Justice Jainarayan Singh Jr has ruled that 3,853 carats of the 4,685 carats of diamonds, which the Guyana Geology and Mines Commission (GGMC) seized from a Belgian firm be returned to that exporter.
The GGMC baulked following the ruling on Monday, saying it could only release the diamonds if it was served with a court order and this was done yesterday afternoon.
Over two months ago, the GGMC seized a parcel of diamonds worth US$850,000 from Belgian diamond exporting firm, Explorer Trade and Commerce Limited (ETCL) on allegations that some of the gems had been smuggled to this country. The company had submitted 4,685 carats of diamonds to the GGMC to be certified for export. GGMC had subsequently said that there were paperwork discrepancies for 832 carats from the amount submitted but had seized all of the diamonds.
Paul Eastman, the intermediary between the company and the GGMC was then charged with false declaration.
Managing Director of ETCL Yuri Zaprudnov then moved to the High Court charging that the GGMC had wrongfully detained his property. Justice Singh ruled on Monday that the minerals not in dispute should be released.
However, up to yesterday midday GGMC had not released the diamonds, insisting that it would only do so when served with a court order. Nigel Hughes, lawyer for ETCL subsequently obtained the order from the court, which was served on GGMC Commissioner William Woolford yesterday afternoon.
The diamond exporting firm will approach the GGMC today with a view to uplifting the gems in order to export them.
The Belgian firm had filed a lawsuit against the GGMC last month claiming $170,000 for profits lost owing to the continued detention of its diamonds, and that suit will come up for hearing early next year.
The firm had also filed a motion through its lawyer in the High Court, ordering Woolford to show, among other things, cause why his decision to detain and continue to detain the 4,685 carats of rough diamonds should not be set aside as an abuse of power and ultra vires. The court had also granted an order for Woolford to show cause why he should not be directed to deliver the diamonds.
The matter was heard by Justice Singh, who in his ruling on Monday said that there was no basis for GGMC to continue to hold the 3,853 carats that are not in dispute and as such he ordered that the gems be released.
The mining regulatory body had detained the Dubai-bound gems on October 19 following cross-checking of documents, which allegedly showed irregularities in the paperwork. Woolford had also said that some of the diamonds were suspected to have been smuggled here.
Zaprudnov had said that on October 4, he deposited 4,685 carats of rough diamonds valued US$850,000 with GGMC pending confirmation of the export documents. Zaprudnov said that on the same date his company paid royalty on the diamonds. He said that on October 19, 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 Mining Regulations; failing to obtain the requisite permission for dredge owners to work their licensed areas and the non-compliance of 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 he has suffered loss and damage as a result of the wrongful detention of the diamonds.
