Friday, September 27, 2013
Former Namcor partner cited in N$6b Angola probe
WINDHOEK STAFF REPORTER
Swiss oil firm Glencore - to which the Namibian government paid N$538 million in 2011 to settle debts recklessly incurred through its controversial fuel supply agreement with State petroleum company Namcor, is among the institutions whose roles are being investigated in a US$700 million (N$6,32 billion) deal in Angola.
This comes after a group of Angolan anti-corruption campaigners lodged legal action in Angola and Switzerland over the deal, in which millions of dollars were allegedly diverted into the pockets of European arms dealers, a Russian oligarch, Angola's President Eduardo dos Santos and other officials.
Dos Santos is alleged to have made US$36 million (N$325,3 million) from the deal, claims UK-based anti-corruption advocacy group Corruption Watch.
The corruption watch organisation released a report highlighting the role allegedly played by senior bankers at Swiss Banking Corporation (SBS, which later merged with Union Bank of Switzerland to become UBS) in enabling a fraudulent multi-million dollar transaction, which involved paying off Angola's restructured Soviet Union-era debt to Russia.
Glencore is said to have played a role in the transaction, Corruption Watch alleges in its report.
Glencore, which was buying oil from Angola's State-owned oil company Sonangol at the time, was brought in to help put the deal in motion by providing advance payments on oil shipments, Corruption Watch reports.
The company, which is also involved in commodity trading, in turn allegedly brought in the Swiss Banking Corporation to set up an escrow account that received the rescheduled debt payments, and forwarded money to Russia and to other accounts owned or designated by businessmen Pierre Falcone and Arcadi Gaydamak.
The two men allegedly helped orchestrate illegal French arms sales to Angola in the 1990s, which were exposed in France's 'Angolagate' trial and scandal in 2009. Falcone and Gaydamak together made over US$260 million (N$2,3 billion) for their role in the deal, while their associate Vitaly Malkin, a wealthy Russian, received over US$48 million (N$433,8 million), the report further states.
In Namibia, Glencore was accused of leading Namcor into a 'debt trap', which government painfully settled two years ago and which eventually led to the dismissal of the company's then managing director Sem Beukes.
Namcor initially owed Glencore about N$240 million, but a Cabinet-commissioned audit found that at the end of 2010, the debt has escalated to N$538 million.
Minister of Mines and Energy Isak Katali explained at the time that that the escalation of debt was due to Namcor accepting a credit facility from Glencore, after the Namibian company consistently failed to pay Glencore for services rendered.
Glencore challenged in the High Court government's decision to revoke Namcor's mandate of importing 50% of the country's petroleum products.
Namcor had contracted Glencore to ship oil to Namibia, and the cancellation of the Namcor mandate had affected the agreement the two companies had entered into, hence the court challenge
This comes after a group of Angolan anti-corruption campaigners lodged legal action in Angola and Switzerland over the deal, in which millions of dollars were allegedly diverted into the pockets of European arms dealers, a Russian oligarch, Angola's President Eduardo dos Santos and other officials.
Dos Santos is alleged to have made US$36 million (N$325,3 million) from the deal, claims UK-based anti-corruption advocacy group Corruption Watch.
The corruption watch organisation released a report highlighting the role allegedly played by senior bankers at Swiss Banking Corporation (SBS, which later merged with Union Bank of Switzerland to become UBS) in enabling a fraudulent multi-million dollar transaction, which involved paying off Angola's restructured Soviet Union-era debt to Russia.
Glencore is said to have played a role in the transaction, Corruption Watch alleges in its report.
Glencore, which was buying oil from Angola's State-owned oil company Sonangol at the time, was brought in to help put the deal in motion by providing advance payments on oil shipments, Corruption Watch reports.
The company, which is also involved in commodity trading, in turn allegedly brought in the Swiss Banking Corporation to set up an escrow account that received the rescheduled debt payments, and forwarded money to Russia and to other accounts owned or designated by businessmen Pierre Falcone and Arcadi Gaydamak.
The two men allegedly helped orchestrate illegal French arms sales to Angola in the 1990s, which were exposed in France's 'Angolagate' trial and scandal in 2009. Falcone and Gaydamak together made over US$260 million (N$2,3 billion) for their role in the deal, while their associate Vitaly Malkin, a wealthy Russian, received over US$48 million (N$433,8 million), the report further states.
In Namibia, Glencore was accused of leading Namcor into a 'debt trap', which government painfully settled two years ago and which eventually led to the dismissal of the company's then managing director Sem Beukes.
Namcor initially owed Glencore about N$240 million, but a Cabinet-commissioned audit found that at the end of 2010, the debt has escalated to N$538 million.
Minister of Mines and Energy Isak Katali explained at the time that that the escalation of debt was due to Namcor accepting a credit facility from Glencore, after the Namibian company consistently failed to pay Glencore for services rendered.
Glencore challenged in the High Court government's decision to revoke Namcor's mandate of importing 50% of the country's petroleum products.
Namcor had contracted Glencore to ship oil to Namibia, and the cancellation of the Namcor mandate had affected the agreement the two companies had entered into, hence the court challenge
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