Vietnam investigates diamond smuggling case tied to former PNJ certification chief

HANOI: Vietnamese police are investigating an international diamond smuggling network alleged to have brought 28,000 gems worth nearly $11 million into the country, with a former executive of the gem certification arm of major jeweller Phu Nhuan Jewelry (PNJ) among those arrested.

According to a public security ministry statement issued late Tuesday, more than 30 people have been detained in connection with the case. Police also carried out raids at over 20 locations, including jewellery shops and the homes of suspects, most of them in Ho Chi Minh City.

The ministry said the network had used sophisticated methods to obtain diamonds from India and arrange their illegal movement through Hong Kong into Vietnam over a period of several years. Investigators have so far confiscated 1,239 diamonds, as well as jewellery

for which no invoices or documents proving their origin could be produced

the ministry said.

Among those arrested earlier this month was Dang Ngoc Thao, the former director of PNJ Laboratory, the certification subsidiary of PNJ. He is accused of issuing false certification for gems brought from India for sale in Vietnam, and of removing laser engravings from the stones before replacing them with the company’s own markings.

State media reported on Wednesday that several establishments linked to the inquiry had abruptly shut down. PNJ, which is Vietnam’s largest listed jeweller, said in a statement that it

acknowledged

the investigation involving its former employee, but said the

matter involves individual legal liability

.

The company also said diamond products certified by its subsidiary are

fully traceable and of guaranteed quality

. Since the first arrests in early July, PNJ shares have fallen by more than 25 per cent.