The Sentry’s new report have been digging into the export of conflict Gold to the Gold Refinery in Entebbe!

The conflict gold trade sustains ruthless armed groups such as the FDLR and Congolese army units that commit mass atrocities, sexual violence, and other human rights abuses against the population of eastern Congo. It is critical that actors in the international community, especially global banks that trade gold and the consumers of gold, know the origins of the precious metal they are buying. More importantly, governments and companies need to take action against the corporate networks that traffic conflict gold and move it into the global economy” (The Sentry, P: 20, 2018)

Just as the Global Witness Report of June 2017 named “Under Mined” and United Nations Security Council Report from June 2018 named “Final report of the Group of Experts on the Democratic Republic of the Congo”. Today, the Sentry launched today the report named “The Golden Laundromat”. They are all digging into the illegal and sinister gold trade of the Democratic Republic of Congo and the possible money laundering scheme of President Yoweri Kaguta Museveni and his brother Gen. Salim Selah. Who is both invested in this operation.

This report is again stating the fact and the reality with this trade. As the Sentry is proving new perspective to the matter. These being their analysis of the documentation of the operation and more into the Goetz business practices, which are vital for the export of these conflict minerals. They are showing the trail from the fields and mines in the DRC to the World Market.

Here is some quotes, which I think was worth taking a minute to digest:

According to interviews conducted and documents obtained by The Sentry, there is a significant risk that AGR sources conflict gold from eastern Congo, and that it imports illegally exported artisanal gold mined in eastern Congo. In 2017, according to documents reviewed by The Sentry, AGR refined and exported 9.3 tons of gold, although the company says it exported 7.7 tons. Several people involved in the trade of Congolese gold with direct knowledge of AGR’s operations told The Sentry that the company sources gold from conflict-affected parts of eastern Congo. Two prominent gold smugglers in eastern Congo acknowledged they sold illegally mined and trafficked gold to AGR from 2016-18, which two South Kivu-based traders confirmed” (The Sentry, P: 8, 2018).

Furthermore, there is at least reason to suspect that AGR buys gold. Trade insiders told The Sentry that AGR buys gold, and Goetz reportedly decides on the price paid to traders, as well as arranging terms and scheduling of payment. Ugandan export records indicate that AGR exports gold: it exported 9.3 tons of gold in 2017, although AGR says it exported 7.7 tons. Goetz’s original AGR project proposal sent to President Museveni in 2014 calls into question the company’s commitment to due diligence. In the document, Goetz, on behalf of Tony Goetz NV, states that AGR should attract gold from the region and that any gold traders who do not have official documents should be allowed to sell gold to AGR but pay a $500 penalty” (…) “From Uganda, AGR’s gold flows to other Goetz-controlled companies in Dubai. The DMCC was scheduled to audit another company in the Goetz network, Tony Goetz NV, in 2017, but no new audit report has been published. Despite the lack of an updated audit, Tony Goetz NV remains a Dubai Good Delivery (DGD) member today. It had passed the DMCC’s audit on responsible practices in 2015 based on its 2014 activities – before AGR was launched” (The Sentry, P: 13, 2018).

According to documents reviewed by The Sentry, Goetz sought the intercession of President Museveni in 2014 in order to gain a 10-year tax break for AGR. Three years later, that became a reality when President Museveni announced a pending zero percent tax rate essentially benefitting only AGR. This, in turn, potentially relates to a fourth FATF AML red flag that is applicable to the Goetz network: registration of a trading company in a tax haven even though its business relates to another jurisdiction. While Uganda is not a traditional tax haven, as a practical matter, it presently serves as one for gold refining since Uganda changed its tax structures on gold to attract gold companies” (The Sentry, P: 17, 2018).

What we are seeing as some would be shocked, other would see the deliberate action of the President to support and earn of the illegal gold trade, also ensure the business in Uganda. That the DRC can be used and illegally export the gold, where the business-partner are acting on behalf of the President that has made the arrangement for the refinery in Uganda. This has been done, while also giving AGR a tax-holiday, so that the production will not be taxed and neither able to follow ordinary customs. That means the President and brother together with Goetz knows perfectly well what happens from the DRC to the World Market. They are earning fortunes on the illegal gold trade and is single-handed securing the profits because of it.

The Sentry has done great work collecting the documentation for this and proving their allegations. As others has done to of late. They have extended their work and shown more meat to the bones. Making it a juicy stake. That is showing the acts of violence and killings in the DRC are benefiting the Ugandan President to this day. He is earning wealth on the misery of the Kivu’s, as they by doing this trade keeping up the in-security there. So, that the illegal gold trade can persist… and linger on.

President Museveni knows this and blames the MONUSCO still for being there to long. But his reach and his hands are in the cookie jar. As it has been since he supported Laurent Kabila to overthrow Mobutu. Peace.

Reference:

The Sentry – ‘The Golden Laundromat – The Conflict Gold Trade from Eastern Congo to the United States and Europe’ October 2018

Museveni, you cannot order God around!

I don’t fear God’s calling and even if he wants to call me, I have no problem but I want him(God) to do it an organised manner” Yoweri Kaguta Museveni (10.08.2018).

The Almighty will not follow your command, I know on planet earth and in the East African sphere, you have gotten your way or bribed your way. You have used all methods to get people to follow you, if they haven’t you have finished them and sent them into eternity. However, if you want God to show mercy, maybe, just maybe repent from your ways Mr. President.

Because someone who speaks so favorable about the Christian faith as you, Mr. President. Your acts are sinister and devious. You cannot deny that yourself, as the enemies of your vision are usually ending up in trouble, while you have prospered. You have vast wealth, but your country is poor. That is your making, not the people, instead of serving them, you have served yourself.

What sort of leader is that? Your are not selfless and open, you bring the guns and ammunition, you bring the tear-gas and the forged charges against the men and woman standing your way. You send the army to topple other leaders, to secure benefits and resources from the neighboring countries.

With all the men and woman whose lost their lives because of your petty politics. You should fear God. You should wonder if he would show remorse or if you will be in damnation. I do not know how that will be for you, Mr. President, but surely you should respect him a bit more. Because of the havoc and pain you have put other through.

Gods ways are mysterious, while your are an open hazardous bazaar. That is why you should repent and act a bit more sincere, because we know who you are and your ways. They are written and the pains in Uganda, Democratic Republic of Congo, Rwanda and South Sudan. To name a few, also now with mercenaries in Equatorial Guinea and the lives taken in the power-game in Somalia. We know who you are and what you do.

You should really look into yourself and be aware of the consequences. Not because of me, but because of the almighty God, the Divine, the creator of Earth and everlasting, the ones who breath life into all of us and decides our fate. You should be a bit more concerned. We all will answer to him for our deeds and you know perfectly well what you have done.

He knows and he will take care of it, in due time. But not expect it to be your way. You have already razed enough havoc. You should not expect him to clock you in when you feel like it. Peace.

Museveni winning a Peace Price? You got to be kidding me!

“Let’s not wait to use guns. We can use the tongue; so why not get the unity we desire?” Yoweri Kaguta Museveni at a speech at a rally in Mbarara District (Uganda Times, January 7, 1980).

Mr. I Took the Power by the Gun in 1986 and has been sticking with it since. Are now awarded with a peace price (!!). This the biggest insult to peace, as a man who has supported endless war, prolonged his own civil war to topple countless leaders who stood his in way. Now, he is awarded for peace. On the day, that he started the Third Congo Civil War, which is even a bigger insult, as the civilians there are still lingering from the pain caused by proxy-militias supported by the Ugandan President. It is not as if he has passed on the opportunity to be the kingmaker anywhere and still does when he can.

“The 2018 Global Peace Award will be presented President Yoweri Kaguta Museveni in honour of his leading peace efforts and initiatives in the Great Lakes region and beyond, Shukla Mukesh the Chairman Global Peace Foundation Uganda Chapter has announced. Mukesh told a fully parked press conference in Munyonyo that the award ceremony for Museveni would be one of the major highlights of the on-going 3-day Global Peace leadership conference being held at the Common wealth Speke Resort Hotel in Munyonyo that started on August 1, 2018” (New Vision – ‘Museveni’s peace initiatives win him global award’ 02.08.2018, link: https://www.newvision.co.ug/new_vision/news/1482633/museveni-peace-initiatives-win-global-award).

Therefore, because he rewarded. Let us look into the man’s past. Just briefly, to show the madness of giving this man this award. It is insulting to peace, it like making the war-lord into a saint. That will not work in my book, when your crook, your stay a crook, since we know what you took. It is that simple and plain, we know your history and that will not rewritten. We know that recently, you promised to serve President Salva Kiir Mayardit with more arms if needed, even in the midst of negotiations and peace-dealings. That you did, at the time UN put sanctions on arms trade to the Republic. Well, that didn’t matter. That is just in 2018.

Take a look at his past, in DRC, Rwanda and South Sudan. Nothing about peace, more about war!

DRC:

“The Third Congo Civil War became the deadliest conflict since World War II. An estimated 5.4 million war-related deaths occurred and more than twice that number were displaced from their homes and sought asylum in neighborhood countries. The Third Congo Civil War evolved out of Laurent-Desire Kabila’s victory over Mobutu Sese Seko in 1997. Once Kabila became president of the DRC, his relations with previous allies like Rwanda and Uganda quickly deteriorated. In July 1998, Kabila ordered all officials and troops from Rwanda and Uganda to leave the country. Instead on August 2, 1998, those troops began supporting rebels who were intent on overthrowing Kabila. Two days later, Rwandan troops flew directly from their nation to the DRC province of Bas-Congo (now Kongo Central) which the intention of joining other Rwandan and Ugandan soldiers and march on the capital of Kinshasa” (Samuel Momodu – ‘Third Congo Civil War (1998-2003)’ link: http://www.blackpast.org/gah/third-congo-civil-war-1998-2003).

Rwanda:

“Museveni’s political survival strategies; and the prevailing economic, political, and humanitarian climate in the post-Cold War regional and international arena. Fourth, there is considerable evidence that the mobilization for the invasion was public knowledge in Uganda. This in tum suggests that President Museveni’s regime was almost certainly aware of it as well. The existing evidence also indicates that the regime trained, provided sanctuary, arms, logistical support, political, and diplomatic assistance to the RPA throughout the period of military engagement in Rwanda” (Ogenga Otunnu, ‘The Path of a Genocide’, P:48, 1999).

South Sudan:

“In the Sudan, Mr. Museveni for years has aided the Sudan People’s Liberation Army, led by his old comrade and classmate John Garang, against the Islamic fundamentalist Government in Khartoum” (James C. McKinley Jr. – ‘Uganda Leader Stands Tall in New African Order’ 15.07.1997 link: https://www.nytimes.com/1997/06/15/world/uganda-leader-stands-tall-in-new-african-order.html).

This should be more than enough reasons to not give him the reward. The way he has made dozens of wars within the DRC. To take out Mobutu, but also Laurent Kabila, also the support of RPA to overthrow the regime of Rwanda. While supporting the rebel force of South Sudan in their battle too. Therefore, he has supported enough wars and delivered enough conflict. As he continue to do to now. Surely he would help Pierre Nkurunziza in Burundi and so on.

He is more likely to escalate conflicts in his interests, than try to forge peace. Therefore, it is insulting to give him an award for peace. Especially on the day of 20 years ago since he invaded together with Rwanda the Democratic Republic of Congo to topple Laurent Kabila. That should be a no-no, but certain ones just don’t care about all the people who died in the conflict and who was behind it. That was him and Rwandan President Paul Kagame. Something that the world should remember and never forget. Peace.

Fresh UN Report: Illigal Gold Smuggling from the DRC to Uganda!

There been new reports on the gold smuggling to Uganda from Democratic Republic of Congo (DRC). However, it needs more reporting, as this illegal trading and looting of mineral resources from the Republic needs to be put a spotlight on. As this trade is feeding illegitimate government and militias whose using force against innocent civilians and citizens in general. This report that is reported in the report from the Group of Experts are expelling a deep, but also a volatile story of how they are transporting and getting the illegal gold into the market.

We can wonder if this gold enters the Gen. Salim Selah owned African Gold Refinery Limited in Entebbe, before flying away into the World Market through the brokers and traders there. We can question that, as the government on both sides of the border is accepting this. They are both earning on this and not registering it. Therefore, the location of extraction is kept secret, while the production and the paperwork is kept under the radar. That is why the consumer cannot know under what condition the gold came from and that is worrying. The smuggling, the lack of paperwork and forging of documents shows they are really pushing the boundaries to get into the global markets.

Also, this shows how blatant disregard for maladministration, they have done deliberately and not cared about the public.

Smugglers used the road to Mahagi, where they travelled either by motorbike, taxi or even truck. At the border with Uganda, when they were eventually checked, they bribed customs officials on the Congolese side. All of the Group’s informants on this issue confirmed that, in Goli, on the Ugandan side of the border, they were not asked to present papers or explain the origin of gold that they carried. Mahagi is a long-established hub of the smuggling route” (P: 22)

Two brokers told the Group that they mainly carried gold from mining sites in Kawa and Monbgwalu in Djugu territory. When they arrived in Goli, they would meet with a broker from the Democratic Republic of the Congo, who would accompany them to sell to Kampala-based dealers. One of the brokers told the Group that, until February 2018, he travelled to Kampala every two weeks with about 3 kilograms of gold (approximately $132,000) 20 per trip” (P: 22-23).

The Group confirmed that, in Entebbe Airport, companies sell empty seats. As previously documented, empty seats are used by smugglers to transport gold concealed in hand luggage. Two individuals associated with the gold sector in Kampala, one Kampala-based gold broker from the Democratic Republic of the Congo and one migration officer stationed at the airport in Entebbe told the Group that, despite the official claim that minerals cannot leave the country without proper paperwork, gold smugglers continue to travel either without documentation or with forged documents. The migration officer and the broker told the Group that the owners of gold being trafficked do not travel themselves but use couriers who fly to Dubai to deliver the gold to buyers there. The two sources added that couriers can operate easily because they bribe customs and security officers at Entebbe airport” (…) “Two Ugandan nationals working for two airlines operating from Entebbe informed the Group that they are not requested to check gold in hand luggage. In the course of its current mandate, the Group held discussions with senior officials of eight airlines operating in and out of the Great Lakes region, who said that their primary role in checking passengers was to make sure no one was carrying anything that could jeopardize the security of the plane, a policy focusing almost entirely on weapons and explosives. The Group is of the view that gold transported on commercial aeroplanes should not be banned as it represents a key form of export for responsible artisanal and small-scale mining activity that observes the requisite due diligence guidelines. However, there is a need to address the loopholes related to the illegal transportation of gold carried in hand luggage on commercial aeroplanes” (P: 24, 2018).

Clearly, the illegal trade of gold should be looked into and be a worry for the international community, as the is funding militias and illegal activity within the DRC. This should not be overlooked, the clear indication of smuggling gold and also not registering the conflict minerals. Therefore, this is sophisticated and using all means to bribe lower level civil servants on both sides, to secure the trade of this can go-on. Both republic’s can do something about this, if they cared or had incentive to do so. However, they seem pretty fine and dandy with this activity. As the state and the close connected activity with the elites who are sponging the funds made from it.

That is why even President Museveni was there for the opening of the Gold Refinery in Entebbe. That shows that the Republic have no trouble with illegal smuggling of gold from the DRC. Peace.

Reference:

United Nations Security Council – ‘ Final report of the Group of Experts on the Democratic Republic of the Congo’ (04.06.2018).

Botswana: “Refusal by Some Leaders to Hand Over Power” (26.02.2018)

RDC: Communique du Comite Laic De Coordination (25.02.2018)

RDC: Moise Katumbi – “Declaration de soutien a l’appel du Comite laic pour la marche du 25 fevier 2018” (23.02.2018)

RDC: G7 Communique (22.02.2018)

DRC: A Report published today says Getler’s Mineral Royalties daily is the double of Messi’s salary!

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).

RDC: Lucha – “Mise au point au sujet des allegations de soutien a la CENI et sur les manifestations de ces 23 et 25 fevier 2018” (21.02.2018)