It took me a while to complete
this book. It is the kind of book that one has to dissect and digest, as the
themes it explores are those, which all Africans have pondered over at least
once in their lives. I have pondered over these themes since back when I was
still in the NGO world when my boss sent me to represent my organization at a
workshop that brought together human rights organizations from across Africa to
explore the grievance mechanisms for communities that had suffered human rights
abuses by multinational companies. The workshop informed my choice of topic for
my master’s degree in corporate governance thesis examining the human rights
violations by multi nationals in Africa vis-a-vis the guidelines issued by the Organization
for Economic Co-operation and Development (OECD). It is a hard topic to think
about and an even harder one for anyone directly affected or who has witnessed
the conflicts in various parts of the continent. The author covered one of the
massacres that occurred in Jos, Nigeria and landed in a psychiatric ward
getting treatment for Post-Traumatic Stress Disorder. If you remember the
Marikana massacre in South Africa, you may have questioned yourself as to what Africa’s
problem is. (As for me, I was livid!). Africa is the richest continent in terms
of resources, so what ails us?
The author attempts to get an
answer to this question in his travails across Africa, especially the resource
rich countries, Asia in particular the giant economy of China and a visit to Wall
Street. In the process he uncovers a seemingly well-orchestrated system of
looting that robs ordinary Africans of a share of its precious resource wealth.
Burgis begins by explaining “the
resource curse”, a situation where the income generated by a nation’s resource
distorts the rest of its economy. In states whose exports from resources form
more than a quarter of the income, it is considered likely that the phenomenon
of the resource curse will occur. There are exceptions to this of course but
rarely in Africa. He proceeds to explain that because a resource rich country
earns most of its income from the resource, its government is in most cases not
obliged to uphold its social contract with the citizenry as it does not rely on
taxes as a source of revenue. This is very interesting, as you will note that
the richest countries in terms of resources have had series of coups and
autocratic governments.
Angola is considered a heavyweight
in the production of crude in Africa and it is here that the author begins the
journey to expose the kleptocracy, corruption and downright plunder perpetuated
in some countries within sub-Saharan Africa. He takes us back through the
history of the country and the formation of a shadow state by one of the president’s
closest aides with the sole purpose of diverting oil money to a few individuals,
the ‘futungo’. Manuel Vicente, head of
the national oil company, strikes deals with a company from China owned by one
Sam Pa to effectively loot Angola’s oil wealth. The line between public and
private interests becomes increasingly blurry as a web of companies registered
locally and in notorious tax havens ensure that most of the income generated
from the national oil company ends up in the pockets of the ‘futungo’ and their associates rather
than being channeled to the Angolan government as should be. Sam Pa soon
establishes a network in which African autocrats can rely on for financial aid
whenever they find themselves facing sanctions by the west because of
violations in their countries.
The author then takes us to the
richest country in Africa in terms of resources—the Democratic Republic of
Congo. One thing I enjoyed about this book is how the author highlights the
painstaking research he undertook. In DRC we are taken through the dynamics
that contribute to the guerilla warfare in the country with the aim of
plundering its resources, from the guise by Rwandese army of pursuing the ‘interahamwe’ and its various sponsored
rebel groups to the armed rebellion led by the late Laurent Kabila. Just as in
Angola, the DRC has its own clique of individuals who form a shadow government whose
activities include the transfer of ownership of assets from the state mining
sector to private corporations. Katumba Mwanke is highlighted as a key figure behind
the looting machine in DRC. A close ally of the president (Joseph Kabila) he
was a powerful man who controlled Congo’s minerals especially in the Katanga
region known for its vast deposits in Cobalt. Mining assets under the ownership
of the state were transferred from the state to private companies under the control
of Katumba and his allies. Katumba died in a plane accident in 2012. In this
chapter, the author outlines the connection between a young Israeli who came to
Congo in search of a legacy and diamonds and his connection with Sam Pa. He
also highlights the inescapable fact that regardless of what the various
militias in the Congo claim to be fighting for; the bottom line is that they
are all mining.
The Nigerian story is one described
as one of gross corruption which has made way for a thriving smuggling business
and a deluge of counterfeits from China. The Nigerian textile industry is said
to have taken a hit with the influx of cheaper counterfeit textiles from China
labelled as “Made in Nigeria”. Do you
believe this my Kitenge pips? In this chapter, Alhaji Dahiru Mangal is named as
the figure behind a smuggling business which has continued to thrive at the
expense of Nigeria’s textile industry. When questioned about his role in the loss
of jobs and death of the local industry, he simply states that he is merely providing
logistics and if he were not the one doing it somebody else would. To some extent,
you are tempted to agree with the man, as the role of the government is to
ensure that contraband items do not enter into the country. But then again,
does his argument hold?
Deeper into the Niger Delta,
which produces vast amounts of oil, the story told is that of corruption, war
and looting of resources disguised in tribal and religious wars. The rise of boko haram and other militias is represented
as part of a struggle for self-enrichment. To get rid of the warmongers,
multinationals have to pay for protection money while through private companies
and banks, kleptocrats make away with millions of plundered dollars whose
origins are concealed in offshore tax havens. When the ill-gotten loot is laundered
back into the economy, it distorts of the fair market value of ordinary commodities
and real estate. It is in this Chapter that the author explores the correlation
between a massacre in the Niger Delta and the spiking of oil prices and how
this may be part of a grand scheme. The interests of multinationals also come into
play and you will understand how and why the corporations fund militias.
The below quote got me thinking.
“These
networks vary by country, creed and commodity but they have some traits in
common. They fuse private interests with public office; they operate in the
underbelly of globalization, where criminal enterprises and international trade
overlap and they depend on the power of mining industries to create narrow
economies in which access to wealth is concentrated in the hands of small
repressive ruling classes and those who bribe their way to favour”
The colonialists came to Africa
to loot its resources with guns and found African collaborators who gladly sold
their kin for gifts. In modern day colonialism by China, this is done voluntarily
through contracts in which the Chinese promise to build infrastructure for
African countries while they make away with mining rights and concessions to
secure a future for their industrialization. The Africans on the other hand
produce raw crude, which ends up back in Africa after manufacture and pricier
than it left the continent. With no prospects for industrialization and
manufacturing plants in Africa, it is hard to see how this will end.
Modern day colonialism has its
collaborators who are the main beneficiaries of the looting. The few
influential Africans who have sold their countries for their own enrichment
continue to live lavishly in sharp contrast to their subjects who continue to
suffer in deep penury. In South Africa, a few blacks were able to benefit from
the Black Economic Empowerment (BEE) Programme after the abolishment of
apartheid. Cyril Ramaphosa was once the chairman of the national association of
mine workers and construction union and one of the beneficiaries of BEE. The
author finds it rather ironic that wearing his hat a Board Member of Lonmin, in
2010 Ramaphosa claimed the strike by workers at Marikana Mine was ‘plainly dastardly criminal’. Thirty-Four
miners died in the massacre by police at Marikana. Watch the documentary “Miners shot down” to get a feel of how
sad this event was.
In equatorial Guinea, the president’s
son Teodorin Obiang is said to lead an obscenely rich lifestyle owning a
mansion in Malibu, properties in Cape Town and Paris, a fleet of Ferraris and
Rolls Royces and one of Michael Jacksons crystal encrusted gloves. The gap
between the rich and the poor in his country continues to expand with no sign
of narrowing.
The corruption, tribalism and
religious differences within Africa continue to grease the looting machine and looters
capitalize on this as they continue in their plunder. The complicity by the
west and the World Bank and IMF has further contributed to the machine. In these
African countries, few individuals working for the public institutions have
found a way of fusing their public role with private business through a network
of companies registered offshore. These illicit activities work to turn elections
into a struggle for survival literally fueled by tribal tensions in which every
tribe hopes to place its ethnic leader in a position where they can access a
share of the loot. What is currently happening in Gambia and DRC is all part of
this struggle. In the book the story is told of Zimbabwe and the struggle
between the president and opposition when the power sharing agreement placed the
finance ministry under Morgan Tsvangirai’s MDC. The ever-present Sam Pa is
touted to have saved the day and contributed to Mugabe’s political survival and
return to absolute power.
Please read the book, it will
shock you, challenge you and perhaps inspire you to come up with a solution for
our beloved continent. I believe not all is lost...
No comments:
Post a Comment