UNDP Accused Of Aiding Gem-Smuggling
By Benny Avni
May 18, 2007
The New York Sun
Original Source: http://www.nysun.com/article/54766
UNITED NATIONS — U.N. investigators are looking into allegations that the U.N. Development Program and the World Bank aided in the transport of diamonds out of Zimbabwe in violation of rules meant to prevent trafficking in so-called blood diamonds.
According to an international protocol set up in 2000 in the city of Kimberley, South Africa, newly mined diamonds are supposed to be subject to a certification scheme meant to ensure the gems are not being used to finance wars or crime. Signatories to the Kimberley Process, which include Zimbabwe, have agreed that diamonds mined in their countries will not be taken out and sold elsewhere without obtaining such certification.
In a report in Zimbabwe's Financial Gazette on Wednesday, the country's Foreign Ministry confirmed claims made by a local diamond company, Bubye Minerals, that its chief rival, River Ranch Limited, used UNDP-registered vehicles to smuggle uncertified diamonds out of the country. The UNDP denies direct involvement in the smuggling but says it is investigating them.
Earlier this week, the Israeli Diamond Industry Web site reported that a U.N. assistant secretary-general for legal affairs, Larry Johnson, confirmed that an investigation was launched into allegations that the UNDP and World Bank aided River Ranch in bypassing the Kimberley certification and taking Zimbabwe diamonds out of the country in violation of the protocol.
According to a UNDP background brief circulated yesterday, River Ranch is one of the companies aided by Africa-wide entities set up by UNDP and the World Bank to help small and medium enterprises in countries like Zimbabwe.
The initial findings of an external probe launched by one of those entities, the African Management Services Company, found that River Ranch's operations are in compliance with the local laws and ethical standards, according to the UNDP brief.
However, the Financial Gazette reported that Zimbabwe's Foreign Ministry confirmed some of the allegations made by Bubye and that at least one UNDP-registered vehicle was involved in River Ranch's smuggling uncertified diamonds out of Zimbabwe. The newspaper relied on a Foreign Ministry letter sent to Bubye on Tuesday.
Please be advised that the vehicle number 200TCE 664, a Toyota Land Cruiser, was registered on 26 October 2005 under the name of a Mr. Pradiptha Kishora Susare, a UNDP employee, and 200TCE 666, also a Toyota Land Cruiser, was registered as a UNDP Mission vehicle on 26 October 2005, the letter reportedly said.
I haven't yet seen the letter, a UNDP spokeswoman, Cassandra Waldon, told The New York Sun yesterday. She noted, however, that the Gazette report did not contradict the agency's own findings.
According to Ms. Waldon, one of the vehicles, 200TCE 666, had been purchased under the UNDP umbrella but was being used by another agency. Additionally, she said, the car has not been operational since December 2006, when it was involved in an accident. The other vehicle — described by Ms. Waldon as a green-gray Toyota Land Cruiser — though registered to UNDP, is actually being used by AMSCO.
UNDP takes the allegations seriously and is awaiting the results of the external investigation commissioned by AMSCO, she said.