Several African public figures (and associates) mentioned in the Panama Papers

The Guardian has an excellent summary of what you need to know about the Panama Papers, the data leak of the century from the Panama-based law firm Mossack Fonseca.The firms specializes, among other things, in incorporating companies in offshore jurisdictions that guarantee secrecy of ownership.

Here is a map of the companies and clients mentioned in the leaked documents (source). Apparently, the entire haul (2.6 terabytes of data) has information on 214,000 shell companies spanning the period between 1970 to 2016.

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The leaked documents show links to 72 current or former heads of state and government. So far the highest-ranking public official most likely to resign as a result  of the leak is the Prime Minister of Iceland, Sigmundur Gunnlaugsson (see story here and here)

For a list of African public officials mentioned in the leaked documents see here. And I am sure we are going to hear a lot about all these rich people in developing countries.Screen Shot 2016-04-03 at 9.18.42 PM

Closer to home, the Daily Nation reports that Kenya’s Deputy Chief Justice, Kalpana Rawal, “has been linked to a string of shell companies registered in a notorious Caribbean tax haven popular with tax dodgers, dictators and drug dealers.” Justice Rawal has been dodging retirement for a while. May be after the latest revelations might find a reason to call it quits.

The ICIJ website has neat figures summarizing some of the findings from the massive data haul. Also, here is a Bloomberg story on the tax haven that is the United States. 

We finally have a winner for the Mo Ibrahim Prize

UPDATE: Check out the Mo Ibrahim Index of Governance here. The usually suspects – Botswana, Cape Verde and Mauritius –  lead the pack.

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The BBC reports:

Former Cape Verde President Pedro Verona Pires has been awarded this year’s $5m (£3.2m) Mo Ibrahim prize for good governance in Africa.

The prize committee said Mr Pires, who stepped down in August, had helped make the archipelago off the West African coast a “model of democracy, stability and increased prosperity”.

The prize is supposed to be awarded each year to a democratically elected leader who has voluntarily left office.

There has been no winner for two years. The committee said there had been no suitable candidate.

The $5m award, given over 10 years followed by $200,000 a year for life, is the world’s most valuable individual prize. The previous winners are Botswana’s President Festus Mogae and Mozambique’s Joaquim Chissano.

In case you are wondering why African incumbents – including Cameroon’s Paul Biya and Senegal’s Wade – do not find the world’s most valuable individual prize worth their time check out an earlier post in which I attempted to calculate the opportunity cost of accepting the award. Notice that my calculation did not factor in the probability of not winning the prize even after stepping down or that of winding up at the Hague or dead.

The prize is a nice carrot and is part of a larger and highly commendable, I should add, attempt at an ideational change on what it means to be a good president. But it almost naively assumes that the only reason autocrats stay in power beyond their “use by” date is for the money.

If that were the case Gbagbo and Gaddafi would surely have done the right thing.

If I were on the committee I would ask Mo to consider channeling some of the money from years without winners to countries with promise – to help facilitate institutional reforms – all in an attempt to make the environment safe for the incumbent and his cronies in case he chooses to step down.

Quick hits

Guide to arguing on the internet (HT Lauren).

Speaking of arguing on the internet, I like the drama that is spats between economists and other academics on their respective blogs.

The Economist presents the faces of famine in the Horn. It is beyond sad that so many people should be condemned to suffer this man-made tragedy.

Brett Keller has posts here and here on Sam Childers (a.k.a. machine gun preacher), a gun-runner into the habit of doing morally and ethnically dubious things in the name of God. Keller says that Childers is “stockpiling arms at his orphanage and has admitted to selling weapons to unnamed armed factions in Sudan, Uganda, and Rwanda.”

In Zambia (where I shall be for the elections in Sept.) the politics of citizenship and belonging are yet to be settled 50 years after independence. We recently witnessed the dangers of de-legitimizing whole sections of countries as outsiders in Cote d’Ivoire. I hope that if Sata ever wins he will not do what incumbent Ivorians did to ignite a rebellion in the northern reaches of their country. For more on this check out this great book on the Ivorian collapse. I have read it and absolutely loved it.

A muddy few months ahead for the South African government. Infighting with the ANC top brass might mean an early exit for President Zuma. With over 60% of the votes in the last election, the ANC is essentially an oversize coalition prone to internal wrangles. It will be interesting to see how Zuma weathers the storm in the midst of challenges from both COSATU and Malema.

Lastly, the current issue of the Journal of African Economies looks at the impact of higher education in Africa. The main takeaway is that the low quality of education at lower levels (primary and secondary) has meant that the biggest bang for the buck on the Continent, as far as education is concerned, only comes with higher education. Too bad that many of those that get higher education are underpaid or out of the Continent all together.

No ICC hearings in Kenya

The ICC Pre-Trial Chamber Judge Ekaterina Trendafilova on Wednesday decided that the trial of suspects of the 2007-08 election violence in Kenya will not be held in the country.

Great move.

I am of the view that holding the hearings in Kenya would have created an unnecessary distraction from the important task of implementing Kenya’s new constitution. Already, the bigwigs accused of masterminding the violence that killed 1300 and displaced over 300,000 Kenyans have ethnicized their predicament. Holding the hearings in Kenya would have handed them an opportunity for a circus of ethnicity-charged rallies and demonstrations in Nairobi.

The ICC continues to be a source of debate in Kenya and across Africa. Many have faulted the court’s apparent bias against African leaders. Some have even called it a form of neocolonialism. While admitting that the court could use a little bit more tact [principally by acknowledging that it cannot be apolitical BECAUSE it is an international court SANS a world government] I still think that it is the best hope of ending impunity on the African continent – at least until African leaders internalize the fact that it is not cool to kill your own people.

Among the cases that should have been handled with a sensitivity to political realities include Sudan and Libya [and may be the LRA in Uganda]. Kenya’s Ocampo Six, the DRC’s Jean-Pierre Bemba and Cote d’Ivoire’s Laurent Gbagbo, on the other hand, should not raise questions of national sovereignty. Murderous dictators and their henchmen do not have internal affairs. In any case sovereignty for many an African country means nothing more than sovereignty for the president and his cronies.

Related posts here and here.

Gbagbo’s departure imminent

Laurent Gbagbo, former president of Cote d’Ivoire who refuses to step down despite losing an election, faces imminent departure. According to the BBC and the Times, his own army chief (Phillippe Mangou) and other members of the security forces have already defected from his camp. The rebel forces loyal to Alassane Ouattara, the internationally recognized president of Cote d’Ivoire, are closing in on Abidjan, the commercial capital. The rebels are already in control of Yamoussoukro, the capital, and the important port of San Pedor. Mr. Gbagbo has been illegally exporting cocoa from the port in violation of a UN embargo. Gbagbo’s home town, Gagnoa, has also fallen to the rebels.

The only question left is what should happen to Mr. Gbagbo after he leaves the Ivorian presidency. His refusal to leave office after losing an election has already led to the death of hundreds of civilians. The most gruesome example of his lack of concern for his own countrymen is when he ordered his soldiers to fire mortars at a local market in Abidjan. Dozens, most of them women traders, were killed. An estimated one million people have fled their homes. In my view Mr. Gbabgo should stand trial for crimes against humanity, IN ABIDJAN, in order to serve as an example for other African autocrats that elections have consequences.

Mr. Gbagbo should not be part of any unity government.

In addition, an inquiry should be made into who exactly funded his months long attempt at supplanting Ivorian electoral democracy. The likes of Edwardo dos Santos of Angola and Robert Mugabe of Zimbabwe (who reportedly sent him weapons) should also face penalties – even if just adverse mentions – for their role in aiding and abetting a murderous autocrat.

More on this at the FP

will the world sit and watch as ivorians massacre each other?

Laurent Gbagbo appears set to plunge his country back into civil war.

FP reports:

For the last several months, the Ivory Coast has been crawling back to civil war. Now, both sides are actively bulking up their forces in what looks like an alarming calculation that this country’s crisis will get worse before it gets better.  The Ivory Coast has been divided between a rebel-controlled north and a government-controlled south for the last decade. The fragile detante that restored peace in 2005 is shattering. Thousands upon thousands are fleeing the capital today in fear of exactly that.

In the southern city and capital of Abidjan, “thousands” of youth have joined the army, heeding a call from outgoing President Laurent Gbagbo, the man who lost November’s presidential election. The drive has been led by Gbagbo’s notoriously militant youth minister, Blé Goudé, who is under U.N. sanctions for violating the country’s peace agreement and impeding the U.N. peacekeeping missionin the country. He told Reuters, “Our country is under attack, so we’re organising ourselves to re-establish order … The legal way to do it is to put them in the regular army.”

Mr. Gbagbo lost an election late last year to challenger Alassane Ouattara but has refused to step down despite mounting international pressure. Most of the world, except Angola, Zimbabwe and a few autocratic presidents here and there, have condemned his refusal to step down.

Angola and Zimbabwe are arming Gbagbo. He is also busy recruiting militias within Abidjan and in neighboring Liberia. Mr. Ouattara, his challenger and Cote d’Ivoire’s legitimate president, has the backing of Forces Nouvelle, the rebel outfit that has controlled northern Cote d’Ivoire for most of the last 10 years. A blood bath between the two forces appears inevitable.

So what can be done? The AU’s mediation efforts have failed. The UN mission in Abidjan has been sloppy. ECOWAS, the regional bloc remains divided over the Ivorian issue. Confusion reigns. At the onset of the crisis most of those concerned wanted to avoid any conflict. But that calculus is already off the table. Now it is not whether there will be conflict, but how bad it will get. I say it is about time ECOWAS sent in troops (despite Ghanaian opposition) to take out Gbagbo before he becomes too entrenched in Abidjan.

This will be a lot less costly than waiting to send in a peacekeeping mission after hundreds of thousands have died.

 

the au, without a regional hegemon, is toothless

On March 10th, 2011 the African Union (AU) declared Alassane Ouattara as the legitimately elected president of Ivory Coast. Outgoing president Laurent Gbagbo (who insists he won the poll) responded by ordering his soldiers to kill supporters of Mr. Ouattara.

Now the ball is back in the AU’s court. So far the regional body appears to be at sixes and sevens, unsure of how to react. Lacking a regional hegemonic benefactor, the AU has over the years been mostly bark and no bite. Its leadership reflects the confusion and ineptitude that characterize the Continental body. One of its recent leaders is Muamar Gaddafi. Presently it is led by Teodoro Obiang Nguema Mbasogo, dictator of Equatorial Guinea and this idiot’s guy’s dad.

Mr. Gbagbo has refused to step down or be part of a unity government led by Mr. Ouattara, as demanded by the AU. Increasingly isolated, he has nationalized the cocoa industry in a desperate attempt to get some cash to pay his loyalists. Cote d’Ivoire produces 40% of the world’s cocoa. He is also reported to be receiving help from Robert Mugabe of Zimbabwe and Angola’s Jose Edwardo do Santos.

In an ideal world South Africa or Nigeria or even Ethiopia would have provided leadership and force whenever needed to ensure that AU resolutions are enforced. But Pretoria has a president in Zuma who shows no interest in foreign policy; his handling of the Zimbabwe crisis speaks volumes. Abuja is a mess, period and Ethiopia has first to eradicate famine before it can venture anywhere beyond Somalia.

Without an enforcement mechanism and a regional hegemonic benefactor, the AU’s resolutions will continue to be nothing but hot air.

Will Bashir pay for “losing the south”?

Omar Bashir faces a tough few days ahead. More than 99% of Southern Sudanese voted for secession in the just concluded referendum, effectively guaranteeing the split of Africa’s biggest country in July of this year. Many in the North blame Bashir for losing the South. The waves of protests in the Middle East following the Jasmine Revolution in Tunisia is adding fuel to the flames. The Independent reports:

Violent clashes broke out at two Khartoum universities yesterday as heavily armed police surrounded stone throwing students. Social media groups similar to those used elsewhere in the Arab world to mobilise protesters have started to mushroom in northern cities.

One of them calling itself “Youth for Change” has attracted 15,000 members to its Facebook page. “The people of Sudan will not remain silent anymore,” it says. “It is about time we demand our rights and take what’s ours in a peaceful demonstration that will not involve any acts of sabotage.”

Security forces arrested Hussein Khogali, the editor of al-Watan newspaper, whom they accuse of orchestrating the online protests.

And in other news, the African Union summit opened on Sunday with the Ivory Coast top of the agenda. The Continental club of autocrats body agreed to set up a five member panel to continue negotiations with Laurent Gbagbo, the Ivorian president who lost an election but refuses to step down. Also on the AU’s agenda is Kenya’s misguided attempts at battling the ICC through threats of en masse pullouts from the Rome treaty by African countries.

The failure to force Gbagbo out of power and the ill-fated fights with the ICC are additions to the litany of failures that make most on the Continent question the relevance of the AU. In my opinion regional bodies are only as strong as their dominant members. With South Africa continuing to be disinterested in regional matters and Nigeria being Nigeria the AU is guaranteed to remain rudderless into the foreseeable future.

gbagbo living on borrowed time

The Central Bank of West African States has signaled the beginning of the end of Laurent Gbagbo’s attempted auto-coup. The BBC reports that the regional reserve bank has denied access to Mr. Gbagbo and his cronies. It is only a matter of time before unpaid soldiers switch alliances and pledge their allegiance to the man that can deliver the paycheck, Mr. Ouattara. Or so I hope.

Mr. Gbagbo lost Cote d’Ivoire’s presidential election to opposition challenger Alassane Ouattara but refused to step down. The international community has thrown its weight behind Mr. Ouattara as the legitimate president. Both men have named their respective cabinets and remain holed up in the commercial capital Abidjan.

 

Crisis in Cote d’Ivoire

The BBC reports:

The UN’s secretary-general has warned there is a “real risk” of a return to civil war in Ivory Coast after the disputed presidential election.

Ban Ki-moon said the incumbent, Laurent Gbagbo, was illegally trying to expel the UN’s peacekeeping force after it recognised Alassane Ouattara as victor.

The UNSC should pass a resolution preemptively holding incumbent Laurent Gbagbo personally responsible for any deaths that occur because of his refusal to leave office. Already dozens have died in riots in the Ivorian commercial capital of Abidjan. Mr. Gbagbo lost to Mr. Alassane Ouattara by 8 points.

Since then the world’s biggest exporter of cocoa has been in a state of limbo, with both men swearing themselves in as president. The UN and the wider international community have recognized Mr. Ouattara as the duly elected president of Cote d’Ivoire.

countdown to wednesday begins

On Wednesday a few Kenyan cabinet ministers, wealthy businessmen and security chiefs – mostly from central Kenya and the Rift Valley – will be exposed as suspects behing the post election violence in 2007-08 that killed 1333 Kenyans and displaced hundreds of thousands. Needless to say, this will have significant political consequences.

The expected political realignments following the initiation of this phase of the ICC process will shed some light on what Kenyans should expect come 2012. It will also be a litmus test on how much the Kenyan political elite is committed to reforms and fighting impunity. Kibaki and Odinga will either have to defend or cut loose some of their most trusted lieutenants.

In other news Laurent Gbagbo is still refusing to relinquish power in the Ivory Coast. Moreno Ocampo should warn him that if any more people die as a result of his refusal to obey the electoral outcome he will be held responsible.

Elections have consequences.

 

ouattara won, but gbagbo determined to latch on to power

The Ivorian electoral commission declared Alassane Ouattara, the northern candidate, as the winner of the presidential runoff held on Sunday. Ouattara got 54.1% of the vote. Incumbent Laurent Gbagbo disputed the results and had the country’s constitutional court reject the pronouncement. His supporters contend that there were significant irregularities in three regions in the north of the country.

Gbagbo (left) and Ouattara

UN and other mission observers declared that the election globally reflected the will of the people of Cote d’Ivoire. The BBC reports that the country’s military has sealed the borders amid rising tension and confusion over the political stalemate in the country. Mr. Gbagbo has been president since 2000.

For the sake of institutionalism the international community should not allow Mr. Gbagbo to remain in power. His 10-year tenure has not done much in terms of healing relations between the two halves of the country that fought the 2002-04 civil war. The fact that even his incumbency advantage could not help him beat Ouattara signals his general incompetence and the mass’s disaffection with his rule.

Cote d’Ivoire has a population of 21 million people, 49% of whom live in urban areas. Life expectancy in the country is a dismal 56 years. Only 48% of Ivorians  age 15 and over are literate. Ivorians’ per capita income is US $1700 and 68% of them depend on agriculture for livelihood. 42% of Ivorians live below the international poverty line of $2 a day.

Cote d’Ivoire is the world’s largest producer and exporter of cocoa beans and a significant producer and exporter of coffee and palm oil. Because of the political risk in the country Cocoa for March delivery climbed $110, or 4 percent, to $2,868 in New York.

laurent Gbagbo might have lost to Ouattara

There are no prizes for guessing why the government of Ivory Coast is delaying the release of provisional results from Sunday’s presidential runoff. It is almost certain that the challenger, Alassane Ouattara, won against Laurent Gbagbo, who has been dictator president since 2000. Mr. Gbagbo, seeming desperate, has already indicated that he will challenge results from three regions in the north.

I will post the provisional results as soon as I get an inkling of what they look like.

Map of Cote d'Ivoire

The Ivorian civil war (2002-2004) split the country in two, with the rebels (New Forces) controlling the north. Mr. Ouattara is from the north while Mr. Gbagbo is from the south.

The BBC reports that the main election observer missions in the country had no problems with how the election was conducted in the north.

The information vacuum has fueled security uncertainty and speculation. The Daily Nation reports:

“People are going a bit crazy. There are hundreds of rumours of violence so the atmosphere is rather tense,” said Marcel Camara, 37, hunkered down with his aunt and two cousins at their home in the Abobo district of Abidjan, where a curfew has been in force since Saturday.

crucial elections in west africa

The Ivorians have a runoff election tomorrow while the Guineans (Guinea-Conakry) get to find out who will be their president on December 2nd.

The Ivory Coast is still trying to recover from the disastrous turmoil and civil war that visited her following the death of founding president Houphouet Boigny. The civil war split the country in two, with the southerners (actually just nationalist Abidjanites) accusing most northern politicians of being foreigners. Among the said “foreigners” is the challenger in tomorrow’s election, Alassane Ouattara. Mr. Ouattara hopes to unseat Mr. Laurent Gbagbo who has been in power since 2000.

In Guinea the loser in the runoff went to the supreme court to challenge the results. The country is one of the more unstable places on the continent with a military that is lacking in discipline professionalism.

Out of the many trouble spots in West Africa at the turn of the century, Guinea (Conakry), Guinea-Bissau, Ivory Coast and Niger are the main laggards slowing down the region’s match towards political stability, irrespective of regime type.