Global Witness exposes… Company awarded Congo oil project has links to leader’s family

Mar 04, 2020 News

By Kemol King

The award of an oil block, Ngoki, by the government of the Republic of Congo to a company called Petroleum Exploration and Production Africa (PEPA) has caused Global Witness to ring the alarm on the project, showing the world a series of risks the project could cause.

Businessman, Claude Wilfrid “Willy” Etoka

Kaieteur News’ previous coverage on this matter explored how the project poses a serious environmental risk, not just to the African country, but to the world (http://tiny.cc/f2ntkz).
This article explores the serious corruption risks of the project, as Global Witness has exposed links between the family of the President of the country, Denis Sassou Nguesso.
The named director general of the PEPA is a man, Cyr Nguesso. The sources of Global Witness tell it that he is the nephew of President Sassou-Nguesso. Despite what appears to be a clear conflict of interest, PEPA’s owner wrote to Global Witness claiming that the director general was appointed after a “rigorous selection” and from his “rich experience” in the industry.
Meanwhile, the head of the board of PEPA’s name is Claude Wilfrid “Willy” Etoka. The high profile businessman, also its major shareholder, boasts a series of companies in several countries which form what appears to be his very own empire. He is one of the richest men in Francophone Africa, the Global Witness said.
Etoka’s connection to this project has raised heads for multiple reasons. Firstly, the anti-corruption watchdog said that he is a close associate of President Sassou-Nguesso, and that he is often seen with Denis Christel Sassou-Nguesso, the president’s son.
The President’s son has been embroiled in several corruption scandals. Global Witness said that the closeness between Etoka and the family could form a serious conflict of interest, as Etoka could get a major advantage when it comes to vying for state contracts.
The NGO spoke to one man who has knowledge of the Ngoki project, the former head of French oil company Elf, who the Global Witness noted was jailed years ago for involvement in a French scandal called the Elf Affair. His name is Loik le Floch-Prigent, and he previo

President of the Republic of Congo, Denis Sassou Nguesso

usly consulted on the Ngoki project. In an interview with Global Witness, the Frenchman said that Etoka works with the President’s son.
Through all this, Global Witness reported that Etoka acknowledges his friendly links to the family, but says he doesn’t have any “business relationships” with them.
But the NGO stated that his empire, spanning several industries include oil, agribusiness and manufacturing, was built on several handsome deals with the Congolese state. This includes a deal in 2016, giving Etoka the responsibility of privatizing 46 state-owned firms by brokering deals with international investors.
Etoka also runs an oil trading company called SARPD Oil, which Global Witness said depends on the Congolese state. The company claims to control a majority of Congo’s fuel imports, serving the role of intermediary between the State’s oil company Société Nationale des Pétroles du Congo (SNPC), and major international oil traders. Global Witness said that the bulk of Etoka’s wealth is thanks to this company.
The company’s operations have not stayed out of controversy, and its relationship with the State firm is questionable. The International Monetary Fund (IMF) is reported to have warned about the lack of transparency of the SNPC’s trading operations meant it is a worrying corruption risk.
On the side of SARPD Oil, Global Witness’s investigation found that the company’s most important lender, the French Bank BNP Paribas, exited its relationship with the company, because it decided that it was too much of a corruption risk. Global Witness said the Bank was concerned about the lack of transparency surrounding SNPC’s selection of SARPD Oil over other suppliers to act as an intermediary for its trading.
Etoka’s side of the story, as he told Global Witness, was that the Bank broke up with the company because it had done a broader review of its relationships with commodities firms in response to US sanctions. He claimed that SARPD’s profits, which the Bank recognised as too high for its fiscal regime, were made in “complete transparency”.
He also fought back at concerns the awards to SARPD may not have been above board, by stating that the company was selected by SNPC in line with relevant regulations before the President’s son took on a role at the State oil company.
These mentioned issues form only a fraction of the many corruption risks identified by Global Witness about Etoka. It states categorically from its accounts that Etoka keeps “disreputable company”.
In a following update on this matter, Kaieteur News will explore a string of corruption scandals identified by global Witness that the Congolese President’s family has been embroiled in.