PORTLAND, Ore. (KOIN) — A family-run business in Vancouver is being sued by an African nation for evidence in a large-scale fraud investigation.
The Republic of Malawi filed a federal lawsuit in April against Columbia Gem House, which it alleges had an exclusive partnership with an African mine. In May, a judge ordered the company to hand over 20 years of records to the country to assist with its investigation, but on Monday that decision was set aside.
“Columbia Gem House has been a pioneer of ethical gemstone sourcing for over 50 years, and Malawi’s false accusations were antithetical to its core beliefs,” said Eric Braunwart, who owns the business.
Malawi’s attorneys argued the mine produced sapphires and rubies not found anywhere else, and that the business running it had underreported the value of the exports and earnings for years.
They alleged that while Columbia Gem House is not the subject of a criminal investigation, their actions could have “defrauded Malawi out of billions of dollars in royalties and taxes,” according to court documents obtained by KOIN 6 News.
Columbia Gem House is a family business with 15 employees and an annual revenue of $2 million. It has been a pioneer in ethical and transparent jewelry and gemstone manufacturing, and regularly gets involved in efforts to improve the communities it does business in, according to a declaration filed by Braunwart.
In the early 2000s, it was invited by the company Mineral Exploration to be its wholesaler to cut, polish and sell rubies and sapphires from the mine in Malawi. Its predecessor, a company called Nyala Mines, later extended a similar offer. But Columbia Gem didn’t own a stake in either, and said that business from the mine was “slow to nonexistent.”
In court filings, Braunwart said his business was previously misidentified as the owner of Nyala Mines. He said he became increasingly concerned that the government of Malawi would bring false criminal and civil charges against him, or attempt to extract payment from his business.
Then, in 2022, Malawi Attorney General Thabo Chakaka-Nyirenda posted on an election account that it was demanding $309.6 billion from Columbia Gem House. He repeated the allegations to the BBC in December 2024.
Braunwart said the lawsuit against his company and the discovery process were expected to cost his business thousands of dollars, and that he was concerned any documents it produced would be used against him in court in Mawali.
On Oct. 20, a judge granted a motion to vacate the discovery process, agreeing that the public threats show a clear intent to sue.
“The court’s ruling fully vindicates us, and we appreciate the court’s thoughtful consideration of the issues,” Braunwart told KOIN 6 News. “With this ruling and the recent change of leadership in Malawi, we look forward to moving on from this unfounded accusation.”
Amanda Rhoades
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