Angola: Diamonds are a girl’s best friend

by RAFAEL MARQUES DE MOARIS

On 5 November 2010 the president of the Republic of Angola, José Eduardo dos Santos, authorised the minister of Mining and Industry to extend the terms of a diamond mining concession in Luanda Norte province, primarily to the benefit of his daughter Welwitschea José dos Santos, usually known as ‘Tchizé’.

Presidential Decree 296/10 of 2 December 2010 ordered a two-year extension to Projecto Muanga’s Licence for Prospecting, Research and Identification for Kimberlite diamonds, in Lunda Norte province. President dos Santos initially authorised the project on 14 July 2005 as a partnership between the state diamond company Endiama (51 per cent), Sociedade de Desenvolvimento Mineiro – SDM (20 per cent), Odebrecht (19 per cent) and Di Oro (10 per cent). SDM is a joint venture between Endiama and Odebrecht, a Brazilian multinational.

Di Oro – Sociedade de Negócios, established in 2003, is owned entirely by Tchizé dos Santos (73.34 per cent), her husband Hugo André Nobre Pêgo (16.66 per cent), and the president’s son, José Eduardo Paulino dos Santos, who is a singer under his stage name ‘Coreon Dú’ (10 per cent).

However, at the time when Projecto Muanga’s partnership agreement was signed, Di Oro – Sociedade de Negócios e Alta Costura Ltd (which translates as ‘Business and Haute Couture Company’) were in another line of business. Article 2 of the agreement describes its business as ‘haute couture, fashion and clothing, business management and industrial enterprise, decoration, marketing cosmetics, wedding outfits, cocktail parties, birthdays and gifts’.

On 30 September 2005, two months after José Eduardo dos Santos had approved the granting of a large percentage of the kimberlite business to his children, the beneficiaries changed the statutes and name of the original company. Its name was changed to simply ‘Di Oro – Sociedade de Negócios Limitada’ and it redefined its purpose to include ‘geological study, prospecting and exploration of diamonds, participation in partnerships in the diamond business, hotel and clothing industry, general trade, import and export’ (article 2).

The presidential decree shows what President dos Santos has made of the policy of zero tolerance on corruption that he announced on 21 November 2011. He even declared at the time that the MPLA, as the ruling party, had ‘timidly applied the principle of keeping check on the government’s management practices, through the National Assembly and the Court of Accounts’.

In the same speech, the president of the Republic and of the MPLA suggested that his party’s lack of courage in fighting corruption had been ‘taken advantage of by irresponsible persons and by people of bad faith in order to squander resources and for illegal and even harmful or fraudulent management practices’. Dos Santos also said: ‘I think we must adopt a critical and self-critical attitude in relation to the party’s political conduct in this area’.

Yet the president’s administrative action of favouring his children in a business deal with the Angolan state itself amounts to a crime of corruption, according to the Law on Public Probity (article 25, 1, a).

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