Sunday, February 12, 2012

Report Cautions Against Deepening Corruption in Oil Sector

The Moment
11 February 2012

A new report by Global Witness, an international non-governmental organisation, has warned of a high risk of corruption in natural resource contracts in Nigeria and Angola.

The report, titled 'Rigged: The Scramble for Africa's Oil, Gas and Minerals,' calls for more transparency in the oil, gas and mining industries to prevent deepening corruption.

According to the report, released midweek, small and obscure companies involved in resource deals in Nigeria and Angola could be acting as fronts for government officials or their proxies.

Global Witness stated that in Angola, several small companies that have won access to the oil sector, sometimes partnered with multinationals, do not identify the beneficial owners of the companies and are owned by people with the same names as government officials.

In Nigeria, several obscure companies, one of which appeared to be controlled by a senator and another by an ally of a president, who was still in office, won lucrative oil contracts.

A handful of companies have resolved cases based on alleged violations of the U.S. Foreign Corrupt Practices Act in Angola and Nigeria.

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