Belgium’s PM: HRD Might Be Declared Illegal

Belgium’s Prime Minister, Guy Verhofstadt, summoned Diamond High Council (HRD) President Jacky Roth for a meeting this week, following the recent events at the organization’s board. During the meeting, the PM voiced concern and demanded an overhaul of the board structure. If the changes are not made, Verhofstadt said he will have to treat the HRD as an illegal organization.

The situation is getting stickier for the umbrella organization of the Antwerp diamond industry. Following the departure of the four government representatives from HRD’s board, the organization no longer has the government’s ear listening to the local diamond industry’s concerns, which will hamper any initiatives that require government assistance.

To help improve the situation, Belgium’s premier invited Roth for a meeting, which was also attended by Antwerp Province Governor Camille Paulus. During the meeting, Verhofstadt expressed concern over the situation, telling Roth he would like to see the board better represent the broad interests of the diamond industry.

Verhofstadt went on to mention a new law that refers to non-profit organizations such as the HRD. One of the articles of the new law states that the number of board members has to be smaller than the number of its members. Since the HRD has 13 members, the number of organizations that form the umbrella organization, it cannot have more then 12 board members. Currently there are 20, and therefore it does not meet the legal requirements.

Verhofstadt, who had a blue print for changes prepared in advance and ready ahead of the meeting, demanded that the HRD appoint two lawyers to a committee that will include his chief of staff and other government officials. The committee’s mandate is to devise a restructuring of HRD’s board of governors, with recommendations to be submitted within a month to Verhofstadt.

If the board is not restructured, the premier said he will consider the organization illegal.

The restructured board, according to the prime minister, should fairly reflect all parties involved in the Antwerp diamond industry.