A diamond scandal is illustrating how corrupt civil servants can get. Several ranking officials, including diplomats, allegedly were behind a scam in pursuit of personal gains from a deal to develop a diamond mine in Cameroon. At issue is whether they intentionally exaggerated the diamond reserves and manipulated share prices of the mining firm CNK.
At the heart of the scandal is Kim Eun-seok, ambassador for energy and resources, who allegedly helped his relatives and possibly other officials buy the company shares before the Ministry of Foreign Affairs and Trade announced the deal in December 2010. If the allegation is found to be true, Kim should be subject to harsh punishment.
CNK’s shares showed a five-fold rise in 17 days following the ministry’s announcement. Kim’s brother and his wife reportedly made huge profits by selling off the stocks. No one can rule out the possibility of other officials having enjoyed similar illicit gains.
It is true that the diamond deal raised many doubts from the start. It is unusual for the foreign ministry to unveil a private firm’s deal, even though it is closely related to “resources diplomacy.” That is, Kim and other officials with no moral scruples could have plotted the scheme in collaboration with CNK.
For this reason, speculations abound that the inner circle of the ruling elite might be implicated in the scandal. Park Young-joon, one of President Lee Myung-bak’s confidants, could be one of the higher-ups behind the plot. Park, then-vice minister of knowledge economy, visited Cameroon in person in an apparent bid to facilitate the deal. Cho Joong-pyo, a former senior official at the Prime Minister’s Office, could also be among the corrupt bureaucrats.
It is interesting to read Park’s autobiography, “Are You Mr. Africa?” He said in the book, “I told my entourage that anybody who buys shares of the company ahead of the deal’s public revelation to make money will face consequences.” This could suggest that he may have gotten wind of the scandal beforehand. Now, the warning seems to have become a reality.
The scandal appears to have been premeditated rather than accidental, not least because the officials and the firm dramatically inflated the diamond reserves to 420 million carats. The estimation was more than two times higher than the world’s total annual production of diamonds.
It would be shameful if the officials prove to have masterminded the scam for personal gains. The Board of Audit and Inspection should immediately make public its probe results and hold those responsible for the case accountable. Then, the prosecution must launch an extensive investigation to get to the bottom of the scandal and bring any greedy, corrupt officials to justice. The authorities should also take radical steps to root out corruption. Resources diplomacy and corruption don’t mix well.