By SCOTT INGLIS
A South African with international rugby connections has been caught trying to smuggle nearly $700,000 worth of diamonds and gems into New Zealand.
Authorities say the haul - 68 diamonds, a ruby and 12 pairs of diamond-studded earrings - was one the country's largest.
Roelof Erasmus van der Merwe,
a 47-year-old company director, was caught at Wellington International Airport on August 19.
The gems were seized and he appeared in the Auckland District Court yesterday, where he pleaded guilty to three charges of making false declarations under the Customs and Excise Act.
Judge Nicola Mathers fined van der Merwe a total of $27,000 - a fraction of the maximum $855,315 fine or six months' jail he faced.
The charges included one from May, when van der Merwe did not declare at least 11 loose diamonds when he first came to New Zealand.
Customs officials said after yesterday's court hearing that van der Merwe held sales evenings in May in the Wellington area and Auckland, mainly for gem merchants.
The evenings were brokered by prominent ex-rugby players.
Customs' manager of revenue fraud and prosecutions, Noel Dravitski, would not name the players involved as they were innocent parties caught up in the scheme.
He said van der Merwe had rugby connections around the world and his diary contained the names of prominent players.
For the Customs Department, Mike Ruffin told the court how van der Merwe arrived at Wellington from Melbourne and completed a passenger arrival card and Declaration to Customs, on which he did not declare any goods.
He was stopped, and admitted having some diamonds worth $100,000, but still had his luggage searched.
Agents found 68 diamonds, one ruby stone and the diamond-studded earrings.
Van der Merwe said a friend had given him the diamonds to sell.
He was under the impression there was no import duty on unmounted diamonds, which was why he declared only the ear-rings.
He admitted that in May, he imported undeclared diamonds, which he had sold.
The gems seized in August had an estimated retail price of $681,328.
On this figure, van der Merwe would have paid $36,474 in GST and duty.