WFDB to Widen Membership, Go After HPHT Violators
April 14, 11(IDEX Online News) - The 2011 Presidents' Meeting of the World Federation of Diamond Bourses (WFDB) concluded Wednesday with the Africa Summit. The summit discussed a range of issues, including non-disclosure of HPHT treatments and actions against offenders, expansion of the WFDB Mark and allowing WFDB membership to countries and other bodies in the industry.
During a morning session, Donna Baker, president of the Gemological Institute of America (GIA) gave a presentation on the GIA's recent decision to cancel accounts with clients who had repeatedly submitted High Pressure High Temperature (HPHT)-treated stones to their lab without prior disclosure, or who were in violation of any other clauses in the GIA's clients' agreements.
Baker said that the GIA will provide the names of those clients and other relevant related information to the WFDB and of the International Diamond Manufacturers Association (IDMA), subject to legal examination.
The following discussions centered on measures the WFDB and its affiliated bourses should take when a member is found to be submitting HPHT diamonds to a lab without proper disclosure and decided to take all possible sanctions against violators. The WFDB's legal counsel will work with the legal counsel of the GIA to find a legal way to disclose the information and to advise the WFDB Executive Committee about the sanctions that should be taken in such cases.
The meeting also discussed the need to change and adapt the WFDB's by-laws, taking into account the changes in the new models that have been introduced for diamond trading. During the discussions, participants agreed the WFDB by-laws, rules and regulations need to be updated and adjusted to reflect the new trading channels that are commonly used today, such as online trading, online sales and auctions.
In addition, WFDB President Paz noted that since the WFDB is to widen its membership circle by offering associate or affiliate membership to diamond producing countries and possibly to diamond mining companies, it will need to review its by-laws and rules to include these new members.
Meanwhile, a working group of five bourse presidents, led by Rami Baron, president of the Diamond Dealers Club of Australia, presented a business plan for the expansion of the WFDB Mark in the diamond jewelry retail sector. "Unfortunately, due to the highly sensitive nature of the plan, we cannot, at this point in time, share any information, but I can tell you that the WFDB presidents wholeheartedly support the working group's initiative," Paz said.
Ministers of mining from diamond producing countries in Africa discussed the current state of diamond mining and production in their countries and specifically the rough diamond market in the WFDB Africa Summit.
The summit was attended by leading African ministers, including Susan Shabangu, Minister of Mines of South Africa; Joagim David, Minister of Industry and Mines of Angola; Rui Mangueira, Secretary of State of Angola; Obert M. Mpofu, Minister of Mines of Zimbabwe; Pascale Nyembo Muyumba, representing Martin Kabewlulu, Minister of Mines of the Democratic Republic of Congo, and Edgar de Carvalho, Executive-Secretary of the African Diamond Producers Association.