Arrests, Raids at Diamond Exchange to Stop for a Month

"An important decision for the Israeli trade," IDE President Sahar (pictured) said about the announcement

(IDEX Online News) – After weeks of discussions, the Israeli police and tax authority have agreed to halt for a month their investigations inside the Israel Diamond Exchange.

The management of the IDE was notified of the decision on Thursday. Investigators agreed to not make any further arrests or raid offices during the period.

In some cases, diamond traders' bank accounts were frozen as part of the investigation. Traders outside of Israel, fearing non-payment or that their goods may be confiscated, have refrained from doing business with Israeli firms.

IDE President Yair Sahar who headed the discussions with the police and tax authority told IDEX Online that the IDE will form committees that will include leading lawyers and accountants, and continue the discussions with the aim of resolving the issue.

IDEX Online has learned that high profile lawyers Pini Rubin and Ram Caspi are now representing the Israeli diamond industry in the case.

"The authorities decided to stop the raids and checks for a month and during that time the sides will enter discussions to find a resolution to the crisis," Sahar told IDEX Online.  

"[The authorities] understand the importance of the diamond industry to Israel's economy, and decided out of a desire to not hurt the industry, its employees and the country's income," Sahar added.

In January, rough diamond imports into Israel fell by more than 40 percent year-over-year. The decision is hoped to lift the concerns that have caused this decline and allow business to return to normal. "The smiles are back on people's faces," Sahar said.

The Israeli diamond industry is an important component of the country's economy. It generates a turnover of more than $28 billion, is a major foreign currency earner and is one of the country's largest tax payers.