In the past few years, the highly profitable diamond business in the Belgian city of Antwerp has seen more and more Indians taking important positions in the business. This sector is known for its legal and illegal fraud to avoid paying any taxes. At present one of the biggest fraud scandals in Belgian history is showing how the authorities have no intention to really fight fraudulent practices as long as it clashes with the interests of the bosses.
In 2009, the judicial authorities got access to a list of accounts on a Swiss bank, this included owners of diamond companies in Antwerp. These bosses had 700 million euro on these accounts, while none of this money was officially registered. It is very probable that it all concerns money from the black market. Amongst the bosses involved in this scandal there is a large number of Indian entrepreneurs.
When it became publicly known that the Antwerp judicial authorities started an investigation, the Antwerp World Diamond Centre (AWDC) immediately declared it was prepared to conclude an agreement with the tax authorities. At the same time, the AWDC started a judicial procedure to demand it could have access to all the information that was known to the judicial authorities.
The diamond sector in Antwerp can decide itself how much taxes the companies pay. The rates are decided on the basis of a proposal done by representatives of the AWDC. It is no surprise that this means they don’t really contribute very much. But even this is too much for many of the companies in the sector. They always want more profit. The official trade in 2011 was worth 44,6 billion euro, making diamond the 5th largest export sector of Belgium. 86% of the Belgian export to India concerns diamonds.
The sector is being supported by the traditional political parties and the judicial authorities. Despite evidence nothing is done against the trade in ‘blood diamonds’ (illegally bought in countries like Angola from rebel organisations with blood on their hands) or against attempts to avoid paying taxes. The city council of Antwerp declared that there are already enough rules for the diamond traders and that we shouldn’t exaggerate the fraud. That is the same council that implements cuts on public services. The political elite has no problem to attend the yearly ‘Antwerp Diamond Academy’ with international speakers such as Richard Branson (CEO – Virgin Airlines) this year or before him Bill Clinton, Colin Powell etc. A ticket to attend the Academy costs 149 euro, but Antwerp politicians don’t have to pay.
The judicial authorities had no problem with a visit to the Antwerp World Diamond Centre and to the Indian built Jain temple at Antwerp. About 40 judges were involved in an official visit in December 2011. While the Jain temple is not open for the general Belgian public, the owners made an exception for the 40 judges. The temple is the biggest Jain temple outside India and was financed by Indian diamond traders. The judges were offered a vegetarian meal and had a whole day of ‘team-building’ financed by the diamond sector. These are the same judges that have to investigate and judge on the fraudulent practices in the diamond sector!
This is an indication of the side the judges and judicial authorities are on. They wouldn’t have a ‘teambuilding’ day visiting the houses of poor people or watching the working conditions of low paid young workers, they rather visit their friends in higher circles. To make sure the investigation on the friends amongst the diamond traders wouldn’t lead to anything, the investigator on the case became the object of an investigation himself and was removed from the case. This can be the basis for a long procedure eventually without any consequence. Before this other big fraud scandals, including a bank with 400 million euro ‘black money’ on an account in Luxemburg, didn’t lead to condemnations.
This incident once again shows how there is one law for the rich and another for the poor. The rich get away with everything and are defended by their friends in the political and judicial elite. They use both legal and illegal corruption and fraud. Fighting corruption and fraud also means fighting the system that leads to such a difference between the super-rich 1% and the poor 99%. As socialists we know that symptoms of a sick society can not be cured without fighting the sickness itself.
Geert Cool
CWI – Belgium
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