Antwerp�s High Diamond Council (HRD) aimed at solving a dispute over the umbrella organization�s representation received a cautious response yesterday amid concerns that it failed to address several key issues. The draft proposal reduces the number of board members to 12 from 20 and changes the way representatives are elected to the board of directors. It also provides a more formal separation of HRD�s commercial and non-commercial activities by separating the organization into three different entities. Insiders said the proposal was a positive step forward in providing more transparency to HRD�s different activities as a trade representative and a services company selling grading certificates, training courses and handling imports and exports.

The proposal does not address what many see as a key component of HRD�s restructuring, namely the mandate of its future chief executive. HRD�s managing director Peter Meeus resigned in January after failing to resolve clashes between the different trade bodies on HRD�s board. An interim management team of three HRD directors has taken over until a formal structure is decided. An HRD source said there was a clear divide on HRD�s board of directors between those who favor a CEO with a strong mandate, and others who believe its leader should act in service of the board, which functions like a parliamentary body with the right to veto decisions.

It is understood that Belgium�s Prime Minister Guy Verhofstadt, who has been actively involved in fleshing out a new structure for HRD, has suggested two different chief executives with separate boards to head HRD�s commercial and representative activities, although this has not been included in the draft proposal.

The draft also raised fears that it would give large power to certain individuals elected on the board. �Previously, members on the board represented trade organizations, such as the rough and polished association,� a source familiar with HRD�s proposal said. �Under the new structure, HRD�s 12 board members will include representatives from large companies, medium-sized firms, and independents, and in principle they are accountable to nobody,� he said. Other board members include representatives of Antwerp�s diamond bourses, trade unions, banks, and an independent individual who has no affinity with the diamond sector. The draft proposal is currently awaiting approval from HRD�s general assembly. According to Youri Steverlynck, one of HRD�s interim managers, the assembly is expected to give its vote on the proposal within weeks.