Smugglers are using the Central African Republic (CAR) to get illicit diamonds out of the continent’s conflict zones, according to a report released Monday.
Partnership Africa Canada, a development agency based in Ottawa, says in the report there are massive discrepancies in the official and actual number of diamonds exported from CAR.
Figures from the CAR government say the country exports $60-million worth of diamonds annually, yet figures from Belgium say it alone imported $100 to $160-million worth of diamonds from CAR in each of the past two years.
The report says the extra diamonds likely come from conflict zones in the Democratic Republic of Congo, which shares a lengthy border with CAR.
The CAR government blames traders, claiming they state CAR as the country of origin to avoid tax or legal sanctions. Partnership Africa Canada is urging the CAR government to crack down on the smuggling.
Major companies last year agreed to a pact making it illegal to trade in diamonds used to finance conflict. The report calls on the companies and diamond-producing countries to strengthen the system for monitoring the origin of the gems. – Sapa-DPA