VENEZUELA

Diamond regulator kicks out Venezuela

Venezuela was expelled from treaties that regulate diamond production for refusing to register output.

By CASTO OCANDO

El Nuevo Herald

The office of the United Nations in charge of the certification of ''nonblood'' diamonds -- known as the Kimberley Process -- announced last week that Venezuela has been expelled from the treaties between diamond producing nations.

Venezuela's expulsion resulted from that nation's refusal to register and certify an estimated 200,000 to 300,000 carats of the mineral.

The uncontrolled exploitation and contraband of diamonds in Venezuela could result in an irrevocable expulsion from the certification process, as authorities on the matter are scheduled to meet next week in New Delhi.

''Venezuela has failed to comply for many years with the obligations established by the Kimberley Process,'' said Annie Dunnebacke, spokeswoman for Global Witness, an independent watchdog group based in London that monitors the global diamond market, adding that ``Venezuela must be expelled, because if not the entire process loses credibility.''

Among other factors, the Venezuelan government has not submitted reports concerning the exploitation and certification of diamonds, and ''is the only diamond producing country that is part of the KPCS that has not allowed experts to pay a visit for revision,'' Dunnebacke said.

Venezuela has consistently denied accusations and, according to Global Witness, has offered to allow a visit by international experts some time this year.

According to the most recent statistics from KP, Venezuela reported in 2006 a total of 16,980.73 carats at an average price of $69.55 per carat, proportional to the quality of the declared Venezuelan diamonds.

Yet estimates by Partnership Africa Canada, a nongovernmental organization that denounces blood diamonds, place the quantity at almost 300,000 carats each year, or half of the quantity reported by Venezuela in 1994, when some 600,000 carats were produced, according to official figures. Blood diamonds refer to diamonds extracted to finance illegal armed conflicts.

The Partnership's most recent report states that smuggling rings operating in Venezuelan territory ``are the same, by their own admission, that traffic precious gems from African nations such as Namibia and Angola.''