Corruption trial of diamond magnate opens in Switzerland

Steinmetz arrives at the courthouse in Geneva to defend himself against the charges. Keystone / Salvatore Di Nolfi

The trial of Israeli billionaire Beny Steinmetz, accused of corrupt business practices in Guinea, started in Geneva on Monday. Steinmetz is alleged to have paid bribes to secure mining rights in the African country at a fraction of their fair value.

This content was published on January 11, 2021 - 09:43

In August 2019, prosecutors in Geneva charged Steinmetz with making illegal payments to government officials and of falsifying documents. Prosecutors say Steinmetz and other associates “promised in 2005 and then paid or had bribes paid to one of the wives of former Guinean President Lansana Conte” to have mining rights allocated to the company Beny Steinmetz Group Resources (BSGR).

BSGR later sold the Guinea mining rights to another company for a huge profit.

The 64-year-old commodities trading magnate, who made his fortune dealing diamonds, denies the charges and will appear in court in Geneva. Prosecutors say millions of francs in ill-gotten gains from the deal have passed through Swiss banks.

It is highly unusual for Swiss courts to prosecute foreign nationals for alleged crimes committed outside Switzerland. The campaigning NGO Public Eye said other Swiss entities and individuals had played a role in the alleged corruption.

"This case shows how tax havens can make it easier to cover up illegitimate or illegal activities in weakly governed and regulated countries," the group stated. "The role of advisors and lawyers in setting up or managing offshore companies and trusts is also questionable. These actors systematically hide behind professional secrecy."

Last November Swiss voters rejected an attempt to hold multinational companies legally liable in Switzerland for criminal acts and human rights violations abroad.

The Swiss government has also resisted pressure from NGOs to impose tighter binding regulations on the commodities trading sector. It has instead opted to recommend guidelines that the industry is expected to self-regulate.

Contributions under this article have been turned off. You can find an overview of ongoing debates with our journalists here. Please join us!

If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at

Share this story

Change your password

Do you really want to delete your profile?