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Published in African Security Review Vol 10 No 3, 2001
Blood Diamonds
Effective African-based monopolies?
Christian Dietrich

Democratic Republic of Congo (DRC)
The monopoly’s success
An Israeli firm, International Diamond Industries (IDI), headed by Dan Gertler, was awarded an 18-month monopoly on diamond exports from the DRC in July 2000 through the company’s subsidiary IDI-Congo, to take effect 30 days after signature. The contract was repealed in April 2001, although the company continues its purchasing operations. At the time of signing, the DRC minister of Mines, Bishikwabo Chubaka, defended the diamond monopoly:

"This is the optimum way for the Congo diamond production to be marketed in a transparent manner that will inspire trust and confidence in the country’s certificate of origin, which will accompany each and every parcel to be exported by IDI."4

Nearly one year later, certificates of origin have yet to be instituted. Despite government officials defending the contract as a means to prevent the export of conflict diamonds and increase state revenue, the deal was in reality meant to provide cash for the war effort, as well as military assistance, presumably from the Israelis. . .
IDI-Congo’s export contract coincided with the government’s suspension of all other export licenses, supposed to be valid until the end of 2000. Foreign dealers had to leave the DRC as their work permits were annulled. Artisan diggers and local traders were still allowed to operate but were required to sell to IDI-Congo.6 Increased fraud resulted as many of the local traders refused to sell to IDI-Congo. The monopoly was accused by its competitors of:

"cherrypicking the best Congolese diamonds and offering below-market prices for the rest, frustrating many producers who then smuggle their stones across the border for sale in the neighbouring Republic of Congo."

. . .The recent United Nations report on the plundering of the DRC’s resources briefly mentions IDI-Congo:

"This deal turned out to be a nightmare for the Government of the Democratic Republic of the Congo and a disaster for the local diamond trade as well as an embarrassment for the Republic of Congo, which is currently flirting with illicit diamonds. According to different sources, IDI paid only $3 million instead of $20 million and never supplied military equipment."

This uncharacteristic attack seems curious. The report is vague about the diamond trade in the rebel-held portions of the DRC, raising suspicion about the panel’s research methodology. Furthermore, it is impossible to verify the UN’s unsupported allegations against IDI-Congo. Subjective wording such as ‘nightmare’ and ‘disaster’ could make detractors suspect that the monopoly’s competitors supplied the information cited by the UN.
Other concerns
Nkingi, one of the signatories of the contract, mentioned a possible venture with Israeli military specialists working in the DRC as part of the deal for the IDI-Congo contract. He alluded that the Israeli army would assist with training the police anti-smuggling unit and that this deal was one of the reasons why the company was chosen. This was denied by IDI-Congo, the Israeli Defence Ministry and the DRC government, with Nkingi later jailed for unspecified reasons. Chorev, IDI-Congo’s spokesperson, noted that IDI-Congo was "not directly involved in any military operation."
Copies of alleged correspondence between Dan Gertler Diamonds (DGD) and the DRC government show that Gertler had attempted to enter the country since early 1998, before IDI-Congo had been formed. One letter, dated 12 March 1998 in Kinshasa and addressed to the minister of Mines, Kibassa Maliba, noted that DGD is a capable diamond trading company. It refers to its activities in Russia, Sierra Leone and Guinea, and states that the company "owns and operates its own mining, transportation and security equipment, and trains its own personnel." It proposed a contract for the purchase US $2 billion in rough diamonds over a period of 24 months. A memorandum of intent, dated 12 March 1998, is allegedly part of the correspondence between Maliba and Gertler over the proposed contract. The last paragraph of the memorandum mentions a company named the Russian Military Brotherhood (RMB), created by presidential decree on 23 June 1995 in Russia, and refers to contracts concluded between RMB and DGD on 25 February 1998. . .
Little information is available on RMB. An internet address was obtained from the Embassy of the Russian Federation in Washington DC. The site lists RMB’s activities as a military school and a programme for teenage abusers of alcohol and narcotics. RMB appears to be a non-governmental organisation, even though it was created by presidential decree. Another source notes that RMB comprises Russian generals who had initially opposed Yeltsin’s military reforms, but then pledged allegiance to the president in 1995, playing into the struggle between the Russian Defence Minister and the head of the State Duma Defence Committee.
Diamond industry sources in Belgium allege that there could be a business relationship between Gertler and Lev Leviev, one of the principals in Angola’s diamond monopoly, with further allegations that Leviev had helped Gertler to secure the DRC monopoly and that the Angolan government had lobbied Kinshasa to continue the IDI-Congo contract. These unsubstantiated rumours led to suggestions of a common link between Israeli and Russian interests, and were further fuelled by reports that a Russian named Bill Davidson works for IDI-Congo, reportedly as the company’s representative. IDI-Congo indicated that he is a Russian, doing freelance work for many organisations.
Despite the tenuous associations outlined thus far, an Israeli journalist remarked that it is:

"difficult to believe that Gertler would become involved in an arms deal in the Congo after he lost a considerable amount of money in Sierra Leone, and his mother and grand-father would not have allowed it in any case."

In September 1999, it was noted in the media that Gertler was linked to Dov Katz and (former IDF Col) Yair Klein in a programme of diamond purchases in exchange for military training and arms deliveries in Liberia and Sierra Leone in 1997.
Katz was the link between Gertler, providing financing, and Klein, providing the training. The operation failed due to convoluted military and political developments in Sierra Leone that led to the lengthy imprisonment of Klein in Freetown under suspicion of arming the rebels. Klein had reportedly been involved in training for the Medellin drug cartel in Colombia in the 1980s. He was convicted in Israel of illegally exporting military equipment and has evaded a warrant for his arrest in the US for his activities in Colombia. IDI-Congo currently has a buying operation in Sierra Leone. . .

http://www.iss.co.za/PUBS/ASR/10NO3/Dietrich.html

All this is why Democrats are trying to defeat Cynthia McKinney in the primary. It has nothing to do with her votes on Israel. It has everything to do with her exposing the money Israel and the DLC part of the Democrat party take out of Africa. McKinney's fate was sealed when she made this comment:

"Why should Antwerp and Tel Aviv be built on the limbs and backs of Freetown, Luanda and Kinshasa?"

http://www.freerepublic.com/focus/news/723695/posts?page=201,38