Saudi man on money list linked to San Diego diamond firm
and listed as board member of Kazakhstan's bank

By Seth HETTENA, Associated Press Writer

SAN DIEGO (AP) - A Saudi businessman whose U.S. assets were ordered frozen because of suspected terrorist links serves on the board of a small California-based diamond exploration firm.

Yasin Al-Qadi was one of 39 people identified last week by the U.S. Treasury Department in its ongoing effort to choke off terrorist funding.

Al-Qadi is a director of Global Diamond Resources Inc., which has headquarters in the La Jolla section of San Diego.

"He really would be the last guy that I would suspect," said Johann de Villiers, chairman, chief executive officer and founder of Global Diamond. "He's been a most charming guy. ... He's dealt very honorably with us."

In issuing its order Friday, the Treasury Department said al-Qadi heads the Saudi-based Muwafaq ("Blessed Relief") Foundation, which federal officials say is a front for al-Qaida, the global terrorist network headed by Osama bin Laden.

Peter Carter-Ruck, Al-Qadi's London-based lawyer, said in a letter faxed Monday to The Associated Press that the Saudi businessman was "horrified and shocked" that his name has been linked to bin Laden.

Al-Qadi "has never been involved with, supported or provided funds for any terrorist or extremist activities," Carter-Ruck said.

Al-Qadi owns more than 9 million shares in Global Diamond through New Diamond Corp. Limited, an offshore investment company he controls, according to U.S. Securities and Exchange Commission documents.

New Diamond is registered in the British Virgin Islands and has a business address in Abu Dhabi, United Arab Emirates, according to SEC documents.

Founded in 1987, Global Diamond owns several South African diamond mines through a subsidiary in that country. The financially troubled firm reported a loss of more than dlrs 2.5 million last year and is fighting a court order liquidating its South African subsidiary. Its stock trades for less than a dollar.

Al-Qadi acquired the stake in Global Diamond after meeting with company officials in London in 1998, de Villiers said.

The meeting was arranged by a member of the Bin Laden Group, a wealthy and powerful Saudi conglomerate run by relatives of Osama bin Laden, the prime suspect in the Sept. 11 terror attacks in the United States. The family has repeatedly disavowed Osama bin Laden.

The Bin Laden Group acquired a stake in Global Diamond in 1997 and owns nearly 10 million shares in the company through an offshore company, according to SEC documents.

Two members of the Bin Laden Group, Said H. Ghachem and Gasem S. Al-Shaikh, serve on the Global Diamond board, de Villiers said.

Abu-Bakr Mood, a former Global Diamond director and Bin Laden Group executive, introduced de Villiers to Al-Qadi, according to court documents. Mood was managing director of the Bin Laden Group Petroleum, Chemical and Mining Division, court documents say.

He resigned from the Bin Laden Group in 1999 and has sued Global Diamond, claiming he was fraudulently deprived of a finder's fee.

In Global Diamond records, Al-Qadi is described as chairman of the Saudi National Consulting Center and Qordoba Real Estate Co. based in Saudi Arabia. He also is listed as chairman of the Caravan Co., based in Turkey and a board member of both Pakistan-based Himont Chemical and Kazakhstan's Cariba Bank.

De Villiers said Al-Qadi told him he had significant investments in Malaysia and U.S. markets.