Luke Baker
International oil companies are furthering the ruin of war torn Angola by turning a blind eye to corruption, a British human rights organisation said on Sunday.
Oil giants like BP-Amoco, Chevron and Exxon/Mobil are "the source of the vast disappearing revenues which are the driving force behind the continuation of war", said A Crude Awakening, a 25-page report by Global Witness.
"Rather than contributing to Angola's development, Angola's oil revenue is directly contributing to further decline," it said.
"International oil companies must accept that they are playing with the politics and lives of Angola's people.
"As the main generators of revenue to the government of Angola, the international oil industry and financial world must accept their complicity in the current situation."
Angola is Africa's second-largest oil producer behind Nigeria, pumping about 770 000 barrels of crude per day (bpd). Development of deep offshore reserves is expected to boost production to more than one million bpd by 2001.
While the industry generates government revenue of between $1,4-billion (R8,4-billion) and $2,7-billion a year, depending on prices, the country is mired in a 25-year civil war that has left hundreds of thousands dead and millions more homeless.
A report by Global Witness on Angola's murky diamond trade, released in December last year, was regarded as partly responsible for South African diamond giant De Beers's decision in October to stop buying stones from the country.
The chief concern of the new report is that the oil industry is turning a blind eye to government corruption and tacitly contributing to a lack of transparency that has allowed oil-related revenue to be siphoned off to pay for arms and enrich a powerful elite, including Angola's president.
Earlier this year, three companies - BP-Amoco, Exxon and France's Elf Aquitaine - paid "signature bonuses" estimated to total $900-million to Angola's state-owned oil company Sonangol to secure lucrative offshore drilling rights.
"A high proportion, possibly as high as $400-500-million, has found its way directly to the presidency, although we do not suggest that the companies were aware this would happen," the report says.
"Much of this money was used for arms procurement," it said, again stating that oil companies may well not have known.
Signature bonuses, the companies say, are part and parcel of the industry, and the amounts paid to Sonangol were not out of keeping with those paid to other oil producers such as Mexico. They also say it is not for them to tell sovereign governments what to do with their money.
Soon after the bonuses were paid, military monitors including Jane's Defence Weekly reported heavy purchases by Angola of arms from East Europe, including jets and tanks.
The government subsequently launched an offensive against the rebel Unita movement, captured the rebels' headquarters and has since gained the upper hand in the fighting.
The latest report made a slew of recommendations focused on transparency and accountability and urged tighter checks by the industry, Angola's government and international organisations.
"If those involved fail to change their practices, they may be seen to be complicit in the continuing war in Angola and the suffering of vast numbers of Angolans." - Reuters