Category Archives: corruption/Illegal markets

Favorite of the West: Niger as Police State

Niger Soluxe hotel

Niger, a poverty-stricken nation perched on the southern belt of the Sahara, is rapidly being transformed into one of the world’s most strategic security hubs….“This place is a nest of spies,” said one contractor … “Below the radar, it’s become a key country for the West.”  A surge in financial assistance from European nations seeking to stem the flow of African migrants has made Niger the world’s largest per capita recipient of European Union aid…Western military forces operate from at least nine bases in Niger, government officials said…. The U.S. is finishing a large air base in Agadez, while the Central Intelligence Agency has begun flying armed drones from an airstrip outside the northern town of Dirkou, Nigerien officials said.

U.S. and European policy makers praise the government as a good partner that has welcomed foreign military personnel and slashed the migrant flow by almost 90% from 2015 highs. …Locals, nongovernmental organizations and opposition activists say the government is using international backing to neutralize dissent and embezzle millions of dollars in aid, charges the government denies. The opposition—backed by rights group Amnesty International—says President Mahamadou Idriss Issoufou, in power since 2011, is arbitrarily jailing activists and spending Western aid on bolstering his elite Presidential Guard…

Swaths of the nation’s centuries-old transportation economy—the movement of people and goods from West Africa through the Sahara—has essentially been criminalized by the EU crackdown on migration.  Some of the desert-dwelling Tuareg people, who have transported goods for centuries, are now smuggling weapons, men and money for cash-rich jihadist insurgencies. Migrants are dying in the desert in failed attempts to find new routes.

“The West is pleased because Niger’s government is a willing partner,but as Niger’s security chief, Mohammed Bazoum, says “We have become a hinge country, a geostrategic hub, but it is a disaster for us. We are known as a land of terrorism and migrant traffic.”

Across Niger’s western border with Mali, jihadist groups including Islamic State and al Qaeda franchises control stretches of territory around the northern city of Gao. Along the southern frontier with Nigeria, a rejuvenated Boko Haram is mounting intensifying attacks against security forces, including around the city of Diffa, where the U.S. has dozens of troops stationed. To the north lies Libya, which has become a hotbed of instability, weapons and radicalization.

The European Development Fund last year awarded $1 billion to Niger through 2020, and unusually for a country governance watchdogs deem chronically corrupt, 75% is now infused directly into the Nigerien budget instead of through nongovernmental organizations.The money funds hundreds of off-road vehicles, motorcycles and satellite phones for Nigerien security forces as well as new infrastructure and technology along the borders and countrywide development programs.

In Niamey’s central Plateau district, tall black screens block the soaring new U.S. Embassy headquarters, which will be one of the largest in West Africa. Saudi Arabia has broken ground on its own huge mission, while buildings belonging to EU agencies occupy whole city blocks. Hotels and conference centers are rising in tandem, reconfiguring the economic and political landscape of a nation ranked the world’s second-poorest behind the Central African Republic.

The government says the building boom is creating jobs. Locals say it has stoked runaway inflation and priced them out of their neighborhoods. In the past year, the cost of a kilogram of rice has risen 29%, sending shock waves through homes where the average wage is $2.66 a day.

“The cost to live here rises with each new European coming,” lamented Abdulraham Mamoudou, repairing his motor scooter on a dusty corner near the expanding U.S. Embassy compound.

A similar pattern is playing out further north in the smuggling hub of Agadez, where the EU-coordinated migration crackdown has transformed a boomtown into a simmering bust.  The city’s jails are bursting with men who have been convicted of smuggling. Vast depots on the town’s outskirts house hundreds of trucks confiscated by authorities…“This place is now for the Americans and French,” said Sadiq, a former migrant smuggler who evaded arrest and is now unemployed. “They took our livelihood and don’t give us anything in return.”

Excerpts from ‘A Nest of Spies’: Niger’s Deserts Become Front Line of Fight Against Jihadis, Wall Street Journal, Sept. 12, 2018

The Game-Changers: oil, gas and geothermal

image from UNESCO

The Democratic Republic of the Congo (DRC) has decided to degazette parts of two UNESCO World Heritage Sites to allow for oil drilling. Environmentalists have reacted sharply to the decision to open up Virunga and Salonga national parks – a move that is likely to jeopardise a regional treaty on the protection of Africa’s most biodiverse wildlife habitat and the endangered mountain gorilla…The two national parks are home to mountain gorillas, bonobos and other rare species. Salonga covers 33 350 km2 (3,350,000 ha)of the Congo Basin, the world’s second largest rainforest, and contains bonobos, forest elephants, dwarf chimpanzees and Congo peacocks….

On 7 April, 2018, a council of ministers from the DRC, Rwanda and Uganda agreed to ratify the Treaty on the Greater Virunga Transboundary Collaboration (GVTC) on Wildlife Conservation and Tourism Development. The inaugural ministerial meeting set the deadline for September 2018 to finalise the national processes needed to ratify the treaty.

The Virunga National Park (790,000 ha, 7 900 km2)is part of the 13 800 km2 (1 3800 00 ha) Greater Virunga Landscape, which straddles the eastern DRC, north-western Rwanda and south-western Uganda.  The area boasts three UNESCO World Heritage Sites – Virunga, Rwenzori Mountains National Park and Bwindi Impenetrable National Park. It also boasts a Ramsar Site (Lake George and Lake Edward) and a Man and Biosphere Reserve (in Queen Elizabeth National Park). It is the most species-rich landscape in the Albertine Rift – home to more vertebrate species and more endemic and endangered species than any other region in Africa.

According to the Greater Virunga Landscape 2016 annual report, the number of elephant carcasses recorded in 2016 was half the yearly average for the preceding five years. The report also mentions a high rate of prosecution and seizures. It cites a case study on Uganda’s Queen Elizabeth National Park where 282 suspects involved in poaching were prosecuted, with over 230 sentenced….The GVTC has also helped to ease tensions between the countries by providing a platform where their military forces can collaborate in a transparent way. ..

Armed groups have reportedly killed more than 130 rangers in the park since 1996. Militias often kill animals such as elephants, hippos and buffaloes in the park for both meat and ivory. Wildlife products are then trafficked from the DRC through Uganda or Rwanda. The profits fund the armed groups’ operations.

Over 80% of the Greater Virunga Landscape is covered by oil concessions and this makes it a target for state resource exploitation purely for economic gain.


2015: Until recently, in GVL, extraction of highly valued minerals such as gold and coltan, were largely artisanal. The recent discovery of oil, gas and geothermal potential, however, is a game-changer. Countries are now moving ahead in the exploration and production of oil and gas, which if not properly managed, is likely to result in major negative environmental (and social) changes. Extractive industries are managed under each GVL partner state policy guidelines and legislation. Concessions for these industries cover the whole of the GVL, including the World Heritage Sites as well as national protected areas . Since 2006, Uganda discovered commercial quantities of oil in the Albertine Graben and production in Murchison will begin within the next few years. The effect of the extractive industries, similar to and contributing to that of the increase in urbanization is the increased demand for bush meat, timber and fuel wood from the GVL.

Excertps from Duncan E Omondi Gumba, DRC prioritises oil over conservation, ISS Africa,  July 11, 2018//GREATER VIRUNGA LANDSCAPE
ANNUAL CONSERVATION STATUS REPORT 2015

 

Extreme Markets: the fascination for wild genitalia

Tomohon, in the highlands of North Sulawesi, Indonesia is …the “extreme market”. There is certainly something extreme about the serried carcasses, blackened by blow torches to burn off the fur, the faces charred in a rictus grin.   The pasar extrim speaks to Sulawesi’s striking biogeography. The Indonesian island straddles the boundary between Asiatic and Australian species—and boasts an extraordinary number of species found nowhere else. But the market also symbolises how Asia’s amazing biodiversity is under threat. Most of the species on sale in Tomohon have seen populations crash because of overhunting (habitat destruction has played a part too)…

An hour’s drive from Tomohon is Bitung, terminus for ferry traffic from the Moluccan archipelago and Papua, Indonesia’s easternmost province. These regions are even richer in wildlife, especially birds. Trade in wild birds is supposedly circumscribed. Yet the ferries are crammed with them: Indonesian soldiers returning from a tour in Papua typically pack a few wild cockatoos or lories to sell. One in five urban households in Indonesia keeps birds. Bitung feeds Java’s huge bird markets. The port is also a shipment point on a bird-smuggling route to the Philippines and then to China, Taiwan, even Europe. Crooked officials enable the racket.

The trade in animal parts used for traditional medicine or to denote high status, especially in China and Vietnam, is an even bigger racket. Many believe ground rhino horn to be effective against fever, as well as to make you, well, horny. Javan and Sumatran rhinos were not long ago widespread across South-East Asia, but poaching has confined them to a few tiny pockets of the islands after which they are named. Numbers of the South Asian rhinoceros are healthier, yet poachers in Kaziranga national park in north-east India have killed 74 in the past three years alone.

Name your charismatic species and measure decline. Between 2010 and 2017 over 2,700 of the ivory helmets of the helmeted hornbill, a striking bird from South-East Asia, were seized, with Hong Kong a notorious transshipment hub. It is critically endangered. As for the tiger, in China and Vietnam its bones and penis feature in traditional medicine, while tiger fangs and claws are emblems of status and power. Fewer than 4,000 tigers survive in the wild. The pressure from poachers is severe, especially in India. The parts of over 1,700 tigers have been seized since 2000.

Asia’s wildlife mafias have gone global. Owing to Asian demand for horns, the number of rhinos poached in South Africa leapt from 13 in 2007 to 1,028 last year. The new frontline is South America. A jaguar’s four fangs, ten claws, pelt and genitalia sell for $20,000 in AsiaSchemes to farm animals, which some said would undercut incentives to poach, have proved equally harmful. Lion parts from South African farms are sold in Asia as a cheaper substitute for tiger, or passed off as tiger—either way, stimulating demand. The farming of tigers in China, Laos, Thailand and Vietnam provides cover for the trafficking of wild tiger parts. Meanwhile, wild animals retain their cachet—consumers of rhino horn believe the wild rhino grazes only on medicinal plants.

Excerpts from  Wasting Wildlife, Economist, Apr. 21, 2018, at 36

A Slow-Burning Tragedy

image from Universal Somali TV

Charcoal is one of the biggest informal businesses in Africa. It is the fuel of choice for the continent’s fast-growing urban poor, who, in the absence of electricity or gas, use it to cook and heat water. According to the UN, Africa accounted for three-fifths of the world’s production in 2012—and this is the only region where the business is growing. It is, however, a slow-burning environmental disaster.

In Nyakweri forest, Kenya, the trees are ancient and rare. Samwel Naikada, a local activist, points at a blackened stump in a clearing cut by burners. It is perhaps 400 years old, he says. The effect of burning trees spreads far. During the dry season, the forest is a refuge for amorous elephants who come in from the plains nearby to breed. The trees store water, which is useful in such a parched region. It not only keeps the Mara river flowing—a draw for the tourists who provide most of the county government’s revenue. It also allows the Masai people to graze their cows and grow crops. “You cannot separate the Masai Mara and this forest,” says Mr Naikada….

Nyakweri is hardly the only forest at risk. The Mau forest, Kenya’s largest, which lies farther north in the Rift Valley, has also been hit by illegal logging. Protests against charcoal traders (!) broke out earlier this year, after rivers that usually flow throughout the dry season started to run dry. In late February a trader’s car was reportedly burned in Mwingi, in central Kenya, by a group of youngsters who demanded to see the trader’s permits. At the end of February 2018 the government announced an emergency 90-day ban on all logging, driving up retail prices of charcoal by 500%, to as much as 5,000 shillings a bag in some cities.

The problems caused by the charcoal trade have spread beyond Kenya. In southern Somalia, al-Shabab, a jihadist group, funds itself partly through the taxes it levies on the sale of charcoal (sometimes with the help of Kenyan soldiers, who take bribes for allowing the shipments out of a Somali port that Kenya controls). The logging also adds to desertification, which, in turn, causes conflict across the Sahel, an arid belt below the Sahara. It forces nomadic herders to range farther south with their animals, where they often clash with farmers over the most fertile land.

In the power vacuum of the eastern Democratic Republic of Congo, rampant charcoal logging has destroyed huge swathes of Virunga National Park. That threatens the rare gorillas which tourists currently pay as much as $400 a day to view, even as it fuels the conflict.

In theory, charcoal burning need not be so destructive. In Kenya the burners are meant to get a licence. To do so, they have to show they are replacing the trees they are cutting down and that they are using modern kilns that convert the trees efficiently into fuel. But, admits Clement Ngoriareng, an official at the Kenya Forest Service (KFS), the rules are laxly enforced. Some suspect that powerful politicians stymie efforts to police burners.

Excerpts from A Very Black Market: Illegal Charcoal, Economist, Mar. 31, 2018

OPL 245: an Affair to Remember and Sanction

Nigeria has long ignited interest from oil firms, but it can be a dangerously combustible environment when it comes to the risk of corruption. Two firms caught up in scandals are Royal Dutch Shell and Eni, Italy’s state-backed energy group.

The case centres on the purchase of a big offshore oil field known as OPL 245, and touches the top ranks of both firms. In the dock will be, among others, Eni’s current CEO, Claudio Descalzi, and Shell’s former exploration chief, Malcolm Brinded. Also on trial are the firms themselves, charged with failing to prevent bribery. The individuals face jail if convicted; the companies face fines. All deny wrongdoing.

In 2011 Shell and Eni jointly paid the Nigerian government $1.3bn for OPL 245. Prosecutors allege they knew the government would pass $1.1bn of the funds to a shell company called Malabu, controlled by Dan Etete, a former oil minister. They claim the companies had reason to believe Mr Etete would use much of what he received to pay off officials, including Nigeria’s president at the time, Goodluck Jonathan. They also suspect that more than $50m may have gone to Shell and Eni executives as kickbacks. Mr Jonathan has denied involvement. Mr Etete faces charges in Nigeria; his whereabouts are unknown…

International investors are particularly vexed about the alleged involvement of Shell, a blue-chip oil major. In 2017, after e-mails were leaked, it admitted that executives had known that much of the purchase price would go to Mr Etete, a convicted money-launderer. In the e-mails, they speculated that funds might flow on to Mr Etete’s political friends. One investor says that Shell, by emphasising for so long who the contract was with, not where the money was going, honoured the letter but not the spirit of good governance—“and that’s not good enough anymore”.

Excerpts from The OPL 245 Affair: Drillers in the Dock, Economist, Mar. 3, 2018

Returning Stolen Money: the Nigerian Saga (2002-2018)

Nigeria and Switzerland signed a memorandum of understanding on March 26, 2018 to pave the way for the return of illegally acquired assets…Switzerland said in December 2017 that it would return to Nigeria around $321 million in assets seized from the family of former military ruler Sani Abacha via a deal signed with the World Bank…[T]he memorandum of understanding was ratified between Nigeria, Switzerland and the International Development Association, (IDA), the World Bank’s fund for the world’s poorest countries.

Excerpt from Nigeria and Switzerland sign agreement to return stolen assets, Reuters, Mar. 26, 2018

The Balding Forests of Australia

Most deforestation takes place in poor countries. In richer places, trees tend to multiply. Australia is an unhappy exception. Land clearance is rampant along its eastern coast, as farmers take advantage of lax laws to make room for cattle to feed Asia. WWF, a charity, now ranks Australia alongside Borneo and the Congo Basin as one of the world’s 11 worst “fronts” for deforestation.

The worst damage occurs in the north-eastern state of Queensland, which has more trees left to fell than places to the south, where agriculture is more established… Its bulldozers are at present busier than they have been for a decade. They erased 395,000 hectares of forest, including huge tracts of ancient vegetation, between 2015 and 2016—the equivalent of 1,000 rugby pitches a day. As a share of its forested area, Queensland is mowing down trees twice as fast as Brazil.

Australia has lost almost half its native forest since British colonialists arrived, and much of what remains is degraded. For a time, it seemed that the clear-cutting might come to an end: in the early 2000s several state governments passed bills to reduce deforestation. But in the past decade these have been wound back in every state. Queensland’s land clearance has more than doubled since conservatives loosened its forestry law in 2013, allowing farmers to “thin” trees by up to 75% without a permit. Neighbouring New South Wales recently enacted a similar rule.

Conservationists blame powerful agricultural lobbies. These retort that controls on land clearance push up food prices and cost jobs. Family farmers lament that trees obstruct the big machinery needed to keep their land productive. … In 2014 a landowner in New South Wales murdered an environment officer who was investigating illegal bulldozing. (Authorities in the state are examining at least 300 cases of illegal tree-clearing.)

Yet clearing land eventually hurts farmers too because, without trees, soil erodes and grows saltier. Deforestation releases carbon dioxide into the atmosphere, spurring global warming, and reduces regional rainfall…. Loss of habitat has brought many species, including the koala, to the brink of extinction.

Chainsaw massacre: Deforestation in Australia, Economist, Feb. 24, 2018