Search Colored-Stone.com:

This month's issue

Subscribe to Colored Stone!
Contact Customer Service

Sign up for the Free Colored Stone Gem Mail Newsletter!

Colored Stone Back Issues

Couple Involved in Sapphire Mine Released from Lao Jail

By Mick Elmore, Bangkok Correspondent

VIENTIANE, LAOS - Kerry and Kay Danes flew out of the Lao capital Vientiane on November 7 ending their 10-month ordeal that started with a gem mine.

The Danes were arrested December 23, 2000, after the Lao government found sapphires had disappeared from the country’s largest gem mine. The government claimed 130 kilograms of sapphires with a total value over $US6 million were missing from Gem Mining Lao PDR Co. Ltd.

The founder of the mine, Bernie Jeppesen, and his wife Julie Bruns, fled Laos in May 2000, after the government seized the mine. After that suspicion fell on Kerry Danes who was in charge of security at the mine, and he was arrested December 23. Kay Danes was arrested later in the day when she was attempting to leave the country and go to Thailand. She was carrying about $26,000 when she tried to leave. The Australia couple was found guilty last June of embezzlement, tax evasion, and destruction of evidence at Lao’s biggest sapphire mine. They were sentenced to seven years for their crime. The three-judge court also fined the Danes $US65,000 and ordered to pay the government compensation totaling $US500,000.

The couple spent six months in jail waiting trial, then served three months of a seven-year sentence for embezzlement. The Danes were released from jail on October 8 and spent one month with Australian Ambassador to Laos Jonathan Thwaites until they were granted a presidential pardon on November 7. With the pardon, they were ordered to leave the small landlocked country. They flew first to Ho Chi Minh City, Vietnam, then on to Hong Kong were they claimed they did nothing wrong. “We haven’t done anything wrong. I’ve got nothing to be ashamed of. My name is clear, my conscience is clear,” the Sydney Morning Herald quoted Kay Danes saying.

Although there has been no statement issued explaining why the couple was released, it is generally understood the Laos government let them go due to pressure from Australia and to improve relations. Australia is one of the biggest donors to impoverished Laos.

For the complete story, see the original article Laos Seizes Sapphire Mine from the March/April 2001 issue and the first update Couple Involved in Laos Mine Remain Imprisoned.