Former TSL Procurer Accused of Stealing Diamonds from Suppliers

A former procurement manager at Hong Kong jeweler Tse Sui Luen (TSL) has pleaded guilty to stealing diamonds obtained from suppliers for his own personal gain.

The employee, who joined TSL in 1988, stole and resold diamonds he told suppliers he was procuring for the jeweler between 2017 and 2023, the company said Friday. The retailer has an internal control policy that requires each supplier to enter the details of the diamonds into the group’s vendor management system prior to delivery and obtain receipt confirmation from TSL. However, in the cases of the diamonds involved, the suppliers did not strictly follow the procedures, as the procurement manager had established trust with them.

“Leveraging his familiarity with these suppliers, the former procurement manager obtained diamonds under the false pretense of ordering them on behalf of the group,” TSL explained. “Following [his] voluntary confession, the group reported the matter to the police in March 2024.”

TSL stated that it had fully cooperated with the authorities throughout the investigation and legal proceedings. In addition, TSL has agreed to compensate a portion of the suppliers’ losses. After taking into account money insurance paid out to suppliers, TSL will cover approximately HKD 3 million ($382,302).

Immediately following the event, TSL conducted an internal control review to prevent a recurrence and believes the system it had in place was appropriate, it said. However, it has formally reminded all its suppliers that they must fully comply with the procedures and immediately report any delivery discrepancy found in the company’s vendor management system.

“The group will only accept delivery of and/or assume responsibility for the diamonds delivered by suppliers who have fully complied with and completed relevant internal control procedures,” TSL added. “At least two personnel of the group are required to confirm delivery from its suppliers, without which the group reserves the right to deny the acceptance and responsibilities involved.”

Image: TSL store in Penang, Malaysia. (Shutterstock)