Kero: Manuel Vicente Goes Shopping with State Money

The Kero hypermarket, probably the biggest in Angola, might be considered a model of private investment due to the way it has improved the range, and quality of consumer goods available in the country. But it has also proved to be a model example of how Angola’s top officials continue to ignore the distinction between public and private property and have turned themselves into the country’s top entrepreneurs. Kero has been operating for a year, in Luanda’s Nova Vida suburb. In an interview with the weekly paper O País, Kero’s Brazilian Director-General, João Santos, revealed how much MONEY had been invested by a group of Angolan businessmen in partnership with Banco Privado Atlântico: “The US$35 million is a combination of private capital and resources freed up by the partnership with Atlântico.” The hypermarket occupies a surface area of 7,500 square metres and a total area of 11,000 square metres. A […]

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Dos Santos: Nepotism and corruption in CNN Broadcast Deal

President José Eduardo dos Santos’s regime has made great efforts to present Angola to the world as a place of modernity, good governance and prosperity, and as a country that looks after its citizens. Official budget documents show that, for the 2012 fiscal year, Dos Santos has set aside has set aside about US$40 million from the presidency’s budget for an initiative run by his own son and daughter for promoting a positive image of Angola to the world. A private Angolan company, Semba Comunicação, has borne the responsibility of improving the image of the Angolan regime since 2006. The company claims that soon after its launch it presented on CNN International “the campaign that changed the concept of African public relations at the level of the international media”: the “Angola, grow with us” campaign by the National Private Investment Agency (ANIP). Out of the share of the presidential budget […]

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Rapper MCK in the Banana Republic

Eight years ago, a brutal murder committed by members of President José Eduardo dos Santos’ praetorian guard served to bring an Angolan rapper known as MCK into the political limelight at the young age of 22. On November 26, 2003, soldiers from the Presidential Guard Unit (UGP) tied up and dragged a man called Arsénio Sebastião “Cherokee”, into the sea at Mussulo quay in Luanda. They drowned him, ignoring the pleas for mercy from the crowd gathered at the scene. What crime could Cherokee possibly have committed to deserve such a public, summary execution? The soldiers heard Cherokee humming “A Téknika, as Kausas e as Konsequências” (Techniques, Causes and Consequences), by MCK, which was a scathing criticism of the Dos Santos government. The guards killed Cherokee on the spot as a lesson to everyone. MCK’s album was an improvised, underground production, distributed by street vendors. Minivan drivers, who transport the […]

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Tchizé dos Santos: Diamonds are a Girl’s Best Friend

On 5 November 2010 the president of the Republic of Angola, José Eduardo dos Santos, authorised the minister of Mining and Industry to extend the terms of a diamond mining concession in Lunda-Norte province, primarily to the benefit of his daughter Welwitschea José dos Santos, usually known as ‘Tchizé’. Presidential Decree 296/10 of 2 December 2010 ordered a two-year extension to Projecto Muanga’s Licence for Prospecting, Research and Identification for Kimberlite diamonds, in Lunda-Norte province. President dos Santos initially authorised the project on 14 July 2005 as a partnership between the state diamond company Endiama (51 per cent), Sociedade de Desenvolvimento Mineiro – SDM (20 per cent), Odebrecht (19 per cent) and Di Oro (10 per cent). SDM is a joint venture between Endiama and Odebrecht, a Brazilian multinational. Di Oro – Sociedade de Negócios, established in 2003, is owned entirely by Tchizé dos Santos (73.34 per cent), her husband […]

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Sonangol’s Hotel Bills don’t Add Up

The national oil company Sonangol, which is the largest state-owned company, has been regarded internationally as an oasis of competence and good management practice in Angola. At the same time, Sonangol has also been accused from abroad of being the main vehicle for the looting and disappearance of billions of dollars in oil revenues. However, Angolans themselves need to pay closer scrutiny to the current management of Sonangol, which supplies about half of the funds that make up the country’s annual state budget. In 2010, Sonangol picked up a bill of over US $1 million for nine days’ worth of accommodation and expenses at the Suite Hotel Maianga in Luanda. The hotel bills (see the table) amounting to US $1,346,022.50 were paid through Banco Africano de Investimentos (BAI), of which Sonangol is the main shareholder, with an 18.5 percent share. The three-star hotel has 54 rooms including two executive suites […]

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The ill-gotten gains behind the Kilamba housing development

Since last July, thousands of Angolan citizens living in Luanda have been making desperate efforts to acquire state-funded public housing apartments in the Kilamba development. The private real estate company hired to sell the apartments and funded by the state, Delta Imobiliária, charges prices ranging from US$125,000 to US$200,000 per apartment. These unaffordable prices, and the disclosure of the names of Delta Imobiliaria’s shareholders, reveal yet another corruption scandal. Contrary to the government’s established ceiling prices for state-funded social housing, Delta is overpricing the units by two to three times. On 5 August 2010, the President of the Republic, José Eduardo dos Santos, announced that struggling Angolan families would be able to buy state funded social housing for a maximum price of US$60,000 per unit. He made the announcement during his speech at the meeting of the National Program for Social Housing, held at the presidential palace. In the run […]

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Angolan Parliament splashes over $43 million on BMWs

The Angolan ruling party, the MPLA, has over the last two years been repeating its promise to keep a watch on the administration, the management of public resources and the well being of Angolans. This article compares the promises with the reality, and shows how the members of parliament have been serving their own interests rather than the interests of the people they supposedly represent. On 16 June 2010, the National Assembly renegotiated a loan contract with the Banco do Comércio e Indústria (BCI) worth 3.21 billion kwanzas (equivalent to 35.7 million US dollars) for the purchase of 210 cars, the 2010 model of the BMW 535i series. These vehicles, valued at $168.9 thousand each, are for parliamentarians’ use on official business and are to be delivered by the end of the year only. The current budget for 2010, for the acquisition of vehicles for parliamentarians, officials and personnel of […]

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The Angolan Presidency: the Epicentre of Corruption

This report shows how the Presidency of the Republic of Angola has become the site of shady business deals, a fact that has consequences for citizens’ freedom and development, as well as for the country’s political and economic stability. The text responds President José Eduardo dos Santos’s call, on 21 November 2009, for a zero tolerance policy against corruption. For the sake of clarity, this investigation limits itself to a small demonstration of the business practices employed by the minister of State and head of the Military Bureau (Casa Militar) in the Presidency, General Manuel Hélder Vieira Dias Júnior “Kopelipa”. This is the man responsible for co-ordinating the defence and security sectors of the state. General Kopelipa is one of the triumvirate that today dominates Angola’s political economy, along with General Leopoldino Fragoso do Nascimento “Dino”, the presidency’s head of telecommunications, and Manuel Vicente, the chairman and CEO of the […]

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President’s Three Henchmen Lead the Plunder of State Assets

In his latest report, “The Angolan Presidency: The Epicentre of Corruption”, Angolan journalist and human rights activist Rafael Marques de Morais focuses on the illicit business links of a powerful triumvirate of officials close to President José Eduardo dos Santos. These officials are the head of the Military Bureau of the Presidency, the head of Telecommunications at the Presidency, and the CEO and chair of national oil company Sonangol, respectively General Manuel Hélder Vieira Dias Júnior “Kopelipa”, General Leopoldino Fragoso do Nascimento, and Manuel Vicente. “Their dealings acknowledge no distinction between public and private affairs, and this has allowed them to channel millions of dollars worth of state assets into their own private businesses,” Marques de Morais says. One of the tools used by these officials for their private operations, according to the report, is the power and the international reputation of Sonangol as well as their influence on the […]

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The Self-Dealings of Sonangol’s CEO

On 20 May 2002, the chairman of the board and CEO of Sonangol, Manuel Vicente, went into partnership with Grinaker LTA International Holdings, a South African company, the Banco Africano de Investimentos (BAI), and Mário Palhares in setting up Grinaker LTA Angola – Civil Construction and Public Works. Each partner took an equal 25 percent shareholding. A few months after it was set up, Grinaker LTA Angola – Civil Construction and Public Works in partnership with the Portuguese construction company Soares da Costa, got the contract for the new Luanda headquarters of the Angolan national oil company, Sonangol: a contract worth US $83.5 million. Work started in June 2003, and the 21-storey building was opened early in 2008. The same partnership of Grinaker LTA Angola and Soares da Costa won the contract in 2006 to build the headquarters of Sonangol Exploration and Production (P&P), the operational subsidiary of the Sonangol […]

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