In recent years, the world has made its disgust known at the presence of conflict diamonds within the world diamond supply. These stones are generally associated with bloody civil conflicts in African nations like the Democratic Republic of the Congo, Sierra Leone, and Ivory Coast, and for good reason are also known as blood diamonds. In many cases, the stones are the fruits of mining efforts undertaken at the barrel of a gun, organized by rebel groups eager to use the precious crystals to finance their rebellions.

In 2002, most of the world’s diamond producers — both corporate and governmental — came together to form the Kimberly Process Certification Scheme (KPCS), the intent of which was to legitimize the diamond trade. Under the KPCS, diamonds must be certified as legitimate before they can be sold on the international market, and ideally KPCS watchdogs track them carefully from ground to jeweler. The point is to intercept and exclude conflict diamonds before they can enter the market. According to the KPCS itself, they’ve already managed to cut the number of conflict diamonds in the world supply to less than one percent.

However, the integrity of this scheme depends upon all the participants playing by the rules. According to the non-governmental organization called Partnership Africa Canada (PAC), a participant in the KCPS, some nations are (deliberately or otherwise) allowing illicit diamonds to slip through in the cracks. The PAC is especially concerned that the South American nation of Guyana is certifying diamonds that are actually smuggled into the country from neighboring Venezuela, via Brazilian brokers.

“Nonsense,” says William Woolford, Venezuela’s acting Commissioner of Mines. According to Woolford, Guyana’s administration of their national diamond trade is actually quite vigilant, and had been since well before the KPCS came into existence. He further claims that the KPCS rules are being stringently and successfully applied to Guyana’s diamond trade. Nonetheless, at a recent meeting, the KPCS recommended that Guyana tighten its trading policies, especially in regards to Venezuela. For his part, Woolford does agree with the PAC that Guyana should cooperate more closely with both Brazil and Venezuela in the diamond trade “to encourage self-regulation.” Meanwhile, the PAC has already recommended that Venezuela be kicked out of the diamond trade altogether, due to irregularities in both trade and production.

Curiously, there seems to be a correlation between diamond production in Venezuela and Guyana. When one country’s annual diamond yield is up, the other’s is down, and vice versa. In recent years, Venezuela’s diamond production figures have dropped sharply, even as Guyana’s have headed skyward. According to PAC, this is because 50,000-100,000 carats worth of stones per year are making their way illegally from Venezuela to Guyana. Weak controls in both countries, as well as in Brazil, are blamed for the purported smuggling.

Woolford explains that Guyana’s booming diamond trade, which exceeded 425,000 carats in 2004, is really due to more efficient mining processes, better production machinery, and increased exploration of Guyana’s diamond-producing regions. He knows this because the Guyana Geology and Mines Commission, or GGMC, carefully tracks the production means and processes for all of Guyana’s diamond producers. While he admits that officials have occasionally caught people with undocumented diamonds in their possession, these cases are few, and have resulted in the GGMC cracking down on its procedures. The GGMC also keeps a close eye on diamonds entering the country from Brazil and Venezuela, he said.

Although Venezuelan diamonds are not considered conflict diamonds per se, the ease with which they are entering Guyana — if this is indeed the case — undermines the power and integrity of the fledgling KPCS. It’s no surprise, then, that organizations like the PAC are being so vigilant in watching suspect nations like Guyana and Venezuela.