DTC Ends Suspension of Six Sightholders

The Diamond Trading Company (DTC) has decided to reverse its decision of suspending six Sightholders following the ‘Brenig case’ convictions. The DTC met with the companies last week to hear their version of the events.

The six companies, four of whom were recently selected for the 2008-2011 Sightholder contract and are being supplied during the transitional three-month contract period, argued that the charges of which they were convicted were civil and not criminal charges.

Also, the charges were against individuals that are no longer influential in their respective company groups. The DTC expects, however, that some additional, unspecified measures be taken by a few of the six companies.

The following is a statement released by the DTC:

“On 8 January 2008, the DTC suspended supply to a number of Sightholders following the Antwerp Court of First Instance judgement in the Brenig case, pending further enquiries with the Sightholders concerned. 

The DTC has now conducted interviews with the Sightholders concerned. Considering each separate case on its merits, the DTC can confirm that it is lifting its suspension of supply to the Sightholders concerned, on confirmation, where relevant, that appropriate remedial action has been taken.

The DTC would like to thank all Sightholders concerned for their prompt and full cooperation in assisting the DTC with its enquiries.”

Earlier this month, the DTC notified a number of its Sightholders that “with immediate effect” it is suspending its rough diamond supplies to them.

The Antwerp Correctional Court ruling convicted over a dozen diamantaires – six of them DTC Sightholders – of fraud, fictitious invoicing and smuggling between 1994 and 1999. They received a six months suspended jail sentence.”

Following the convictions BHP Billiton also 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 has sent shock waves throughout the Indian market, which is deeply concerned about its future and well-being.

In response to the suspension, one of the six companies called for a cut-off date. In an opinion published on IDEX Online, the firm argued that the July 7, 2003, when DTC’s Best Practice Principles (BPP) went into affect, should be that date.