GGMC still moving to prosecute over huge diamonds seizure

http://www.stabroeknews.com/index.pl/article?id=56532106

GGMC still moving to prosecute over huge diamonds seizure
Stabroek News, Tuesday, October 30th 2007

The Guyana Geology and Mines Commission (GGMC) is still pushing ahead
to prosecute the principals of the Belgian firm that was reportedly
caught with 4,000 carats of rough diamonds suspected to have been
smuggled into the country.

An official at GGMC told Stabroek News yesterday that they were still
going through the process of verification of the precious stones, which
is taking some time. The official, however, maintained that GGMC has
substantial evidence that the gems were not extracted in Guyana,
although the firm Explorer Trade and Company Limited is holding fast to
its position that the diamonds are from Guyana.

Contacted yesterday Managing Director of the Belgian firm, Yuri
Zaprudnov said that the matter is in the process of being resolved. He
did not elaborate but added that his company was still operating. And
acting Commissioner of Police Henry Greene told Stabroek News yesterday
that they are yet to receive word from the GGMC with regard to the
investigations.

It is now one week since it was revealed that the GGMC had seized the
diamonds. William Woolford, the GGMC Commissioner (Acting) had declared
last week Monday that the agency had warned the company and will
prosecute.

ources at the GGMC had said on Monday that the company submitted
documents for the export of the diamonds and on checking they were not
satisfied with the paperwork. This led to the inspection of the
precious stones. When the diamonds were inspected it was found that
several pieces that were uncut might not have originated from Guyana.
It is suspected that some of the diamonds were smuggled into the
country from Africa, Venezuela or Brazil.

Guyana is a signatory to the Kimberly Process Certification Scheme
(KPCS).

The KPCS originated from a meeting of Southern African diamond
producing states in Kimberley, Northern Cape in May 2000. I

n order for a country to be a participant, it must ensure that any
diamond originating from the country does not finance a rebel group or
other entity seeking to overthrow a UN-recognized government. KPCS also
mandates that every diamond export be accompanied by a Kimberley
Process certificate proving that no diamond is imported from, or
exported to, a non-member of the scheme.

A report from diamond industry watchdog, Partnership Africa Canada
(PAC) last year had said that although Guyana has good internal
controls through the GGMC, as much as 20 per cent of the US$43M diamond
production is smuggled to the Brazilian border town of Boa Vista, where
they are mixed with Venezuelan diamonds which are then 'cleansed'
through Kimberley Certification documentation in Guyana before they are
exported.

In 2004 diamond production reached an all-time high of 425,000 carats
while diamond declaration in 2002 and the years prior was at least 50
per cent less.

Production has since dropped to around 300,000 carats. Authorities do
not believe that 'blood diamonds' are coming to Guyana.