Global Witness presents... The devastating story of oil and banking in Angola’s privatised war. On general release from March 2002 “ALL THE PRESIDENTS’MEN” : DIRECTORS’ CUT A Global Witness Report Starring JACQUES CHIRAC and JOSE EDUARDO DOS SANTOS Co-starring BORIS YELTSIN as himself • Special guest apprearances by GEORGE W BUSH and DICK CHENEY • Based on an original idea by CHARLES PASQUA and JEAN-CHARLES MARCHIANI • Lack of transparency by most of the INTERNATIONAL OIL AND BANKING INDUSTRIES • Introducing the notion of “PUBLISH WHAT YOU PAY” No rating: uncensured by the INTERNATIONAL COMMUNITY All The Presidents’ Men Recommendations G Immediately subscribe to the Wolfsberg anti- money laundering guidelines. Wolfsberg signatories themselves – particularly ABN Amro, Oil companies should: Citibank and Société General which already loan money to Angola - should not collaborate with or G Adopt a policy of full transparency. This take part in any loans in which all parties are not involves: fully transparent as to their disbursement and . Rendering summary figures of taxes and other subsequent expenditure. payments made to national governments G Banks such as Lloyds Bank in London, which runs publicly available for all countries of operation. the Cabinda Trust, should publish regular updates In addition to information already available in detailing the resources held by the Angola oil-back the reports of subsidiaries, data should be listed offshore trusts funds and the demands being made as total net payments to national authorities for upon them. each country of operation and should be provided in the parent company’s consolidated Bilateral Export-Credit Agencies should: annual reports and in annual returns to investment authorities. G Impose full transparency on all participants as a condition for future export-credit agreements. Data should be provided locally in the national language of each country of operation as well National governments should: as in the home language of the company. G Ensure that their national oil companies adopt full . Parent companies should publish the names transparency criteria on overseas operations. and locations of registration of all subsidiary National governments should require them to companies operating in each country. adopt a forceful common position on this issue. In G Embrace a unified stand on full transparency particular, the French and the American of payments to national governments amongst governments should promote transparency in their all companies in the oil sector for all countries oil industry: as major oil extractors in the off-shore of operation. of Angola, TotalFinaElf, Chevron and Exxon’s apathy on this issue is appalling. G Facilitate the rapid publication of the IMF Oil Diagnostic study for Angola. G Insist that financial regulators of international stock exchanges should legally oblige companies G Adopt a policy of independent, transparent filing reports with them to disclose payments to all auditing of social programmes both for the national governments in consolidated and purpose of the project and for its value for subsidiary accounts. money. G Insist that their export financing agencies practice Commercial banks involved in existing loan full transparency as a condition for setting up arrangements to countries with severe corruption credit agreements, and that full transparency of problems (such as Angola) should: funding partners and recipients becomes a pre- requisite for funding. G Publish full details of loans provided, including details of the amount lent, recipients, interest G Fast-track the ‘name and shame’ process to isolate rate, expiry date and purpose of the loan. jurisdictions that are hiding and laundering dirty money and identify and seize assets of corrupt, G Ensure internal systems are in place to prevent non-transparent regimes. loans breaching internationally-agreed lending limits, such as Angola’s US$ million limit The Angolan Government should: on new lending agreed with the IMF for . G Immediately implement a policy of transparency G Clarify measures taken to verify that actual for government income and its expenditure. The expenditure corresponds with that stated on Government should fully clarify all revenues that bank documentation and during negotiation are controlled or disbursed extra-territorially, in and insist that such expenditure is verifiable as parallel budgets and/or by the Presidency. a condition of providing the loan. G Attend to civil society’s demands for more G Diagnose and implement mechanisms to accountability and increased social spending. ensure fiscal transparency in international lending in conjunction with multilateral G Publish immediately the oil sector diagnostic lending institutions. This includes results and allow the IMF to publish this data too. conditionality in loan attribution: loans should be approved when expenditure of previous The IMF should: loans has been verified and approved by an G Render publicly and widely available the results of accredited committee; expenditure should be the Staff Monitored Programme, in particular the monitored and irregularities punished by non- over-due KPMG report on the Oil Sector attribution of further loans. Diagnostic. G Ensure that any future loans to Angola are payable through one appropriately audited governmental channel, rather than the current situation with a multitude of parallel channels. All The Presidents’ Men The international community should: Contents G Institute appropriate national enquiries into influence peddling around access to oil reserves and revenue misappropriation from the Angolan Recommendations oil industry and facilitate the French investigation into ‘Angolagate’. Who knew what and when did All the presidents’ men – an introduction they know it? G Insist that the oil industry and the financial world Part One: The Scandal institute a policy of full transparency on all revenues and loans to Angola and other corrupt, A story of state looting and a privatised war – a summary neo-authoritarian regimes. Angolagate – the full story G Provide a mandate to require the IMF to provide a Pierre Falcone and Sofremi retrospective analysis of oil revenues from onwards as part of an international effort to The Brenco network and deals with Angola identify and repatriate misappropriated state assets Gaidamak’s business empire in the wake of the ‘Angolagate’ scandal and insist Deals and connections to other countries that the IMF renders public all information Whose billions are in this bank account? uncovered by the Staff Monitored Programme public. Does Angolagate reach the United States? G Ensure that current UN peace-building efforts, The searches and arrests begin focused on UNITA’s war effort, are extended to Jean-Christophe Mitterrand take into account the lack of transparency over Jacques Attali Government oil revenues as part of the peace- Angolans connected to Angolagate building and demobilisation process. In addition, President dos Santos confirms suspicions about Angolagate the UN must include civil society in any unfolding peace process. G Recognise that the definition of acceptable Part Two: The Complicity of Oil Companies corporate behaviour is bound up with the Introduction operation of transparent and accountable business practices and the provision of information on Development of Angola’s oil industry payments to national governments to the citizens The top ten oil companies in Angola of that country. Future regulatory programmes or Current practices on tax payment declaration voluntary codes-of-conduct should recognise that Company dialogue the ‘stakeholder’ concept includes the general population of a country in whose name the Elephant’s tail or elephant – the reality of oil companies resources of a territory are being exploited. Civil contributions to the Angolan State income society is entitled to be provided with adequate The IMF in Angola information to be able to call their governments to Campaign progress to date account over the management of ‘their’ resources. It is time to move from debating corporate social Corporate social responsibility – Genuine sentiment or mere responsibility to corporate accountability. PR? The G, EU, OECD and the New Partnership for Regulating payment disclosure African Development (NEPAD) should: Risks of complicity G End the practice of secret deals between The truth about tax payments to the Angolan Government in 2000 – governments and multinational companies by another case of missing funds? issuing clear contracting guidelines defining and Complicity-O-Meter legislating ‘good practice’ for multinational enterprises in structuring transparent financial The complicity of oil companies – conclusion arrangements with host governments. Such an initiative requires the G and others to make it a priority for national regulatory authorities to Part Three: The Financing legally require full transparency for all companies Introduction – international lending to Angola over payments to national governments. The credit tap remains wide open… New lending since December 1999 The Wolfsberg Principles – Anti-money laundering guidelines for private banking Shutting Down the Dictators’ Laundromats Conclusion References Acknowledgements All The Presidents’ Men All the presidents’ men – an introduction LL THE PRESIDENTS’ MEN is the product of two years of investigations, and provides an update on the campaign for full transparency in the oil and banking sector.