Namibian police have released on bail an Israeli man whom they suspect is connected to a $2.6 million diamond heist, news agencies reported.

Reports said that both rough and polished diamonds were stolen last week from a safe at the diamond company NamGem's Okahandja office. NamGem is a subsidiary of Namdeb, which is co-owned by Namibia's government and De Beers.

The suspect, Erez Ben Shushan, was known to have held at least two positions in the diamond industry: he was a production manager at NamGem, and also represented Lazare Kaplan International, a US-based manufacturer and distributor of diamonds.

A police official said that Ben Shushan had appeared before the Okahandja Magistrate's Court and was freed on $14,000 bail, on the condition that he report to the police station three times a week. His passport has also been confiscated.