(Rapaport…March 19, 2002) The U.S. General Accounting Office (GAO) has published results of a study that indicates that the Kimberley Process suffers from various “shortcomings,” such as the lack of a formal risk assessment that identifies, analyzes and manages risks to meet objectives, and the fact that it subjects many activities to recommended controls, as opposed to mandatory ones.
The GAO said in its report: “Some activities that would be deemed high-risk by industry experts, as well as Kimberley participants, such as the flow of diamonds from the mine or field to the first export, are subject only to ‘recommended’ elements. Additionally, the period after rough diamonds enter a foreign port to a final point of sale will be covered by an industry system in which participation is voluntary and monitoring and enforcement are self-regulated.”
The report credits the Kimberley process with achieving cooperation between the global diamond industry, nongovernmental organizations (NGOs) and relevant governments, but it states that “considerable challenges” still remain.
To view the report, visit the GAO website at: