Swiss Home of Diamond Mogul Beny Steinmetz Raided by Police (Updated)
September 12, 13
(IDEX Online News) – According to a report by Bloomberg, the Geneva home of Beny Steinmetz has been raided by Swiss Police.
The raid, which occurred within the last two weeks, was ordered by Geneva’s public prosecutor following a request by the government of Guinea, an unnamed source told Bloomberg. No documents were taken away in the raid, the person said.
Steinmetz, who is Israel’s richest man, owns a 51-percent stake in the Simandou iron ore deposit in Guinea through his mining company, BSG Resources Ltd. His holding in the country has come under a great deal of scrutiny.
According to The Guardian, Steinmetz obtained the rights to the Simandou deposit after investing $165 million in exploration. He then sold half of his stake to a Brazilian mining corporation for $2.5 billion.
In April a US grand jury investigation was convened to look into claims that BSGR had paid bribes for mining rights in Guinea.
The Guardian reported on August 29 that the offices of a firm that provides management services for BSG Resources had been raided. Police officers in France also raided the home of a director of Onyx Financial Advisors.
According to the Bloomberg Billionaires Index, Steinmetz has a net worth of $7.4 billion. BSG Resources, through its Octea diamond unit, owns the Koidu mine in Sierra Leone.
Earlier this year it was reported that Steinmetz was battling a NIS 4.1 billion ($1.1 billion) tax charge after tax authorities contested his claim that he does not own or control the Beny Steinmetz Group, but serves only in an advisory capacity.
A press release issued by BSG Resources said that the situation was the result of “an ongoing smear campaign against BSGR, organised on behalf of President Alpha Conde and the Government of Guinea by George Soros and his various NGOs, including Global Witness, has now been extended to Beny Steinmetz.”
The full text of the release is below:
“Beny Steinmetz counters smear campaign
The ongoing smear campaign against BSGR, organised on behalf of President Alpha Conde and the Government of Guinea by George Soros and his various NGOs, including Global Witness, has now been extended to Beny Steinmetz.
In Conakry, the capital of Guinea, two local Guinean employees of BSGR have been detained without charge for five months. This is despite the Court of Appeal ordering their immediate release having found no evidence against them. They are being used as economic hostages and judicial victims of the Guinean State. This is a clear breach of executive power and of international law.
In an attempt to justify their continued illegal detention, and ultimately linked to Guinea’s ongoing attempts to expropriate illegally mining rights belonging to BSGR at Simandou, the Government of Guinea has sent direct requests to the Swiss authorities to collect information on its behalf.
Marc Bonnant, lawyer to Mr Steinmetz, said:
“The Swiss authorities received a request from the Conakry Court of First Instance to collect information on behalf of the Government of Guinea. This is a co-operative, inter-governmental measure that is entirely standard procedure. Mr Steinmetz offered to collaborate with the Swiss authorities, is cooperating fully, and is very happy to do so.”
The Government of Guinea has not yet provided any original evidence to support its false and malicious allegations against BSGR or Mr Steinmetz.
As Guinea continues to descend into chaos, with the huge potential of its natural resources industry remaining undeveloped, BSGR is seemingly being punished for refusing to engage in bribery or corruption and focusing singularly on trying to bring development to the country.
Mr Steinmetz will not be deterred by this campaign of intimidation and malicious lies, which are an attempt to damage his impeccable reputation. He has nothing to hide.
BSGR and Mr Steinmetz will defend their reputation and their rights using whatever legal means prove necessary.”
(Updated September 15, 2013)