Advertisment

Israeli Mining Magnate Beny Steinmetz Detained in Cyprus on Romanian Warrant: An Intricate Legal Saga Unfolds

author-image
Geeta Pillai
New Update
Israeli billionaire Beny Steinmetz leaves the courthouse after a verdict on corruption charges, in Geneva, Switzerland January 22, 2021. | Image Credit: Reuters

In a surprising turn of events, Israeli mining tycoon Beny Steinmetz found himself detained in Cyprus on a Romanian-issued warrant, according to a statement from a spokesperson for Steinmetz. The incident occurred last Thursday when Steinmetz arrived at Larnaca airport. This development is part of an intricate legal saga that has seen European Arrest Warrants (EAW) issued and subsequently canceled in various European countries, including Greece and Italy.

Advertisment

Beny Steinmetz’s Wealth and Influence

Before delving into the intricacies of the legal proceedings, it is essential to understand the enigmatic figure at the center of this controversy: Beny Steinmetz. Born in Israel in 1956, Steinmetz is best known for his involvement in the mining industry through his company, BSG Resources (BSGR). With interests ranging from diamonds to iron ore, Steinmetz amassed considerable wealth and influence, making him a prominent player in the global mining arena. However, his career has been marred by legal battles, allegations of corruption, and disputes over mining rights.

Romanian Connection: European Arrest Warrant

Advertisment

The current legal quagmire Steinmetz finds himself in stems from an European Arrest Warrant (EAW) issued by Romanian authorities. The warrant accuses Steinmetz of money laundering and bribery in relation to a mining project in Guinea. This project, Simandou, is one of the largest untapped iron ore reserves globally and has been the subject of much contention over the years.

History of Legal Battles

Steinmetz's legal troubles are far from new. They can be traced back to his involvement in the Simandou project, which has been plagued by allegations of corruption and unethical practices. In 2014, BSGR was accused of obtaining mining rights in Guinea through corrupt means. This led to Steinmetz's company losing its mining license and facing hefty fines. Subsequently, Steinmetz was embroiled in legal battles in various jurisdictions, including the United States and Switzerland, over these allegations.

Advertisment

(Read Also: Delivery Workers Attacked and Robbed, Police Investigate)

Canceled EAWs: A Twist in the Tale

The issuance of an EAW by Romanian authorities might have seemed like another legal setback for Steinmetz. However, the plot took an unexpected twist when it was revealed that this warrant had been canceled in several European countries, including Greece and Italy. This raises questions about the validity and consistency of the charges against Steinmetz and the international response to them.

Advertisment

Steinmetz's detention in Cyprus adds another layer to this convoluted legal saga. While the EAW was canceled in Greece and Italy, it appears that Cyprus chose to enforce it. The reasons behind this decision remain unclear, and it has left legal experts and observers puzzled.

Role of Interpol

Interpol, the international law enforcement agency, has also been involved in this case. Interpol issued a "Red Notice" for Steinmetz in 2018 at the request of the Guinean government, which accused him of corruption. While a Red Notice is not an arrest warrant, it serves as a global request to locate and provisionally arrest an individual. Steinmetz's detention in Cyprus could be linked to this Interpol Red Notice.

Advertisment

The international dimension of this case is undeniable. It highlights the challenges in coordinating legal actions across different jurisdictions, especially in cases involving high-profile individuals. The legal wrangling between countries regarding the validity of the EAW and the enforcement of Interpol Red Notices underscores the need for a more streamlined and transparent international legal process.

(Read Also: Fragile Economic Recovery in China Puts Pressure on Policymakers for Additional Stimulus)

Steinmetz's Defense

Steinmetz has consistently denied all allegations against him and maintains his innocence. His legal team argues that the allegations are politically motivated and that he is the victim of a smear campaign. They emphasize the fact that the EAW was canceled in multiple European countries, suggesting that the charges lack substantial merit.

At present, Beny Steinmetz remains detained in Cyprus as authorities consider whether to extradite him to Romania. The extradition process involves a series of legal steps, including hearings, during which both sides will present their arguments. The decision rests in the hands of the Cypriot judiciary, which will need to carefully evaluate the evidence and legal arguments presented before reaching a verdict.

Advertisment
Advertisment