
Somalia: An Open Letter to the Somali Federal Cabinet (03.04.2018)



“President Yoweri Museveni has implored parents who are financially sound to give their children a better education to guarantee a better future even it means taking them to Private schools” (NTV Uganda, 04.03.2018).
The pledges of yesterday is losing value for President Yoweri Kaguta Museveni, the process and the service delivery doesn’t matter, if it ever did. The Universal Primary Education was one of the brilliant moves he did and also got much more donor funding in the beginning of his Presidency. He introduced UPE in January 1997, as the time went the Government of Uganda invested more into the schools. As the Overseas Development Institute in February 2006, which stated: “The UPE programme has required a significant increase in public expenditure devoted to primary education. Total education expenditure increased from 2.1% GDP in 1995 to 4.8% of GDP in 2000, while the share of the education sector in the national budget increased from 13.7% in 1990 to 24.7% in 1998” (ODI – Policy Brief 10, Feb 2006). So the DFID sponsored brief are really explaining how the National Resistance Movement and President Museveni really used funds into the schools to make it happen. However, down the line the investments hasn’t continued and the progress of the policy has lost value. Since they have not continued or hold into that standard.
“The President clarified that parents should feed their children and those who can’t afford should take their children to Universal Education Schools which he insisted should not charge fees, while the capable ones can pay in private schools or ‘big government schools’. “Universal Education Schools should not charge fees and parents must provide a meal for their children, called ‘entanda’. Government has provided UPE and USE for poor parents and here it is free. Those who can afford can take their children to other government schools and private schools where they pay but no child should be withdrawn from school” he emphasized” (Opio, 2018).
When you hear the man who is the leader, whose been the President since 1986, been there 32 years. Saying if you want to give your kid a good education, send them to private schools. The ones who are poor can send their kids to government schools. Therefore, if you have money, you will care more about the future for your kids. Because we as a state has given up the Universal Primary Schools.
This financial year the state is using 10,87 % of the national budget in 2018/19, that is down 11,37% in 2017/18. Both years are really proving how little it is concerning how it was when the UPE was booming around the millennium. In those years the state used about 20% or more on Education. Meaning the means to build and upgrade schools where there, also for more staff and more equipment was there. This has been forgotten and deemed unnecessary by the state.
Already in 2006, the UBOS Statistical abstract stated this: “However, the education facilities including classrooms, teachers’ houses and libraries have not matched the upsurge in the number of pupils. In 2004, provision of classroom space remained an enormous challenge. Table 2.2.2 shows that, only about half of the pupils had adequate sitting space” (UBOS, 2006). So the problems we are seeing today, is systemic from the mushrooming of schools and districts who built-up schools after the announcement of the UPE in 1997. I am not saying it is easy to keep the upkeep after the surge of schools, but if the state wanted them as a priority. They would have allocated funds to it over time.
Clearly, that part has gotten wasted and the state hasn’t figured out that buildings needs upkeep, schools needs equipment and teachers needs salaries. I know all of that seems basic, but the deep understanding of that seems lost somewhere.
Since if you are seeing the numbers, the Education Ministry got 24,7% in 1998 and now in 2018 it get’s 10,87 % of the National Budget. The schools has surged then and the budget is smaller, that meaning the more schools and teachers are getting significantly less funds for their operations. This is clearly the will of the state, as they are prioritizing other parts of government and not the schools. So the pledge before the 1996 Election is now being abandoned, the Ten Point Program point is being dismissed and the State showing disregard for its own system, as the rich can have their own. The poor can have lesser quality and the ones who care about their future can got to the private ones. Because of this I want to go back to 1996, because it says a lot, about why its like this today.
So, we are not going back to 1986 today, but 1996, when this happen:
“Given his earlier opposition to the idea, President Museveni’s decision in March 1996 to make universal primary education part of his manifesto for the upcoming presidential election campaign represented a sharp break with existing policy. In a radio speech delivered on 27 March, Museveni promised that, if re-elected, he would implement a plan giving four children per family access to free primary education (the plan would also apply to orphans) (Radio Uganda 27.3.1996). This education promise was, however, just one part of an overall election manifesto that included pledges concerning liberalisation of the economy, road building, defence, and renewed East African cooperation. In fact, improvement in education was listed as only the fifth of seven bullet points on the back of Museveni’s
published manifesto (Museveni 1996). Though free primary education was only one small part of President Museveni’s initial election manifesto, during the course of the campaign it soon became clear that the promise to abolish school fees was striking a chord with the electorate. Ugandan officials from the period recall that several of Museveni’s close advisors repeatedly sent messages to the Ministry of Finance after campaign meetings in order to emphasise how the UPE promise had been well received” (Stasavage, 2006).
We could see it was his own initiative, as the President knew what would strike a chord, making sure the kids was educated and had a better future. The same resonates today, but the state has forgotten that. They are not caring, they build a giant program, a big school system of Primary Schools, but not allocated or planned the upkeep of them. That is why the state of the schools are going down and the level of poor public schools is rampant. The districts and sub-counties are not getting enough to keep the schools in functions or even the buildings up. That is why we can find pictures of schools falling apart and looking like they we’re forgotten the day after they finished building it.
From a report from the Ministry of Education and Sports in 1999 said this: “Uganda spent only US$8 per pupil in the early 1980s, and in financial year 1997/98 US$32.50 was spent per pupil” (…) “ UPE is one of the surest means that will lead Uganda to the attainment of the Jomtien Conference (1990) pledge of providing basic education to our primary school going population. As we provide that ìminimum package of knowledge, skills, values, and attitudes required by every person to enable him or her live as an independent, productive and effective citizen in a societyî the individual is empowered to meet her or his daily needs and aspirations, those of the community and the nation, which are focused on modernisation. Uganda is confident that by the target year 2003, Universal Primary Education will have been achieved for all its children” (Ministry of Education and Sports, P: 19, 21, 1999).
So in 1999, the State was hopeful, today in 2018, UPE is not for all children. Not if you listens to the words and the statement from Museveni. It’s Private Schools for the wealthy and the UPE for the POOR. Therefore, Museveni is claiming to classes and two system, which is really demeaning to the ones going to the UPE schools. This is his fault that the schools are bad. He introduced the system, he made it and built it. However, he forgot to the upkeep. He forgot the pledges of the past, even the goals of his own ministry in 1999. It is nearly 20 years since or 19 years ago. Therefore, if Museveni has forgotten it is natural, I don’t remember what I wrote a year ago. However, he promised this and used his Presidency to promote this. The UPE is one of the few grand achievements of Museveni. Even I can say that. But now its rotting and that is because the State has stopped funding it. It is their own decisions not upgrading or even maintenance of the buildings. It is weird that the NRM went into this, build this giant school program and had no plans for maintenance of the Schools or the Salaries of the teachers.
It is easy to start something, but when it continues, you needs to allocate, secure and also funds for day-to-day business. That is forgotten and today, Museveni has given it up. If not he doesn’t care about the UPE he introduced officially in 1997 and pledged during the 1996 Campaign. I say that because, well they have gone from using over 20% of the yearly budget in the 1998 to around 2000, but now the state has allocated as little as 10%. So it the Primary Schools are neglected, because the State has decided to neglect them. It is because the state has built a lot of them, but not funds to maintenance of them. Museveni knows this, but doesn’t say it. That is why the schools are for the poor, because the President even keeps the Government Primary Schools poor themselves.
I just have to ask the President, you used years and your time in the beginning of your time as President to build up the Universal Primary Education, have you officially given it up? Should the Ugandan population give it up too?
If you I can put the whole situation into one simple explanation: Museveni wanted to give the public a giant castle, he pledged to give the public that giant castle. He actually built the giant caste and made sure the public could use the castle. However, with time he didn’t have the funds or the money to maintain the castle. The walls and barricades are failing, the walls are weaker, the structure needs fixing. The servants, the people who are inside the castle are not getting paid and even educated to keep the walls steady. So, the stones and the building are looking more like a ghost-town than a castle. Museveni could have had a castle, instead he has a rundown ghost-town.
There are too many UPE schools that are rundown without proper buildings, which has been neglected. The same has the teachers and the pupils, who them all are living through it. Their future is depending on it and they are forgotten. Now the President tells, the ones who can afford it should go to the Private Schools instead. The poor has enough with the UPE schools. That just shows how he has given up the 1990s project.
Isn’t this a sign that you as a leader should have retired, since you have actually given up one of your achievements?
Peace.
Reference:
Opio, Sam Caleb – ‘I’m going to fulfil all my outstanding pledges – Museveni’ (04.03.2018) link: http://www.monitor.co.ug/News/National/I-am-going-fulfill-all-my-outstanding-pledges-Museveni/688334-4327940-view-printVersion-27vqxt/index.html
Stasavage, David – ‘The role of democracy in Uganda’s move to universal primary education’ (2005) Cambridge University Press
Ministry of Education and Sports – ‘THE UGANDAN EXPERIENCE OF UNIVERSAL PRIMARY EDUCATION (UPE)’ (July 1999).


The Dubai based port and container company, that has catched a lot of flack within this week. Both with their devious deal, that the Federal Republic of Somalia dismissed, after Somaliland, Ethiopia and DP World went into a co-venture over the Berbera Port. If that isn’t enough internal and diplomatic squabble, nothing is. As the United Arab Emirates are even trying influence more politicians over deal on the Horn of Africa. As they have already had the power to get a 30 year deal in Somaliland.
However, that deal has been under fire and people have wondered if the Mogadishu government has accepted it or done so with a favor. Since, this is still a government facility and important hub. That other nations like Ethiopia would like to have their stake in. Secondly, DP World has already another agreement on the horn in the port of Doraleh Container Terminal (DCT). That deal was done in 2006 and got binned by the government of Djibouti late February. So, the 30 year deal in Djibouti has already gone south and if the UAE government business want to interfere on the horn, they still have leverage in Somaliland. Where similar deal was made and the same concession of the port. Therefore, in the similar time-span and leadership, you can wonder if the Somaliland leadership signed similar agreement as the Djibouti counterparts, who has now canceled it there.
As that is happening, there is news of building and operating a Banana Port in the Democratic Republic of Congo, where the agreements and the plans between Kabila’s government and DP World is appearing. Where the state will generate development and roads into the interior from the port, so the state can ensure the port that gets the containers and exports into the DRC. This is a big deal with amazing amount of funds going both to the Kabila cronies and the spending from DP World to upgrade the port there.
Since the writings notes of the 21st February 2018 Council of Ministers said about it:
“The 5 texts on the Construction of the Banana Deep Water Port (the Proclamation of Harmonization of Views on the Contract Clauses of the Collaboration Agreement and the Shareholders’ Pact) and the Collective Agreement on Delegation of Service Public: the draft decree approving the Banana Deep Water Port Construction Agreement, the Muanda-Banana Estate Industrial Estate Decree and the Shareholder Corporation’s Shareholder Agreement. Banana Deep Water Port), the Council decided to visualize the project at its next meeting prior to any final decision on it” (COMPTE RENDU DE LA 8 ème REUNION ORDINAIRE DU CONSEIL DES MINISTRES, 21.02.2018).
Therefore, the DRC Government is planning to finalize an agreement with DP World, who has already had questionable agreements in Somaliland and Djibouti. This is not also to extend the arm of the company, but also give the UAE more involvement on the continent. As they have already ports agreement in Senegal and Somaliland, as they lost the one in Djibouti. Therefore, this would be possible now in the DRC.
We can now, see the diplomatic arm and business goes hand in hand, this through the port and UAE are using means of giant sums of infrastructure building, to get the government happy and ready to sign over their port control to the company, who happens to be state-run. This gives Dubai more power and also more control over the container business and handling of goods in these countries. As well, as the questionable dealings, are gaining the political elites, but not giving back to the community as a whole.
We can just wonder if this is a useful tool for Dubai and UAE to gain more political leverage in and around on the African continent, clearly it is working and getting reactions. We have to see if the Federal Government of Somalia, will do more than just canceling and dismissing the tripart agreement between Somaliland, Ethiopia and DP World. Just have to see how this can affect the relationship between FSG, Somaliland and DP World. Also, if the DP World really making itself ready to takeover the Banana Port. They are clearly, making influences and throwing money around to gain important infrastructures, like the ports. So, they can have leverage when concerning political games like in the Qatar Crisis. Peace.



The European Union or parts of it the European Commission has made their draft agreement on the withdrawal of United Kingdom as a Member State within the Union. This draft document will say many things, but I will focus on the ones that I see fitting and important. Therefore, this will not be the whole picture, but outtakes. That is see as significant for Europeans and the British as well. Since this will affect the realities of the citizens on the continent, as well as the boundaries it creates.
This document is significant, because it says what the EU expects of it all and puts everything into play. It set standards of what the European Commission and their technocrats wants to ensure. This is so the liabilities and the stakeholders of the Union, will know every single step and manners they perceive as important, which also should matter to the United Kingdom. Because they are the ones that is initially leaving, but it is just the matter of how. With time haven’t become clearer from their part, but more foggy as the shadow-games of the Tories Government isn’t supplying the world with clear communication of what they want or see as their future on the outside.
What is the most important piece of it is the ways the EU are cooperating with the will of the Republic of Ireland and the relationship it needs with Northern Ireland and the UK. Clearly stated in the draft is the provisions, that is clear, that the EU is not set for a hard-Brexit in this concern, as the Irish will have a special conditions and provisions, ensuring that the state of affairs stays as today. They are ensuring that the EU Draft is not in violation of the Good Friday Agreement, which shows the maturity of the EU in this sense. Now people should just worry if the UK government want to alter or change it for their own personal gain or not. Since, this is leaving the Irish problem settled and made sure they get what is needed comparing to old agreements between all parties involved.
“NOTING that Union law has provided a supporting framework to the provisions on Rights, Safeguards and Equality of Opportunity of the 1998 Agreement; UNDERLINING that part or all of this Protocol may cease to apply should a future agreement between the Union and the United Kingdom be agreed which addresses the unique circumstances on the island of Ireland, including by avoiding a hard border and protecting the 1998 Agreement in all its dimensions” (EU, P: 99, 2018).
“The United Kingdom and Ireland may continue to make arrangements between themselves relating to the movement of persons between their territories (the “Common Travel Area”), while fully respecting the rights of natural persons conferred by Union law” (…) “A common regulatory area comprising the Union and the United Kingdom in respect of Northern Ireland is hereby established. The common regulatory area shall constitute an area without internal borders in which the free movement of goods is ensured and North-South cooperation protected in accordance with this Chapter” (EU, P: 100, 2018).
This part of the agreement will hurt the Brexiteers, who want a full breakout of the EU, this will give leeway to a lot of speculations, as the ERG inside the Tories will not accept this sort of arrangement. Even if this is positive news for the EU friendly parts of the Kingdom. However, this should be seen as a victory for Dublin, as well as Belfast. Even if the DUP might not be in favour and they are vital to London these days.
This leaves and follows the agreement made not too long ago and pursuits the same arrangements as today, concerning the needs of Dublin and Belfast. We will see if this will backfire for Theresa May and her unknown project, as the inner-party of Tories is conflicted with itself and the costs of the Brexit. Clearly, the state is unsure and not bringing certainties, the EU on the other hand is showing the steps and has no issues flaunting it. While the Tories has tried to keep this inside the party and not letting anyone now. Therefore, trying to damage control, instead of deciding how to negotiate.
This is showing that the EU want to respect the Good Friday Agreement, the Irish problem of the Brexit and handling it with maturity, however, will do Tories answer with the same or are they stuck with DUP and ERG who wants to make the Brexit even harder. With strong borders and no CTA and specialized Customs Union for the Irish. Time will tell, but this was a breath of fresh air. Peace.
Reference:
European Commission Draft Withdrawal Agreement on the withdrawal of the United Kingdom of Great Britain and Northern Ireland from the European Union and the European Atomic Energy Community (28.02.2018)

“Never look down to test the ground before taking your next step; only he who keeps his eye fixed on the far horizon will find the right road” – Dag Hammarskjöld
Someone has to say it and seems like it has to be me. But there are something wrong with out time and day. When it is made easier to get funds to analyze the waters on Mars and the moon. Than, actually making sure the citizens of so many nations is struggling to provide proper water sources to their citizens. It isn’t like it is the people of Miami’s fault, neither the people of Tokyo, that there is no water in regions of Sudan or in Somalia. That isn’t the fault directly of these people. Neither of mine. But we have to ask. Why is it so? When did this become acceptable?
Not that we made this over day, not that the society was built in a day. It moved to this, we let certain people run our nations, we let certain companies take advantage and also multi-national organization serve certain beneficiaries every single day. We let that happen and it is continuing. We are letting the marginalized being hurt on the daily without any consideration. This is continuing without anyone stopping, while the leaders are driving in expensive SUVs and having palaces for homes. While the ones they represent struggles to pay for enough rice on their plate. We are letting this happen. We are letting them get away with murder, daylight robbery and we are letting them take away the wealth of the nations.
This is not how it is supposed to be. The Non-Governmental Organizations (NGOs), Multi-National Companies, State Institutions and State Owned Companies are supposed to all work together to provide and secure delivery of services and products that we all need. If it work in perfect harmony, than the public and companies should prosper together. If it is correct, the NGOs should overlook society and the state, to make sure they follow the rights of every individual and make sure the politicians doesn’t take advantage of their powers. However, sometimes and to often the security and the state of affairs isn’t made this way.
The companies has secret deals with the politicians, the NGOs are afraid of doing their questioning and reporting, out of fear of addressing the matters and the wrong-doings. The nature, the people and the society are hurt for short-term profits. The companies are more directly involved in the elite politicians and sometimes founded by them. They are making sure the state are covering the debts created in these companies and making sure the family members are hired too. All in a circle of vicious eating of the state funds, without concern on how it affect the economy or the unemployed community. This is happening, while the Wall Street Companies and the big corporations let them. Since they are affiliated and getting fortunes on the funds getting through this process.
We should worry about this, we should pound about it. Not accept it, the acknowledgment that something is wrong, that something isn’t right. That we are taken for granted, other people are eating of our resources and taken everything. Not supporting or adjusting to make sure they actually serve the public. They are not hiring or making sure to respect the provisions of the state even. As they are making deals inside the State House or with family members of the Executive. This is happening on daily basis. The ignorance and indifference. The malicious takings and unacceptable use of public resources. This is just insane and we let it happen again and again. When they know they can, they don’t have to deliver water in the taps, make sure the school is decent and has books, police officers being paid, the soldiers being fed on operations and the roads well-kept. They don’t have to, because they walk in the National Bank, empty the accounts and flee the scene without no Oceans 11. Just walk in suits and tie, smile and grin and go out like they ordered a pizza at the Hut. No issue, no nothing.
That is why there is no water, why there is well, why there are no services. Because we have accepted to be taken for granted, we have accepted to fooled and stolen from, that the powers can silence us and take it all, without any question or any honor. While speaking to us and belittling us. They are using all measures and all the provisions to hold us down. But should we let them? Is that right?
I don’t think so, neither should you. It isn’t just about water, but when you cannot provide what is needed and everything needs to live. You know that society is out of whack. You know that the government doesn’t give a rats ass about you or your kin. Then its time to question them and show them you matter. Not just compliance, but defiance. Not silence, neither violence, but demonstrations that hurt the system and give them a mental beating. Hurt their pockets and their will. That is the only way to stop this, neither companies, NGOs or ruling elite, will give a damn until the people start to stop their bread and circus. When they don’t have fancy bread and has the circus. They will run away and stop being loyal to the paradigm. Until, that happen, they will be ignorance and not care, until their nearest surroundings are breaking and in for the taking.
Just think about that…. Just think about that… Not let that go, the society who cannot even deliver the basics has to be shaken, has to stirred, not with violence, but as long as it silence its weakest and poorest. They are the ones who has to be on the barricades and break the kingpins on top. No-one else will give way. It will cost to do this peacefully. But it has to stop. That there is no water in the tap, there is no well for miles, there is no jobs for 80% of the youth and educated get to emigrate to get a job. Then you know the state of affairs is wrong.
You shouldn’t accept it and neither should I. Not because I do something magnificent, but I don’t. I will just not let my writing and my thoughts be altered into ignorance, when I know to many people on this earth. Get taken for granted, get used as pawns and used tools, when they need aid funds and when they need development funds. However, some of that always get taken. That is why they stay poor and act poor, easy funds to tap into. They can just eat of the IMF, World Bank and Development Banks as long as they write fine plans and proceedings. Someone will take it and buy into it.
That is why the well isn’t built, the water isn’t in the tap. There is no deep concern. There is no concern that yields are dwindling, the sources are not there, the storage of rain-water isn’t there either. Nothing is taken care off. That while the politicians ride by in expensive cars, nice watches, big entourages with security guards and affiliates, give away few pieces of bread and a grand speech. But when the ordinary day passes by, nothing is done, the pothole still there and the liquidated funds are non-existent, the plans was just on paper and things remain the same.
Still, the people and elites expect silence. They don’t expect an uprising, they don’t expect people to say enough, to say, we deserve water, we deserve a state who cares and secure the future of our kids. We deserve to make a society where all people can get a livelihood. Not just the ones closets to the elite. There should be more possibilities. There should be, but there isn’t.
It got to stop, we got to drill and build. We got too, but first we got destroy, to be able to rebuild. We have to dismantle, piece by piece. Because if we continue, the elites and the powers to be will not let go. It is easy money and your not eating. Its a simple trade and one is the loser. While the other party takes it all. Peace.


This week we have seen the price of the fall of President Jacob Zuma, the cleaning of the State Owned Enterprises has hopefully started. That can be said because of the actions of the Gupta Family owned corporations as so many of them has suddenly applied for “Business Rescue”, you can wonder what that means, therefore, I went to law-firm who can explain what the Business Rescue means.
Werkmans Attorneys said this: “The aim of business rescue is to restructure the affairs of a company in such a way that either maximises the likelihood of the company continuing in existence on a solvent basis or results in a better return for the creditors of the company than would ordinarily result from the liquidation of the company (section 128(1)(b)(iii))”. So the initial idea behind it is to make adjustments to either secure the companies or secure the creditors, when coming from Gupta businesses meaning the changes of government contracts and litigation’s following the change of President.
Sudden Optimum Coal Terminal Limited, Optimum Coal Mine Limited, Tegeta Exploration and Resource Limited, VR Laser Service Limited, Koornfontein Mines Limited, Confident Concept Limited, Shiva Uranium Limited and Islandsite Investment One Hundred Eighty Limited. We should anticipate in the coming days and weeks, that Oakbay Investment and Oakbay Resources will run insolvent too. As these companies has dried the funds of Eskom and other state owned businesses with shady deals made under the Zuma administration.
We can just imagine the state suffering from this, as the Business Rescue tools buys the companies and investors time, while they have already moved away the funds and needs new liquidation to save it. Smart move by the foreign investors, who used their relationship with Zuma to bleed the nations out of money. They started the companies in the years before Zuma took power in 2006 and 2007. The Shiva Uranium is the oldest company, but the others are very new and made for the age of Zuma.
This will hurt many of the current leaders within African National Congress (ANC) who has also been regarded and parts of the deals, this being Molefe and Gigaba. Des Royeen should also struggling at night and wonder why he was part of it. That ANN7 and Transnet should also worry, all things connected with the Gupta’s should be shaking, Sahara Computers and what else of companies they deliberately made to gain fortunes and spin their stories. It should be hurt and within time, they will ask for rescue too. As the funds and contracts with the state stops.
We can just wonder how many more Estina deals there been in the different states of South Africa. As long as the creditors, the banks and the HAWKS continue to pursuit the lost cash. Now that the Zuma cannot stop their investigations, hopefully more whistle-blowers and more covers will be showed in public. So that the State can get their funds back and also prosecute the ones who has stolen money from the public.
All of this will hit hard towards the finances of South Africa, the service delivery of the state owned corporations, as they was dealing with them directly to secure coal or other services. We can just wonder, how the effect will be in the long run. How the ANC will manage and who has to go because of it. Who will be implicated and who has to answer for the shady deals done in secret so the Indian businessmen could earn fortunes on rigged arrangements. Peace.

Again, the investor and mineral licensing powerhouse in the Democratic Republic Congo, Dan Gertler is even more under fire after the revelations of his illicit trade during the recent years. Now, the formula and the amount of cash he gets from the foreign mineral extraction companies are paying for their passage to him. This as the deals between Getler and Kinshasa authorities are left in the dark. Whatever deal they have, certainly Getler is earning fortunes without doing more, than being connected to the Joseph Kabila government.
This report shows important facts and also bring certainties of the assumed fortunes made by Gertler, even as he is sanctioned and his corporations. Clearly, the mineral extraction is profitable in the midst of insecurity and civilian despair in the republic. While the businesses and the affiliates are eating, the public are fleeing militias and the army itself. The state is not serving the public, but the companies and the persons who has secret deals with the government. It is vicious and the international community let them, even as it is sanctioned, the acts are still appearing and has the ability to earn on it.
“Based on a number of assumptions, Resource Matters estimates the royalties to the Gertler-affiliated companies can be expected to amount to about $110 million for 2018 and nearly $100 million for 2019. This means that Gertler risks losing about $270,000 in revenue from Glencore’s operations per day. That is nearly twice as much as the world’s best paid soccer player, Lionel Messi, makes at Barcelona” (Resource Matters, P: 6, 2018).
“Glencore therefore has to balance the risk of increased pressure in Congo versus the risk of ending up on the U.S. sanctions list. This means that the royalty payments constitute a significant risk, whether they stop or continue. Investors should be able to know how Glencore will deal with this going forward. U.K anti-corruption organization Global Witness has repeatedly lamented the opacity of Glencore’s royalty payments to Gertler’s companies and called for better disclosure” (Resource Matters, P: 8, 2018).
“This conclusion was somewhat hasty. Gertler’s gold companies do not explicitly feature on the sanctions list, but that in itself does not matter. Under the U.S. Treasury’s so-called 50%-rule, any company owned at least 50% by a sanctioned entity is considered, per se, sanctioned because it is deemed to be “blocked property” of the sanctioned person. Both Moku Goldmines and Société Minière de Moku-Beverendi are at least 50% owned by Fleurette, a sanctioned entity, and should be considered sanctioned, too. In addition, the fact that no payments are made to Gertler does not shield Randgold from the risk of being sanctioned. The U.S. Treasury could qualify Randgold’s exploration activities at Moku-Beverendi as ‘material support’ to a sanctioned entity and impose sanctions on Randgold” (Resource Matters, P: 9, 2018).
Gertler might be in hot-water and the Kabila government might have decisions to make concerning their alliance. Still, the trades and contracts has been made, if the Kabila government suspend and revoke it, they might have to pay a settlement. While wait for a new company or middle-man to secure a grand deal for the licensing. We can question if the loyalty will be there, as long as the sanctions might hit the companies who works with Gertler. Because, they do not want to lose the profitable and secure delivery of the cobalt and other minerals in the Republic.
Surely, Getler don’t want to miss his winning ways and his double earnings of Messi. He want it and doesn’t care about how. Getler just continue to score and get contracts, which makes his giant fortune. It is by the blessing of his connections in Kinshasa. Peace.
Reference:
Resource Matters – ‘The Global Magnitsky – Effect How will U.S. sanctions against Israeli billionaire Dan Gertler affect the DR Congo’s extractive sector?” (February 2018).