13 sept 2013
Africa Israel, a firm owned by the diamond magnate Lev Leviev, has confirmed that it is operating in an Israeli settlement in eastern occupied Jerusalem.
Diamond magnate’s firm admits ongoing work in Israeli settlement
Last month, the Business and Human Rights Resource Centre invited me to comment on a recent decision by Norway’s finance ministry to reverse an decision banning Africa Israel and its subsidiary Danya Cebus from a state pension fund. The U-turn was made after Africa Israel claimed that it was no longer involved in the building of Israeli settlements in the West Bank. The Electronic Intifada has previously published evidence which showed that Africa Israel has remained involved in settlement construction in East Jerusalem.
Business and Human Rights confronted Africa Israel with the allegations made in my blog post and by the campaign group Who Profits [PDF] and invited the company to comment. In its response, Africa Israel admitted that its subsidiary Danya Cebus is indeed “involved as a general constructor, in the Jerusalem-C project at Gilo, Jerusalem.” Africa Israel wrote:[PDF]
As a leading real estate group in Israel, the company and its subsidiaries engage in numerous projects in Jerusalem, which is the capital of the State of Israel and one of its major cities. Nevertheless, we were surprised to learn that one can consider Gilo neighborhood, which is one of the well-established neighborhoods located in the heart of Jerusalem to be “a settlement in the occupied West Bank” and find such broad definition to be erroneous.
Gilo is a settlement
Diamond magnate’s firm admits ongoing work in Israeli settlement
Last month, the Business and Human Rights Resource Centre invited me to comment on a recent decision by Norway’s finance ministry to reverse an decision banning Africa Israel and its subsidiary Danya Cebus from a state pension fund. The U-turn was made after Africa Israel claimed that it was no longer involved in the building of Israeli settlements in the West Bank. The Electronic Intifada has previously published evidence which showed that Africa Israel has remained involved in settlement construction in East Jerusalem.
Business and Human Rights confronted Africa Israel with the allegations made in my blog post and by the campaign group Who Profits [PDF] and invited the company to comment. In its response, Africa Israel admitted that its subsidiary Danya Cebus is indeed “involved as a general constructor, in the Jerusalem-C project at Gilo, Jerusalem.” Africa Israel wrote:[PDF]
As a leading real estate group in Israel, the company and its subsidiaries engage in numerous projects in Jerusalem, which is the capital of the State of Israel and one of its major cities. Nevertheless, we were surprised to learn that one can consider Gilo neighborhood, which is one of the well-established neighborhoods located in the heart of Jerusalem to be “a settlement in the occupied West Bank” and find such broad definition to be erroneous.
Gilo is a settlement
This image from Google Maps shows the location of Africa Israel’s settlement construction site in Gilo, East Jerusalem. The site is situated on the Palestinian side of the Green Line — the demarcation line between Israel and the occupied West Bank.
“Gilo is a Jewish-only settlement/colony established in Israeli-occupied East Jerusalem,” Dr. Jeff Handmaker, a senior lecturer in law, human rights and development at the International Institute of Social Studies in Erasmus University told me by email this week. “Gilo settlement is illegal according to international law, including Security Council Resolution 242, which clearly demands Israel withdraw from the territories it has occupied since June 1967, including East Jerusalem.”
“Gilo is a Jewish-only settlement/colony established in Israeli-occupied East Jerusalem,” Dr. Jeff Handmaker, a senior lecturer in law, human rights and development at the International Institute of Social Studies in Erasmus University told me by email this week. “Gilo settlement is illegal according to international law, including Security Council Resolution 242, which clearly demands Israel withdraw from the territories it has occupied since June 1967, including East Jerusalem.”
UN map of territories occupied by Israel in 1967.
Handmaker pointed out that Israeli, Palestinian and international human rights organizations have documented numerous violations of human rights and international law, and in particular the confiscation of Palestinian land, as a result of construction work in Gilo settlement.
Meanwhile, Israeli authorities announced on 13 August the expansion of Gilo by approving the construction of 942 more settler homes.
“This is in blatant defiance of demands by the United Nations, European Union, United States and Russia, and is, furthermore, in violation of European Union guidelines,” Handmaker stated.
Africa Israel has revealed its disregard for international law by claiming that “Jerusalem is the capital of the State of Israel” and by denying that Gilo is a settlement.
The company has made it perfectly clear that it has no intention to end its involvement in the construction of Israel’s settlements on stolen Palestinian land.
Handmaker pointed out that Israeli, Palestinian and international human rights organizations have documented numerous violations of human rights and international law, and in particular the confiscation of Palestinian land, as a result of construction work in Gilo settlement.
Meanwhile, Israeli authorities announced on 13 August the expansion of Gilo by approving the construction of 942 more settler homes.
“This is in blatant defiance of demands by the United Nations, European Union, United States and Russia, and is, furthermore, in violation of European Union guidelines,” Handmaker stated.
Africa Israel has revealed its disregard for international law by claiming that “Jerusalem is the capital of the State of Israel” and by denying that Gilo is a settlement.
The company has made it perfectly clear that it has no intention to end its involvement in the construction of Israel’s settlements on stolen Palestinian land.
16 may 2013
Israeli blood diamond agreement scuppered by BDS activists
By Seán Clinton
opednews.com The BDS (Boycott, Divestment and Sanctions) campaign to expose the trade in Israeli blood diamonds is claiming a victory following the removal of an article [PDF] published by the Israeli Diamond Exchange (IDE) on Sunday 12th May announcing that the chair of the Dubai Diamond Exchange (DDE), Peter Meeus, had agreed to organise a delegation of diamond buyers from Dubai to attend a diamond fair in Israel next August.
Following emails to authorities in the United Arab Emirates, Henriette Svensen, PR and Corporate Communications Manager for the Dubai Multi Commodities Centre, which hosts the Dubai Diamond Exchange, emailed me today (Wed. 14th) stating that the announcement "would have been issued without Peter Meeus' knowledge" and "There are indeed no intentions of participating in the Diamond week in August 2013."
The IDE article, described as a Press Release by Rapaport, was published on the IDE, Rapaport and INDEX website -- all leading global diamond industry portals. IDEX reported that it would be a "ground-breaking development"
On Monday 13 th the BDS campaign to expose the trade in Israeli blood diamonds shared a link to the Rapaport article on its Facebook page and encouraged people to write to the Dubai Diamond Exchange and ask why they were promoting the trade in Israeli blood diamonds.
An email was sent the United Arab Emirates government on Monday afternoon, via their website, querying how it could be legal for diamond buyers from Dubai to do business with Israeli diamond companies given that the Arab League maintains a boycott of Israel which prohibits cooperation with Israeli companies and pointing out that Israeli diamonds are a major source of funding for the Israeli military which stands accused of war crimes.
Later that evening the links to the articles on the Rapaport and IDI website were taken down. The IDEX article remained in place until Tuesday when it too was taken down. A cached version of the Rapaport article [PDF] was still available at the time of writing.
There can be little doubt that this is a significant setback for the Israeli Diamond Industry"s efforts to develop trade links with the Dubai Diamond Exchange. The DDE has grown exponentially over the last decade and now competes with Tel Aviv for the diamond trade between Africa and the increasingly important and rapidly growing diamond markets in India and China.
While diamond buyers from Dubai may have no intention of travelling to Tel Aviv this does not mean that consumers in Dubai aren't being sold diamonds crafted in Israel which fund war crimes in Palestine .
De Beers, which is heavily involved with the Israeli diamond industry, has at least two outlets in Dubai . Forevermark diamonds, many of which are crafted by Israeli companies are sold by a number of Dubai jewellery outlets .
Tiffany's , which sources diamonds from the Steinmetz Diamond Group that has "adopted" a Unit of the Givati Brigade of the Israeli military which stands accused of the massacre of the Samounin family in Gaza , also has an outlet in Dubai .
Other leading diamond brands, that are known to sell diamonds crafted in Israel, Harry Winston , Graff , and Cartier also have outlets in Dubai.
opednews.com The BDS (Boycott, Divestment and Sanctions) campaign to expose the trade in Israeli blood diamonds is claiming a victory following the removal of an article [PDF] published by the Israeli Diamond Exchange (IDE) on Sunday 12th May announcing that the chair of the Dubai Diamond Exchange (DDE), Peter Meeus, had agreed to organise a delegation of diamond buyers from Dubai to attend a diamond fair in Israel next August.
Following emails to authorities in the United Arab Emirates, Henriette Svensen, PR and Corporate Communications Manager for the Dubai Multi Commodities Centre, which hosts the Dubai Diamond Exchange, emailed me today (Wed. 14th) stating that the announcement "would have been issued without Peter Meeus' knowledge" and "There are indeed no intentions of participating in the Diamond week in August 2013."
The IDE article, described as a Press Release by Rapaport, was published on the IDE, Rapaport and INDEX website -- all leading global diamond industry portals. IDEX reported that it would be a "ground-breaking development"
On Monday 13 th the BDS campaign to expose the trade in Israeli blood diamonds shared a link to the Rapaport article on its Facebook page and encouraged people to write to the Dubai Diamond Exchange and ask why they were promoting the trade in Israeli blood diamonds.
An email was sent the United Arab Emirates government on Monday afternoon, via their website, querying how it could be legal for diamond buyers from Dubai to do business with Israeli diamond companies given that the Arab League maintains a boycott of Israel which prohibits cooperation with Israeli companies and pointing out that Israeli diamonds are a major source of funding for the Israeli military which stands accused of war crimes.
Later that evening the links to the articles on the Rapaport and IDI website were taken down. The IDEX article remained in place until Tuesday when it too was taken down. A cached version of the Rapaport article [PDF] was still available at the time of writing.
There can be little doubt that this is a significant setback for the Israeli Diamond Industry"s efforts to develop trade links with the Dubai Diamond Exchange. The DDE has grown exponentially over the last decade and now competes with Tel Aviv for the diamond trade between Africa and the increasingly important and rapidly growing diamond markets in India and China.
While diamond buyers from Dubai may have no intention of travelling to Tel Aviv this does not mean that consumers in Dubai aren't being sold diamonds crafted in Israel which fund war crimes in Palestine .
De Beers, which is heavily involved with the Israeli diamond industry, has at least two outlets in Dubai . Forevermark diamonds, many of which are crafted by Israeli companies are sold by a number of Dubai jewellery outlets .
Tiffany's , which sources diamonds from the Steinmetz Diamond Group that has "adopted" a Unit of the Givati Brigade of the Israeli military which stands accused of the massacre of the Samounin family in Gaza , also has an outlet in Dubai .
Other leading diamond brands, that are known to sell diamonds crafted in Israel, Harry Winston , Graff , and Cartier also have outlets in Dubai.
|
|
These companies sell diamonds crafted in Israel and claim they are conflict-free despite the fact that the diamond industry in Israel generates about $1 billion annually in funding for the Israeli military which stands accused of war crimes. (video)
This setback for the Israeli diamond industry comes as the global body known as the Kimberley Process Certification Scheme (KPCS), set up ostensibly to prevent the trade in blood diamonds, prepares to meet in South Africa from June 4-7 th . The failure of the KPCS to ban diamonds that fund regimes accused of gross human rights violations has lead to a complete lack of confidence in the system and calls for its disbandment. In a stinging article published this week a leading ethical jeweller, Marc Choyt, writes: " The big family secret in the jewelry sector is that the Kimberley Process Certification (KP), which created a system to prevent blood diamonds from entering the supply chain, now certifies blood diamonds as "conflict free . |
Yet, jewelers continue to rely on this now discredited system as an assurance of ethical diamond sourcing. This is an unacceptable practice and its time for KP to be abandoned by jewelers and the public, now. "
The United Arab Emirates is a member of the Kimberley Process. Rather than promoting collaboration with the Israeli diamond industry the UAE should call for Israel to be excluded from the KP and for all diamonds that fund human rights violations to be classed as conflict diamonds and banned.
If that doesn't happen the diamond brand image will continue to be associated with bloodshed and violence rather than the romantic imagery which the industry has spent millions, if not billions, of dollars promoting over many decades.
A human rights activists from Ireland with a particular interest in the Israeli/Palestinian conflict and the global trade in diamonds which are a major source of funding for the Israeli military regime.
The United Arab Emirates is a member of the Kimberley Process. Rather than promoting collaboration with the Israeli diamond industry the UAE should call for Israel to be excluded from the KP and for all diamonds that fund human rights violations to be classed as conflict diamonds and banned.
If that doesn't happen the diamond brand image will continue to be associated with bloodshed and violence rather than the romantic imagery which the industry has spent millions, if not billions, of dollars promoting over many decades.
A human rights activists from Ireland with a particular interest in the Israeli/Palestinian conflict and the global trade in diamonds which are a major source of funding for the Israeli military regime.
11 apr 2013
Jewellers Profit While Palestinians Bear The Cost
Protestors gather outside the World Diamond Council during a meeting in Vicenza, 14 May 2012
Update: As the leaders of the global diamond industry gathered in Vicenza, Italy on Monday for the annual meeting of the World Diamond Council, Palestinians remained trapped in a surreal nightmarish existence under the cosh of a diamond-funded, nuclear-armed belligerent regime.
Despite the fact that cut and polished diamonds from Israel are funding war crimes and crimes against humanity, the US Chair of the international diamond-regulatory system known as the Kimberley Process (KP), said on Monday, "We cannot be everything to everyone and our role is to cover the rough distribution process."
The conviction of the former Liberian President, Charles Taylor, for war crimes and crimes against humanity has once again focused public attention on blood diamonds and the failings of the KP. Last November the KP charade was exposed when diamonds from the Marange area of Zimbabwe, where government forces stand accused of killing of over 200 people, were granted a KP certificate of compliance and allowed into the international market. According to Marc Choyt from Fair Jewelry Action this decision “caused disappointment and outrage among both jewellers and NGOs concerned about diamonds in context to human rights.” As a result, Global Witness, the London-based human rights organisations responsible for exposing the trade in blood diamonds and a founding member of the KP, withdrew from the scheme stating, "Most consumers still cannot be sure where their diamonds come from, nor whether they are financing armed violence or abusive regimes." Partnership Africa Canada and other civil society organisations with Observer status in the KP have threatened to withdraw unless meaningful reform of the KP occurs this year, including a broadening of the definition of a "conflict diamond" to include diamonds that fund human rights violations by government forces and the inclusion of the cutting and polishing industry.
Israel, one of the world's leading producers of cut and polished diamonds is heavily reliant on its burgeoning diamond trade which increased by 23.5% in 2011 and accounts for approximately 30% of its exports. Evidence given to the Russell Tribunal on Palestine in 2010 indicated that the Israeli diamond industry generates over US$1 billion a year in funding for the Israeli military/security industry. Israel stands accused of "serious war crimes and possible crimes against humanity" by the UN Human Rights Council following the attack on Gaza in the winter of 2008/2009 that killed over 1400 people, including more than 300 children, and left thousands more injured and maimed for life. Israeli diamonds that fund war crimes, de-facto blood diamonds, are sold worldwide labelled as conflict-free diamonds. These cut and polished blood diamonds are exempt from the KP definition of a "conflict diamond." The Kimberley Process is under pressure to review the definition of a "conflict diamond," which is presently restricted to "rough diamonds used by rebel movements or their allies to fund violence aimed at undermining legitimate governments." There will be an opportunity to do so during the KP intersessional meeting in Washington from June 4-7.
The EU’s Position
In response to questions from MEPs, the EU High Representative, Vice President (HRVP), Catherine Ashton, recently stated "The definition of a conflict diamond is at the heart of the current scope of the KP's mandate, and is key to the KP's objective to break the link between the rough diamond trade and conflict. Nevertheless, the EU considers it essential for the KP to build on lessons learnt and to adjust to new challenges."
The main lesson learned since the Kimberley Process came into force in 2003 is that diamond-funded human rights violations are not restricted to the trade in rough diamonds or to rebel movements. Rogue governments are using revenues from rough diamonds (Zimbabwe) and cut and polished diamonds (Israel) to fund gross human rights violations including war crimes and possible crimes against humanity. Consumers are being conned into buying blood diamonds that jewellers deceitfully claim are conflict free. While jewellers profit in the short term the damage to the diamond brand image could ultimately be catastrophic for the industry.
HRVP Ashton also stated, “The Commission is provisionally in favour of reviewing the definition of conflict diamonds, so as to consider how the KP could address wider issues of violence related to or arising from diamond extraction and trade." This could, and - if the diamond industry is serious about preventing diamond-funded human rights violations - should, result in all blood diamonds being classed as “conflict diamonds” and banned.
However, any attempt to ban the trade in Israeli blood diamonds will be resisted by Israel’s allies in the EU and by the US in particular. Former US Ambassador to Mali, Gillian Milovanovic, chairs the Kimberley Process in 2012 and has indicated on a number of occasions since taking office that she does not support the KP expanding its remit to include cut and polished diamonds. Her statement on Monday confirms that the diamond industry has no intention of ending the trade in the high-value cut and polished blood diamonds. A leading London jewellery outlet had this to say, “Without expanding its mandate to include this part of the industry [cut and polished diamonds], the KP remains complicit in perpetuating a fraud that KP diamonds are in fact, 'ethical' diamonds.”
Amnesty International and Human Rights Watch, both of which have documented Israeli war crimes, have so far remained silent about the trade in Israeli blood diamonds. Amnesty promotes a grossly misleading guide to buying conflict-free diamonds. It has adopted the position promoted by those with vested interests in the diamond industry who want the public to believe that KP compliant diamonds are conflict free and the only blood diamonds are those in the possession of rebels groups and not jewellers in the marbled halls of high street jewellery outlets worldwide. The term conflict-free has never been defined and doesn’t appear anywhere in the KP regulations. It is part of the bogus “System of Warranties” introduced by the World Diamond Council. This has been used by jewellers to self-certify that the diamonds they sell are conflict free, “based on personal knowledge and/or written guarantees provided by the supplier of these diamonds.” This guarantee provides an economic shield for Israeli diamonds that consumers would otherwise reject if they were aware they were funding the sort of daily violence and oppression alluded to at the outset.
If human rights activists and jewellers want to end the trade in blood diamonds they need to act right away, before KP members meet in Washington when a review of the KP definition of a conflict diamond will be one of the main issues on the agenda. Human rights activists in Australia, UK and Ireland have been lobbying politicians to this effect. Jewellers need to do the same and ensure that their representative organisations speak out and call for the KP definition of a “conflict diamond” to be broadened to include diamonds that fund government forces guilty of war crimes and crimes against humanity.
Sean Clinton is a member of the Ireland Palestine Solidarity Campaign and the UK-based Boycott Israel Network. He spearheads and coordinates the global campaign to expose the trade in Israeli blood diamonds.
Update: As the leaders of the global diamond industry gathered in Vicenza, Italy on Monday for the annual meeting of the World Diamond Council, Palestinians remained trapped in a surreal nightmarish existence under the cosh of a diamond-funded, nuclear-armed belligerent regime.
Despite the fact that cut and polished diamonds from Israel are funding war crimes and crimes against humanity, the US Chair of the international diamond-regulatory system known as the Kimberley Process (KP), said on Monday, "We cannot be everything to everyone and our role is to cover the rough distribution process."
The conviction of the former Liberian President, Charles Taylor, for war crimes and crimes against humanity has once again focused public attention on blood diamonds and the failings of the KP. Last November the KP charade was exposed when diamonds from the Marange area of Zimbabwe, where government forces stand accused of killing of over 200 people, were granted a KP certificate of compliance and allowed into the international market. According to Marc Choyt from Fair Jewelry Action this decision “caused disappointment and outrage among both jewellers and NGOs concerned about diamonds in context to human rights.” As a result, Global Witness, the London-based human rights organisations responsible for exposing the trade in blood diamonds and a founding member of the KP, withdrew from the scheme stating, "Most consumers still cannot be sure where their diamonds come from, nor whether they are financing armed violence or abusive regimes." Partnership Africa Canada and other civil society organisations with Observer status in the KP have threatened to withdraw unless meaningful reform of the KP occurs this year, including a broadening of the definition of a "conflict diamond" to include diamonds that fund human rights violations by government forces and the inclusion of the cutting and polishing industry.
Israel, one of the world's leading producers of cut and polished diamonds is heavily reliant on its burgeoning diamond trade which increased by 23.5% in 2011 and accounts for approximately 30% of its exports. Evidence given to the Russell Tribunal on Palestine in 2010 indicated that the Israeli diamond industry generates over US$1 billion a year in funding for the Israeli military/security industry. Israel stands accused of "serious war crimes and possible crimes against humanity" by the UN Human Rights Council following the attack on Gaza in the winter of 2008/2009 that killed over 1400 people, including more than 300 children, and left thousands more injured and maimed for life. Israeli diamonds that fund war crimes, de-facto blood diamonds, are sold worldwide labelled as conflict-free diamonds. These cut and polished blood diamonds are exempt from the KP definition of a "conflict diamond." The Kimberley Process is under pressure to review the definition of a "conflict diamond," which is presently restricted to "rough diamonds used by rebel movements or their allies to fund violence aimed at undermining legitimate governments." There will be an opportunity to do so during the KP intersessional meeting in Washington from June 4-7.
The EU’s Position
In response to questions from MEPs, the EU High Representative, Vice President (HRVP), Catherine Ashton, recently stated "The definition of a conflict diamond is at the heart of the current scope of the KP's mandate, and is key to the KP's objective to break the link between the rough diamond trade and conflict. Nevertheless, the EU considers it essential for the KP to build on lessons learnt and to adjust to new challenges."
The main lesson learned since the Kimberley Process came into force in 2003 is that diamond-funded human rights violations are not restricted to the trade in rough diamonds or to rebel movements. Rogue governments are using revenues from rough diamonds (Zimbabwe) and cut and polished diamonds (Israel) to fund gross human rights violations including war crimes and possible crimes against humanity. Consumers are being conned into buying blood diamonds that jewellers deceitfully claim are conflict free. While jewellers profit in the short term the damage to the diamond brand image could ultimately be catastrophic for the industry.
HRVP Ashton also stated, “The Commission is provisionally in favour of reviewing the definition of conflict diamonds, so as to consider how the KP could address wider issues of violence related to or arising from diamond extraction and trade." This could, and - if the diamond industry is serious about preventing diamond-funded human rights violations - should, result in all blood diamonds being classed as “conflict diamonds” and banned.
However, any attempt to ban the trade in Israeli blood diamonds will be resisted by Israel’s allies in the EU and by the US in particular. Former US Ambassador to Mali, Gillian Milovanovic, chairs the Kimberley Process in 2012 and has indicated on a number of occasions since taking office that she does not support the KP expanding its remit to include cut and polished diamonds. Her statement on Monday confirms that the diamond industry has no intention of ending the trade in the high-value cut and polished blood diamonds. A leading London jewellery outlet had this to say, “Without expanding its mandate to include this part of the industry [cut and polished diamonds], the KP remains complicit in perpetuating a fraud that KP diamonds are in fact, 'ethical' diamonds.”
Amnesty International and Human Rights Watch, both of which have documented Israeli war crimes, have so far remained silent about the trade in Israeli blood diamonds. Amnesty promotes a grossly misleading guide to buying conflict-free diamonds. It has adopted the position promoted by those with vested interests in the diamond industry who want the public to believe that KP compliant diamonds are conflict free and the only blood diamonds are those in the possession of rebels groups and not jewellers in the marbled halls of high street jewellery outlets worldwide. The term conflict-free has never been defined and doesn’t appear anywhere in the KP regulations. It is part of the bogus “System of Warranties” introduced by the World Diamond Council. This has been used by jewellers to self-certify that the diamonds they sell are conflict free, “based on personal knowledge and/or written guarantees provided by the supplier of these diamonds.” This guarantee provides an economic shield for Israeli diamonds that consumers would otherwise reject if they were aware they were funding the sort of daily violence and oppression alluded to at the outset.
If human rights activists and jewellers want to end the trade in blood diamonds they need to act right away, before KP members meet in Washington when a review of the KP definition of a conflict diamond will be one of the main issues on the agenda. Human rights activists in Australia, UK and Ireland have been lobbying politicians to this effect. Jewellers need to do the same and ensure that their representative organisations speak out and call for the KP definition of a “conflict diamond” to be broadened to include diamonds that fund government forces guilty of war crimes and crimes against humanity.
Sean Clinton is a member of the Ireland Palestine Solidarity Campaign and the UK-based Boycott Israel Network. He spearheads and coordinates the global campaign to expose the trade in Israeli blood diamonds.
9 apr 2013
Israeli Authorities drop a major fraud investigation to protect the Israeli Diamond Industry
A year ago, as a result of a major fraud investigation, the Israeli diamond industry teetered on the brink of collapse and threatened to plunge the Israeli economy into a disastrous tail-spin.
In a clear example of the dangerous over-reliance of the Israeli economy on diamonds and the power of the Israeli diamond industry, an investigation by police and tax authorities into an illegal bank operating in the Israeli Diamond Exchange, involving fraudulent trading worth billions of shekels, was shut down, covered up and silenced to protect the diamond industry - one of the " cornerstones of the Israeli economy".
The orchestration of the media silence which facilitated this cover-up of a criminal scandal has only recently been divulged by Yair Sahar, president of the Israeli Diamond Exchange, in a remarkably open interview with Michelle Moshelian of the Israeli Diamond Institute.
The story first broke on 8th January 2012 when Israeli media reported (1, 2,) that police and tax authority investigators arrested 16 people and raided their homes and offices in the Israeli Diamond Exchange . The reports indicated that police had secretly monitored the activities of the group for over a year and discovered the operation of an illegal bank that offered loans, money transfers and currency exchanges which were not reported to tax authorities in Israel or abroad.
Apart from reports on an Azerbaijani news website "World's largest illegal bank unmasked" and the website of an Indian jewellery magazine which refers to a Globes report (which may have been deleted), very few, if any, other English-language media reported this major crime story that ensnared the Israeli diamond industry and threatened the Israeli economy.
The silence was broken on February 9th 2012 when a report in Haaretz detailed the devastating impact the police investigation was having on the Israeli diamond industry. According to the report, the industry suffered a 70% drop in business in January and the entire sector had been thrown into turmoil resulting in a number of diamond firms going bankrupt leaving $30 million in unpaid debts.
Moti Ganz, the former president of the Israeli Diamond Manufacturers Association, is quoted as saying: "the investigation has ruined the industry. The import of raw material has collapsed, and if there is no raw material now then in another three or four months there will also not be any exports of polished diamonds."
The media silence resumed again until February 23rd 2012 when Rappaport reported that Israeli authorities had agreed to suspend the investigation for one month. A member of the Israeli Diamond Exchange, who requested anonymity, stated that a professional team would be established to "negotiate a suitable solution to the affair."
But at that stage the damage was done and confidence in the Israeli diamond industry was severely eroded. As a result, Israel's polished diamond exports dropped 81 percent year on year in February 2012.
Instead of following procedures normally adhered to in a criminal investigation where evidence is collated and presented before a judge and jury and, if found guilty, the perpetrators of a crime are punished in open court, the Israeli authorities agreed to suspend the investigation and negotiate a deal with representatives from the Israeli Diamond Exchange.
In the interview for the Israeli Diamond Institute Yair Sahar describes the fraud investigation as " an earthquake that threatened to topple everything that has been built here over decades".
Recognising the seriousness of the situation and the vulnerability of the Israeli diamond industry, leaders of the sector met in an emergency meeting and immediately set up a steering committee to control and manage the crisis.
In order to avoid adverse publicity "of events that we could not control" Sahar said the steering committee decided "not to address the press" and, without giving details of how the Israeli media was gagged, they "managed to achieve "media silence" which meant no media outlet publicising the police actions, and very little publication of the events'.
In an unprecedented move, the steering committee sent a delegation to meet directly with the commanders of the investigation to explain "the massive effect the investigation was having on the entire industry."
The delegation outlined "the centrality of the diamond industry to the Israeli economy". Quoting a turnover of $28 billion, exports of $11 billion, employing 20,000 people and responsible for supporting 100,000 men, women and children as well as employing 35,000 people abroad and other impressive statistics the delegation outlined the status of the diamond industry in the State of Israel and in the world of diamonds.
Seemingly oblivious to the discrimination of the diamond industry against non-Jewish citizens of the State of Israel, who, according to statistics from the Israeli Central Statistics Office, are grossly underrepresented in employment by the diamond industry, Sahar told the police commanders that their industry "has never caused harm to even the smallest person in the State of Israel".
Describing it as an "outstanding accomplishment" Sahar said the police told them they had never before "agreed to listen to the point of view of an industry while that very industry was being investigated". He said he felt their words had "penetrated the hearts of the police officers" who were surprised by the industry's "high level of vulnerability". As a result, the police authority agreed to suspend the investigation for a month.
Following the meeting with police commanders a delegation from the diamond industry, headed by Yair Sahar, met with the head of the investigation Unit of the Tax Authority and made the same case, outlining the importance of the diamond industry to the Israeli economy and its vulnerability. Sahar said " The Tax Authority were convinced of the might and the importance of the industry, and they told us that they have no interest in harming the Israeli diamond industry." Consequently, the Tax Authority "promised there would be no more investigations and raids on the diamond offices".
In Western countries blighted by financial scandals the term "too big to fail" has been applied to banks that have been bailed out and saved from bankruptcy by governments. In Israel, the diamond industry is of such critical importance to the Israeli economy, and arguably to the entire Zionist project in Palestine, that authorities believe it is too important to allow a criminal investigation to undermine its status and confidence in industry.
In a clear example of the dangerous over-reliance of the Israeli economy on diamonds and the power of the Israeli diamond industry, an investigation by police and tax authorities into an illegal bank operating in the Israeli Diamond Exchange, involving fraudulent trading worth billions of shekels, was shut down, covered up and silenced to protect the diamond industry - one of the " cornerstones of the Israeli economy".
The orchestration of the media silence which facilitated this cover-up of a criminal scandal has only recently been divulged by Yair Sahar, president of the Israeli Diamond Exchange, in a remarkably open interview with Michelle Moshelian of the Israeli Diamond Institute.
The story first broke on 8th January 2012 when Israeli media reported (1, 2,) that police and tax authority investigators arrested 16 people and raided their homes and offices in the Israeli Diamond Exchange . The reports indicated that police had secretly monitored the activities of the group for over a year and discovered the operation of an illegal bank that offered loans, money transfers and currency exchanges which were not reported to tax authorities in Israel or abroad.
Apart from reports on an Azerbaijani news website "World's largest illegal bank unmasked" and the website of an Indian jewellery magazine which refers to a Globes report (which may have been deleted), very few, if any, other English-language media reported this major crime story that ensnared the Israeli diamond industry and threatened the Israeli economy.
The silence was broken on February 9th 2012 when a report in Haaretz detailed the devastating impact the police investigation was having on the Israeli diamond industry. According to the report, the industry suffered a 70% drop in business in January and the entire sector had been thrown into turmoil resulting in a number of diamond firms going bankrupt leaving $30 million in unpaid debts.
Moti Ganz, the former president of the Israeli Diamond Manufacturers Association, is quoted as saying: "the investigation has ruined the industry. The import of raw material has collapsed, and if there is no raw material now then in another three or four months there will also not be any exports of polished diamonds."
The media silence resumed again until February 23rd 2012 when Rappaport reported that Israeli authorities had agreed to suspend the investigation for one month. A member of the Israeli Diamond Exchange, who requested anonymity, stated that a professional team would be established to "negotiate a suitable solution to the affair."
But at that stage the damage was done and confidence in the Israeli diamond industry was severely eroded. As a result, Israel's polished diamond exports dropped 81 percent year on year in February 2012.
Instead of following procedures normally adhered to in a criminal investigation where evidence is collated and presented before a judge and jury and, if found guilty, the perpetrators of a crime are punished in open court, the Israeli authorities agreed to suspend the investigation and negotiate a deal with representatives from the Israeli Diamond Exchange.
In the interview for the Israeli Diamond Institute Yair Sahar describes the fraud investigation as " an earthquake that threatened to topple everything that has been built here over decades".
Recognising the seriousness of the situation and the vulnerability of the Israeli diamond industry, leaders of the sector met in an emergency meeting and immediately set up a steering committee to control and manage the crisis.
In order to avoid adverse publicity "of events that we could not control" Sahar said the steering committee decided "not to address the press" and, without giving details of how the Israeli media was gagged, they "managed to achieve "media silence" which meant no media outlet publicising the police actions, and very little publication of the events'.
In an unprecedented move, the steering committee sent a delegation to meet directly with the commanders of the investigation to explain "the massive effect the investigation was having on the entire industry."
The delegation outlined "the centrality of the diamond industry to the Israeli economy". Quoting a turnover of $28 billion, exports of $11 billion, employing 20,000 people and responsible for supporting 100,000 men, women and children as well as employing 35,000 people abroad and other impressive statistics the delegation outlined the status of the diamond industry in the State of Israel and in the world of diamonds.
Seemingly oblivious to the discrimination of the diamond industry against non-Jewish citizens of the State of Israel, who, according to statistics from the Israeli Central Statistics Office, are grossly underrepresented in employment by the diamond industry, Sahar told the police commanders that their industry "has never caused harm to even the smallest person in the State of Israel".
Describing it as an "outstanding accomplishment" Sahar said the police told them they had never before "agreed to listen to the point of view of an industry while that very industry was being investigated". He said he felt their words had "penetrated the hearts of the police officers" who were surprised by the industry's "high level of vulnerability". As a result, the police authority agreed to suspend the investigation for a month.
Following the meeting with police commanders a delegation from the diamond industry, headed by Yair Sahar, met with the head of the investigation Unit of the Tax Authority and made the same case, outlining the importance of the diamond industry to the Israeli economy and its vulnerability. Sahar said " The Tax Authority were convinced of the might and the importance of the industry, and they told us that they have no interest in harming the Israeli diamond industry." Consequently, the Tax Authority "promised there would be no more investigations and raids on the diamond offices".
In Western countries blighted by financial scandals the term "too big to fail" has been applied to banks that have been bailed out and saved from bankruptcy by governments. In Israel, the diamond industry is of such critical importance to the Israeli economy, and arguably to the entire Zionist project in Palestine, that authorities believe it is too important to allow a criminal investigation to undermine its status and confidence in industry.
Israel's Top 30 Exports 2008 by Sean Clinton
|
The Israeli diamond industry accounts for about 30% of Israel's manufacturing exports, worth $21 billion in 2011, adding $11 billion NET to the Israeli economy. If confidence in the Israeli diamond industry is damaged the economic, social and political fallout would be significant as would be the impact on Israel's ability to fund the illegal occupations of Palestinian and Syrian territories.
As a result of the fraud investigation Israel's diamond exports declined by 23% in 2012. In January this year it was reported that Israel would have to cut defense spending in order to stay within a targeted budget deficit of 3% of economic output. When Israel's diamond exports are damaged the financial burden of the occupation is increased proportionately. Leaders of the Israeli diamond industry are clearly able to wield significant influence with the police and taxation authorities in Israel. They persuaded the authorities to suspend the fraud investigation and manage the situation in a way that would minimise impact on their industry. They did so without having to use what Yair Sahar described as "the direct close contacts that the industry management has with the most highly-ranked politicians." While the leaders of the Israeli diamond industry wield considerable influence in Israel they do not have the same power to influence consumer confidence in the ethical provenance of the Israeli diamonds. The fact that revenue from their industry provides about $1 billion annually for the Israeli military and security industry - a military which stands accused of war crimes by the UN Human Rights Council, Amnesty International and Human Rights Watch - means their diamonds are funding war crimes and should, therefore, be regarded as blood diamonds. |
These facts have largely been concealed from the diamond-buying public. Israel's influence in the global diamond industry, alluded to by Sahar, ensured that cut and polished diamonds which fund human rights violations by government forces evade the human rights standards applied to rough diamonds by the Kimberley Process (KP). The KP is supposed to prevent the trade in blood diamonds, but, despite the spin from the diamond industry and vested governments, including the EU, it has spectacularly failed to do so. Instead, the KP is a major marketing tool for cut and polished blood diamonds which jewellers deceitfully claim are conflict-free.
The Israeli diamond industry is clearly a very important component of the Israeli economy. The industry has demonstrated that it has significant influence in the upper echelons of Israeli society - with decision makers and with leading politicians.
If they can use that influence to curtail a major fraud investigation they can also use their influence with Israel's political elite and speak out against Israeli government policy which supports the illegal occupations and facilitates gross human rights violations by the Israeli military.
In this respect the global diamond industry and jewellers worldwide also have a role to play in persuading the Israeli diamond industry to impress upon political leaders in Israel the potentially devastating impact of a consumer backlash against diamonds that fund the Israeli military regime.
In the last year leading diamond companies, including De Beers and Sotheby's, have been targeted by human rights activists who have exposed links between their diamonds and Israeli war crimes in Gaza.
In recent months, over 50 Palestinian organisations, representing a cross-section of Palestinian civil society, including women's groups and trade unions, and international organisations in solidarity with the Palestinian struggle for equality, justice and an end to the Israeli occupation of Palestine, have issued an appeal to women and men of conscience and jewellers worldwide to reject diamonds processed in Israel.
With South Africa chairing the Kimberley Process in 2013 and the African National Congress having given their support for the international BDS (boycott, divestment and sanctions) campaign against Israel until it respects Palestinian rights and international laws, there is considerable scope for South African to use it's influence to increase pressure on Israel. By supporting calls for cut and polished blood diamonds to be banned by the KP and by ending the export of South African rough diamonds to Israel, South Africa can play an important role in helping to rid the world of an apartheid regime which many prominent South Africans have described as worse than anything they endured during the apartheid era in South Africa.
The group with the most influence are diamond-purchasers. They can send a message to jewellers and the global diamond industry by refusing to purchase diamonds until the industry ends the trade in diamonds that fund rogue regimes guilty of gross human rights violations.
The Israeli diamond industry is clearly a very important component of the Israeli economy. The industry has demonstrated that it has significant influence in the upper echelons of Israeli society - with decision makers and with leading politicians.
If they can use that influence to curtail a major fraud investigation they can also use their influence with Israel's political elite and speak out against Israeli government policy which supports the illegal occupations and facilitates gross human rights violations by the Israeli military.
In this respect the global diamond industry and jewellers worldwide also have a role to play in persuading the Israeli diamond industry to impress upon political leaders in Israel the potentially devastating impact of a consumer backlash against diamonds that fund the Israeli military regime.
In the last year leading diamond companies, including De Beers and Sotheby's, have been targeted by human rights activists who have exposed links between their diamonds and Israeli war crimes in Gaza.
In recent months, over 50 Palestinian organisations, representing a cross-section of Palestinian civil society, including women's groups and trade unions, and international organisations in solidarity with the Palestinian struggle for equality, justice and an end to the Israeli occupation of Palestine, have issued an appeal to women and men of conscience and jewellers worldwide to reject diamonds processed in Israel.
With South Africa chairing the Kimberley Process in 2013 and the African National Congress having given their support for the international BDS (boycott, divestment and sanctions) campaign against Israel until it respects Palestinian rights and international laws, there is considerable scope for South African to use it's influence to increase pressure on Israel. By supporting calls for cut and polished blood diamonds to be banned by the KP and by ending the export of South African rough diamonds to Israel, South Africa can play an important role in helping to rid the world of an apartheid regime which many prominent South Africans have described as worse than anything they endured during the apartheid era in South Africa.
The group with the most influence are diamond-purchasers. They can send a message to jewellers and the global diamond industry by refusing to purchase diamonds until the industry ends the trade in diamonds that fund rogue regimes guilty of gross human rights violations.
Page: 2 - 1
