Global Witness, PAC Warn Illicit Trade on the Rise

Global Witness and Partnership Africa Canada (PAC) warned in a joint report released on Tuesday that the illicit trade in conflict diamonds is looking more like a dangerous rule than an exception.

Due to loop holes in the Kimberley Process that was established to curb the trade in conflict diamonds, the illicit trade of diamonds is becoming one of the greatest threats facing the certification program, the organizations said.

“The Kimberley Process completely ignores the diamond cutting and polishing industry,” said Bernard Taylor, executive director of PAC. “There, rough diamonds can bypass all of the KP checks. The Kimberley Process has to close this obvious loophole in the system.”

The report does not make any specific recommendations on how to close what it describes as loop holes. It should be noted that rough diamonds entering the manufacturing centers are required to be accompanied by KP certificates.

“Conflict diamonds from Côte d’Ivoire are still being mined, smuggled into legitimate markets and sold to consumers on the high street…,” said Annie Dunnebacke, campaigner at Global Witness. “The Kimberley Process’ failure to address this problem in five years of existence is a serious indictment of the scheme’s effectiveness.”

The report’s case studies in Latin America and Africa show how the illicit trade in rough diamonds has worsened. According to Reserve Bank of Zimbabwe Governor Gideon Gono more than 10,000 people visit the border town of Mutare every month for illegal diamond mining and trading. The diamonds are subsequently smuggled out of the country and into manufacturing centers.

The organizations called upon current KP chair India to consider several recommendations at the upcoming Plenary meeting in New Delhi, including stronger government oversight of the diamond industry, monitoring of the cutting and polishing sector, improvement of internal controls and international collaboration to combat smuggling.