The UAE as the KP chair for Year 2016 has undertaken important initiatives that has made a difference to the global Rough supply chain. Are you, in the capacity of the Chairman of 'Dubai Diamond Exchange' and an avid observer, satisfied with the work that KP has undertaken till date. Can you in brief cite some important achievements of KP for the year?
During 2016, the KP Chair has initiated several initiatives. The KP Chair Ahmed Bin Sulayem started with a special visit to the Bolivarian Republic of Venezuela who had asked to be reviewed and readmitted into the Kimberley Process Certification Scheme. After the Chair’s visit, a Review Mission took place and weare currently in the process of accepting Venezuela again as a full KPCS Member which we hopefully can conclude by Plenary. The Chair also launched a Special Forum on Rough Diamond Valuation to come to a set of genuine criteria which could be followed across all importing and exporting centres of rough diamonds in the world and which would serve as a uniform methodology in that matter. Two Special Forums have been held and a third one is set to happen on the first day of the KP Plenary in November. This is a groundbreaking initiative because attempts to bring some uniformity and standardization in this matter have failed, so far. The Chair also launched a so-called ‘Africa Initiative’. In the past five months, the Chair paid visits to Angola, Botswana, Burkina Faso, Burundi, Central African Republic, Democratic Republic of Congo, Ghana, Lesotho, Namibia, Rwanda, South Africa, Uganda and Zimbabwe. The Africa Initiative aims to look for ways to improve the living conditions and the livelihood of the people that work in the diamond mining sector in Africa.
One important disagreement by the Civil Society members was the absence of an enhanced vigilance system for diamonds coming from conflict zones like the Central African Republic into UAE. Were they right in this accusation? If No, why? Please give instances.
The issue on enhanced vigilance for the Central African Republic has been on the KP agenda for three years now, since the suspension of CAR as a full KP Participant. At the KP Plenary in Luanda 2015, an Administrative Decision was taken to allow the Central African Republic to export shipments from zones that are considered compliant. Six months ago, the UAE took over the lead of the team that has to guide the Central African Republic in this matter. After the Inter sessional in May 2016, the KP Chair paid a special visit to the Central African Republic. We have studied together with the CAR government ways to come to, on the one hand, a better vigilance system to prevent possible smuggling and illicit trade of diamonds, but at the same - under the supervision of the CAR Monitoring Team, a process was started to recognize compliant zones. Both have to go hand in hand, since a quarter of the population of this country lives through mining diamonds. So on the one hand, we try to get business back to normalization in zones which we can consider compliant and which are conflict-free and on the other hand we request for strong measures against illicit trade and smuggling through neighbouring countries.
It was with efforts of the KP Chair and the KP monitoring team that today, Boda, Carnot and Nola in the Central African Republic (CAR) and Berberati are declared as “Compliant Zones” among other regions. As an observer what is your reaction to this and do you feel that going ahead the mining economies declared compliant this year (2016) will have a brighter future post UAE’s tenure as the KP Chair? If No, What would be the challenges?
The Central African Republic’ economy is in a dire state. A quarter of the population lives through mining diamonds. As CAR Monitoring Team, we have this year decided to have 4 zones which are now considered compliant. This will on the one hand allow miners to earn a better living, and on the other hand it will allow the CAR government to earn taxes from these exports. Hence, the economy will grow and this will be to the benefit of the people of that country.
The KP Chairperson, Mr. Ahmed Bin Sulayem has called for a Permanent Secretariat under the United Nations for Kimberley Process Certification Scheme? In your opinion will this dilute the role and responsibility of KP as a monitoring entity ultimately leading to complexities between the two bodies? If No, Why?
The KP Chair has invited the Civil Society Coalition to attend the Plenary. There are some very important points to tackle. One of them is the uniform methodology on rough diamond valuation on which we will do a 3rd KP Chair Special Forum. The other is the establishment of a Permanent Secretariat under the wings of the United Nations. This is probably even more important, since we want to address the question of creating a more adequate structure to assist countries that have been suspended and to guide them on their path to normalization. Currently this is done by a monitoring team who basically consist of volunteers. It is not their full-time job. We know this very well because the UAE took the lead of the CAR Monitoring Team six months ago and has been fully occupied with bringing this to a good end. At the same time we believe that the structure should be professional and that it should be placed under the wings of an organization which represents all countries, the United Nations, and preferably by an African who knows the rules and procedures of the KPCS, has experience in the mining and mineral resources sector, and is acquainted with issues like assisting countries which have been suffering following eruptions of violence and how to bring them back to a normal way of living.
Q. What is the future you see for 'Dubai Diamond Exchange'? Will it continue to grow post UAE as the KP Chair or will it lose its share of tendered diamonds to economies such as Panama and Israel? This keeping in mind the number of Diamond companies who have set base in Dubai recently.
I only see a very bright future for the Dubai Diamond Exchange. Let us not forget that since 2006, our turnover has quadrupled. It grew with more than 400%. DMCC as a Free Zone has been extremely successful and for the second year has been recognized as the ‘Global Free Zone of the Year 2016’ and has gained international recognition. Dubai’s location and the DDE facilities and the phenomenal infrastructure from Emirates Airlines give Dubai a considerable advantage over others. We expect this to further grow but probably not at the same pace as the last ten years.
CENADEP (Centre National D’Appui au Dévelopment et à la participation populaire) have agreed to attend the KP plenary meet. Your opinion.
This is great news. We look forward to welcome CENADEP to the Plenary; hopefully others will follow. The KP Chair has a genuine interest to come to a constructive dialogue with the CSC. This dialogue however, requires that parties meet. It takes two to tango. We are ready to tango.
