GAO recommends tighter trade controls for “conflict diamonds”
While the United States has made strides to curtail the trade in rough diamonds from warring African countries, a congressional watchdog agency report said more needs to be done.In 2003, the United States and other countries started implementing the Kimberley Process Certification Scheme to restrict trade in so-called “conflict diamonds.” The revenue from the sale of these diamonds allegedly helped to fuel bloody civil wars in countries such as Sierra Leone and Liberia.
In the United States, the State, Commerce, Treasury and Homeland Security departments, along with the U.S. Kimberley Process Authority, have been responsible for controlling U.S. imports and exports of rough diamonds. Internationally, the State Department, the Agency for International Development, and the U.S. Geological Survey have helped to strengthen the Kimberly Process certification process.
However, the Government Accountability Office report found that the United States does not periodically inspect rough diamond shipments to ensure the contents match the Kimberley Process certificates.
Also, the GAO report noted that the United States has not developed a sufficient system to confirm receipt of rough diamond imports, a Kimberley Process requirement to help prevent diversions of these shipments.
In addition to correcting these two weaknesses, the GAO recommended the development of a program to more closely monitor the U.S. Kimberley Process. Federal authorities involved with overseeing the diamond trade told the GAO that they’re already developing and testing this type of program.
