RAPAPORT… The Diamond Trading Company (DTC) is suspending supply to six sightholders for their involvement in a diamond smuggling case in Antwerp.
The suspension comes as a result of an Antwerp criminal court decision on December 6, 2007 relating to the smuggling of diamonds based on fake invoices issued by the diamond manufacturers.
The case, which occurred more than a decade ago, involved a number of companies operating in Antwerp, including other “non-sightholders.”
“The DTC has communicated to a number of current Sightholders that it is suspending supply to them, with immediate effect,” DTC spokesperson, Louise Prior wrote in an email.
“Pending the results of further due diligence into this matter, the DTC reserves its right to take all appropriate action in respect of its supply to the businesses involved, in connection with both the current Transitional Supply Contract, and (where relevant) the 2008-2011 Supplier of Choice Contract including, but not limited to, suspension or termination of supply,” the company stated.
Market sources told Rapaport News that six sightholders were affected and that most of them were Indian companies based in Belgium. Two of the companies have already lost their sights for the coming contract period, the source said.
DTC declined to name the companies involved.
The source added that the six companies are planning to appeal DTC’s decision, claiming that the case refers to a period before the DTC introduced its best practice principles.
Reportedly, BHP Billiton has also suspended supply to implicated companies.