Burundi – Under the Rainbow

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There isn’t everyday are Rare Earth Mineral site get a different companies from all over the globe into action. This didn’t happen today. Still it’s worth researching and doing background checking. I wish I had all the pieces to the puzzle. I miss the contract or agreement between the Government of Burundi (GoB) and Rainbow Rare Earth Limited. Not that had seen the one between Southern Crown and GoB. This story will be what I have had the ability to uncover at this point. Hope you will enjoy.

Pre-Rainbow:

In 2011 February update from the Australian based mining company was awaiting cabinet approving in the Burundian Parliament, even with being approved by the minister at the time. The Australian company was Southern Crown. The license was to be for the area called Garaka Project in the Garaka and Karonge. The area is a area filled with REE (Rare-Earth Minerals). By the 2010 prices they estimated that the Ore in the area with carbonated REE was valued up to $5169M (Southern Crown). Two years later on the same company Southern Crown did release on 27. April 2012 they shut down the Garaka Project because of cooling of the rare earth market and also funding (Southern Crown2).

So this happen and the business on the ground of Garak Project went sour when Southern Crown went through with business in mining in Zambia instead of Burundi. To give an issue on how business deals are set in Burundi. After that I will tell you the timeline for the new companies on the ground. Look under timeline:

International Crisis Group reported in March 2012 how the agreements were between companies and the Burundian government:

“The allocation of mining and oil concessions also poses a problem. Under previous regimes, consideration of applications for mining exploration permits was entrusted to experts and an inter-ministerial committee, which reported to the Council of Ministers. However, this committee has not met since the CNDD-FDD came to power. The contract to exploit the rich nickel deposits in Musongati in eastern Burundi,71 which could amount to 5 per cent of world reserves, was negotiated at the highest level and in the greatest secrecy.72 Permits have since been granted in a non-transparent way: although licenses are granted by presidential decree on the proposal of the appropriate ministry, as in many countries, applications for exploration and exploitation are handled by a committee restricted to the presidency before being presented to the Council of Ministers” (International Crisis Group).

Timeline – Under the Rainbow:

President Pierre Nkurunziza was the Chairman under the Cabinet Meeting the 25th February 2015 where this was the outcome on the matter:

“The Rainbow Company has received the exploration permit for REE and related ores in May 2011 on Gakara perimeter and that permit was renewed in July 2014. After three and a half years of research, the company filed a feasibility study containing the entire technical and economic requirements for the exploitation of reserves located in an area of 39 square kilometers contained in its prospect perimeter measuring 135 square kilometers” (…)“The exploitation agreement was the result of a consensus between the Burundian technicians and those of Rainbow. The company plans to produce 5,000 tons of rare earth ores per year, with an investment of 7.7 million US dollars” (Council of Ministers).

On the 8th April Rainbow Rare Earths Ltd. could announce that they got funding from Pala Investment Limited to do develop the Gakara project. The financing they got to was up to $12M. The first stage of the project is use $6M in a 6 month period to get the trial mining starting. Second stage is to get the capital and get more effective mining. The Pala Investment Limited has an option if the phasing up more loan to another $6M to build and facilitate infrastructure on the site of Gakara Project. Martin Eales commented on this saying: “We are very pleased to have secured this investment from Pala, who will provide both financial and technical advice and will be a valued partner going forward. Their detailed due diligence and subsequent participation provides significant third party endorsement of the potential and quality of our project.” (…)“With the recent approval of the Mining Licence and Mining Convention from the Burundian government, we can now make rapid progress, and I look forward to reporting on further developments in due course” (Rainbow Rare Earths Limited).

If you wonder where the monies for the loan is from it’s from the independent London based Chrystal Capital Limited Liability Partnership (LLP). “The financing agreement is for an investment of up to US$12m, subject to the completion of certain milestones, which will fund the project through to full production” (Chrystal Capital).

So for you who can read can see that the funding from Chrystal Capital Partners is the initial loaner of $12M who will be used on the 2 first phase, that supposed to be spent by Pala Investment Company. Pala Investment Company is financing Rainbow Rare Earth Limited who also happens to be a subsidiary of Pella Resources Limited, who also happens to be a subsidiary of Pella Resources Limited, who is actually the mining-company on the Gakara Project. So the Monies are going from London (Chrystal Capital) – Switzerland (Pala) – Guernsey, UK (Pella Resources Ltd) who happens to run the subsidiary Guernsey, UK (Rainbow Rare Earth Limited). Well this story has not ended.

On 14th April 2015 the German Company of ThyssenKrupp Metallurgical Products signed an agreement with Rainbow Rare Earth Limited to sell their resources and future production to the German counterparts. Kai-Norman Knötsch who is a Chairman in the Management Board of the company commented: “We look forward to successful cooperation with Rainbow Rare Earths. As the exclusive marketer of these high-quality products, we will have the opportunity to strengthen our customer relationships long term and gain further market share around the world” (ThyssenKrupp). This will secure the economic and the future of the Garaka Project. Since the Germans will buy the RRE from Rainbow (Pella) who then can pay the loans for the funding to Pala and Chrystal Capital. Do you follow me?

This is how it is so far. I wonder how it will go and how reports on the ground will be. And if the agreement between Rainbow Rare Earth Limited and the Government of Burundi will ever surface and come into light again. If so a brother wants to read that one. In the meantime we have to wait on reports on the earnings on the mining and how that will be spent in the country. That can be exiting read as well. Peace.  

Reference:

ThyssenKrupp – ‘ThyssenKrupp Metallurgical Products signs offtake agreement for rare earth elements’ (14.04.2015) Link:  https://www.thyssenkrupp.com/en/presse/art_detail.html&eid=TKBase_1428993710593_117572636

Chrystal Capital – ‘Chrystal Capital raises $12 million for Rainbow Rare Earths’ Link: http://www.chrystalcapital.com/chrystal-capital-raises-12-million-for-rainbow-rare-earths/

Rainbow Rare Earths Limited – ‘Funding secured for the development of the Gakara Rare Earth Project in Burundi’ (08.03.2015) Link: http://www.pala.com/images/media/44_Funding%20agreement%20with%20Pala%20-%20Final%20-%2008.04.15.pdf

Republic of Burundi-Council of Ministers – ‘MEDIA RELEASE CONSECUTIVE TO THE CABINET MEETING HELD ON WEDNESDAY 25TH OF FEBRUARY 2015’ (26.02.2015) Link: http://www.burundi-gov.bi/IMG/pdf/cabinet_meeting_three-1.pdf

Southern Crown – ‘February Company Update’ (02.2010) Link: http://southerncrown.com.au/joomla/images/announcements/pp.pdf

Southern Crown – ‘MARCH 2012 QUARTERLY ACTIVITIES REPORT’ (27.04.2012) Link:  http://www.infomine.com/index/pr/PB503217.PDF

International Crisis Group – ‘Burundi: A Deepening Corruption Crisis ‘(21.03.2012) Link: http://www.crisisgroup.org/~/media/Files/africa/central-africa/burundi/185-burundi-la-crise-de-corruption-english.pdf

Corruption is like a ball of snow…

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“Corruption is like a ball of snow, once it’s set a rolling it must increase” – Charles Caleb Colton.

It’s been a while since I have addressed this matter. Well, the world continues to spin and the rain keeps falling. Still there is some Civil Servants, Government Officials or greedy corporate men who want to earn a quick buck. Here are a few stories from all around the world. To prove that it doesn’t matter where you live, it’s how you live. And for some reasons when somebody finds out it will be an easy way to get something extra without much work. But first I have to write about somebody who deserves credit. Then after this, I will tell stories about corruption cases that are going on all around the world.

The then editor of ‘The Elderly’ Vietnamese state-owned print and online magazine Kim Quoc Hoa he reported 2500 cases since 2007. He has been charged with “revealing confidential information related to national security” (…) “abusing freedoms and democratic rights in publishing articles that disseminated false information” (CPJ). The publication ‘The Elderly’ has also been shut down and gotten a fine of around $32 000. This is all happening before the Communist Party Congress of 2016 (News24).

In the American country of Panama a former minister has a case corruption case against him. The Former Finance Minister Frank De Lima has been charged with inflating multimillion dollar contracts with National Help Program (NHP) (PanAMPost). The embezzlement is that the money $1.7M for the NHP has been skimmed away. That was supposed to go “grain contracts” (Rodriguez).

In Edinburgh, Scotland the former employees of the Edinburgh Council Charles Owenson and James Castello that wasn’t just some swell seats at football matches for Hibs or Hearts. They both worked for the Council of the town as part of Property Care Service. The Council members got extra services from ABC Limited. The money and services they got was after the company got contracts with the county. One even bragged about “One witness states that Costello bragged about the money being spent by ABC and on one occasion claimed a night out he had attended must have cost ABC £5000”. They have pleaded guilty and in a month time the sentencing will happen (STV).

In Fiji the former Minister for Transport and Infrastructure Pio Tikoduadua is claiming that the Land Transport Authority is widespread with corruption. He fears for quality of the roads and commuting on the roads with buses as well (Vuniwaqa).

In Canada in the city of Montreal last Wednesday a former construction entrepreneur Lino Zambito pleaded guilty in court of St. Jerome that he was guilty of offering kickbacks to public officials for a public contract to build a $28M Water Filtration Plant in Boisland (CTVNEWS Montreal).

I know I just picked a few for you. There are always more stories on this. And when you search for sweet stories you end up picking this ones, to prove that it’s a worldwide phenomenon. I know wanted to prove that it’s everywhere. Mr. Colton saying the facts: the snowball is running and it’s increasing in size. Wonder when it going to end. Peace.

Reference:

CTVNEWS Montreal – ‘Lino Zambito pleads guilty to corruption-related charges’ (13.05.2015) Link:  http://montreal.ctvnews.ca/lino-zambito-pleads-guilty-to-corruption-related-charges-1.2371937

CPJ – ‘Vietnamese editor faces anti-state charges for reporting on corruption’ (13.05.2015) Link: https://www.cpj.org/2015/05/vietnamese-editor-faces-anti-state-charges-for-rep.php

News24 – ‘Vietnamese editor charged for publishing graft reports’ (13.05.2015) Link: http://www.news24.com/World/News/Vietnamese-editor-charged-for-publishing-graft-reports-20150513

Rodriguez, Juan Jose/Business Insider – ‘Panama gripped by millionaire ex-president’s graft scandal’ (15.05.2015) Link: http://www.businessinsider.com/afp-panama-gripped-by-millionaire-ex-presidents-graft-scandal-2015-5

PanAMPost – ‘Panama Corruption Probe Arrests Key Martinelli Ally’ (14.05.2015) Link: http://panampost.com/panam-staff/2015/05/14/panama-corruption-probe-arrests-key-martinelli-ally/

STV – ‘Corrupt officials given lap dances in return for council contracts’ (15.05.2015) Link: http://news.stv.tv/east-central/1320605-corrupt-edinburgh-council-officials-given-lap-dances-by-builders/

Vuniwaqa, Bola-Bari – Fiji Times Online – ‘Corruption Concerns’ (18.05.2015) Link: http://www.fijitimes.com/story.aspx?id=306231

Press release: Kenyan Treasury Announces Clearance of VAT refund backlog (19.05.2015)

Tax Kenya

Uganda: Dr. Kizza Besigye and Lord Mayor Lukwago under house arrest and more.

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Police siege Besigye and Lukwago’s homes.
Police are currently surrounding the houses of former Forum for Democratic Change (FDC) president, Dr. Kizza Besigye in Kansangati, a Kampala suburb and embattled Kampala Lord Mayor Erias Lukwago in Wakaligga on assumptions that they will cause chaos. Besigye is trying to find his way out but in vain. He is supposed to be at parliament to present reform proposals upon the speaker’s invitation. Last week the two were arrested as they tried to hold a public meeting on electoral reforms at Nsambya Youth Sharing Center.

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There is reports that as she was leaving the City Hall Ms. Ingrid Turinawe was taken to custody today. And that fellow activist Hamidah Nalongo Nassimbwa was serverly wonded and left at Mulago hospital.

Before this happen:

The 10 Electoral Reform Activists who were remanded last week have been given a non-cash-bail here at KCCA court.

Here is the Youtube clip on the matter:

Guyana-Norway Cooperation on the deforestation, the Low-Carbon Development-Strategy(LCDS) and REDD+ Program in Guyana

Virgin Forest Resource

Today is the day after we have celebrated our Constitutional Day here in Norway. This is the day after the giant national party. Last week it just happened to be an election in the small South-American state Guyana which is in-between Surinam and Venezuela. As the Corruption Perception Index shows the magnificent position that Guyana in the world that there in the place of number 124 of 175 countries. Here is the chart from Transparency International:

Guyana Transparency

 

To follow the story, I have looked for sources and how it has gone. This I had to do after reading Chris Lang’s report ‘Why did Norway agree to pay US$40 million just before Guyana’s election?’. That he published on the internet page red-monitor.org. As a Norwegian I haven’t really heard anything about the election or the funding of the rainforest projects in Guyana. We have seen our development minister Erik Solheim travelling to Brazil and looking at the crazy animals and green trees in the rainforest. So I had to check what has been said. Here is what I have found. And hope it’s worth five minutes of your day.

The now former president of the Republic of Guyana H. E. Donald Ramotar on the 5th payment on the 7th of May 2015 stated this: “Fellow Guyanese, I am pleased to announce today that Guyana has received a payment of $8 billion (Guyana) from the Government of Norway. This is a billion more than last year’s payment, and brings the total received from Norway to $38 billion” (…) ”All Guyanese should feel proud of the vote in confidence expressed by Norway in announcing that they are willing to pursue a second agreement up to 2020, a policy that only the PPP/C supports in Guyana. And all Guyanese should feel proud that we have earned the most money from a forest partnership in the world, after Brazil. Money that is being directly spent on the people” (…) ”the LCDS has done a lot. Guyana has now deployed US$120 million into projects, which are enabling the rehabilitation of Cunha canal that will protect Georgetown, and the communities and farms along the Mahaica River from floods like we saw back in 2005” (…) ”First, the opposition tried to stop Norway from paying Guyana the money that we earned from keeping our forests standing. When the opposition failed to achieve this, they tried to stop us from spending this hard earned money on the Guyanese people by cutting the entire LCDS budget!” (…) ”we have always been fighting to protect our nature so that we can leave an even more beautiful Guyana as a legacy to our children – and today we are leading the world in showing how finances can flow to forest countries. Guyana was once known for rigged elections and economic decay – today we are known for global environmental leadership. The benefits are for all our people, and we must not throw them away”.

On the 8th May “The Government of Guyana this morning announced the receipt of US$40 million from the Government of Norway for maintaining low deforestation rates and improving forest governance” (PRNewswire).

To the Antigua Observerer President Ramotar is quoted on the agreement with Norway: “(This is) a policy that only the PPP/C (People’s Progressive Party/Civic) supports in Guyana. And all Guyanese should feel proud that we have earned the most money from a forest partnership in the world, after Brazil, money that is being directly spent on the people.” (…) “believe that not a single Guyanese living on the coast should need to worry when there’s heavy rainfall that their community will flood. And not a single Guyanese in the hinterland should need to worry about not having water during droughts. Nor should any Amerindian community need to worry about having enough economic opportunities to support their development.” (…) “Today, Guyana is one of the leading countries in the world in managing natural resources sustainably. And every Guyanese is benefitting from this. Our most recent deforestation rate was even lower than the previous year.” (…) “All Guyanese should feel proud of the vote in confidence expressed by Norway.” (…) ““I urge every Guyanese to think hard about what is at stake and to make the best decision next Monday to continue down a path of development and progress,” (Antigua Observerer).

On the 12th May reports was saying: “Guyana has received $40 million for climate services and intends to use part of the money for a transformational hydroelectric project in order to reduce the cost of electricity” (…) “The payment was made by the Government of Norway and represents earnings from the Guyana-Norway partnership which in total now amount s to $190 million out of a potential $250 million” (Caribbean News Service).

On the 16th May this new has arrived: “HIS Excellency, Brigadier (rtd) David Arthur Granger, is Guyana’s duly elected and sworn 8th Executive President, Commander-in-Chief of the Armed Forces and Head of State of the Cooperative Republic of Guyana. President Granger was administered the Oath of Office yesterday at the Public Buildings by Chancellor of the Judiciary, Carl Singh, in the presence of the thousands that converged to witness history. The Oath was administered following the reading of the Official Proclamation by Chairman of the Guyana Elections Commission (GECOM), Dr. Steve Surujbally” (…) “The official Inauguration Ceremony for the new Government is slated for May 26, at the Guyana National Stadium, and as had been promised by then coalition presidential candidate, Brigadier (rtd) Granger, Guyanese will celebrate the nation’s 50th Independence Anniversary from its colonial masters, under an APNU+AFC Government of National Unity” (Eleazar).

Newly elected David Arthur Granger said on the inauguration: “I extend the arm of friendship to former president, Donald Ramotar, and the members of the PPP to join this great movement of national unity.” (…) ”let us embrace each other regardless of religion, regardless of race, regardless of class, regardless of occupation…as fellow Guyanese let us work together to realise our inspiring national motto, One People, One Nation, One Destiny” (…) ”Guyanese, the elections are over, the people have chosen their representatives, the Constitution has been respected, our democracy has been fortified, let us now put past rivalries behind us and work in unity to banish poverty, ignorance, fear and hatred” (Eleazar).

Tweedie of the Morning Star tells the story of how close the election in Guyana really was: “GUYANA’S ruling party has alleged fraud in the general election, with just 43 votes separating the two main presidential candidate” (…) “It claimed that the opposition Partnership for National Unity and the Alliance For Change (APNU+AFC) received almost twice as many votes as there were voters in some regions” (…) “The PPP also expressed concern over the “extremely high” number of rejected ballots and accused the APNU of intimidating its representatives and chasing them away from polling stations” (…) “And the APNU declared victory for its candidate David Granger on Tuesday, long before the vote was complete” (Tweedie).

Former Speaker of the National Assembly, Ralph Ramkarran has commented: “No longer motivated by his high ideals, it (the PPP/C) allowed one-man rule, arrogance, crime, corruption, nepotism and high living to flourish and become dominant features of its governance” (…) “Ramkarran said that the PPP/C ignored the fact that it lost a significant percent of its support at elections held in 2011. “It deluded itself by a self-serving analysis that apathy caused its supporters to stay away from the polls in 2011. This prompted an expectation that elections with a divisive political strategy will restore its majority. Thus it rejected any idea of a coalition government.”(Rockecliffe).

Guyana timelines_0

Afterthought:

If this isn’t getting your minds to think and I understand the thoughts of Chris Lang and Redd Monitor. I am just thinking. What is the real measure of the money spent into the saving of the rainforest? How will this sizeable funding scheme really be governed? We now can read reports of possible election frauds in Guyana, also considering the number and place of the country considering their position as the 124 of 175. There are expected that the former President will be happy for the agreement between Norway and Guyana. This is the 6th Payment and also building a Hydroelectric plant in Guyana for 40$B. If this doesn’t make your mind boggle a bit and how this doesn’t seem right. I get worried when the politicians and campaign talks about this funding of deforestation. If you don’t mind I will snip out the most questionable quotes from the ‘Joint Concept Note’ that both government agreed on 6th May 2015. Also the letter from Guyana Forestry Commission from 13. Januar 2015. Hope you enjoy! Peace.

GuyanaJCNGuyanaJCN2 GuyanaJCN3GuyanaJCN4GuyanaJCN5GuyanaJCN6GuyanaJCN7

GuyanaJCN8GuyanaJCN9

 

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The letter from Guyana Forestry Commission:

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PS: If  that wasn’t cool enough for you. Peace!

Reference:

Antigua Observer – ‘Norway pays over $8B to Guyana – signals willingness to partner with Gov’t until 2020’ (08.05.2015) Link: http://antiguaobserver.com/norway-pays-over-8b-to-guyana-signals-willingness-to-partner-with-govt-until-2020/

Caribbean News Service – ‘Guyana $40 Million Fund to Help Develop Hydroelectric Project’ (12.05.2015) Link: http://caribbeannewsservice.com/now/guyana-40-million-fund-to-help-develop-hydroelectric-project/

Eleazar, Gary –  Guyana Chronicle Online – ‘David Arthur Granger sworn in as Guyana’s 8th Executive President …extends ‘Olive Branch’ to ousted PPP/C administration …says let us put past rivalries behind us and work in unity’ (16.05.2015) Link: http://guyanachronicle.com/david-arthur-granger-sworn-in-as-guyanas-8th-executive-president-extends-olive-branch-to-ousted-pppc-administration-says-let-us-put-past-rivalries-behind/

Rockcliffe, Abena – Kaieteur News – ‘A Guyana void of poverty, corruption and nepotism awaits – Ramkarran’ (18.05.2015) Link: http://www.kaieteurnewsonline.com/2015/05/18/a-guyana-void-of-poverty-corruption-and-nepotism-awaits-ramkarran/

Tweedie, James – Morning Star – ‘Guyana Election: Ruling Party Alleges Fraud as Candidates Lie 43 Votes Apart’ (15.05.2015) Links: http://www.morningstaronline.co.uk/a-81e1-Guyana-elections-Ruling-party-alleges-fraud-as-candidates-lie-43-votes-apart

PRNewswire – ‘Guyana receives US$40 million payment from Norway for climate services and continued low deforestation’ (08.05.2015) Link: http://www.prnewswire.com/news-releases/guyana-receives-us40-million-payment-from-norway-for-climate-services-and-continued-low-deforestation-300080282.html#

Professor PLO Lumumba on “A pan-African perspective…Decolonising the Mind of Africans” (Youtube-Clip) – (04.11.2014)

http://www.youtube.com/watch?v=KfOFcjMRlgo

Well, I know that I’m as European man, and never the less, I am very moved by this speech! Hope you are as well my brother. If not, I don’t know what gives! Listen to the wise words of Professor PLO Lumumba! Peace! 

Burundi: Rebel Brig.General Ndyayambaje speaks out on coup attempt (NTV-Uganda Youtube-Interview)

#DontForget: The Whitehouse(USA) congratulates Dr. Mohamed Morsi on the Election (24.06.2012)

EgyptWHMorsiElected

FDC President Muntu: Burundi scenario possible in Uganda (NTV-Uganda Youtube-Clip)

Press Relase: The African Union reaffirms the Imperative and Urgency of dialogue and consensus in Burundi (16.05.2015)

AUBurundi1605