Misinformation causes embarrassment among G7 countries

Was CEO of AWDC fired or resigned his lucrative position? ODC, member of AWDC yet to sign into this initiative

The resignation of Ari Epstein, the enduring Chief Executive of Antwerp World Diamond Centre ( AWDC), who has wielded considerable in uence in shaping the industry for 20 years, has ignited speculation, concern, distress, and confusion. On Tuesday, Epstein who has since stepped down from one of the most lucrative positions, was replaced by Karen Rentmeesters, who until recently was Chief O cer PR and Industry Relations at AWDC, and is now the organisation’s CEO ad interim. e diamond industry is abuzz with allegations that Epstein is behind the implementation of the new European and G7 sanctions legislation, which is causing havoc in the international jewellery market and adding pressure to African diamond mining countries like Botswana.

It is further claimed that Epstein, along with Belgium Prime Minister Alexander Croo, advocated for certifying world diamonds in Belgium, aiming to restore Antwerp’s historical signi cance in the industry, seemingly disregarding the impact on countries like Botswana that are heavily reliant on diamond revenue.

Although Antwerp World Diamond Centre ( AWDC) has not provided reasons for Epstein’s departure, it is said that other AWDC directors have openly stated or complained that Epstein did not consult them before committing the industry to the Belgian government’s initiatives, suggesting that he acted more in his own interest than in the industry’s. Furthermore, following the G7 Technical Team’s visit to Botswana, invited by the government to inspect the country’s diamond mining and processing measures, it is alleged that the G7 countries discovered numerous discrepancies in the information they had been provided with. Allegations of misinformation have evidently caused embarrassment among the G7 countries, with some feeling misled by the initial information they received regarding mining and diamond processing, particularly in countries like Botswana, where all systems are thoroughly vetted, including audits by 13 di erent auditors without fault. Diamond experts, speaking anonymously to Botswana Guardian, argue that this issue transcends Russian diamonds, pointing out Belgium’s clear exploitation of an opportunity to revive its diamond industry and reclaim its global status. Despite Botswana joining forces with other African diamondproducing nations such as Namibia, South Africa, and Angola in opposing the certi cation of diamonds in Antwerp, Botswana has yet to sign into this initiative.

Botswana maintains that its mining and processing systems are tried and trusted, and it is reluctant to merely follow along without assurance of genuine benefit. While the government, through its wholly- owned company, Okavango Diamond Company ( ODC), is a member of AWDC, Botswana’s stance remains unchanged. e question of what prompted Epstein’s departure from the organisation he served well arises, especially if the information provided by Isidor Morsel about him, which raises more questions than answers, is accurate.

There are differing opinions suggesting that certain influential G7 countries, though still unshakable members of the group, are unhappy with the information provided. It is highly believed that they may be the ones who advocated for the removal from office of individuals who may have misrepresented how African diamonds are mined and processed before entering the market.

Reports received by Botswana Guardian suggest that Botswana has set a deadline for itself until the end of May 2024, believing that by then, the situation will hopefully become clearer. This timeline is seen as crucial for determining whether Botswana is still facing challenges or has emerged from uncertainty, providing a clearer path forward amidst the current confusion.

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Last week ursday, the President of AWDC, Isidor Morsel issued a public statement titled, “A new chapter Ari Epstein’s legacy at Antwerp World Diamond Centre.” e statement indicates that a er nearly two decades of dedicated service, with over 13 years at the helm as the CEO, Ari Epstein has decided to step down from his role as the Chief Executive O cer at the AWDC, e ective this Tuesday.

“is marks the end of an era of visionary leadership and signi cant not only for our company but the entire industry. Under Ari Epstein’s leadership, AWDC has seen unparalleled growth innovation and expression, strengthening our position as a global leader in the diamond industry. “Ari Epstein’s commitment to excellence along with a forward- thinking approach, has been instrumental in navigating the complexities of the global market and setting new benchmarks for transparency and success,” the statement read.

This is the message that sparked suspicions that the G7 plan is about empowering Belgium by relocating the diamond bene ciation from countries like Botswana, and that Antwerp diamond industry does not support the G7 sanctions. is speculation has since attracted yet another public statement which has been written on behalf of the entire 147 Antwerp Diamond Trade companies. e statement headlined, ‘ Misleading Media Reports and AWDC’s Change in Senior Management,’ reads: “We write to express the trade wide distress at the serious misreporting in the press following the resignation of Mr. Ari Epstein as CEO of AWDC. e narrative being reported here is that the trade is somehow against the G7 sanctions against Russia. “Let us state once again here, the Antwerp diamond industry fully and unanimously supports the G7 sanctions. e trade is also fully prepared to work with the state to put in e ective and sensible measures to support any sanction policies. Our concerns from the beginning have been towards the procedural policies cra ed to enforce the sanctions. “ese have led to painful unintended consequences, such as the alienation of Antwerp from the rest of the global diamond trade, from partner countries, notably African states, and has created all kinds of blockages throughout the global diamond supply chain, costing the trade a fortune on a daily basis. “Furthermore, the policies have failed to resolve the most urgent and basic of issues such as ‘ grandfathering’ of existing inventory: what to do with the billions of dollars of pre- sanctioned goods, from all sources and origins. “is has also led to confusion in customs o ces across the globe. All of this is further exacerbated by the lack of alignment within the G7, as major G7 players have found the proposal to be lacking in e ectiveness and damaging to the global supply chain.

“Regarding the change in management leadership at the AWDC, we welcome the opportunity to work with fresh management. It is no secret that the Antwerp Diamond trade has su ered enormously over the past 10 years, and has lost much of its global position as a diamond centre”.

Announcing Rentmeesters’s appointment, the AWDC board stated that she has been working for 15 years now, the Board of Directors is choosing someone who knows the organisation well and can fall back on a lot of expertise thanks to years of experience.

“In the coming period, Karen will focus on carrying out ongoing business and appointing a new, permanent CEO for AWDC. e appointment of an ad interim CEO comes a er current CEO Ari Epstein resigned last ursday.

“To ll the position of ad interim CEO, we deliberately chose someone with extensive experience in and knowledge of the diamond industry, a large network, and the necessary expertise.

We are con dent that Karen will take on this role with great enthusiasm and that, while waiting for a permanent CEO, she will awlessly guide AWDC through its ongoing dossiers,” Isidor Mörsel, Chairman of AWDC’s Board of Directors, said.