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NEWS STORY

Global Witness challenges EU over Corruption in Angola

Africa Action


March 23, 2003

The EU heads of state meet today and tomorrow in Lisbon for the EU Summit - the showcase of the Portuguese Presidency. In light of the upcoming EU/Africa Summit in Cairo (3/4th April), which will be discussed in Lisbon this week, Global Witness is challenging the delegates to think creatively about solutions to the problems of massive corruption and the gross misuse of oil revenue in Angola.

Global Witness' December 1999 report "A Crude Awakening" exposed the role of Angola's elite in massive corruption, where a situation prevails of over-priced arms deals and kickbacks, arranged more on the basis of cronyism than on value for the state. There is no accountability of government, and little capacity for Angolans to question the deployment of government revenue; a situation made all the worse by a strong crackdown on the press.

"This is not an issue about whether Angola has the right to buy arms to defend itself against outlawed UNITA forces - which it does, but it is a question of why this needs to be done through organised crime channels, with massive kickbacks for Angola's elite, who we have named the Oiligarchy," said Simon Taylor of Global Witness. "If the international community is serious about recovery in a post-conflict Angola, then now is the time to start with serious and creative initiatives to combat the dirty and corrupt practices of the Oiligarchy. It really is high time that international efforts were concentrated to ensure an end to the wholesale robbery of state assets." Such measures should include the following:
  1. An expression of strongest concern from EU states about the level of corruption in Angola, at both the Lisbon and Cairo Summits.


  2. Investigations should be undertaken into money laundering channels across Europe, used for capital flight from Angola. Global Witness is aware that private banks in Portugal, Luxembourg and London have been used for these practices. Where assets are discovered, which cannot be accounted for, these should be frozen.


  3. EU member states, especially those with Executive Director board members of the IMF, should insist that any new IMF agreement should include a retrospective analysis of Angola's 1999 oil accounts.


  4. EU member states should initiate a fundamental review of EU wide business practices to ensure that European companies operate a policy of "full transparency" in every country of operation. Such a strategy should ensure that European oil companies publish details about ALL payments made to government in every country of operation. These details should be published in the country of operation and internationally, in an easily understandable format.


  5. The EU should create a strict timetable for the implementation of the recommendations of the expert panels' report, because effective implementation of UN embargoes on supplies to, and the trade of diamonds from UNITA is a key part of any resolution to the conflict in Angola.
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