor and major problems have emerged.

PAC said weak controls must be addressed to deal with the reality of conflict diamonds.

"In some ways, the KPCS has been very successful," said Ian Smillie, research coordinator at PAC, in a statement. "But during 2005 and 2006, it started to become clear that the KPCS had large blind spots."

In addition to the recent concerns over the Ivory Coast, the group said it uncovered KP-related fraud in Brazil and Guyana.

"In each case, the Kimberley Process behaved like a disinterested bystander—its response tepid, late or non-existent," said Smillie.

PAC stated concerns that an internal three-year review of the process that will be presented at a meeting in Botswana next month has ignored these problems. Noting its involvement with the issue since 1999, the group said it believes the Kimberley Process can be an effective system for eliminating conflict diamonds, but only if it becomes more vigilant, proactive and insistent that its standards are enforced in participating countries.

The WDC said that ensuring that the KP is well governed and effectively implemented is of paramount importance and benefit to the diamond industry.

"Millions of people around the world, many of them in developing countries, depend on diamonds for their livelihood, and each of us recognizes the need for a well-managed system that delivers transparency and confidence to the consumer. The WDC has always worked hard to ensure this objective is met, in full," the organization stated.

The WDC said it fully supports PAC's call for the KP participants to "move quickly when there are credible indications of non-compliance with its standards, and to take decisive action that demonstrates to all participants, the industry and diamond consumers that it is protecting their interests and—more importantly—that it is working to ensure that the scourge of conflict diamonds ends, forever."
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Diamonds

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