Angola 2007 - Diamond Development Initiative

SecrecyAngolan officials, in both government andindustry, exhibit a degree of secretiveness andsuspicion that often strays into outright paranoia.The reflex to withhold and conceal maybe a legacy of the country’s past as a onepartystate, or its tutelage under the SovietUnion and Cuba. Either way, withholdinginformation to the degree it is done in Angolais incompatible with the proper functioningof a market economy, not to mention ademocracy.Before visiting the diamond areas of LundaNorte, the Annual Review paid a courtesy callon the governor of Lunda Norte, ManuelFrancisco Gomes Maiato. Our researcherswere cordially received, and given explicit permissionto visit any part of the province theydesired, including any garimpo sites. Theteam duly travelled to the large scale garimpoin Maludi, where they were promptly arrested.*The simple word of the governor wasapparently not sufficient. What was required,according to the Maludi police, was a formalwritten document, signed by the governor orthe provincial head of the national police.Without such a document, our presence neara garimpo site was illicit. With such a paper,we could certainly return.Expelled from Maludi the next day,** theAnnual Review team returned to the capitalof Lunda Norte, and spoke to the provincialcommander of the national police force. Heconfirmed the governor’s promise of freeaccess to the entire province. He confirmedthere was nothing illegal in our visit to theMaludi garimpo. But he could not, alas, providewritten permission. As there was nothingillicit in our movements, there was no needfor such a document. Nor, regrettably, couldhe discipline the Maludi officers, or even infact speak to them. But the Annual Reviewshould feel to return there anytime.The mania for secrecy is such that even thegood things that Angolans do are hidden. Forexample, in conversation with officials fromCatoca, the Annual Review was told that thecompany had in 2003-2004 invested US$2million in refurbishing Saurimo hospital. Itseemed like a sterling example of enlightenedgiving by a model corporation, one theAnnual Review would have been pleased tohighlight in this report, if only the informationcould be confirmed.Alas, there was no record of any suchexpense in Catoca’s 2004 or 2005 annualreport. Nor was the expenditure listed in thecompany’s 2003 or 2004 audited financials.***Curiously, in conversation with the AnnualReview, the Project Director of FundaçãoBrilhante also took credit for a $2 millionupgrade to Saurimo hospital. It is possible, ofcourse, that both were correct. TheFundação, after all, spends money donatedby the diamond industry. A look at theFundação’s annual report might have confirmedthis expenditure, but unfortunatelythat document – the annual report of a charitablefoundation – is off limits to the public.****As a final recourse, the Annual Review contactedSaurimo hospital. Surely they wouldknow whether $2 million had been spent ontheir facility. The annual budget of Saurimohospital is given in the Angolan governmentbudget as US$300,000. US$2 million wouldthus be fairly hard to overlook. However, thehospital administrator, who refused to givehis name, said he could not provide any informationabout any charitable donations, orrecent upgrades, or indeed any informationabout anything at all. Information aboutbudgets and spending would have to comefrom the ministry of health in Luanda. At thispoint the Annual Review gave up.Did Catoca donate US$2 million? Did theSaurimo hospital get refurbished? WillAngolan officials ever learn that hiding statisticsand obstructing simple requests for informationactually damages their own best interests?* According to the Maludi officers, the Annual Review team was not actually under arrest. True, they were kept in police custody, under constant police guard, butthat did not, according to the Maludi definition mean they were under arrest.** Not ‘expelled’ according to the Maludi officers. Just given no option but to leave, and taken in police custody all the way back to the county seat at Nzaji, whereafter another few hours ‘not in custody’ the Annual Review team was eventually released*** After reading a draft of this report, a Catoca reviewer responded that the donation of US$2 million for Saurimo Hospital was approved in 2001, and not, as Catocaofficials had claimed earlier, in 2003. The Catoca reviewer further stated that the full US$ 2 million was paid out in two installments: US$1.375 million in February2002, and a further US$625,000 in June, 2002. The information could be confirmed in the 2002 Price Waterhouse Cooper Audit, the Catoca reviewer said. Hedid not, however, provide a copy of that document.**** Actually, the director said that the annual report could only be released with the express written permission of the Foundation’s president, and only in response toa formal written request. The Annual Review submitted such a formal written request, but despite repeated e-mails, had no further communication from FundaçãoBrilhante.18