THE PLUNDER ROUTE TO PANAMA
1 INTRODUCTION
The Panama Papers project last year revealed that there are quite a few
When Canadian mining company First Quantum
is earmarked or certain companies, creating shortag-
African politicians, their relatives and friends among those who have
wanted to pay due tax o sixty million dollars on its
es and damaging the economy. Botswana ‘s president
copper mining operation in the DRC in 2009, it was
helps take tourism profits to off-shore tax havens. The
told to pay the tax director our million, pass six million to the government and keep the rest. “Because no one here pays tax.” Afer the company had reused
looting by South Arican President Zuma has seen losses o up to, and presumably over, US$ seven billion in taxpayers’ money transerred to private bank
to conduct business that way it saw itsel accused o
accounts in Dubai. Recent investigative projects by
‘misconduct.’ The mine was seized and sold on to
the Premium Times in Nigeria, Makaangola in Angola,
Israeli mining tycoon Dan Gertler, a good riend o the DRC’s ruling elite and nicknamed ‘Mr Grab.’ Last year,
and Global Witness in the DRC and Zimbabwe have unearthed similar looting-by-political-elite in these
Gertler’s name was ound more than two hundred
countries.
stored hidden wealth in off-shore bank accounts. But how did the money get there? An investigation by the African Investigative Investigative Publishing Collective in partnership with Africa Uncensored and ZAM.
times in connection with off-shore bank accounts in tax havens in the groundbreaking ‘Panama Papers’ project. So was the name
TABLE OF CONTENTS
1
2
3
INTRODUCTION
TOGO | THE PRESIDENTS’ FRIENDS HANDLE THE PHOSPHATES
MOZAMBIQUE | THE MINING LICENSES ARE FOR THE GENERALS
3
8
3
4
5
6
DRC | THE ANTICORRUPTION ADVISOR DOESN’T PAY TAX
RWANDA | ALL THE RULING PARTY’S SKYSCRAPERS
BURUNDI | THE MILITIA GIVES OUT PROTECTION RECEIPTS
14
18
22
7
8
9
SOUTH AFRICA | AFRICA | THE ZUPTA EMPIRE BANKS IN DUBAI
BOTSWANA | THE PRESIDENT OWNS THE PARADISE
CONCLUSION
38 2
32
35
10 WHO WE ARE | THE AIPC, AU, ZAM AND THE TEAM 36
o Jaynet Kabila, the twin sister o DRC president Joseph Kabila.
“They own these houses but they don’t live here”
It was because o stories like the one about First Quantum, and because o the Panama Papers, that we decided to take a closer look
The question why Arican oligarchs behave this way
at Arican political leaders’ behaviour with regard to their own countries’ resources. International reports
whilst their people in some cases are literally starving, is perhaps best lef to Arican authors and
and activist groups had ofen ocused on multina-
philosophers. One can speculate that maybe, in the
tionals which were shipping resources out o Arica,
race to power afer the devastation o colonialism,
but was that ocus complete? Were our leaders simply
the ones with the sharpest elbows won. Or maybe the
weak and bribe-able, or more complicit than that?
lack o checks and balances allows unethical leaders to exploit the situation together with criminals. But
We looked in seven countries at Arican leaders’ roles
what we unearthed indicates that these elites have, to
in sectors o the economy and the state where they,
some extent, morphed into the very colonialist plun-
and not the private se ctor, were in control. Togo’s na-
der structures that they replaced. One o us, noting
tionalised phosphate resources, or example, should
giant potholes in Kinshasa’s richest suburb, asked
have ‘economically liberated’ its people. But we ound that Togo’s president sells the resource under the
why the rich didn’t even seem to care about their own streets. “They own these houses but they don’t live
market price to shady shippers. In Mozambique, vil-
here,” the local team member responded. “They live
lagers are violently removed rom ruby fields licensed
in France.”
to generals and ministers. State budgets are used to build skyscrapers or the ruling party whilst people go hungry in Rwanda. Foreign currency controlled by the Burundi presidency
2 TOGO
THE PRESIDENTS’ FRIENDS HANDLE THE PHOSPHATES
“I don’t know why these people are here,” board
years afer independence by shooting his predeces-
Singapore, now under investigation by the Austra-
ers, including Getax, got the phosphates still more
chairman Ignace Klomégah o the Société Nouvelle
sor in 1967, now by fils by fils Faure Faure Gnassingbé. Phosphate
lian Federal Police (3) or bribing o politicians in
cheaply. According According to UN international trade statistics
des Phosphates du Togo (SNPT), Togo (SNPT), says nervously when
manager Raphael Edery controls the resource rom
exchange or the phosphate resources o the Pacific
(5) they bought the resource rom Togo at a bargain
caught in the corridors o Lomé’s Ecobank. “They were here when I started. The president put them there.” Reusing to answer any more questions, he
the president’s office, son Liron Edery helps rom the office o the SNPT in Paris. (Nobody knows why the SNPT has an office in Paris since a ccording to export
Island nation Nauru. (According to Australian news reports (4) they obtained these or less than the market price, US$ 43 per tonne at a time when the world
price o US$ 100 per tonne in the same year. In comparison, Australian buyers o Moroccan phosphates paid US$ 166 per tonne.
disappears in one o the passages o the bank.
data, Togo doesn’t sell phosphates to that country.
market price was US$ 400.)
“But every ormer French colony’s state enterprise
Sadly or Ashok Gupta, his bid -through Getax, to-
“They” are the Moroccan-Israeli ather-and-soncouple o Raphael and Liron Edery, who administer
has an offi ce in Paris, in the Marais,” says a South Arican anti-corruption expert whose work has taken
When we tried to contact Getax or comment, we ound its website offline. We then phoned Kalyan’s
gether with Getax partner and Indian client Coromandel- last year to exploit the vast phosphates resources
Togo’s main mineral resource, phosphate, rom the
him to many places in the West where Arican elites
Dubai headquarters to ask or an email address where
not yet mined by the SNPT ailed (more about who
offices o President Faure Gnassingbé. From there,
like to hang out.)
we could send questions, but three persons we spoke
did get the contract below.) But the Ashok Gupta
the president and his riends sell the
to (and who seemed puzzled at being asked such a
amily did get a consolation price. A new hotel, the 2
countries phosphates to “whomever they
question) said they would “have to look or one’ and
Février Radisson Blu, rising mightily over the capi-
that they would get back to us.
want and at which price they want,” say sources within the company. But even our contacts say they don’t know how
The shippers don’t have an email address
Bargains
tal Lomé, has been unded with in majority a West Arican Development Bank loan and Togo state unds. Ashok Gupta’s amily now runs the hotel o choice or
much phosphate the country actually
Kalyan buys Togo’s phosphates at higher prices than
West Arica’s multimillion dollar traders, dealers and
produces annually. “Only the SNPT has
Ashok Gupta’s other company, Getax, did in Nauru.
politicians, where room rates per night start at around
access to the countries’ phosphate production fig-
It is known, however, who t he main buyers o Togo’s
According to the SNPT sales sheets we obtained, Kaly-
US$ 200 -two months’ salary or most Togolese- up to
ures,” says a report rom Extractive Industries Transparency Initiative, EITI (1).
phosphates are: a amily o Indian shippers called Gupta and their company Kalyan. According to com-
an paid Togo’s state company an average o US$ 107 per tonne in 2015. This is however still below market
US$ 1800 or the more upmarket suites. The 2 Février is also the president’s newest prestige venue: he addresses conerences and international partners here.
pany sales sheets over 2016 and 2017 the ather-and-
price, which in that year varied between US$ 115 and
All that the citizens o Togo know is that the phos-
son venture o Ashok and son Amit Gupta buys close
US$ 120 per tonne. Remarkably, Australian Australian import-
phate, nationalised in 1974 as a grand gesture o ‘eco-
to ninety percent o Togo’s phosphates. The company
nomic liberation’ by President Gnassingbé (senior, the ather o the current president) at the time, has been
web entry by the Société Nouvelle des Phosphates du Togo calls them their “privileged clients (2).”
managed not by ‘the people,’ but by the Gnassingbés:
Ashok Gupta also used to be the director o Getax,
first by papa by papa,, who took the reins o the country seven
an Australian enterprise incorporated in tax-riendly
Kalyan does almost all the shipping o phosphates rom rom Togo
The breakdown o investment inputs in West Arican rancs or the hotel is US$ 18 million (West Arican Development Bank, interest rate unknown) unknown) the state o Togo Togo (US 33 million) and the Gupta amily amily US$ 29 million (under ‘equity.’) ‘equity.’) (Source: West Arican Development Bank)
Elenilto is not known or good resource governance. In a previous deal with Liberia it reneged on its promises to the country, was inactive or years and then sold its mining license to another company or an over US$ 120 million profit without ever having paid Liberia the agreed ee or taxes (7). Its owner, billionaire Jacob Engel, was mentioned in the Panama Papers as a holder o off-shore bank accounts (8) Ties between Israel and Togo have become tighter in
The protesters wonder if they are the “terrorists” recent years. They were about to culminate in an AriThe 2 Février Radisson Blu hotel in Lomé
ca-Israel summit (9) in October this year, but the sum-
Togo protests, August 2017
mit was delayed indefinitely in September 2017, at the time o protests by thousands o people in the streets
The Société Nouvelle des Phosphates du Togo did not
One would think that Togo’s president, i he was serious about the country’s minerals ‘economically
expats and company president Michel Kézie who have the benefit o chauffeur-driven luxury cars, houses in
o Togo demanding the demise o the autocratic Gnassingbé dynasty. “A good thing too,” commented
reply to a request or comment. The presidency o Togo could not be contacted. Kalyan in Dubai did not
liberating’ his people, would want to sell its resources
the best suburbs o Lomé, and all-expenses paid trips.
one protestor. “The summit was to discuss terrorism
come back to us.
Sudden deaths
at a better price, i only to create better conditions
and security. We were worried that Israel might equip
or the workers in the phosphate mines. According
Security from Israel
the regime with more means to oppress us, since they
to complaints that have led to recent strikes, these workers have not had access to medical check-ups in
The reason why ather and son Edery and their top layer o Israeli managers run Togo’s state phosphate
probably see us as terrorists.”
three years. “We have had ‘sudden death’ cases where
company in the first place, may lie in their connec-
workers die afer only five hours in hospital. Such
tions with the Israeli phosphates and ertiliser sector.
deaths could have been avoided i we would have
With its ‘greening the desert’ expertise and ideology,
known our health status in time,” says one o the
Israel is one o the dominant orces in this sector
sources in the Kpémé mine located orty kilometers west o the capital. Phosphate mining is associated with increased risks
The family now runs the hotel
NOTES
(1)
EITI news report https://e https://eiti.org/news/behind iti.org/news/behind-scenes-o-togos-exp -scenes-o-togos-exports orts
o cancer due to inhalation o heavy met-
(2)
Winne company company website website http://www.wi http://www.winne.com/country/ssa/togo/2009/cr/cp nne.com/country/ssa/togo/2009/cr/cp/sntp/index.php /sntp/index.php
als present in mine dust.
(3)
The Australian Federal Federal Police confirmed confirmed that the investigation was still ongoing ongoing in September September 2017.
worldwide and thereore needs a lot o access to phos-
(4)
ABC Network Australia Australia (among others) http://www.abc.net.au/ /www.abc.net.au/7.30/content 7.30/content/2015/s425111 /2015/s4251115.htm
phates. Which it -in addition to the SNPT reservesgot, in September 2015, when Togo allocated the exploitation o the total phosphates resource -estimated worth over US$ 28 billion, way too much or SNPT to mine by itsel- to Israel’s Elenilto in partnership with China’s Wengu, reportedly at the behest o Raphael Edery (6).
(5)
The reason or the lack o medical care, as well as or the mineworkers starvation salaries, pegged at US$ 117 per month, has been given by the SNPT as ‘lack o resources.’ The lack o resources doesn’t, however, seem to affect the living conditions o top management, including the Edery’s, other (mainly Israeli)
The United Nations International International Trade Statistics Database Database https://unstats.un.org/unsd/tra https://unstats.un.org/unsd/tradekb/Knowledgeba dekb/Knowledgebase/50075/W se/50075/What-is-UN-C hat-is-UN-Comomtrade
(6)
According to AricaIntelligence https://www.aricainte https://www.aricaintelligence.com/AMA/ex lligence.com/AMA/exploration--producti ploration--production/2015/09/ on/2015/09/22/israel-s-raph 22/israel-s-raphy-edery-opens y-edery-opens-doors-or-compatriot-elenilto,108092559-ART
(7) (8) (9)
http://allarica.com/stories/201509090827.html http://www.rontpagearicaonl .rontpagearicaonline.com/index.php ine.com/index.php/politics/4 /politics/408-panama 08-panama-papers-hook -papers-hook-shady-us-shady-us-1b-elenilto-liberia-deal 1b-elenilto-liberia-deal https://www.aricaisraelsummit.org/
3 MOZAMBIQUE
THE MINING LICENSES ARE FOR THE GENERALS
The mining concession map o Montepuez, drawn up
lian gemstone multinational, a list o well-networked,
Pachinuapa also holds a quarter each o Gemfields’
by Mozambique’s mining and energy department in
ruling party-connected generals, security supremos,
other concessions, Megaruma and Eastern Ruby, as
compliance with the international Extractive Indus-
the mayor o Maputo, politicians, ormer and pres-
well as twenty other licenses o his own or ruby min-
tries Transparency Initiative (EITI) requirements, is so completely covered in squares, rectangles and other angularly shaped blocks (see map) that it begs the
ent high ranking ruling party members. The biggest concession, o Montepuez Ruby Mining aka MRM Gemfields, -the only one that has already been legally
ing in Montepuez. His son Raime is MRM’s manager or corporate affairs.
question where the people the people are are going to
We try to talk with the General, but he doesn’t answer
live. The entire region seems to have been
to several requests or interviews, comments and re-
allocated to mining, with only space on the side or a nature reserve. Even zooming in to the maximum does not reveal
The general is very generous to his friends
any space or villages.
sponses to questions. The closest we ever come to him is in a bar in Pemba, on an afernoon in 2016, when a lawyer known as ‘well-connected’, suddenly sits next
Artisanal miners in Montepuez, Mozambique Mozambique (photo
to our team member and tells him how ‘generous’ the
Estacio Valoi)
general is known to be to his ‘riends.’ Taken together with the statement by British miner-
owning, producing and exporting rubies rom
als banker Martin Potts, that “the biggest problem is keeping the locals out o it (1),” it becomes clear why Mozambique’s security orces have been out in ull
Mozambique or the past five years-, is partly owned by Mozambican General Raimundo Domingos Pachinuapa, a powerul member o Mozambique’s ruling
These ‘riends’ are most likely not the common inhabitants o Montepuez, since no one seems to have been particularly generous to them since mining started.
income experienced by fifeen hundred artisanal mining amilies in the region. In the early days -beore the partnership was ormed between Mwiriti and Gemfields to create MRM- these artisanal miners had been
orce to do precisely that, through orced removals,
party, ormer liberation movement Frelimo (according
The damage to, in some cases destruction o, villages
selling rubies to the Mwiriti operation. But, according
beatings, killings and general terror, since ormal
to Arica Confidential, his wie Maria is a member o
and arms, has not been compensated by an increase
to locals, it had been no more than “two weeks afer
mining started in the area in 2012 (2).
Frelimo’s Central Committee.) General Pachinuapa’s
in services to the population -electricity, water,
the arrival o Gemfields” that the artisanal mining as-
Company papers related to the ruby concessions in
company Mwiriti holds twenty-five percent o MRM, o which the other seventy-five percent is owned by UK
schools, shops-, as promised by the company and its governing elite partners at the time, in 2014. Mining
sociations had been destroyed and the first accounts o violence against artisanal miners by nacatanas nacatanas,,
the area, show, amid two UK-based and one Austra-
multinational Gemfields.
jobs at MRM -eleven hundred, says MRM; much less,
militias working or the company (3), was recorded.
say locals- have also not compensated or the loss in Map o Montepuez mining mining concessions with MRM Gemfields (in orange) in the middle (print screen: Mozambique Mining Cadastre, 17 September 2017)
Shops closed afer orced removals in Nanhupo, Montepuez (photo Estacio Valoi)
reaching the villagers, or the Mozambican state, is di-
export or sell them.” In the case o Mustang, howev-
ficult to answer. Gemfields’ operational partners a re
er, producing and prospecting seem to have started
the Mozambican state, afer all. General Pachinuapa,
even without such a production license, called DUAT.
his son Raime, and board member Samora Machel (son o ormer President Samora Machel) and others are influential precisely because o their political
According to an article in Mining Weekly (5) “Mustang Resources announced in late January that it had dispatched its first commercial parcel o the precious
connections.
stones rom its project in (Mozambique) to the US,” the article said, adding that “the parcel contained 6
The angular blocks covering the Montepuez district indicate as many licenses, all grabbed up, by such
221 carat o rubies, o which 75 carat was accounted or by five “special stones” (in the company’s words),
well-connected individuals. Among them are or-
including two rare 24 carat rubies, “none o which
mer Public Works Minister Felicio Zacarias, ormer
require treatment”.
deence minister, General Joaquim Alberto Chipande, Mayor o Maputo David Simango, Agriculture Minister
A good ruby can be sold or up to US$ 100 000 per
José Pacheco, Frelimo-connected lawyer Lukman Assada Amane and the head o Mozambique’s security service, general Lagos Lidimo.
carat. Inormed about this, mining director Nguiraz says he has “dispatched an inspection team” to the Mustang concession in Montepuez. “We think there
Renovations at the Polana Polana Hotel in Maputo, meeting place o the Mozambican elite and international visitors (photo Estacio Valoi)
are a ew things they did against the law.” But only some have ound international partners with
The tax money disappeared
substantial mining capacity. Felicio Zacarias’ compa-
Mustang managing director Christiaan Jordaan is ada-
ny Regius eatures as a partner and board member in UK Redstone mining, which on its website claims that
mant that the company’s exploration and prospecting license allows the right to export and sell rubies ‘to
‘Formal’ mining is still officially supposed to benefit
with the finance department,” says Djange, when we
it now operates Regius concession number 3868L in
finance urther exploration.’ He adds that “all Mus-
the Montepuez region. According to provincial finan-
ask him about it. “It is definitely there.” But neither
Montepuez.
tang’s exports have been approved by the Department
cial department administrator Fernando Djange MRM
he nor the finance department come back to us. When
Gemfields has an agreement with the Mozambican state to pay it ten percent o the sales value o each
we ask Montepuez district administrator Etelvina Fe vereiro (4) i her department ever received the money, money,
ruby auction in royalties. 2,75 Percent Percent o this is “paid
she tells us that “we only get it two years afer the
to the Montepuez district in royalties at the end o
auction. So the money rom the auction in 2017, we’ll
every budget year,” Djange says. Over nine auctions
get it in 2019.” But two auctions were held in 2014,
to date, with according to Gemfields a total revenue
totaling over US$ 76 million in revenue. 2,75 Percent
o US$ 288 million, with corporate tax paid as well as US$ 29 million in royalties, that 2,75 % would amount
o this would amount to close to US$ two million, twenty times the amount actually paid in 2016. But
At the same time, Zacarias is also an associate in
Nguiraz, when asked to comment, however, stands his ground. He agrees that rubies can be exported
to over US$ seven million. Seven million American
Fevereiro says she doesn’t know about that and tells
Australian Mustang resources, which has announced
or analysis on the basis o a prospecting license, but
dollars could do a lot o good in the sparsely populat-
us to check with the Cabo Delgado provincial finan-
a similar operation nearby. Lukman Assade Amane’s
repeats that the license currently held by Mustang
ed but very poor district.
cial administration.
SLR is also a Mustang partner. The Mustang and Red-
does not allow or any ruby sales. Christiaan Jordaan
stone licenses still belong to their ruling party-elite
does not respond to an email in which we ask him to
partners, though: according to its website, Redstone operates the Regius license, and Mustang’s license is still listed as SLR’s.
provide the text o the license.
Only it never came. Perusing the budget records at the Cabo Delgado provincial administration, under which Montepuez alls, we only see one input rom MRM Gemfields o six million Meticais (US$ 100 000) in 2016. Over the other years we can find no such input. “We’ll check
Gemfields maintains in an email that all royalties have been paid and notes that ‘allocation and distribution’ is the responsibility o the Mozambican government. Whether Gemfields is responsible or the act that millions o dollars in benefits rom its mining are not
o Minerals and the Department o Customs” and that
“We think there are a few things they did against the law.”
“But they are prospecting licenses only,” emphasises provincial mining director Ramiro Nguiraz. “They are not allowed to start producing rubies, much less
“regarding the export o rubies rom Mozambique, including the parcel mentioned by you that was exported at the start o this year, (…) we have gone through all the official channels with the Mining Department to secure the necessary export permits and we paid the royalties as calculated by the department.”
We have encountered more such gaps between civil servants trying to do their job and those involved in the mining. Last year, then district administrator Ar-
Gemfields, recently taken over by Pallinghurst (7), has consistently denied any involvement in violence a nd has threatened to sue Valoi and other journalists who
canjo Cassia complained that he did not know where
have pointed at complicity. But there is one question
to turn to demand delivery on the promised Corporate
that Gemfields has consistently not answered. It is
Social Responsibility Projects (schools, employment projects, water wells among others.) In another case,
the question why it is not using its partnership with the Pachinuapas to pressurise or better governance
provincial Attorney General Pompilio Uazanguia was
instead o worse, or to insist on partnerships with
demoted rom his position by Mozambican Attorney
real business people and dedicated administrators,
General Beatriz Uchili (6) afer he -Uazanguia- had
instead o with influential political generals.
attempted to prosecute militia killers o artisanal miners. This happened amid unsubstantiated rumours that Uazanguia was involved in timber smuggling. These rumours were then echoed as act, but
Nor General Pachinuapa, nor ruling party FRELIMO, nor the interior and police ministry, nor the mining and energies ministry, nor the ministry or the
also without the provision o any evidence, in a letter
environment in Mozambique replied to requests or
sent by Gemfields to a publication that had quoted
comment.
Uazanguia.
NOTES
(1)
https://www.businesslive.co.za .businesslive.co.za/companies/minin /companies/mining/2017-04 g/2017-04-19-wsj--19-wsj--please-addplease-add-wsj-paraphernalia wsj-paraphernaliasitting-on-a-trov sitting-on-a-trove-o-rubies-gem e-o-rubies-gemfieldsfieldslooks-to-create-resh-demand/
(2)
https://www.zammagazine.c .zammagazine.com/chronicle/chronicleom/chronicle/chronicle-22/31822/318-the-ruby-pl the-ruby-plunder-wars-o under-wars-o-montepuez -montepuez
(3)
Recently ormalised into MRM’s MRM’s own security company company KIWIRK
(4)
Listen to the interview with Montepuez Montepuez administrator Etelvina Etelvina Fevereiro Fevereiro here (in Portuguese): https://soundcloud.com/zam/soundcloud.com/zam-magazine/inmagazine/interview-with-etelvina-ev th-etelvina-evereiro-montepuezereiro-montepuez-administrator administrator
(5) (6)
http://www.miningweekly.com/article/mustang-ships-first-rubies-rom-mozambique-2017-01-20 Uchili has promised to ollow up on one specific killing by a militia militia man o a villager, a case Uazanguia Uazanguia had attempted attempted to prosecute but which was mysteriously thwarted thwarted in the judicial process. In the past two years Uchili has given no sign o doing so.
(7) https://www.f.com/content/d554e077-4a0b-31b9-90c-7b9a739be0e6
Presidential office used by Isaura Nyusi, wie o Mozambican President Filipe Nyusi, Maputo Maputo (photo Estacio Valoi)
4 DRC
THE ANTI-CORRUPTION ADVISOR DOESN’T PAY TAX
There is a actory on Usoko Avenue in Lubumbashi,
proceeds to the amily’s associates. The passport cost
DRC, lef over afer all the wealth has been dispatched
Katanga, where the proceeds o aluminum ‘doors and
o US$ 185 (a years’ salary or the majority o Congo-
elsewhere, is around US$ 5 billion per year. Minister
window rames’ sales are, according to two engineers
lese citizens) is or a large part paid outside the DRC,
afer minister, asked about hospitals, schools, roads,
who work there, delivered in cash to “an envoy o Jaynet Kabila,” the twin sister o the DRC’s President Joseph Kabila. The company, Icokat, is registered in
to a bank account held in Belgium by a company that in turn pays yet another company in the United Arab Emirates, believed to be owned by a close relative o
salaries o nurses and teachers, has claimed that ‘there is simply not enough’ or such things. One o these ministers, Adolphe Muzito, even stated that
business registries, however, as an ‘internet provider.’
the Kabilas. “O every passport we sell, we pay most
“the DRC has no budget” at all (6) Provincial min-
Which means that a check by any law enorcement
money into the Belgian bank account,” confirms a
ing minister Paulin Odiane, speaking at a Kinshasa
structure on Icokat or proceeds o aluminum sales is unlikely.
staff member at the Congolese embassy in Harare, Zimbabwe.
workshop also in 2015 was heard saying in the same year that this was probably related to the act that ‘a
Jaynet Kabila certainly makes a lot o money. Her
Those who heard Kabila’s special anti-corruption
himsel would certainly belong in that category. But
name eatures in the ‘Panama Papers’ ICIJ project as
advisor, the honourable ex-minister o Justice Luzolo
he did not comment when the AIPC asked him in an
the holder o an off-shore bank account (1). According
Bambi say, upon his appointment in 2015, that “that
email how he elt about his majority ownership o the
to a report by the Congo Research Group (2), Jaynet also holds more mining licenses than a DRC citizen is legally allowed to have.
the country loses US$ 15 billion dollars annually to illicit outflows (5),” were thus waiting with waited breath until Bambi would investigate the leading
country’s one national airline CAA and a number o state-built houses, during his tenure as prime minister between 2007 and 2012.
ew men are richer than the state itsel (7).” Muzito
political amily’s business dealings and off-shore
Jaynet Kabila had had her company Keratsu created created and registered off-shore
Gertler. Mbali, nodding: “Ah yes, off-shore is a problem. When you see those ships leaving our shores
And it’s not just mining and metals sales. A
wealth, compared to which ormer dictator M obu-
Observers have become a bit suspicious, now that a
with ten tonnes o our resources and they declare
Bloomberg investigation recently listed dozens o
tu’s entire Swiss stash o seven billion US$ might be
year afer the appointment o the special anti- cor-
our. But investigations will take time. You don’t want
interests held by companies in the ‘Kabila empire’, rom telecommunications to money exchange to
child’s play.
ruption adviser, still nothing has come rom the promises o ‘zero tolerance’ and ‘filling the jails with
to incriminate the innocent.” Not “incriminating the innocent” in the DRC mostly applies to anyone saying
hotels and rom airlines, reight transport and tele-
Simply not enough
economic criminals,’ with which Bambi
communications to computers (3.) An investigative
Most citizens o the DRC, a majority o whom eat less
had been installed in 2015, by none other
piece by Reuters showed in April 2017 (4), that even
than two meals per day, would love to get their hands
than president Joseph Kabila himsel.
the new ancy biometric Congolese passport delivers
on some o that money. The official state budget o the
But “there isn’t much I can do, you see,” says Proessor Saint Augustin Mwenda
A few men are richer than the state itself
Mbali, director general o the corruption Mining operation
observatory agency OSCEP (Observatoire (Observatoire de Surveil-
anything bad about anyone in the Kabila network.
lance de la Corruption et de l’Ethique Proessionnelle), Proessionnelle ),
Journalists have been warned to rerain rom writing
that interacts with Bambi’s office. « Because it is very
about Jaynet Kabila and Panama. ‘Deamation’ is a
difficult to get proo. I have been to Panama. I have seen the documents. But I haven’t seen those names
délit de presse, presse , punishable by jail.
(o Jaynet Kabila and two associates, mentioned in
Would Mbali then investigate the act that in 2015 US$
Panama Papers, ed ed.)” .)”
180 million was ound stashed away in accounts held by Congolese nationals in one Swiss bank alone (8)?
The name that is mentioned in the off-shore com-
“I don’t have that inormation. I you have the docu-
pany registry leaks is indeed not Jaynet Kabila. It is Keratsu; according to the Panama Papers, Jaynet Kabila hired Panama law firm Mossack Fonseca to create Keratsu. But we press on, asking why Mbali also seems to ignore that even UK MP Eric Joyce has reported on off-shore accounts on the British Virgin Islands held by President Kabila’s mining riend, Dan
ments, maybe I can ask or powers to investigate such transers.” When we press on he says that maybe we can also give him money, because “investigations are expensive.”
tors’ salaries, either simply to reward their loyalty or
corruption advisor) Luzolo Bambi himsel doesn’t pay
as a channel to their political parties.” Fwamba also questions whether even the other sixty percent in revenue ever reaches the state. “I hear o cases where
tax,” he says. “He has never submitted tax orms. He is just a regime puppet, like all the others.”
companies are simply extorted or money, which they pay. But they then book it off as ‘tax paid in advance.’ These companies will then not pay tax again.” In one case, in May this year, a member o the police judiciaire was investigated or ‘extorting’ such ‘tax payments’ rom mining companies active in Katanga. “But that is the tip o the iceberg,” says Fwamba.
Inographic rom Global Global Witness’ Regime Cash Machine Machine report (Credit: Global Global Witness)
An account by a ormer senior engineer o Canadian First Quantum mines illustrates how decent companies can be orced to abandon the DRC because o such practices: “In 2009, when we tried to pay the
In a last effort, we mention the case o the Fonds the Fonds
individuals’ desks and in storage rooms, never to be
Direction Generale des Impots (DGI) Impots (DGI) our due US$ sixty
pour la Promotion de l’Industrie l’Industrie (FPI), a state und
counter checked by anybody.
million in tax, one o the directors told us to pay him
that should support entrepreneurs, that had US$ 140 million stolen in 2014, and US$ 300 million in 2016. Evidence on the thef has been presented in the
Then, the mining authority and tax agencies just take. Global Witness’ recent ‘Regime Cash Machine’ report
our million, pay six million to the government and keep the rest, because ‘no one here pays tax.’ We reused.” Months later, First Quantum had its copper
National Assembly. With a glimmer o combativity
on the DRC (10) explains in detail how moneys that
mine seized and re-sold to President Kabila’s riend,
and pride, the anti-corruption man now announces
do enter the system -rom ormal mining revenue, tax
mining tycoon ‘Mr Grab’ Dan Gertler.
that he has ‘workshopped these people’ at the FPI. “I
payments on such sales and tax payments in general-,
have given them the moral pep talk to make sure that doesn’t happen again.”
are siphoned off by ragmented tax agencies and the principal mining company Gécamines.
Economist and ormer DRC Central Bank director Michel Somwe says in an interview that “when it is
CLEAN MINING NOT SO CLEAN According to the report “All the President’s Wealth” by the Congo Research Group (11), President Kabila’s amily’s mining operations benefit rom armed protection by the presidential guard. Besides the act that this would be unlawul use o state money, it also makes a mockery o international ‘clean minerals’ campaigns, intended to fight ‘conflict mining.’ I even the president o the country mines or himsel with armed men protecting him, why shouldn’t any local militia do do the same? Why should ‘official looting’ be protected? Recent research on ‘unintended consequences’ o the American Dodd-Frank law on clean certification o minerals showed that such ‘clean mining’ arrangements have harmed artisanal miners who don’t have ways to have their earnings certified. Analysis by the Center or Strategic and International Studies in the US has listed such unintended consequences as unemployment, poverty and a resurgence o
The ragmentation o and lack o connections be-
unclear what happens with tax moneys and the state
When saying goodbye, Mbali offers one last thought.
tween these structures is cited by Global Witness as
budget remains as small and ineffectual as it is, no
“We should have ‘a law that orces all public figures to
one o the reasons why an estimated orty percent o
one will want to pay tax.” A senior tax inspector at
declare their assets. But the National Assembly voted against such a law, because it would affect them, too
revenue rom mining and other tax payments, even when declared, does still not reach the state budget,
the Direction the Direction Générale des Recettes Administratives, Administratives, Judiciaires, Domaniales et de Participations Participations (DGRAD) (DGRAD)
Efforts to obtain comment rom the DRC presidency, Jaynet Kabila or anti-corruption advisor Luzolo Bambi
readily agrees. “Hahaha, even (senior presidential
were unsuccessul.
(9).” Considering that we have just held a ew inter-
but stays in opaque bank accounts to be accessed by
views with National Assembly members, in which all
the powerul. Though the DRC government justifies
without exception admitted that they were there “or
the withholding o moneys by these agencies as
the salary but also to network and make business
‘necessary or their unctioning,’ Global Witness has
NOTES
deals,” this seems a credible assumption.
pointed out that it is unclear what this ‘own unctioning’ actually is, since Gécamines has also been ound
(1)
Handwritten bookkeeping
not even to pay salaries to its own workers or months
(3)
But the statement goes to the crux o the matter,
on end.
(4) http://www.reuters.com/investigates/special-report/congo-passports/
which is regulation and systemic law enorcement,
(2)
banditry, among others (12).
http://www.news24.com/Arica/News .news24.com/Arica/News/drc-president /drc-presidents-sister-nameds-sister-named-in-panamain-panama-papers-20 papers-20160404 160404 http://congoresearchgroup.org/all-the-presidents-wealth/ https://www.bloomberg.com/news/ .bloomberg.com/news/eatures/2016eatures/2016-12-15/with-his-amily 12-15/with-his-amily-ortune-at-stak -ortune-at-stake-congo-president e-congo-president-kabila-digs -kabila-digs-in -in
(5)
http://www.reuters.com/article/us-con .reuters.com/article/us-congodemocratic-corrupti godemocratic-corruption/congo-loses-up-to-1 on/congo-loses-up-to-15-billion-per 5-billion-per-year-to-ra -year-to-raud-official-idUS ud-official-idUSKBN0TS1S6201 KBN0TS1S620151209 51209
with checks and balances between different institu-
Kinshasa-based mining sector consultant Franck
(6)
https://7sur7.cd/new https:// 7sur7.cd/new/2015/0 /2015/04/la-tribune-de-mu 4/la-tribune-de-muzito-la-rdc-un-et zito-la-rdc-un-etat-sans-bud at-sans-budget/ get/
tions o the state. This is largely absent in the DRC. Whilst cyber technology is embraced when it can make money or middlemen, like in the case o the new biometric passport, it is shunned in sectors where inormation checking is vital, such as in exports. Congolese customs officials still record exports in handwritten orms that stay in books and files on
Fwamba believes that the orty percent that Gécamines and the tax agencies withhold rom the state ‘goes into the pockets o individuals.’ individuals.’ A senior staff member o the DRC treasury structure, the Cour des Comptes, Comptes, confirms that he is aware o “many such cases where state enterprises and structures appoint politically connected individuals and pay them direc-
(7) (8) (9)
According to a source who attended the workshop http://www.swissleaksreviewed.org/ According to the Congo Congo Research Group report http://pulitzercenter.org/reporting/all-p http://pulitzercenter.org/reporting/all-presidents-we residents-wealth-kabila-am alth-kabila-amily-business, ily-business, the president and his ministers only disclose their assets to a closed committee in the National Assembly
(10)
https://www.globalwitness https:/ /www.globalwitness.org/en/campaigns/d .org/en/campaigns/democratic-republic emocratic-republic-congo/regime-cash-m -congo/regime-cash-machine/ achine/
(11)
http://pulitzercenter. http://p ulitzercenter.org/reporting/all-presidents-weal org/reporting/all-presidents-wealth-kabila-am th-kabila-amily-business ily-business
(12)
https://www.csis.org/analysis/d .csis.org/analysis/dodd-rankodd-rank-1502-and-congo-crisis 1502-and-congo-crisis
5 RWANDA
ALL THE RULING PARTY’S SKYSCRAPERS
It’s only when Nanne Schaap, cattle exporter in Frysia
buyers delegations’ plane leaving Rwanda’s Kigali a ir-
in the Netherlands, asks, with amazement in his
port at the last minute. Afer the business trip, when
voice: “But how do you think we could sell sick and
the cattle had been bought and arrived in Kigali, the
hal-dead cows to another country? There are way too many controls on that. How would we even get export permits?” that it starts to dawn on us that we have
agent o the RDB whose job it was to do so had -or so the Bank said- not been at the airport to receive the animals. In the cases o close to our hundred o the
been played. It is 2015 when we are trying to do this
cows, medical certificates -on board on the planes
story and we have really thought that Evil Western
with the animals- had gone missing.
Cattle Exporters have, in the previous year, delivered sick, sub-standard cows to Rwanda. That they have
In the end, some armers had received no cows;
victimised poor armers and harmed Rwanda’s Rwanda’s devel-
others had received sick ones; yet others were given
opmental ‘one cow per amily’ policy.
healthy cows that got sick soon afer delivery. “We knew these cows were not going to last on our simple
It turns out that armers have indeed been victimised:
arms,” said one. “This is why we wanted the other
seventy-two out o five hundred cows promised to help them become successul milk and meat producers in the still very poor country, have died. Others are
ones rom South Arica.” Some cows had been delivered to more established armers who had not been part o Rwanda’s cattle armer development Girinka
about the losses as well as about the accusation that
(reports on the affair vary on the date), allegedly
sickly and not delivering as much milk as was expect-
project. Very intriguing intriguing was the inclusion in the proj-
not all moneys had been paid to the Netherlands’
because he had reused to declare bankruptcy o the
ed. Seventy-six o the pregnant cows, or which good
ect o Rwanda’s president Paul Kagame, surely not a
exporter. “They keep saying they have urgent meet-
bank afer large amounts o money had been used
money was paid because o their status, have given
poor armer, as a beneficiary o cows to be sent to his
ings,” the AIPC’s reporter had said, exasperated, afer
to und loans to ruling party members. According
birth to dead calves. But a check on the Netherlands’ side shows, -contrary to what Rwanda’s government
Ntebe Farm.
many attempts to get responses.
to online postings by critics o the regime (2) , the ruling party had insisted that bankruptcy should be
mouth piece, the New Times, has alleged-, that the
Kagame was not to blame or the chaos around the
Asked or comment, a spokesperson or the Nether-
declared and the debts o the individual politico-busi-
Dutch are not to blame. Schaap is right: strict controls
cow deal, sources said. “He was upset about it as
lands embassy in Rwanda noted that though they had
nessmen canceled, but, still according to these
on the Dutch side simply don’t allow or export o
well, since it also affected him,” insisted one. But the
“discussed with several role players,” this had been a
reports, Turatsinze had not been amenable to this. He
unhealthy cows. “Actually,” says Schaap. “The Rwandans never paid the ull price or the cows afer they
question why the President was included in the Girinka project was never answered and neither were other
“private deal in which the embassy had not played a role.” The spokesperson urther com-
had moved to Mozambique in the same year and had
demanded an upgrade in the quality. We sent them
questions, such as why Dutch cows were bought,
mented that in the uture “it would be
the better ones, but we were only paid or the lesser
armers had been sidelined, and an ‘upgrade’ o the
available or advice and consultations.”
grade.”
cattle had been requested but but not paid.
A mess and a cover up
Urgent meetings
Subsequent research in Rwanda had shown both a
A subsequent report by a government committee (1)
armers ell quiet. Permanent secretary or agriculture Ernest Ruzindaza, who
mess and a cover up amid allegations that part o the
lef more questions than it answered. Though it did
had signed the loan contract with the
money, made available to armers through loans rom
blame ‘the delegation,’ or lapses in their oversight
Rwandan Development Bank, was fired, or rather,
been assassinated there in 2012, a ew days beore
the Rwandan Development Bank (RDB), had been
o the deal, it still pointed at the Netherlands as the
moved away rom his position without much o an
officials o the IMF and the World Bank were set to
pocketed by high level officials. Those allegations
place where ‘cows without medical certificates’ h ad
explanation. The signatory on the part o the Bank,
interview him about the affair (3).
could not be proven, but that there had been duplicity on the side o the Rwandan bosses o the project was clear. The armer’s association that had ormally ‘owned’ the project and had preerred to buy cows rom South Arica since these were better suited to Rwandan conditions, had been bypassed. An expert armer’s representative had been denied access to the
been loaded on the plane, which still implied that the Dutch exporter had delivered sick cattle. The committee did not mention the cost to the Rwandan state incurred by the loss o the dead cows, the cost o the now non-recoverable loans or loss incurred because o compensation that had to be paid to armers. Officials o the Rwandan Development Bank kept mum
CEO Jack Kayonga, had also been promoted sideways in the meantime, leaving the bank in May 2013.
Seventy-two cows and seventy-six calves di ed in Rwanda’s cow scandal
In the end, afer complaining or a while,
The Rwandan Development Bank had provided the bad loans
Replacing a murdered banker
Kayonga had been the managing director o the RDB since 2009. He had replaced Théogène Turatsinze, who had been orced to resign in either 2007 or 2008
The Rwandan government ormally condemned the murder. Turatsinze is one among several people who were assassinated afer they disobeyed orders rom Paul Kagame (4).
As new managing director o the Rwandan Develop-
and keep winning the government contracts at the
governments Airport Company, in partnership with
an economist who has travelled to Rwanda and who
ment Bank Jack Kayonga had cancelled the debts, declared the bankruptcy as desired by the ruling party government, and received much good press in
expense o the very embryonic private sector,” says development economist Nilgün Gökgür who worked in Rwanda as an advisor to the Ministry o Industry
Portuguese Mota-Engil, in the construction o a new world class airport in Bugesera.
preers to remain anonymous. “This is exactly the problem with the economy o Rwanda, only now it is worse because the money is not even in Rwanda
the country in the years aferwards as the ‘efficient
on a private sector development project unded by
The ocus on skyscraper-type development, combined
anymore.”
manager who turned the bank around.’ According to
the World Bank in 2011. The project was terminated
with relentless removal o all rubbish
our sources he had been the brains behind the RDB’s
afer Gökgür had produced a preliminary report that
(including hawkers, sex workers and
loan arrangements or the cow deal in 2012.
questioned the situation. She later wrote a discussion paper about her experiences in Rwanda as a ellow at Antwerp University (9).
beggars) off the streets o Kigali, and the person cultus around Kagame, remind more o Pyongyang than o Singapore
The party-statal monopoly
Now, in 2017, Jack Kayonga heads Crystal Ventures,
or any Arican countries. Unlike Kim
“We have nothing to eat but our leaders don’t want us to talk about this”
the ruling party’s business empire. Together with a
In his financial audits over 2015 and 2016 (10) Rwan-
Jong Un however, Rwandan ruling elite
ew other so-called ‘party-statals,’ connected to either the military or the ruling party, Crystal Ventures
da’s own auditor general has pointed at mismanaged and wasted state money, to the extent o over US$
members have access to off-shore bank accounts. The Panama Papers’ highlighting o Crystal
The Government o Rwanda has denied that it has
dominates the Rwandan economy. It holds interests in
100 million, poured into empty office buildings and
Ventures-connected Debden Investments, registered
anything to do with the jets, saying that the company
construction, real estate development, telecommuni-
other abandoned or badly executed construction
on the Bahama’s, has led to angry denials by Rwanda
is owned by “private persons (12).” It has also denied
cations, agriculture, aviation, security services, print-
projects. Asked whether party-linked enterprises were
that this would have anything to do with unneling
allegations by a Rwandan opposition blog and the
ing and publishing, urniture trading, manua cturing,
to blame or any o these ‘wasteul, mismanaged and
wealth off-shore. Debden simply provided ‘strategic
ormal FDU opposition party that Emmanuel Ndahi-
property management and engineering. It uses state money to propel development, much like the cow deal was supposed to do, and also aims to make a
raudulent’ contracts, the auditor general’s office did not respond. Its 2015 audit had however criticized as ‘wasteul’ the office building projects at Nyanza
transport services,’ the government said. However, it was later revealed that these ‘strategic transport services’ consisted o two Bombardier Jets, owned
ro’s company called Colina Enterprises, which owns the London building where the Rwandan embassy is located is a ront or President Kagame (13 and 14).
profit, thereby growing the economy, also much like
and Rwamagana Plaza in Kigali, built by ruling party
by a South Arican based company that belonged
the cow deal was supposed to do.
enterprises.
to other RPF businessmen: ormer Crystal Ventures
Crystal Ventures’ executive chairman Jack Kayonga
Board chairman Paul Manasseh Nshuti, and Crystal
did not reply to questions emailed to him.
This ‘party-statal’ system o political economic monopoly power, steered by a well-connected ew at the top o the ruling party, has been lauded as ‘de velopmental patrimonialism (5)’ and a
Ventures board member Hatari Sekoko (11).
Over US$ 100 million in state contracts was wasted
Private persons
“So you have Kagame’s government paying Kagame’s riends’ company or travels by Kagame,” summarises
recipe or development similar to what happened in South Korea or Singapore. Supporters
Famine around the airport
NOTES
o President Kagame deend it, because “Rwanda
Visiting the districts Kayonza and Kirehe in eastern
(1)
had been shattered by genocide. Nobody would have
Rwanda, we ound many villagers who told us they
(2)
invested as much in Rwanda as much as Crystal Ven-
did not know what they were going to eat tomor-
(3)
tures did,” in the words o Magnus Mazimpaka, man-
row. They did not complain loudly, however: this is
(4)
aging director o Crystal Ventures subsidiary Taaria (6) in a response to a critical article in the Economist
rowned upon in Rwanda since it contradicts the official narrative o a developing and prosperous country
(7) recently. Foreign observers have also lauded the
under the leadership o President Paul Kagame, who
modernised urban landscape in Rwanda with its new
recently got over 99 % o the vote in the elections and
(6)
sky scrapers and conerence centres.
an enthusiastically welcomed third term as President.
(7)
One source, called Hussein, told us he had been
(8)
rebuked by local party leaders or ‘making noise’ about amine in his area. We learned later that he had lef or Uganda afer that. His case is not the only one, says Sarah, a resident o Bugesera in the east. “We have nothing to eat but our local leaders don’t want us to talk about this. Many residents here have migrated.” US$ 1 billion is presently invested by the
(9) http://econpapers.repec.org/paper/iobdpaper/2012003.htm
Other experts, among them Kagame’s ormer private secretary, economic advisor and head o policy and strategy, David Himbara -now in exile in Canada- , call the system simply ‘crony capitalism (8),’ pointing out that in spite o much PR, Rwanda’s economy is still mainly inormal and people remain poor. poor. “The party-statals have the monopoly in certain sectors
https://www.documentcloud.or .documentcloud.org/documents/ g/documents/4052215-Rep 4052215-Report-by-S ort-by-Special-Committe pecial-Committee-on-Dead-Cowse-on-Dead-Cows-Affair.html Affair.html See or example http://wa http://watchmanarica.blogsp tchmanarica.blogspot.nl/2012/1 ot.nl/2012/10/mysterious-dea 0/mysterious-deaths-duringths-during-kagames-rwand kagames-rwanda.html a.html http://allarica.com/stories/201210200004.html http://www.independent.co.uk/news/world/arica/darling-o-theuk/news/world/arica/darling-o-the-west-terrorwest-terror-to-his-opponents-m to-his-opponents-meet-rwanda-seet-rwanda-s-new-scourge-p new-scourge-paul-kagaul-kagame-9037914.html
(5)
http://www.institutions-arica.or .institutions-arica.org/filestream/20 g/filestream/20110321110321-appp-working appp-working-paper-paper-16-developmen 16-developmental-patrimoniali tal-patrimonialism-the-case-o-rwand sm-the-case-o-rwanda-by-daa-by-da vid-booth-and-rederick-g vid-booth-and -rederick-golooba-mutebi-ma olooba-mutebi-march-2011 rch-2011 http://taaria.rw/2017/04/14/what-they-dont-tell-you-about-kagame-and-crystal-ventures/ https://www.economist.com/news/busine .economist.com/news/business/2171800 ss/21718000-crystal-venture 0-crystal-ventures-has-inv s-has-investments-everyth estments-everything-urniture ing-urniture-finance-rwanda -finance-rwandan-patriotic n-patriotic https://qz.com/327694/why-i-quit-as-rwandan-president-paul-kagames-economic-advisor-tyranny-and-lies/
(10)
http://www.oag.gov.rw/fileadmin/user_uploa /fileadmin/user_upload/Financial_Reports/AN d/Financial_Reports/ANNUAL_REPORT NUAL_REPORT_JUNE_2016_EXE _JUNE_2016_EXECUTIVE_SUMMAR CUTIVE_SUMMARY.pd
(11)
https://www.timeslive.co.za/sunday-times/liestyle/ co.za/sunday-times/liestyle/2010-02-142010-02-14-rwanda-splurg rwanda-splurges-on-luxury-je es-on-luxury-jets/ ts/
(12) http://www.newtimes.co.rw/section/read/16918/ (13)
http://www.du-rwanda.com/en/english-rwanda-donors-should-ask com/en/english-rwanda-donors-should-ask-president -president-kagame-to-clear -kagame-to-clear-his-name-over -his-name-over-financial-scanda -financial-scandals-o-hisls-o-his-
(14)
http://greatlakesdemocracy http://gr eatlakesdemocracy.blogspot.nl/2011 .blogspot.nl/2011/05/breaking/05/breaking-news-rwandan-em news-rwandan-embassy-in-london.ht bassy-in-london.html ml
close-associates-2/#more-4849
6 BURUNDI
THE MILITIA GIVES OUT PROTECTION RECEIPTS
No one in Bujumbura knows the exact circumstance o the murders, occurred at some time in the first ew days o May 2017 in Bujumbura, o a young activist called Darius and a riend. Neighbours and riends aren’t even that sure o the exact date anymore. All they remember is that they helped another riend, whose knocks went unanswered, to get into the apartment through the back entrance. That is how they had ound Darius with his throat slit, lying in a pool o blood. In the bedroom next door there had been a second body, also with the throat slit. Going to the police is generally regarded as a ruitless exercise in Burundi, where the rampages and hits o
Burundi president Pierre Nkurunziza (Photo: Premium Times)
the eared Imbonerakure, the militarised youth wing o the ruling party, have led to countless deaths and injuries, not to mention thousands fleeing to reugee
A list o ‘official enemies o o Burundi’ circulated by the
thought it a good idea, firstly to draw random borders
these was General Adolphe Nshimirimana, a trusted
camps over the border in Rwanda and Tanzania (1).
Imbonerakure militia (source: unknown) unknown)
in an area where two different peoples used to live
ally o Nkurunziza and head o the secret service.
The Rwandan who wistully posted a photograph o Burundi president Pierre Nkurunziza at his most benevolent, distributing ood parcels to a poor rural
justice activist. And he also monitored corruption,” says Agnes, a riend we meet at the place where the
community, and commented that “giving people ood
murdered youngster used to live. “He had been trailed
is something that you would not see Kagame do,”
by the Imbonerakure or weeks.”
each in their own communities, and then secondly to
Nshimirimana ran parallel structures o allies and
allocate a better class status, as local administrators,
vassals, binding them to him through influence influence over
to Tutsis alone -thus setting the scene or centuries o resentment (3).
state contracts and money. In a case denounced by ormer vice president Gervais Ruyikiri, who fled the country in 2015 “because corruption is eating away at
Remarkably though, current president Pierre Nku-
our souls (4),” the general had bought uniorms and
would probably be surprised to find out
runziza and his party had come to power twelve years
military equipment cheaply in Ukraine and sold these
how scared many Burundians are o their president. Particularly now, during his
ago, in 2005, to end all that. His nickname had been umuhuza,, the unifier. His party, umuhuza party, the National Council
at vastly inflated prices to the Burundi government (5). Ruyikiri also reported that Nshimirimane had,
or the Deence o Democracy - Forces or the Deence
afer that, also had himsel paid lavishly by the gov-
o Democracy (or CNDD-FDD in the French abbrevia-
ernment or ruit tree seeds that were to be delivered
tion) pledged good governance governance and non-ethnicism. A
to armers, but most o which never reached them (6).
At ace value the two neighbouring coun-
new constitution had provided or equitable partici-
The General also held parallel patronage power over
tries, Rwanda and Burundi could not be more different. Rwanda is governed by a ruling party
The unifier and the general
pation o both ethnicities in state structures, the army and positions o leadership.
those he had commanded during civil war. He used this authority as a ‘ather figure’ to orm the Imboner-
that was the liberation movement o the Tutsi minori-
Besides differences between the two countries, -they
ty that came to power afer the genocide o the Tutsi
are also mortal political enemies, with the one ac-
And there had been progress. Parliamentary commit-
and his ellow activist riend, was his godchild. The
people at the hands o Hutu Interahamwe militias in
cusing the other o supporting its opposition- , there
tees oversaw state expenditure and investigated cases
General also kept ties he had orged, during and afer
1994. The other, Burundi, is governed by a predom-
are parallels. Supreme leader who bears no criticism?
o corruption that were brought to their attention. Tax
the civil war, with the FDLR (the Forces or the Dem-
inantly Hutu regime that is supported by a 50 000 strong militia, which many ear could morph into a similarly genocidal ‘Interahamwe’ any time.
Check. Third term presidency or said le ader? Check. Massacres o one ethnicity by the other? The Rwandan genocide with its one million mainly Tutsi victims stands out. But Burundi’s recent history is littered with ethnic conflict and massacres o Hutu by Tutsi and o Tutsi by Hutu. The differences between the two ethnicities go back to colonial times, when colonisers
experts rom elsewhere, notably experienced tax administrator Kieran Holmes rom the UK, were recruited to oversee much-praised reorm a nd efficiency. The GDP went up. However, even as institutions were progressing, the country remained poor and volatile and strongmen with individual power bases continued to build their own networks. Most influential among
ocratic Liberation o Rwanda), remnants o Rwanda’s Interahamwe militias in the DRC’s south Kivu. In a report in 2016 the UN Group o experts mentions both the FDLR and his name in connection with large-scale gold smuggling into Burundi rom rebel-controlled mines in the DRC (8).
third term, according to most experts in violation o the constitution (2.)
The ruling party had pledged good governance
Not that the Imbonerakure militia aren’t deadly already, as the many assaults, murders and disappearances at their hands have shown. “Darius was a social
akure (7): the militia, the likely murderers o Darius
toire de la lutte contre la corruption et les malversa-
and economy. It has directed a similar letter at the
tions économiques) économiques) tells us that “the executive o the
acilitators o the Inter Burundi Dialogue -a negotia-
OBR is now in the hands o the great corruptors o the
tions platorm started in 2015 to address the conflict
Republic.” The accusation that President Nkurunziza and his
around Nkurunziza’s third term- , Ugandan President Museveni and ormer Tanzanian President Benjamin Mkapa, asking them to urgently revive the Dialogue
circle o riends increasingly ‘eat’ rom collected tax
“in order to address the economic crisis and its conse-
moneys with impunity was given credence again
quences that weigh heavily on Burundi’s citizens.”
when the presidency, in March this year, reserved hard oreign currency -o which the country has little-
“Some action has to be taken by somebody” Ruyiri
to exclusively order petrol or the country rom the In-
explains, “It’s sad to see what happens in Burundi as
terpetrole company, in which he is said to have shares
a result o this boulimie du pouvoir (bulimia (bulimia o power,
(12). The government’s director o petrol products in
ed.)” ed .)”
the mining ministry blamed an administrative messup at the ta x office or the dollar shortage that kicked other petrol providers off the market, caused traffi c standstills in Bujumbura and led to the permanent
BURUNDI GOLD
closure o six petrol dispensaries, but that was quick-
country still listed as among the five poorest
ly denied by the Office Burundi des Recettes Recettes itsel. itsel.
in the world, undeclared gold leaves Burundi
Whilst citizens are squeezed or taxes in the
by the bagul. According to UN international In April, corruption watchdog Olucome wrote an
trade statistics, Burundian gold worth over US$ 160 million was declared imported by the
open letter to the Presidency (13), asking to dismiss
United Arab Emirates in 2015 alone. However,
the petrol director, but it was lef unanswered. “We
over the same year Burundi registered only
also deposited a corruption complaint with the
US$ 13 million in gold exports to the entire
national prosecuting authority,” Olucome director
world. This is possibly because the gold has not been mined in Burundi but smuggled
Bulimia of power
A cartoon in corruption watchdog watchdog Olucome’s annual report report over 2016, depicting citizens milked dry dry by the taxman (source: Olucome, print screen 17 September 2017)
The great corruptors of the Republic
Noting the parallel developments o offi cial and shad-
In 2017, well into Nkurunziza’s disputed and violent
ow structures, legality and illegality, the NGO Inter-
conflict-ridden third term, parallel networks still vie
national Crisis Group (9) noted that: “For some years
or control with ormal structures. The tax service
now, Burundi has been among the countries whose
Office Burundais des Recettes (OBR) Recettes (OBR) is still said to be
governments have prioritised the fight against corrup-
unctioning moderately well, even i collection and
tion (…) by passing laws and creating state structures; tries that at best stagnate and at worst regress (…) A
perormance have gone down (see notes 5 and 6). 6). But shadow networks have started to impact on the OBR,
gap is growing between words and actions, between
too. The act that General Nshimirimana’s protégé
Gabriel Ruyiri sighs. “But it was declared ‘sans ‘ sans suite,’ suite,’
laws and their enorcement and between declared
Olivier Suguru, a ellow military equipment contract-
without ollow-up. It is regrettable, because we are
policies and the way institutions behave.” When
ee to the government (11) is now Commissioner o
seeing more and more o this avourable treatment o
Nshimirimana was assassinated in 2015 in a machine
the tax institution has sent out alarm signals among
some companies where obstacles are put in the way
gun attack on his car in Bujumbura, it was rumoured that the reason or his ‘removal’ was that he and his Imbonerakure were now more powerul than the president and the regular army (10). In the same year, Nkurunziza insisted on, and won, his third term as president.
anti-corruption activists. “He is one o those who had nothing,” comments a childhood riend o Suguru’s. “All that changed when he met Nshimirimana. He has all these villas and cars now.” A source at Burundi’s offi cial cial corruption watchdog Olucome ( Observa-
o others. Some previously successul companies now operate at ten to thirty percent capacity o what they used to.” In another letter sent on 11 September 2017, Olucome lists ten cases in which this ‘clientelism and avouritism’ have impacted badly on the state budget
in rom the DRC, which is still a widespread
The complaint was declared ‘sans suite’
practice (15).
Judges in debt
The International Crisis Group, in its findings about
in Bujumbura issues stamped receipts or monthly
Burundi (16), states that the problem is not the ab-
protection ees (500 Burundian rancs, or thirty dollar
sence o anti-corruption policies, watchdog bodies or investigations, but the lack o law enorcement and judicial ollow up. Noting that the system o appoint-
cents, or an ordinary resident, double or quadruple that or a trader). In its annual report over 2016 (17) corruption watchdog Olucome reers to this practice,
ing judges leaves room or aspiring judges to buy
asking “how such receipts can bear the official stamp
their positions, the experts point out that such judges
o Ntahangwa quarter, City o Bujumbura?”
are then likely more concerned with making enough money to pay their ‘debt’ than with dispensing justice. Which is why the group in its recommendations emphasises the need to strengthen the justice system. An illustration o the strange mix o officialdom, administration and impunity in Burundi at present is the act that an Imbonerakure protection racket that terrorises the residents o the Ntahangwa quarter
NOTES
(1) https://www.zammagazine.com/chronicle/chronicle-13/223-country-o-ear (2)
The Burundian president president and his party have argued argued that, since he he came to power in 2005 2005 through negotiations negotiations and not an election, election, this is technically not Nkurunziza’s third but his second term.
(3)
https://history.libraries. https://h istory.libraries.wsu.edu/spring2016/2016/01 wsu.edu/spring2016/2016/01/20/un-tribunal /20/un-tribunal-on-rwanda-massacre -on-rwanda-massacre-officially-ends/). -officially-ends/).
(4)
http://www.iwacu-burundi.or .iwacu-burundi.org/gervais-ruyi g/gervais-ruyikiri-petit-akiri-petit-a-petit-la-corrup petit-la-corruption-a-conquis-lestion-a-conquis-les-ames/ ames/
(5) https://www.arib.ino/Ruyikiri-Corruprtion-au-Burundi-mars2016.pd (6)
Idem
(7)
http://genocidewatch.net/ http://g enocidewatch.net/2014/06/02 2014/06/02/despite-concerns-g /despite-concerns-genocide-in-burund enocide-in-burundi-unlikely i-unlikely//
(8)
http://www.securitycouncilreport.org/a .securitycouncilreport.org/at/c/%7B65BFC t/c/%7B65BFCF9B-6D27-4 F9B-6D27-4E9C-8CD3-C E9C-8CD3-CF6E4FF96FF9%7D/s_2 F6E4FF96FF9%7D/s_2016_466.pd 016_466.pd (p 34, note 2).
(9)
https://www.crisisgroup.org/ in 2012 https://www https://www.crisisgroup.org/arica/ce .crisisgroup.org/arica/central-arica/burundi ntral-arica/burundi/burundi-deepenin /burundi-deepening-corruption-crisis g-corruption-crisis
(10)
https://www.theguardian.com/world/2016/nov/15/mu com/world/2016/nov/15/murder-nuns-burun rder-nuns-burundi-man-who-kn di-man-who-knew-too-much. ew-too-much.
(11)
https://www.documentcloud.or .documentcloud.org/documents/ g/documents/4052214-Lett 4052214-Lettre-Suguru re-Suguru.html .html
(12)
http://www.reuters.com/article/us.reuters.com/article/us-burundi-oil/burundiburundi-oil/burundi-paralyzed-by paralyzed-by-uel-shortages-a -uel-shortages-as-leaders-blame s-leaders-blame-lack-o-dollars-lack-o-dollars-idUSKBN18Q idUSKBN18Q1RN 1RN
(13) http://olucome.bi/IMG/pd/-64.pd (14)
https://www.documentcloud.or .documentcloud.org/documents/ g/documents/4052216-Olucome-B 4052216-Olucome-Burundi-Letter urundi-Letter-to-Museveni-an -to-Museveni-and-Mkapa.html d-Mkapa.html
(15)
http://www.theeastarican.co.ke .theeastarican.co.ke/business/UN-experts-un /business/UN-experts-unearth-gold-smu earth-gold-smuggling-netw ggling-network-in-DR ork-in-DR-Congo/2560-3 -Congo/2560-3277488 277488-suwp6qz/inde -suwp6qz/index.html x.html
(16)
https://www.crisisgroup.org/arica .crisisgroup.org/arica/central-arica/burund /central-arica/burundi/burundi-deepeni i/burundi-deepening-corruption-crisis ng-corruption-crisis
(17) http://olucome.bi/IMG/pd/-83.pd
Burundi
7 SOUTH AFRICA
THE ZUPTA EMPIRE BANKS IN DUBAI
“It’s a hundred billion Rands (almost US$ seven
o suspicious transactions, whereby money was chan-
billion, ed ed.) .) because I say so,” says Pravin Gordhan,
neled abroad through the Guptas’ bank accounts and
ormer finance minister in South Arica. He is only
stood with banking good governance that prescribed
hal joking. There is no official calculation by any law enorcement body, or parliament, o the money stolen rom the South Arican state by the money- guzzling
that banks had the right to close the Gupta brothers’ accounts (5).
and -laundering riends o President Jacob Zuma, the
State capture
brothers Atul, Ajay and Rajesh Gupta (1). Jacob Zuma
But with the ominous, non-explained cabinet reshu-
has appointed loyalists to all state structures that could envisage such a task. The tax agency, the South
fle (6) o March 2017, South Arica acquired a new finance minister, Malusi Gigaba: a snappy dresser,
Arican Revenue Services (SARS) is presided over by
who was regarded as more flexible with regard to the
in a report based on testimonies rom people orced to
Like a traditional king, Zuma appoints on the basis o
ormer babysitter to Zuma’s children Tom Moyane;
networks o Zuma’s riends and whose wie amously
work in ‘captured’ institutions (10), notes seven “ways
loyalty only; skills, expertise and good perormance
the police minister is long standing Zuma supporter
said that she “helped” with state contracts and “IT
in which the president’s power-elite undermines the
don’t matter. A amous example is the way he kept
Fikile Mbalula; a riend o rhino poachers is Zuma’s
solutions or passports” at the time when Gigaba was
state,” among which “the capture o state wealth, the
his good riend Dudu Myeni on as chair o South
minister o intelligence (2) and head o prosecutions Zuma-appointee Shaun Abrahams (nicknamed ‘Shaun the Sheep’) is widely mocked because he
minister o home affairs (7). Even i no ormal structure calculates how much
control o the public service, shaking down regulations, securing control over the country’s fiscal sovereignty and over strategic procurement opportunities,
Arican Airways whilst the airline was ast diving into bankruptcy. “He keeps saying “give her a chance,” ormer finance minister Pravin Gordhan was over-
won’t touch any corruption complaint involving the
money is being channeled to the ‘Zupta’ bank ac-
securing a loyal intelligence and security apparatus
heard sighing in exasperation when, as a minister, he
‘Zupta Empire (3).’
counts in Dubai, civil society, investigative journalists
and undermining the ormal executive through shad-
was still making efforts to save the state enterprise.
and academics do: all o the above can be gathered
ow structures.”
(Myeni was finally on her way out in September 2017,
Until March 30 this year, Finance Minister Gordhan was the one who stood in the way o the most blatant
rom investigative reports, partly also based on leaked emails rom the Zupta network (8). The Public
Making baba happy
afer the statutory body that enorces the South Arican Companies Act, the Companies and Intellectual
looting. He questioned corrupt contracts and told
Administration Research Institute at the University o
The story o the Zupta Empire shows how even a
Property Commission, ruled that afer serving three
state companies, now populated by Zupta-men who
the Witwatersrand published all substantiated inor-
country with a proessional and independent judicia-
consecutive terms any urther stay by Myeni was now
were siphoning off tax moneys, that they would no
mation in an academic report called “Betrayal o the
ry and media, parliamentary oversight, political and
illegal.)
longer be bailed out (4).) He reused to bury a long list
Promise (9).” The South Arican Council o Churches,
press reedom; a ruling party that was once headed by Nelson Mandela with a programme o democracy,
I Zuma’s amous giggles in response to questions in
good governance and justice or all; an industrialised
parliament aren’t enough to illustrate his views on
economy, modern urban centres with electricity, water
accountability, a ormer government official confirms:
and roads inrastructure, can regress.
“He once told me that Putin doesn’t have to account
An estimated US$ seven billion o South South Arican taxpayers money was ‘suspiciously’ transerred transerred to Dubai
Brothers Ajay and Atul Gupta with President Zuma’s son Duduzane Zuma. (Source: Twitter @DestinyMan)
to parliament, so why should he?” A ormer paraAnd the regression isn’t just about money. Under Zuma, governance by the once-progressive Arican
statal head, shaking his head, adds that “State money is now stolen in such a way that they might as well
National Congress is vast approaching total patriar-
take out machineguns and just take it like that.”
chal and almost eudal traditionalism. In Zuma’s ANC members literally kill one another or positions, since only the most loyal vassals get crumbs rom the masters’ table (11). Making ‘baba,’ ‘ather’, happy is what counts in the patronage network, including in the ANC Women’s League he controls (12) “The ANC under Zuma is nothing like what the organisation was beore,” says a veteran o the liberation struggle against apartheid. “It is more like what the (traditionalist conservative Zulu movement) Inkatha used to be.”
The Foskor terminal at the Richards Bay port in South Arica (source: Foskor)
Organogram o South Arica’s kleptocracy. The ‘controller’ position is held by the boss o the state, i.e. President Jacob Zuma. (Source: ‘Betrayal o the Promise’ report by the Public Administration Administration Research Institute (PARI) (PARI) o the University o Witwatersrand, print screen 17 September 2017)
“We don’t check physically at the ports so much
Phoning three times and then also emailing three
because phosphates are not a very expensive com-
times, we ask Foskor -and later also the IDC- or com-
modity like diamonds,” says a ormer South Arican customs offi cial. “Also, many o us don’t have the
ment on our findings. We also ask i Foskor’s Guptas have anything to do with Togo’s ones, or with the
scientific expertise to distinguish phosphate rocks,
South Arican Guptas who have also received abun-
gravel, or sand.” The official explains, however, that
dant, much criticised loans rom the IDC (16) But all
there are other ways to check that income in oreign
questions are lef unanswered both by the IDC and
currency is not kept rom the country. “We used to
Foskor. When we check the Foskor website again, the
compare exports declarations against oreign currency income to make sure we don’t miss out on taxation. But things a re different now.” The offi cial is
annual reports over 2015 and 2016, previously accessible, have been placed behind login and a password.
one o many who elt under pressure to leave when
The Gupta amily routinely ignores requests or com-
Zuma’s new appointment Tom Moyane took over the
ment. President Jacob Zuma has repeatedly claimed
Pro-Zuma and Gupta publicists, among whom the
holds a major sha re. Firstly, Foskor doesn’t seem to
tax agency and loosened controls, specifically with
that he doesn’t understand what he has done wrong.
Gupta-owned New Age newspaper and the ditto TV channel ANN7, have responded to the corruption
declare its phosphates exports as much as it should; secondly, it is unwilling to answer any questions
regard to ‘Gupta’ businesses (15).
His supporters even composed a song about it, called “What has Jacob Zuma done wrong?”
reports with the argument that, either, there was no
about this; and thirdly, it seems to be behaving like
corruption but only ‘black empowerment;’ or, that i
this with impunity, since even state shareholder IDC
there was corruption this was unimportant compared
does not show concern when we send an email to
to all the ‘looting’ done by old white colonial mining and banking empires. Interestingly however, the use
alert it to our experiences.
by these publications o the term to describe the ‘old
We got to Foskor because Togo’s ‘phosphate Guptas’
(1) http://amabhungane.co.za/article/2017-06-29-guptaleaks-the-dubai-laundromat
white’ businesses: White Monopoly Capital or WMC,
seemed to have a connection to South Arica’s Foskor,
(2) http://www.news24.com/SouthArica/News/mahlobos-rhino-poacher-mate-20161112
turned out to have been the product o planning by
too. Togo phosphates importer and shipper shipper Ashok
(3)
http://www.dispatchliv .dispatchlive.co.za/opinion/2 e.co.za/opinion/2017/0 017/07/25/sha 7/25/shaun-sheep-can-stop-fleeci un-sheep-can-stop-fleecing/ ng/
the very old, white and capitalist ‘dirty tricks’ UK PR
Gupta’s partner, Indian ertiliser company Coro-
(4)
https://www.dailymaverick.co.za/article/201 erick.co.za/article/2016-02-246-02-24-budgetbudget-2016-gordhan-puts-state-owned-com 2016-gordhan-puts-state-owned-companies-on-notice/#. panies-on-notice/#.Wbo4YcgjFPY Wbo4YcgjFPY
firm Bell Pottinger, now in trouble because o their duplicitous, twitter-bots using, racial campaign (13)
mandel, is a ourteen percent shareholder in Foskor. This finding prompted us to look into Foskor’s own
(5)
http://www.enca.com/opinion/gord .enca.com/opinion/gordhan-blows-whist han-blows-whistle-on-guptas-r68bn le-on-guptas-r68bn-suspicious-and-u -suspicious-and-unusual-paym nusual-payments. ents.
(6)
https://mg.co. za/artic le/2017-05-29-zuma-w ill-not-ex plain-cab inet-reshu ffle-today
NOTES
“And also, i you want to fight plunder by outsiders,
phosphate exports rom South Arica, which should
(7)
http://www.sundayworld.co.za .sundayworld.co.za/news/2017 /news/2017/05/09/malusi-gigaba-deends-advisor-gigaba-deends-advisor-wie-ollowingwie-ollowing-bizarre-tv-inte bizarre-tv-interview rview
you need strong regulations and a strong state,” says
run, according to Foskor’s own annual reports over
(8)
http://amabhungane.co.za http://a mabhungane.co.za/article/2017 /article/2017-07-22-g -07-22-gupta-leakscom-ev upta-leakscom-everythingerything-you-ever-n you-ever-need-to-know-abou eed-to-know-about-guptaleaks t-guptaleaks-in-one-place -in-one-place
Pravin Gordhan when we interview him at his Pre-
2015 and 2016, into millions o US dollars. This is
(9)
http://pari.org.za/wp-content/up http://p ari.org.za/wp-content/uploads/2017 loads/2017/05/Betrayal-o /05/Betrayal-o-the-Promise-the-Promise-25052017.pd 25052017.pd
toria home. “These Gupta people have been doing
confirmed by the UN’s international trade statistics
(10) https://trinityjhb.co.za/unburdening-report/
nothing but break down our governance.”
over 2015, which reflect over US$ 100 million in imports o South Arican phosphates by other countries. But South Arica’s offi cial phosphates export records show a value o no more than US$ 131 971 in the same year (14).
(11)
The Foskor exports
This seems very much to be the case at Foskor, the phosphates company in which the South Arican state’s Industrial Development Corporation (IDC)
https://mg.co.za/data/ https://m g.co.za/data/2016-08-02-explore-sas2016-08-02-explore-sas-killing-field killing-fields-an-interactiv s-an-interactive-map-to-all-p e-map-to-all-political-killings-in olitical-killings-in-2016 -2016
(12)
http://www.702.co.za/article .702.co.za/articles/15683/an s/15683/ancwl-havecwl-have-become-the-gate become-the-gatekeepers-o-pat keepers-o-patriarchy-gen riarchy-gender-activist der-activist
(13)
http://www.newstatesman.com/cu .newstatesman.com/culture/observations/ lture/observations/2017/ 2017/07/gupta 07/gupta-scandal-how-bri -scandal-how-british-pr-firm-cam tish-pr-firm-came-unstuck-southe-unstuck-south-arica arica
(14)
UN Comtrade database
(15)
htt p://ewn.co.z a/2017/06/04/repor ts-gupta-a mily-received-r70 m-tax-reund-r om-sars and https://www.time slive.co. za/polit ics/2017-08-03moyane-reuses-to-explain-dubai-trip/
(16)
https://www.businesslive.co.za .businesslive.co.za/bd/companies/ener /bd/companies/energy/201 gy/2017-077-07-10-idc-aces-r9 10-idc-aces-r90m-loss-as-gup 0m-loss-as-guptas-oakbay-deli tas-oakbay-delists/ sts/
8 BOTSWANA
THE PRESIDENT OWNS THE PARADISE
The Okavango Delta in Botswana, a World Heritage
ness that President Ian Khama holds a sixty percent
Site known or its magnificent sunsets, vast plains
stake in. Such income pays dividends dividends to concessions
and impressive wildlie, contributes over US$ 650 mil-
such as Linyanti, owned by the president and other
lion annually to the country’s gross domestic product. Tourism is its second-biggest money-earner afer diamonds. Rich and super-rich oreigners -among th em
shareholders -among whom his relatives and close associates (2)- but the money never arrives in Botswana itsel.
Oprah Winrey, ootballer Ibrahim Ibrahimović o Chelsea, Microsof billionaire Paul Allen and UK Prince Harry- fly in to the Delta in their private jets to rest in luxurious lodges and enjoy the scenery. The considerable prices they pay or their holidays,
Money never arrives in Botswana itself
however, don’t und the southern Arican country’s state budget as much as they might think these do. Large parts o the bills paid or this ‘Arican paradise paradise experience’ und a number o tax-haven-based off- shore accounts that belong to the
More than hal o Wilderness’ tourism and travel subsidiaries are operated rom abroad. Okavango Wilderness Saaris, a financial and assets management arm
Wilderness Saari conglomerate in which President
o the Wilderness Group, does not have headquarters
Ian Khama and his relatives and riends hold shares.
registered in Botswana. Other subsidiaries Wilderness Saaris Limited-Bermuda, New Wilderness Holdings
Botswana’s Okavango Okavango Delta
Botswana’s peaceul and prosperous image, with its legendary tale o a first black president and his white
o Mauritius and Norisco SA in Luxembourg and Seychelles are finance and asset management arms o the
o this value may be retained outside the country
Mbaiwa also points at ‘elitist photographic tourism’
English wie -as shown in the 2017 Hollywood release
group that are based in jurisdictions that allow very
in payments to external travel agents, expat wages
as a cause o job losses (calculated by him as over two
o ‘A United Kingdom’- still dominates international
low to zero percent taxation. The tax-haven based
and ood and other supplies imported rom outside
hundred in the past our years) in the sector. He be-
public opinion. It is thereore, perhaps more than any
entities have no employees or organisational and/
Botswana as well as profits. He bases his findings on
lieves this is also due to a 2013 ban on saari hunting:
other o our country studies, Botswana that shows how such stereotypes don’t do justice to the people
or operational activities. Except or an island resort managed by Norisco Holdings in Seychelles, they
calculations that over eighty percent o the ‘paradises’ in Chobe and the Okavango are at least partly
“The loss o jobs and income by communities due to the ban on saari hunting in avour o elitist photo-
who live there. Gazing at the blissul sunsets, tourists
also have no camps, saaris and hotels doing genu-
owned by oreign companies, with over fify percent
graphic tourism, suggest that the alrea dy high poverty
don’t notice the poverty around them, nor the ear
ine business (3). Asked to comment, Wilderness has
o these ully owne d by oreign saari operators.
rates in Northern Botswana particularly in Ngamiland
brought on by an increasingly oppressive security
said that the Bermuda account housed “the group’s
Mbaiwa’s study also does not see many benefits or
District will continue to rise.”
network built up by the president and his riends and
insurance und.”
the region rom the current tourism ownership struc-
relatives (1) that keeps people in the dark whilst the paradise is being looted.
No benefit
tures. “Botswana’s exclusive and luxury multi-billion dollar wildlie-based tourism industry is situated in
Saari hunting jobs were previously held by members o the San/Basarwa communities, who have lived
“This situation (has) made it possible or a lot o
Northern Botswana. Ironically, poverty in Northern
hunting and gathering liestyles or centuries. In
Sixty percent
money that is paid or tours by visitors to never arrive
Botswana is reported to be widespread,” he writes.
part due to the hunting ban they have been orced to
Wilderness Saaris’ annual revenue o US$ 200 mil-
in the Okavango or Botswana, since booking is mostly
Echoing similar concerns, Member o Parliament or
abandon this way o lie and now live in settlements
lion, almost one third o the value o the total tour-
done outside Botswana -either in Johannesburg,
the ruling party Ignatius Moswaane argued in parlia-
on the periphery o the Okavango Delta. According to
ism sector in Botswana, is derived rom over 25 000 guests in seventy different saari camps and lodges in the southern Arican region per annum. These tourists’ payments are largely made to travel agencies in their home countries. Overseas Adventure Travel/ Travel/ Grand Circle, based in the US, or example, conducts business with Baobab Saaris, a subsidiary o Wilder-
America or Europe. The exclusive nature o tourism in the Okavango Delta has tended not to be o direct benefit to the people o Ngamiland District (since) the tourist revenue is not retained in Ngamiland or in Botswana,” writes Proessor Joseph Mbaiwa o the Uni versity o Botswana in a recent tourism revenue study (4). Mbaiwa believes that as much as ninety percent
ment in September 2016 that, “(the act that) tourism operators across Central Kalahari and the amous Okavango Delta, Wilderness Saari (are) owned by whites is a source o concern or aspirant Batswana tourism operators.”
the Botswana Department o Wildlie and Parks, the hunting ban has also led to complaints rom villagers whose arms and villages have been damaged by expanding herds o elephant and prides o lion (5).
9 CONCLUSION
FOCUSING ON THE KLEPTOCRATS, AIMING AT THEIR PARTNERS
Elephants have damaged arms and villages
Arican oligarchs do a lot more than accepting bribes.
This points to an interesting way orward or world
They stop the development o governance systems or
public opinion to play a role. What i, instead o aim-
break down existing ones to make way or plunder.
ing arrows at colonialism generally, they were aimed
Extracting wealth rom their countries and storing it outside the continent, ofen going there or education, medical treatment, holidays and residence, they
specifically at Gemfields, Getax-Kalyan-Coromandel, Dan Gertler and Interpetrole? What i development aid to Joseph Kabila’s and Pierre Nkurunziza’s gov-
have become almost indistinguishable rom ormer
ernment was stopped and instead given to (truly)
colonialists.
independent media, the strengthening o the judicia-
A presidential family
hold shares in their individual capacities and that
Protests against thieving and bad governance are
ry and social justice groups? Much would already be won i the dominant narrative that lumps together all
The Khama amily plays a very active role in the
they declare these.
growing in Togo, in Kenya, in South Arica; they have
Aricans as ‘victims’ was turned around to distinguish
flared up in DRC, Cameroon and Mozambique. That
between orces or social justice on that continent and the kleptocrats.
travel and tourism industry. The Ministry o Tourism, headed by the president’s brother Tshekedi Khama,
The Botswana Unified Revenue Services, despite
such protests can be successul has been shown in
awards the tourism concessions. Former Wilderness
confirmations o lack o expertise and resources to
South Arica recently. Media have exposed the loot-
Saari Human Resources Director Sally Anne Follet- Smith heads the Botswana Tourism Organisation (BTO), a parastatal that regulates and controls
understand and track illicit finances, states in its latest financial report that it is being owed more than 2 billion Pula, US$ 200 million, in both unpaid and
ing; banks have closed the ‘Gupta’ accounts through which money was moved to Dubai; the judiciary has ought to remain independent; the parliamentary
This project is a work in progress. Stand by or ollow-up.
stakeholders in tourism. Follet-Smith is also a board
uncollected taxes.
block o the ruling party is in disarray and President
October 2017
Zuma daily loses more o his grip on the country.
The Arican Investigative Publishing Collective
member o national airline Air Botswana, a company that was recently almost given, by presidential direc-
Arica Uncensored
tive, to Wilderness Saaris in exchange or an undertaking that it would inject US$ 30 million to jump
Interestingly, the protests have also impacted on international partners o the Zuma regime. The Gupta’s
start it. Simultaneously, the government would also
PR company Bell Pottinger has been kicked out o its
provide a US$ 30 million capital injection. The trans-
proessional association in the UK ; their accountan-
action ailed to materialise ollowing media reports
cy firm KPMG is in trouble; and the same outrage is
that exposed the impending deal, which would have seen Wilderness acquiring a state asset very cheaply
affecting their consulting firm McKinsey.
indeed. President Khama himsel owns shares in Baobab Saaris, SebaSaaris and Linyanti, all concessions o the Wilderness Group, whose chairman o the Board is the president’s lawyer and confidante Parks Taa. The Wilderness Board urther eatures Marcus Patrick Khama Ter Haar, the president’s ne phew. Approached or comment, Botswana government spokespersons say that the president and his associates and relatives
Botswana media exposed the plans or the Wilderness – Air Botswana deal (source: Bus iness Weekly and Review, 18 May 2017)
NOTES
(1) https://www.zammagazine.com/chronicle/chronicle-20/317-military-millionaires (2)
http://www.thegazette.news/?p=17286
(3)
http://www.thegazette.news/?p=12810
(4) http://www.tandonline.com/doi/abs/10.1080/02589001.2016.1270424 (5)
http://www.sundaystanda .sundaystandard.ino/botswana%E rd.ino/botswana%E2%80%99s-hun 2%80%99s-hunting-ban-econom ting-ban-economic-afermath ic-afermath
ZAM
10 WHO WE ARE
THE AIPC, AU, ZAM AND THE TEAM
THE TEAM WHO DID THIS INVESTIGATION
The African Investigativ Investigative e Publishing Collective
Maxime Domegni
Eric Mwamba, DRC/Australia
www.investigativecollective.com
Journal l’Alternative, Alternative, Togo Togo
Lives largely in Australia because he
The AIPC is an association o veteran investigative journalists who have dedi-
Contributed the Togo chapter amid
tends to get kidnapped or arrested
cated their working -and ofen also private- lives to the exposure o wrongs in their societies. It is inspired by a commitment to dig deeper, unearth injustice and uncover truths in the public interest, that is, in the service o democracy,
upheaval and threats during the protests
when he ventures back into his
in his country last August, in which two
country.. ‘Masterminds’long-distance country
people were killed and several injured,
investigations investigati ons in the DRC, Republic o
transparency and development.
arrested and imprisoned.
Congo, Ivory Coast and elsewhere in rancophoneArica.
Africa Uncensored
www.aricauncensored.net
Estacio Valoi, Mozambique
Francis Mbala, DRC
Arica Uncensored is an independent media house set up by Kenya’s finest
Has ollowed the devastation brought
In the country and investigating. Facing
investigative journalists. Our goal is to investigate, expose and empower.
by rapacious mining and other looting
considerable pressures and obstacles
Having worked in investigative journalism or years we ollow the stories that
in northern Mozambique or years. Is
on a daily basis.
matter to the country and the people.
ofen threatened. Keeps going ‘with the wind.’
ZAM
Correspondent Rwanda and Burundi
Lawrence Seretse, Botswana
www.zammagazine.com
Due to disappearanc disappearances es and assassinations
Investigates presidency,
ZAM supports and promotes a new generation o Arican change makers in investigative journalism, photography, writing, arts and thinking. ZAM is the
o critics and those who question
politicians, military and security
authority in both Rwanda and Burundi,
authorities and business deals in his
AIPC’s publications partner o choice.
our correspondent in these two countries
country.
asked to remain anonymous.
Evelyn Groenink, South Africa
Investigations editor. Author o South
The Arican Investigative Publishing Collective depends on financial
Arica chapter. Married to ormer tax
support rom partners and riends. Please donate to the Arican
official who was fired b y current Sou th
Investigative Story Fund via www.zammagazine.com/storyund
Arican government. Biased against South Arican president Jacob Zuma as a result.
ADDITIONAL CREDITS The AIPC, Arica Uncensored and ZAM thank the
Affairs Research Institute (PARI) at the University o
Open Society Foundation and Unesco’s IPDC programme or their support to the project.
the Witwatersrand in South Arica or their kleptocracy organogram.
We also thank Thomas Lassourd at the Natural Resource Governance Institute or his expert advice with regard to trade data; Global Witness or allowing us the use o their data visualisation and the Public
Special heartelt thanks to Thomas van der Meer and Studio Parkers or the great contribution in lay-out and design o this report.
