Jewellers criticised over conflict diamond trade

Almost two years after the diamond industry committed itself to preventing trade in conflict diamonds, retailers in the world's biggest markets are failing to live up to their promise, according to two international NGOs.

A new report by Global Witness and Amnesty International (AI), 'Deja Vu: Diamond Industry Still Failing to Deliver on Promises', is based on a survey of the diamond jewellery retail sector's implementation of self-regulation in line with the Kimberley Process, the international diamond certification scheme launched to combat the trade in conflict diamonds.

"The survey of leading diamond companies and stores in the US and UK found that fewer than one in five companies that responded in writing provided a meaningful account of their policy, and less than half of diamond jewellery retailers visited in stores were able to give consumers meaningful assurances that diamonds are conflict-free," Global Witness said.

In January 2003 members of the diamond industry's various sectors agreed to implement a code of conduct that would prevent buying or selling conflict diamonds, as well as a system of warranties requiring that all invoices for the sale of diamonds, and jewellery containing diamonds, would provide a written guarantee that the stones were conflict-free.

Informing company employees about the relevant policies, measures and government regulations constituted the third pillar of the self-regulation commitment.

However, according to AI and Global Witness, the results of the survey showed that a "significant majority of diamond jewellery retailers continue to fail to deliver on repeated promises to stem the trade in conflict diamonds". Retailers were also largely failing to provide consumers with guarantees that diamonds were conflict-free, the report added.

"As the public face of the industry, diamond jewellery retailers must do more to show their commitment to comply with the self-regulation, and actively promote compliance by their suppliers," Corinna Gilfillan of Global Witness said in a statement. "The World Diamond Council and other key industry bodies must develop a common standard for verifying compliance, and we hope that trade organisations will follow Jewellers of America's recent initiative to monitor its members."

The NGOs found that "despite an industry commitment to educate employees about company diamond regulations, staff in only 42 percent of stores were aware of their company's policy", and had "adequate details on how the system of warranties is being implemented and audited".

"The World Diamond Council, the industry body responsible for coordinating industry efforts to tackle conflict diamonds, is still falling far short on adequately monitoring self-regulation implementation on a global level," Global Witness said.

The results from the UK and US are part of an international survey still being conducted in Australia, Belgium, France, Germany, Italy, The Netherlands and Switzerland.

"The continued lack of systematic monitoring throughout the diamond industry suggests that the industry is not taking the issue seriously enough," said Alessandra Masci of Amnesty International.

"The trade in conflict diamonds has been at the heart of some of Africa's most protracted and bloody wars. Diamonds have fuelled conflicts in Angola, Democratic Republic of Congo, Liberia and Sierra Leone, destroying nations and costing millions of lives."

The report concluded that "while self-regulation continues to be voluntary, only those with good intentions will implement it. In order to be effective, and to fully support the aims of the Kimberley Process, the self-regulation should move beyond being voluntary".

The two NGOs called on governments participating in the Process to "carry out rigorous auditing and inspections of companies" to ensure compliance.

National diamond trade associations were also urged to "adopt monitoring programmes, including self-assessments, spot checks, and policy and procedure reviews to monitor what [their] members are doing".

For the full report: www.globalwitness.org