IDEX Online Exclusive: GIA Decides on Overhaul – Appoints New Head, Cancels Rapaport Exclusivity, Abolishes Diamond Industry Donations

Following Certifigate, GIA decides on an overhaul. During a three-day meeting, the Gemological Institutive of America (GIA) board of Governors decided on far reaching changes:

• GIA’s Board of Governors Chairman Ralph Destino will take the executive leadership role. Current president Bill Boyajian will keep his position, but will report to Destino, who will work out of GIA’s laboratory building in New York.

• The board canceled Rapaport monopoly to operate “submission drop-off windows” around the globe effective January 1, 2006. “Every company or individual that meets certain criteria, to assure the integrity of the process and the level of service to the clients, will be allowed to operate a drop-off window on a non-exclusive basis,” says Destino.

• “One Price for Everybody” system will be introduced, everybody will pay the same price for the same service, abolishing the membership structure.

• The GIA will no longer accept donations from the diamond industry, to avoid appearances of a connection between donations and lab activity.

• Individuals and companies found to be implicated in Certifigate will not be allowed to submit stones for grading and have been stricken from the GIA’s list of clients. All the names of individuals and companies who were found to be implicated in Certifigate have been given to law enforcement officials. These names will not be publicized, to avoid hampering police investigations.

• A free of charge verification service for each holder of a GIA grading certificate. This service has an unspecified life but it will certainly be given for more than six months.

• An Operations Review Committee will establish procedures to facilitate the complete anonymity of stone owners in the grading process.

These decisions come on the heels of a four-month investigation that resulted in the termination of four employees. Last week GIA Laboratory Head Tom Moses announced the establishment of an anonymous whistleblower hotline, the appointment of a Chief Compliance Officer who will report to GIA’s general counsel, and an annual mandatory ethics and professional conduct training for all employees.

Go here to read Tacy’s full article.