Monday, May 15, 2017

Rafael Marques - Dams for the Damned: China in Angola

When China and Angola signed a US $4.5 billion financing agreement last year to fund the construction of a dam and hydro-electric power station at Caculo Cabaça in Kwanza-Norte province, did the Chinese realize this project would be for the benefit of the Angolan President’s daughter?

The loan from the Industrial and Commercial Bank of China (ICBC), is meant to pay for the services of the consortium selected to build the hydro-electric dam. But the backstory reveals, yet again, how President José Eduardo dos Santos uses his presidential and orders to enrich his family. Evidence supplied to Maka Angola shows that Isabel dos Santos will be a major beneficiary of the deal signed on her daddy’s behalf by Finance Minister Archer Mangueira, with all concerned apparently unaware of procedures required by law (and followed by the rest of the world) to obtain tenders for major publics works projects.
See Rafael Marques' blog: Maka Angola

How do we know Isabel benefits? Join the dots. José Eduardo dos Santos signed Presidential Order 58/15 in June of 2015, to approve the Caculo Cabaça Hydroelectric Project and authorize the Energy and Water Ministry to enter into a US $4 billion contract with a consortium formed by CGGC (China Gezhouba Group Company) and Niara Holding. The President included the project in the Annual Public Investment Programme (PIP) and instructed the Finance Minister to obtain a loan from the ICBC. Somewhere along the line, an additional US $500 million was appended to the original budget without explanation. Was the Presidential Order authorizing this major public works preceded by any public competition for tenders or formal procurement procedure as required by Angola’s Law on Public Works Contracts? According to lawyer Horácio Junjuvili, “this project was awarded [to CGGC and Niara Holding Limitada] without any previously known tender, thus making it illegal under the Law on Public Works Contracts”, The lawyer adds that the project does not qualify for presidential exclusion under the law.

Furthermore, the Presidential Order refers to what appear to be two companies – CGGC and NIARA – but in fact at that point there was no such consortium, only a single company registered in Angola on May 23, 2013 under the name “CGGC & Niara Holding, Limitada”. Equal partners in CGGC & Niara were “ 2I’S – Sociedade de Investimentos Industriais, S.A.” and “CGGC-Engenharia de Angola, Lda.” represented by Zhou Cheng. Curiously, 2I’S head office is registered at one of Isabel dos Santos’ private residences in Luanda… read more