DOCSLIB.ORG

Issue 106 INDEPENDENT COVERAGE of the MINING MARKETS November 2014 Mahmoud Thiam: Guinea’S $200M Technocrat from UBS

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Issue 106 INDEPENDENT COVERAGE of the MINING MARKETS November 2014 Mahmoud Thiam: Guinea’S $200M Technocrat from UBS GLOBAL MINING OBSERVER Issue 106 INDEPENDENT COVERAGE OF THE MINING MARKETS November 2014 Mahmoud Thiam: Guinea’s $200m Technocrat from UBS The following is an account of the Agnelli. “A guy can marry a former Simandou affair by Guinea’s former hooker and only discover years later mining minister. It is not intended to that his wife used to be a prostitute,” reflect the opinions of all sides to Agnelli has since said of his dealings in Rio Tinto’s current lawsuit. the country. Rio says Thiam took a $200m bribe A MAN MUST FIND HIMSELF in a from Steinmetz, using the proceeds to very special position before he is able buy a country estate and an apartment to deny accepting a $200m bribe. in Manhattan. As minister, he took to Mahmoud Thiam’s life and career has speeding a Lamborghini around never been dull. Guinea’s capital Conakry, according to Born in Guinea, Thiam left when he reports, collecting suitcases of cash was seven in the early 1970s, after his from corporate jets and distributing father, a banker, was murdered by them to military leaders. Guinea’s dictatorship. He went to live with his uncle, a diplomat for the UN, Testing the Water moving from country to country and studying at French-speaking schools. Thiam chuckles at the charges, but Academically he flourished and is clearly perplexed. Guinea’s former gained a place at Cornell, studying president never set foot in his house, agricultural economics, before starting he says, and the pair have never had “a venture with some partners” in New dinner together. The flat in Manhattan York. The firm was licensed to trade pending and were afraid that our language of the markets. His response was meanwhile paid for in 2006. GLOBAL MINING OBSERVER is a mining news bulletin. To receive future issues as they are released email: [email protected] agricultural commodities on behalf of business would get harmed if Merrill was, ‘Why don’t you recommend some- BSGR has been repeatedly accused the US commerce department, he could not deploy the resources, so one you think you can work with?’” of “flipping” its half of Simandou to explains, in competition with EU when we felt Merrill being a little Thiam says he put forward three Vale, construed as proof of corruption, subsidy programs. hesitant, we contacted the banks that candidates for the ministry, but the though Rio has also admitted it was in After a “catastrophic business had been courting us and put them in military insisted to Komara that Thiam negotiations with Vale, holding a string transaction” involving Angola, Thiam competition.” take the role himself. “I rejected him. of meetings in New York. left and joined Merrill Lynch. “I rose The move was so lucrative for It took three weeks of going back and Most bizarre, is that Thiam was not fairly quickly,” he says. “I think it was Thiam and his team that his secretary forth and I finally accepted. It was even mining minister when Rio more by luck and circumstance than by is said to have earned $500,000 in the absolutely unexpected. It was even very publicly announced it had been my own merit I guess, but I was lucky subsequent transfer to UBS. unwelcome if I might say.” stripped of its rights, nor when they enough to develop my business very were awarded to BSGR. The ministers fast at Merrill.” Flying to Guinea Rio Tinto responsible for the decision went Thiam built his own investment unnamed in Rio’s charges because they banking team that became largely By the time he left Merrill Lynch, In the final six months of the have since returned to power under the autonomous, jumping from debt mining, oil and gas was Thiam’s main former president’s regime, Rio Tinto’s presidency of Alpha Conde, Thiam restructuring to telecoms after Russia’s business, but his banking career on rights to half of its multi-billion tonne contends. debt crisis in ’98, before expanding Wall Street was cut short when he was Simandou iron ore deposit, deep in into commodity-backed finance and invited in 2008 to become Guinea’s Guinea’s interior, had been stripped Information & Belief advisory work for finance ministries, mining minister. from the group and awarded to BSGR, central banks and “arch-business “An individual who knew of me and the private mining arm of diamond Rio’s evidence appears to rest on a concerns”, including Chinese and my work at the bank and was familiar tycoon, Beny Steinmetz. report by one private detective, a Indian groups seeking mining with me, was picked out to become Six years later and lawsuits are former CIA operative, Stephen Fox. investment in Africa. prime minister by the military,” Thiam flying: corruption enquiries funded by Thiam says his rubbish has been raided recalls. “They wanted a civilian financier George Soros have stripped by Fox and believes he is under UBS technocrat to come in and run a mostly BSGR of its rights, Rio is suing both surveillance. civilian government.” BSGR and Brazil’s Vale, which bought Accusations in Rio’s legal papers “We were being courted very The new prime minister, Kabine into the contested blocks for $2.5bn in are repeatedly fronted by the caveat, aggressively by a number of banks,” Komara, had been a director at a trade 2010, whilst BSGR is seeking “On information and belief...”, a legal Thiam says. “We were very well treated finance bank based in Cairo. He arbitration with the World Bank. escape clause that exempts Rio from and very comfortable at Merrill so we telephoned Thiam and offered UBS an Mahmoud Thiam is an unlikely defamation if its allegations are found didn’t consider it, but just after 2000, advisory mandate over Guinea’s linchpin in the affair. Rio has accused to lack substance. It has also lowered we noticed that Merrill might go mining industry. Thiam agreed, on the him of hosting dinners between Beny the bribe it says Thiam received to at through an aggressive contraction.” basis that Komara appoint a mining Steinmetz, Guinea’s former president least $100m, raising questions as to “We had a very large transaction minister “who understands the and Vale’s then chief executive, Roger the evidence on... Continue ➤ Gold (US$ per ounce) Silver (US$ per ounce) 1,350 21.50 1,288 19.88 1,225 18.25 1,163 16.63 1,100 15.00 Aug. Sept. Oct. Nov. Aug. Sept. Oct. Nov. Brown Envelopes Shred Credit Risk Binds BHP Oil Prices Leading Both Tinkler’s Reputation to Nickel West the Dollar and Gold Copper (US$ per tonne) Zinc (US$ per tonne) Unseated Newcastle MP BHP Billiton’s sale of Nickel Plunging oil prices offer tax 7,300 2,500 Jodi McKay emerging West collapses; Glencore cut to consumers and a bigger 7,100 2,400 triumphant, after standing thought to have bid lowball boost to the US economy than 6,900 2,300 between coal baron Nathan $200m with a view to closing anything the Fed could “dream Tinkler and “a shipload of it down, tightening its hold up”, says Red Kite portfolio 6,700 2,200 cash” over the nickel market manager 6,500 2,100 The Australian ➤ Sydney Morning Herald ➤ Bullion Desk ➤ Aug. Sept. Oct. Nov. Aug. Sept. Oct. Nov..
Load more

Recommended publications
  • United States District Court Southern District of New York
    R-0047 UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK Rio Tinto plc, Plaintiff, Civil Action No. v. Vale, S.A., Benjamin Steinmetz, BSG COMPLAINT Resources Limited, BSG Resources (Guinea) Ltd. aka BSG Resources Guinée Ltd, BSGR Guinea Ltd. BVI, BSG Resources Guinée JURY TRIAL DEMANDED SARL aka BSG Resources (Guinea) SARL aka VBG-Vale BSGR Guinea, Frederic Cilins, Michael Noy, Avraham Lev Ran, Mamadie Touré, and Mahmoud Thiam, Defendants. For its Complaint, Plaintiff Rio Tinto plc (“Rio Tinto”) alleges as follows: I. INTRODUCTION 1. This is a case about the theft of Rio Tinto’s valuable mining rights by the Defendants through a scheme in violation of the Racketeer Influence and Corrupt Organizations Act (“RICO”), hatched and substantially executed in the United States. The U.S.-based enterprise’s ultimate target was Rio Tinto’s mining concession in the Simandou region of southeast Guinea. Simandou is one of the most valuable iron ore deposits in the world, estimated to be worth billions of dollars. At the time Defendants devised their fraudulent scheme, Rio Tinto had spent eleven years and hundreds of million of dollars developing mining operations at Simandou and expected it to yield substantial profits into the future. 2. At the heart of the RICO scheme was Defendant Vale, S.A. (“Vale”), an international mining company whose American Depository Receipts (ADRs) are among the most-heavily traded on the New York Stock Exchange. Beginning in August 2008, Vale entered into discussions with Rio Tinto to purchase some of the Simandou asset. The Rio Tinto-Vale negotiations began in person with two meetings in New York in November 2008, during which Rio Tinto provided Vale with highly confidential and proprietary information regarding Simandou.
    [Show full text]
  • Serious Fraud Office Investigations Regarding the Extractive Industry
    SERIOUS FRAUD OFFICE INVESTIGATIONS REGARDING THE EXTRACTIVE INDUSTRY 24 March 2017 | London Legal Briefings – By Daniel Hudson and David Knott The mining industry presents a high risk of corruption as operations are often located in high risk regions and it is often necessary to interact with government officials and agencies in order to obtain licenses and approvals for the exploration, development, construction and operation of a mine. These factors, when combined with the general increase in enforcement of anti-bribery and anti-corruption laws, primarily by the United States and United Kingdom authorities, which has led to more investigations and prosecutions, higher monetary sanctions, and the imposition of monitors and other agents to oversee businesses, means that it critical that mining operators ensure that they have in place adequate procedures to prevent bribery from taking place. In this article we set out a brief recap on the key features of the UK Bribery Act 2010 and provide examples of recent and ongoing bribery investigations by the UK authorities regarding mining companies and other companies within the extractive industries. There are a number of ongoing overseas investigations which are outside the scope of the article but which demonstrate the high levels of activity by enforcement bodies around the world regarding the mining industry (e.g. the cross-border investigation into BSG Resources Limited, which has seen charges brought in the US against Guinea's former minister of mines and the arrest and subsequent release without charge of Beny Steinmetz). Overview of UK Bribery Act 2010 The UK's Bribery Act 2010 came into force in 2011 and updates the criminalisation of both public and private sector bribery.
    [Show full text]
  • Israeli Tycoon Beny Steinmetz Arrested on Suspicion of Guinea
    3/24/2017 Israeli tycoon Beny Steinmetz arrested on suspicion of Guinea bribery in global corruption case ­ Israel News ­ Haaretz.com R-519 Israeli Tycoon Beny Steinmetz Arrested on Suspicion of Guinea Bribery in Global Corruption Case Beny Steinmetz, a billionaire who owns a mining firm, is suspected of paying off officials in Guinea; court confiscates both his passports, sends him to house arrest and sets bail at $25M. Yaniv Kubovich and Jasmin GuetaDec 19, 2016 10:43 PM http://www.haaretz.com/israel­news/1.759933 1/4 Beny Steinmetz detained by Israeli police in global case, BSG Resources says Israeli diamond tycoons listed in leaked Panama papers $55m fraud case reveals cracks in Israel's exclusive Diamond Exchange club Israeli tycoon Beny Steinmetz was arrested by police on Monday for his suspected role in a sprawling corruption case involving tens of millions of dollars. Steinmetz is suspected of bribing officials in Guinea and of money laundering. His house and offices were raided Monday morning, police said. He was ordered under house arrest for two weeks by an Israeli court. A bauxite mine operated by Compagnie des Bauxites de Guinee (CBG) near Boke, Guinea , Sept. 8, 2015. Bloomberg His Israeli and French passports were confiscated and he is barred from leaving Israel for 180 days. His bail was put at 50 million shekels in cash and an additional 50 million shekels in property (totaling nearly $26 million). He will be able to post bail in three days. The businessman owns a mining company that had won mining rights in Guinea.
    [Show full text]
  • Panama Papers How the Elite Hide Their Wealth
    #Panama Papers How The Elite Hide Their Wealth (http://investigativecenters.org/) Flaws in Sierra Leone’s diamond trade 961 11 110 Dodgy dealings within the Steinmetz Group seem to indicate undervaluing of Sierra Leone’s exported diamonds, write Khadija Sharife and Silas Gbandia. He is De Beers’ most prolific diamond buyer, a supplier to the luxury jewelry brand Tiffany & Co., and an alleged criminal, accused of bribing the wife of a former Guinean president to land a multibillion-dollar iron mining deal (https://panamapapers.investigativecenters.org/guinea/). Given that profile, it’s not surprising that Beny Steinmetz and his eponymous company try to stay out of the limelight. But with the Steinmetz Group’s alleged tax avoidance scam in South Africa (http://www.iol.co.za/news/crime-courts/diamond-scandal-hits-de-beers-1868802) and an ongoing US grand jury investigation into corruption (https://sourceafrica.net/documents/24603-Court-Document-Guinea.html) in Guinea, for the past two years, Steinmetz hasn’t been able to keep his name out of the headlines. So, to avoid exposing the company, the embattled billionaire allegedly sold his 37.5% share in the Steinmetz Group’s diamond segment, Diacore, to his brother, Daniel, in 2014. Steinmetz left Diacore, but has kept up his business interests in Sierra Leone diamonds through the British Virgin Islands-based entity Octea. The company, which is run through Beny Steinmetz Group Resources (BSGR), lists the Steinmetz family as its beneficiaries. Unlike BSGR, which operates in West Africa, Diacore maintains a presence in Namibia, Botswana and South Africa. Read the full response from Mossack Fonseca here (https://sourceafrica.net/documents/24692-ANCIR-L-PanamaPapers-L-Mossack- Fonseca-Responds.html) Leaked data from Panama-based offshore fiduciary Mossack Fonseca, shared by the International Consortium of Investigative Journalists (ICIJ) and Germany’s Süddeutsche Zeitung newspaper, sheds light on the internal financial structures created by BSGR to camouflage Octea’s financial activities.
    [Show full text]
  • Please Follow This Link for Access to the Slides Used During This Webinar
    September 16, 2020 AFRICA INSIGHTS: MANAGING BUSINESS CRIME RISKS IN SUB-SAHARAN AFRICA THE PANEL IAIN ELDER PHILIP UROFSKY PAULA HOWELL ANDERSON Partner Partner Partner Project Development & Finance Litigation Litigation Shearman & Sterling Shearman & Sterling Shearman & Sterling MATHEW ORR INAM WILSON STEVEN POWELL Senior Associate Partner Executive Litigation Corporate and Commercial Forensics Shearman & Sterling Templars ENSafrica Africa Series: Managing Business Crime Risks in Sub-Saharan Africa | September 16, 2020 Shearman & Sterling LLP, Templars & ENSafrica 2 TOPICS FOR DISCUSSION • Putting Sub-Saharan Africa on the Map • Key Business Crime Risks • Additional Risk Factors • Why Managing Business Crime Risks Effectively is Important • High-Profile Investigations and Disputes in the Region • Managing Business Crime Risks Effectively • What is the Future Likely to Hold? Africa Series: Managing Business Crime Risks in Sub-Saharan Africa | September 16, 2020 Shearman & Sterling LLP, Templars & ENSafrica 3 PUTTING SUB-SAHARAN AFRICA ON THE MAP • The World Bank reported GDP growth across sub-Saharan Africa of 2.3% in 2019. • Nigeria and South Africa account for approximately 45% of the region’s GDP. • According to data released by the IMF in 2019, four of the ten fastest growing economies are located in the region – South Sudan, Rwanda, Ethiopia and Djibouti. • It is a region that continues to offer businesses tremendous opportunities, but recent high profile investigations and disputes have highlighted that such opportunities do not come without risk. Africa Series: Managing Business Crime Risks in Sub-Saharan Africa | September 16, 2020 Shearman & Sterling LLP, Templars & ENSafrica 4 PUTTING SUB-SAHARAN AFRICA ON THE MAP • It is the lowest scoring region on Transparency International’s Corruption Perception Index with countries averaging 32 out of 100 according to recent figures.
    [Show full text]
  • Vanessa A. Countryman Secretary, Securities and Exchange Commission 100 F Street NE, Washington, DC 20549-1090, USA
    Vanessa A. Countryman Secretary, Securities and Exchange Commission 100 F Street NE, Washington, DC 20549-1090, USA. CC: Mr. William Hinman, Director, Division of Corporate Finance Mr. Barry Summer, Associate Director, Division of Corporation Finance Ms. Elizabeth Murphy, Associate Director, Division of Corporate Finance Mr. Elliot Staffin, Special Counsel, Division of Corporate Finance Via Email (to: [email protected]) 16th March, 2020 Re: File Number S7-24-19 – Proposed Rule 13q-1 to implement Section 1504 of the Dodd-Frank Wall Street Reform and Consumer Protection Act Dear Secretary Countryman, We welcome the opportunity to provide a submission to the Securities and Exchange Commission (the “Commission”) on proposed Rule 13q-1 and amendment to Form SD implementing Section 1504 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Section 1504) requiring payment disclosure by resource extraction issuers. The Natural Resource Governance Institute (NRGI), an independent, non-profit organization, helps people to realize the benefits of their countries’ oil, gas and mineral wealth through applied research, and innovative approaches to capacity development, technical advice and advocacy. NRGI is recognized for its technical expertise, and has been involved in the development of mandatory reporting requirements for the extractive industries in the United States, Europe and Canada. We have also contributed extensively to the development of the Extractive Industries Transparency Initiative (EITI), including serving on the initiative’s board since its inception and contributing to the revised version of the EITI Standard adopted in 2019. In order to better understand the patterns and problematic behaviors that indicate potential corruption in the oil, gas and mining sectors, in 2017 NRGI examined over 100 real world cases of license or contract awards in which accusations of corruption arose.
    [Show full text]
  • Emprical Evidence on Foreign Direct Investment Impact Upon the Economic Growth of the Repulic of Macedonia
    View metadata, citation and similar papers at core.ac.uk brought to you by CORE Irena Kikerkova, Ph.D. Ss. Cyril and Methodius University Department of International Trade, Faculty of Economics – Skopje, Republic of Macedonia E-mail: [email protected] EMPRICAL EVIDENCE ON FOREIGN DIRECT INVESTMENT IMPACT UPON THE ECONOMIC GROWTH OF THE REPULIC OF MACEDONIA JEL classification: F 21 Abstract In regard of indicators on positive business climate and hospitability for foreign investors, last year the World Bank ranked Macedonia on the 23 rd place out of 183 countries in the world (World Bank, 2013 ). Other reports of eminent world organizations and institutions ranked the country on fairly good position in the world economy as one of the fastest reforming countries able to control the level of foreign debt. Nevertheless, during the last two decades the economy has never experienced real economic growth. Hence, with GDP of less than 10 billion USD, Macedonia happens to be one of the poorest countries in Europe. Despite all of the efforts of the Government to attract foreign investment, the economy recorded only 4.382 billion American dollars of FDI stocks at the end of 2012 (www.nbrm.mk). Due to the very limited domestic market, poor infrastructure and low consumption potential, foreign investors were attracted only to those industries which were in a position of a natural monopoly on the market. Trying to maximize their profits, they were not interested in investing in new technologies or in creation of export platforms for placing the realized output to the Western markets.
    [Show full text]
  • First Witness Statement of Benjamin Steinmetz CWS-1 in the MATTER of an ARBITRATION UNDER the RULES of ARBITRATION of the INTER
    First Witness Statement of Benjamin Steinmetz CWS-1 IN THE MATTER OF AN ARBITRATION UNDER THE RULES OF ARBITRATION OF THE INTERNATIONAL CENTRE FOR THE SETTLEMENT OF INVESTMENT DISPUTES ICSID Case No. ARB/14/22 BETWEEN BSG RESOURCES LIMITED (Claimant) -v- THE REPUBLIC OF GUINEA (Respondent) First Witness Statement BENJAMIN STEINMETZ I, BENJAMIN STEINMETZ, of Q.du Mont-Blanc 23, CH 1201 Geneve, with date of birth 2 April 1956 will say as follows: 1. I am a beneficiary of a Lichtenstein foundation called Balda. Balda indirectly owns a group of companies whose businesses focus on resources, diamonds and real estate. BSGR is the part of that group of companies and owns all the resources projects. Whilst there is no legal entity called the 'BSG group', or indeed any group of companies which share BSG in their names, for the purposes of this statement when referring to the overall business interests of the group I shall refer to the 'BSG group'. I have no role on the board or as an employee of any of the BSG companies or of the Balda Foundation. I am, however, 27861070.1 1 First Witness Statement of Benjamin Steinmetz CWS-1 contracted to advise the individual companies that make up the BSG group, and it is in this capacity that I am involved in their businesses: every action I took in relation to the Guinean project which is the focus of this statement, I took in my role as adviser to BSGR. I deal with my role in BSGR in more detail below. 2.
    [Show full text]
  • Download the Report (PDF)
    may 2016 PHIL EDMONDS ANDREW THE FORMER ENGLAND CRICKETER, HIS BUSINESS PARTNER GROVES AND THEIR STOCK MARKET EMPIRE BUILT WITH BRIBERY AND SCAMS 2 THE DECEIVERS 4 1: THE SPIN 6 2: LIBERIA THE BRIBES 10 3: GUINEA THE PRIZE 14 4: MOZAMBIQUE THE HEIST 16 5: LONDON THE ENABLER 20 6: SOUTH AFRICA THE SPIES 24 NOT CRICKET 28 HOW GLOBAL WITNESS REPORTED 'THE DECEIVERS' 30 3 THE DECEIVERS As a spin bowler for the England cricket team Phil Edmonds won a reputation for deception and guile. He and his business partner Andrew Groves put those skills to use on the stock market, fleecing millions from investors as they carved out an African business empire with bribery and dirty tricks. Philippe-Henri Edmonds was one of England’s most brilliant and Liberian officials, messages orchestrating stock market scams controversial cricketers. Andrew Groves was the hard-talking son of through offshore companies, and a forensic report detailing their a Zimbabwean policeman. Together they developed a near-infallible security agent’s hacking operations. system for gaming the stock market. “Mr Edmonds and Mr Groves deny any allegations of wrongdoing,” A Global Witness investigation reveals how, with the help of secre- they said in a joint response to questions, telling Global Witness that cy laws in tax havens like the British Virgin Islands and the services they are “committed to ensuring that all their business is conducted of a top London lawyer, Edmonds and Groves crafted intricate in a responsible and ethical manner”. They “are very proud of what insider deals to skim off millions of dollars of investors’ funds.
    [Show full text]
  • Five Years of Inaction Why Regulation of the Commodity Trade in Switzerland Is Long Overdue
    A Public Eye Report – November 2018 Five years of inaction Why regulation of the commodity trade in Switzerland is long overdue Five years of inaction 1 INTRODUCTION 3 The progress made falls short of the scope of the problems 3 2 CORRUPTION: A CENTRAL ISSUE 5 Dangerous strategies 5 The risks are recognised at the international level 6 The OECD highlights Switzerland’s shortcomings 7 3 PROBLEMS IGNORED AND DATA LACKING IN SWITZERLAND 9 The myth that banks provide indirect oversight of the trade 9 Five years later there are still no reliable data 10 Human rights: “data” provided by a reticent industry 10 4 REGULATION TO MITIGATE SPECIFIC RISKS 13 A In favour of a supervisory authority 13 B Due diligence requirements on business partners 13 C Transparency of payments to governments 14 D Transparency of contracts 15 E Transparency of beneficial ownership of companies 16 F Due diligence requirements in relation to supply chains (human rights and the environment) 17 5 CONCLUSION: PAVING THE WAY OR ACTING UNDER PRESSURE 19 6 ANNEX: CASES FROM 2013–2018 21 ENDNOTES 26 IMPRINT Five years of inaction. Why regulation of the commodity trade in Switzerland is long overdue, November 2018, 28 pages | Authors Agathe Duparc, Marc Guéniat, Andreas Missbach, Urs Rybi and Géraldine Viret | Translation Kim Park | English Edition Simon Parker | Acknowledgments Camille Chappuis | Publisher Raphaël de Riedmatten | Layout Karin Hutter, karinhutter.com | Cover picture © Taylor Weidman – Getty Images The original French language version is also available at www.publiceye.ch. Cinq années d’inaction, novembre 2018, 28 pages. In the event of discrepancies between the English and French versions, the French version shall prevail.
    [Show full text]
  • Blood Diamonds and Land Corruption in Sierra Leone - Transparency International
    8/19/2019 Blood diamonds and land corruption in Sierra Leone - Transparency International LAND (/SEARCH?TOPIC=80) • 2 AUGUST 2019 BLOOD DIAMONDS AND LAND CORRUPTION IN SIERRA LEONE Community exposes corruption and forced evictions through empowering participatory videos (http (what (mail (/fee s://pl sapp: to:? d/nw A deep abyss punctures the southern suburbs of Koidu Town, one of the largest cities in Sierra Leone. The giant pit, vast processing plants and surrounding earthworks constitute the country’s richest diamond mine. Diamonds were first discovered in Koidu during the 1930s. The Koidu mine was initially developed as a state- owned operation, which local communities hoped would bring employment and prosperity to the region. However, during the brutal civil war that raged between 1991 and 2002, the mine fell into the hands of South African mercenaries and has been operated as a private enterprise ever since. Once the centre of the “blood diamond” trade, today the mine is operated by Koidu Limited. Founded by former mercenary Jan Joubert (https://www.ft.com/content/95a65f74-08b7-11e3-8b32-00144feabdc0) – who fought in many of Africa’s bloodiest conflicts – Koidu Limited is owned by the holding company OCTÉA Limited. Its parent company is Beny Steinmetz Group Resources (BSGR) whose controversial owner, Beny Steinmetz, has been investigated (https://www.globalwitness.org/it/press-releases/israeli-police-arrest-beny- steinmetz-over-massive-guinea-bribery-case/) by several countries for alleged corruption-related offences. 1 DISPLACED FOR DIAMONDS https://www.transparency.org/news/feature/blood_diamonds_and_land_corruption?utm_medium=email&utm_campaign=Global Newsletter 2 Aug… 1/6 8/19/2019 Blood diamonds and land corruption in Sierra Leone - Transparency International Since Koidu Limited took control in the early 2000s, hundreds of residents have been evicted from their homes (https://www.icij.org/blog/2019/03/panama-papers-trail-offers-hope-to-west-african-villagers-seeking- compensation/) to make way for the expanding diamond mine.
    [Show full text]
  • FBI Surveillance Material Implicates Diamond Billionaire in Plan to Subvert US Fraud Probe
    APRIL 2014 global witness global witness FBI SURVEILLANCE MATERIAL IMPLICATES DIAMOND BILLIONAIRE IN PLAN TO SUBVERT US FRAUD PROBE • US corruption suspect names Beny Steinmetz as ‘Number 1’ in bribery scheme • Former dictator’s wife says she was bribed with jewellery, cars and bag of cash • Documents show $1.4 million in suspicious payments to ease Guinea mine deal Copyright © 2014 Rio Tinto. Copyright © 2014 @GLOBAL_WITNESS WWW.GLOBALWITNESS.ORG 2 GLOBAL WITNESS | APRIL 2014 SENEGAL THE GAMBIA MALI GUINEA- BISSAU GUINEA BSGR AND VALE’S BLOCKS 1 AND 2, SIMANDOU Conakry RIO TINTO’S BLOCKS 3 AND 4 SIERRA LEONE BSGR AND VALE’S ZOGOTA CONCESSION COTE D’IVOIRE LIBERIA This report was first published on 9th April 2014. GLOBAL WITNESS | APRIL 2014 3 eny Steinmetz, one of the world’s biggest took them away from a rival company, Rio Tinto. It diamond traders, directly ordered attempts to got the rights for nothing and in 2010 resold half destroy corrupt contracts signed between his of them to a Brazilian miner, Vale, for $2.5 billion— Bcompany and the wife of a West African president, a more than twice Guinea’s national budget that year. suspect was taped saying in FBI surveillance transcripts. (BSGR says it invested $160 million on Guinea mining projects before the sale and a total of more than The transcripts are among documents published by $650 million since 2006.) a government committee in Guinea investigating the legality of mining contracts signed under past Full development of Simandou could cost another governments. Today the committee recommended $10 billion, BSGR said in a 12 September 2012 cancelling rights to the massive Simandou iron ore statement.
    [Show full text]