Hotel Talatona and the Scavangeing of Sonangol

The Talatona Convention Centre (CCTA) is one example of the large-scale investments that Sonangol, the state oil company, has been making in Angola in order to diversify its activity beyond the petroleum sector. At a cost of $149.1 million, the centre includes a five-star hotel called the Tatalona Convention Hotel (HCTA), which was opened on 18 December 2009 by president José Eduardo dos Santos. Sonangol’s investments outside of the oil sector have served as the most effective mean to divert hundreds of millions in public funds to an inner circle of senior government officials and company directors. CCTA is only one of these schemes. On 8 November 2006, Sonangol set up CCTA in partnership with the Angolan private companies Simaroco and Oil International Supply Services S.A. (OISS). This happened six months after the opening of the $60 million convention centre by the then vice-president Fernando Dias dos Santos. On the […]

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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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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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When Corruption in Angola is Easier Than in Nigeria

It is an honor for me to be here. I thank Ambassador Lyman and the Council on Foreign Relations for the opportunity to address you this morning. During our civil wars, the government of Angola consistently pointed to corruption as the second major destructive force in the country after the civil war.  Ironically, in times of peace, corruption has become the most defining issue in governing the nation.  It is a common part of business and government relationships. It has taken root throughout our social fabric. It is so pervasive that by the end of 2009 President José Eduardo dos Santos declared a zero tolerance policy against the scourge – a sinister attempt to deflect attention to the problem and to appease his detractors. Since October last year, I set up a website [www.makaangola.org] to monitor corruption in government in the context of the country’s legal framework, and in order […]

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Manuel Vicente’s Raid on Sonangol

In 2008, Manuel Vicente, the chairman of the board and director general of the Angolan state oil company, Sonangol, restructured the company’s main subsidiaries to his personal benefit. The same year, petroleum exports exceeded $62 billion, according to the World Bank: 97.7% of Angola’s exports. These figures demonstrate the crucial role of Sonangol in the country’s political economy, as the only Angolan concession-holder in the industry. Manuel Vicente did a business deal with himself when he illegally transferred a percentage of Sonangol Holding into his own name, thus making himself a formal (private) shareholder in almost all the multi-million dollar deals of a state-owned business. This move by Sonangol’s top manager must first be put into context in the light of current legislation and the MPLA’s rhetoric on the supposed zero tolerance policy towards corruption. On 30 March 2010, the President of the Republic, José Eduardo dos Santos, signed into […]

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Legal Doubts Over Thales’ Angola Deal

The head of the Angolan state oil company and the country’s ambassador to France have entered into a multi-million euro partnership with the French defense company Thales to supply communications equipment to the Angolan military. Angolan anti-corruption legislation appears to prohibit the two officials’ participation in the deal. In January 2009, the Council of Ministers of Angola awarded two contracts, worth a total of 141,6 million Euros, to a joint venture between the Thales Group and a shell Angolan company, Sadissa, for the supply of a new system of communications to the Angolan Armed Forces (FAA). Thales was previously implicated in the corruption case that lead to the conviction in 2005 of a South African businessman Schabir Shaik, on charges that included soliciting a bribe from Thales on behalf of the then South African Deputy President, and now President, Jacob Zuma. The Angolan contracts, with the official references 38/DM/03/SST/08 and […]

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Presidential Self-Dealing Has Corrupted Society

In August, I sent a letter to the President of the Republic, in which I drew attention to the fact that the Attorney General of the Republic was breaking the law by serving as managing director of various private firms, something that is incompatible with the office that he holds. Several people have asked me about the lack of a response from the Head of State and Government regarding these complaints. My response has been that one cannot and should not expect any positive reaction from the President of the Republic concerning corruption and respect for the law. I argued that José Eduardo dos Santos embodied the same practices of conflating public duties with private interests, which he himself had condemned as the worst evil of his government. I also stated that disregard for the law was common practice for Dos Santos. In response to these questions, I present a […]

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