DTC Halts Supply to a Number of Sightholders (Updated)
January 09, 08
The Diamond Trading Company (DTC) has notified a number of its Sightholders that “with immediate effect” it is suspending its rough diamond supplies to them. It’s understood in the market that six companies have been affected by the decision, four of whom were recently selected for the 2008-2011 Sightholder contract.
The DTC issued the following statement:
“As a result of the Antwerp criminal court judgment of 6th December 2007 relating to what has become known as the ’Brenig’ case, the DTC has communicated to a number of current Sightholders that it is suspending supply to them, with immediate effect.
“Pending the results of further due diligence into this matter, the DTC reserves its right to take all appropriate action in respect of its supply to the businesses involved in connection with both the current Transitional Supply Contract and (where relevant) the 2008-2011 Supplier of Choice Contract including, but not limited to, suspension or termination of supply.”
While the last sentence of the DTC’s statement alludes to other actions it may take against the Sightholders, it did not disclose what these may entail.
The Antwerp Correctional Court ruling convicted over a dozen diamantaires – six of them DTC Sightholders – of fraud, fictitious invoicing and smuggling between 1994 -1999. They received a six months suspended jail sentence.
According to IDEX Online columnists and industry analyst Chaim Even-Zohar, the group includes six Sightholders that have been convicted, two of whom lost their Sight in the recent reshuffle.
The DTC is not the only one that halted supplies. BHP Billiton, another large supplier of goods, has ceased supplying some of its clients involved in the case.
The case, convictions, rough supply and, most importantly, the threat of the contracts being terminated all together is sending shock waves throughout the Indian market, concerned about its future and well-being.
(Last updated January 9, 2008, 4:33 am)