Belgian firm Explorer Trade and Commerce, Ltd yesterday filed a lawsuit against the Guyana Geology and Mines Commission (GGMC), claiming US$170,000 for profits lost owing to the continued detention of its diamonds.
The firm filed suit yesterday, one day after the High Court granted an order to have GGMC Commissioner William Woolford show, among other things, cause why his decision to detain and continue to detain 4,685 carats of rough diamonds worth US$850,000 ($131,665,793) seized from the Belgian firm, should not be set aside as an abuse of power and ultra vires. The court also granted an order for Woolford to show cause why he should not be directed to deliver the diamonds as his decision to seize them was made ultra vires and for malicious reasons.
The company is also claiming damages in excess of $50,000 for wrongful detention of its property. The lawsuit which was filed by attorney-at-law, Nigel Hughes will come up for hearing in January.
The mining regulatory body had detained the Dubai-bound gems on October 19 following crosschecking of documents, which allegedly showed irregularities in the paperwork. On Wednesday, the company moved to the High Court and was granted the two orders.
Meanwhile, in the statement of claim in his lawsuit, Managing Director of the Belgian firm Yuri Zaprudnov said that on October 4, he deposited with GGMC, 4685 carats of rough diamonds pending confirmation of the export documents. He said the value of the gems is US$850,000. Zaprudnov said that his company on the same date paid royalty on the precious stones.
On October 19, he said, GGMC wrongfully seized and detained his property alleging that the documentation accompanying the said diamonds was inaccurate because of the presence of yellow diamonds in significant quantities; commonality of the production sheets; non-compliance of some of the producers with the Mining Regulations (failing to obtain requisite permission to permit dredge owners to work their licensed areas and the non-compliance of any traders with the requirement to be licensed. According to Zaprudnov, by letter on the same date his company requested further and better particulars of the detention of the gems and got no response and a subsequent letter was dispatched on November 7 demanding that GGMC release the gems but nothing was done. Zaprudnov said that he has suffered loss and damage as a result of the wrongful detention of the diamonds.
On Tuesday, Paul Eastman, the middleman between the company and GGMC was charged with false declaration. According to the charge against Eastman, on November 4 he submitted a return in pursuance of the Mining Act 1989 which he knew or had reason to believe was false contrary to Section 125(b) of the Mining Act. Stabroek News was told that most of the seized diamonds were purchased from dredge owners who are working on other persons’ claims without permission from GGMC. Eastman had appeared before Magistrate Oneidge Waldron-Allicock and was placed on $25,000 bail. He will return to court on December 6. If convicted Eastman could face a fine of $25,000 and imprisonment for one year.
The company had said that it purchased all of the diamonds from miners who produced their production sheets, which had been duly signed by the designated officers.
Explorer Trade and Commerce Ltd has been operating in Georgetown for over seven years and Zaprudnov had told this newspaper that this was the first time his firm had had such problems. Guyana is a signatory to the KPCS. The KPCS originated from a meeting of Southern African diamond producing states in Kimberley, Northern Cape in May 2000. In order for a country to be a participant, it must ensure that any diamond originating from the country does not finance a rebel group or other entity seeking to overthrow a UN-recognized government. KPCS also mandates that every diamond export be accompanied by a Kimberley Process certificate proving that no diamond is imported from, or exported to, a non-member of the scheme.
