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Disputes on handling of tax fraud case

Antwerp must decide on prosecutions or settlements in diamond industry
© Belga

The internal struggle concerns documents from the Swiss branch of the British bank HSBC that were passed on to French investigators by a former employee. The papers contained hundreds of names of clients alleged to be using Swiss accounts to evade tax. The French passed the relevant sections of the file to other national jurisdictions, including the Antwerp prosecutor.

Under Belgian law, each appeal court in the country, of which there are five, has a prosecutor-general who heads the court. This person stands above the royal prosecutors, of whom there is one in each judicial area. The prosecutor-general of Antwerp’s court of appeal, for instance, covers the provinces of Antwerp and Limburg, and within that area there are royal prosecutors in Antwerp, Mechelen, Hasselt, Tongeren, Turnhout and Veurne.

The HSBC case was assigned to Peter Van Calster, a magistrate who used to be a policeman and has experience investigating the diamond industry. Opposing him is Yves Liegeois (pictured), the prosecutor-general, who has accused Van Calster of “mishandling” the investigation and whose office has opened legal complaints of falsification of documents and breach of professional confidentiality.

At issue is whether the diamond industry, hundreds of whose members could be involved in the case, should be prosecuted to the full extent of the law or whether more effort should be made to reach a settlement, as the law allows in cases of tax evasion. The latter course, which Liegeois seems to favour, would be cheaper for the justice system and would bring in millions in tax.

Magistrates invited to Jain Temple

The controversy coincides with reports that Antwerp magistrates were the guests at a dinner given in the new Jain temple in Wilrijk, many of whose congregation are Indians involved in the diamond industry.

The invitation came from India’s honorary consul in Antwerp and not, according to Antwerp judge Jacques Mahieu, from the diamond industry. Reacting to a report on the event on VRT television, Mahieu said: “Our independence is not in question. We can’t be bribed, and we can’t be corrupted.”

Federal justice minister Annemie Turtelboom has asked the High Council for Justice to review the code of ethics for magistrates. “Some magistrates now don’t dare to join a club or serve on the board of a football club, while others think that makes you out of touch with the world,” Turtelboom told ATV news. “I think we need to extend the code of ethics that now exists. There has to be a broad debate, and every hint of partiality is to be avoided.”

(January 18, 2012)