Vietnam probes diamond smuggling ring linked to major jeweller
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Police have seized 1,239 diamonds in the investigation so far.
PHOTO ILLUSTRATION: REUTERS
- Vietnamese police are investigating a diamond smuggling ring involving 28,000 gems worth nearly US$11 million and the country's largest jeweller, PNJ.
- The former director of PNJ Laboratory and over 30 suspects are accused of falsely certifying gems and illegally transporting diamonds from India via Hong Kong.
- PNJ denies company-wide wrongdoing, stating the issue is individual liability; its shares dropped over 25% after the arrests.
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Hanoi - Vietnamese police are investigating an international diamond ring accused of smuggling 28,000 gems worth nearly US$11 million (S$14.2 million), with the country’s largest jeweller caught up in the probe.
The former head of Phu Nhuan Jewelry’s (PNJ) gem certification subsidiary was arrested earlier in July along with more than 30 others accused of involvement in a syndicate operating over several years.
Police have raided more than 20 establishments, including jewellery stores and homes of the accused, mostly in Ho Chi Minh City, the public security ministry said in a statement late on July 14.
State media reported on July 15 that a number of establishments linked to the investigation have suddenly closed their doors.
Dang Ngoc Thao, the former director of PNJ Laboratory, is accused of falsely certifying gems sourced in India for resale in Vietnam, removing laser inscriptions and replacing them with the company’s own.
Police have seized 1,239 diamonds in the investigation so far, along with jewellery “for which no invoices or documents proving their origin could be produced”, the ministry said.
The suspects “employed highly sophisticated criminal methods” to source diamonds from India and organise their “illegal transport” via Hong Kong into Vietnam, it added.
In a statement, PNJ said it “acknowledged” the investigation into its former employee but claimed the “matter involves individual legal liability”.
It said diamond products certified by its subsidiary are “fully traceable and of guaranteed quality”.
Shares in PNJ, Vietnam’s largest listed jeweller, were down more than 25 per cent since the first arrests were made in early July. AFP