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LIVING IN FEAR Wars, conflict and natural resources in the heart of Africa

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Page 1: LIVING IN FEAR - Health of Mother Earth Foundation...Les quatre puissances militaires regionales d´Afrique. 12 LAVDC. 2014. Les quatre puissances militaires regionales d´Afrique

LIVING IN FEARWars conflict and natural resources in the

heart of Africa

Juan Lopez Villar

LIVING IN FEARWars conflict and natural resources in the

heart of Africa

Published for

Health of Mother Earth Foundation (HOMEF)|214 Uselu-Lagos Road POBox 10577

| Ugbowo Benin City Nigeria| T +234 52 941 321 | M +234 803 727 4395 | wwwhomeforg

|Health_Earth

by

Kraft Books Limited6A Polytechnic Road Sango Ibadan

Box 22084 University of Ibadan Post OfficeIbadan Oyo State Nigeria

+234 (0)803 348 2474 +234 (0)805 129 1191E-mail kraftbooksyahoocomkraftbookslimitedgmailcom

Website wwwkraftbookslimitedcom

copy Juan Lopez Villar

First published 2016

ISBN 978ndash978ndash918ndash379ndash1

All Rights Reserved

First printing August 2016

CONTENTS

Prologue 7

1 The Quest for Wealth 12

2 Minerals and Wars at the Great Lakes 20Wealth Death and Massive Poverty inthe Heart of Africa

3 South Sudan The Oil Way 41

4 Seven Million 79

Index 86

PROLOGUE

Conflicts and natural resources

Sudanrsquos history of oil production has been a historyof violent conflict Soon after the discovery of oil inthe southern region in the late 1970s the secondSudanese civil war broke out1

South Sudan today is going through a civil war and in parallelit is in the middle of ongoing conflicts with Sudan for controlof oil rich areas in the Northern parts of the country

A study made for the African Development Bankconcludes that in the past 40 years there has been moreviolent conflicts in Africa than on the other continentsMoreover the wars in Africa have lasted longer and havebeen deadlier2 Libya Mali Democratic Republic of Congo(DRC) Somalia Central African Republic hellip So many warshellip So many conflicts hellip So much sufferinghellip

1 Bonn International Center for Conversion 2013 lsquoOil investmentand conflict in Upper Nile State South Sudanrsquo Brief 48

2 Hoeffler 2008 lsquoDealing with the consequences of violent conflictsin Africarsquo Background paper for the African Development Bankhttpusersoxacuk~ball0144consequencespdf

7

8

LIVING IN FEAR

Natural resources wars and conflict

Wars and armed conflicts are the major illnesses of thehumankind Since the birth of humankind we have not beenable to stop killing each other Thousands of years after wecontinue creating wars and armed conflicts

Why is that Today natural resources like oil and mineralsare at the heart of many conflicts around the world and so-called ldquohigh-value natural resources have been associatedwith dozens of armed conflicts millions of deaths and thecollapse of several peace processesrdquo3 Numerous reports andstatistical evidence confirm that those resources have beenldquosparking and fueling armed civil conflictsrdquo4 The UnitedNations Office of the Special Adviser on Africa (OSAA) alsoaffirms that ldquonatural resource have been shown to play akey role in the conflicts that have plagued a number ofAfrican countries over the last decade both motivating andfuelling armed conflictsrdquo5Moreover some scholars affirmthat ldquowhen internal conflict occurs in a region that has oilreserves it lasts twice as long as conflicts that occur in areaswithout oil reserves and combatant deaths are twice ashighrdquo6

Corporations working with natural resources have beencomplicit in many conflicts For instance during the Sudanwar oil corporations have allowed their facilities to be used

3 Lujala et al 2011 lsquoHigh-value natural resources a blessing or acurse for peacersquo Sustainable Development Law and Policy Vol 12

4 Lujala et al Ibiacutedem5 United Nations Office of the Special Adviser on Africa 2006 lsquoNatural

resources and conflict in Africa transforming a peace liability intoa peace assetrsquo Conference Report

6 Lujala et al 2011 lsquoHigh-value natural resources a blessing or acurse for peacersquo Sustainable Development Law and Policy Vol 12

9

PROLOGUE

for military purposes that led subsequently to attacks oncivilians One example is the case of the Heglig airstrip withinthe territory of the concession of the Canadian corporateTalisman

the military use of Heglig airstrip has been moreor less constant since May 1999 (hellip) flights clearlylinked to the oil war have been a regular feature oflife at the Heglig airstrip which is adjacent to theoil workersrsquo compound It is operated by theconsortium and Canadian chartered helicoptersand fixed wing aircraft which use the strip haveshared the facilities with helicopter gunships andAntonov bombers of the Government of SudanThese have armed and re-fuelled at Heglig and fromthere attacked civilians7

Natural resources have also been associated with the increaseof military spending on the continent Military expenditurein Africa is on the rise experiencing the highest progressionin the world from 2002-20118Algeria tops the list of militaryspending in Africa with over $10 billion9 They were followedby Angola with $6 billion and then South Africa with a bitmore than $4 billion in 201310 The increase of Africarsquosexpenditure is mainly due to the oil revenues from countries

7 Canadian Ministry of Foreign Affairs 2000 lsquoHuman Security in SudanThe report of Canadian Assessment Missionrsquo httpwwwecosonlineorgreports2000Human20Security20in20Sudanpdf

8 LAVDC 2014 lsquoLes quatre puissances militaires regionales dacuteAfriquersquo httpwwwlavdcnetportailles-quatre-puissances-militaires-regionales-dafrique

9 The Economist 2014 lsquoArms and the Africanrsquo httpwwweconomistcomnewsmiddle-east-and-africa21633901-continents-armies-are-going-spending-spree-arms-and-african

10 The Economist 2014 Ibidem

10

LIVING IN FEAR

like Algeria and Angola Angolarsquos military spending rose byover 36 in just one year Another oil producer that hasmade significant outlays on military spending is Ghanawhich almost tripled its arms budget from $109 to $306million between 2012 and 201311 Not surprisingly DRC alsorecently augmented significantly their spending by 3412

Causes of conflicts

Often there is a trend to simplify one main cause for aparticular conflict such as religious ethnic or tribal oreconomicpolitical power struggles For example very oftenthe conflicts in Sudan have been described as religious warsbetween Northern Muslims and Christiananimists from theSouth Our analysis in Chapter 3 will illuminate a differentperspective In general wars and conflicts tend to besurrounded by multiple factors and causes some with moredominance than others It is precisely in that complexity ofelements and factors that we can find the reasons why acountry has embarked in wars and conflicts However atthe same time there is often one cause that is the prevalentand dominant one in each conflict This will also be examinedin the forthcoming chapters

Every conflict is unique

While conflicts may have similar elements every one of themis unique in its own way13 This book explores the generalrelation between wars conflicts and natural resourcesfocusing in particular on two African countries Democratic

11 LAVDC 2014 Les quatre puissances militaires regionales dacuteAfrique12 LAVDC 2014 Les quatre puissances militaires regionales dacuteAfrique13 Bongani 2012 lsquoNatural resources and conflict unlocking the

economic dimensioacuten of peace-building in Africarsquo Briefing n 74

11

PROLOGUE

Republic of Congo (DRC) and South Sudan Both countrieshave gone through some of the bloodiest wars and conflictsin recent decades in the world Peace efforts have been madeat the UN level to try to minimize the conflict situations In2014 both countries had UN peacekeeping operationsmandated by the UN Security Council to promote protectand monitor human rights in DRC and South Sudan14 Weaim to provide a succinct but comprehensive overview ofboth conflicts and show their relation with natural resources

14 In 2014 there were ongoing 17 peacekeeping operations under theUN There were DRC and South Sudan ndashAbyei- See Office of theHigh Commissioner for Human Rights httpwwwohchrorgENCountriesPagesPeaceMissionsIndexaspx

LIVING IN FEAR

12

The Quest for WealthldquoDan Gertler is essentially looting Congo at the expense of

its peoplerdquo15

If there is wealth in DRC Dan Gertler has found a goodpiece of it The 41-years-old Israeli-born Dan Getler has adeclared fortune estimated at $144 billion While he isformally based in Bnei Brak Israel he has made his billiondollars fortune in the mining sector of DRC He is also verywell known for being a close friend of President JosephKabila16 Gertler is criticized over his way of doing businessand has been accused by non-governmental organisations(NGOs) to have obtained mining assets on the cheap bycavorting with politicians17 Congolese NGOs have said abouthim for example that ldquohe has political connections so statecompanies sell him mines for low prices and he sells themon for huge profitsrdquo The quest for wealth attracts manyGertler-like types to the African continent one of thewealthiest places of the planet

1

15 Affirmation of Jean Pierre Muteba head of a group of NGOs thatmonitor mining in DRC at The Washington Post 2012 Dan Gertlerearns billions as mine deals fail to enrich Congo

16 Forbes profile of Dan Getler httpwwwforbescomprofiledan-gertler

17 Forbes Ibiacutedem

13

1 THE QUEST FOR WEALTH

Wealth for whom

Everybody wants to be wealthier however not everybodyshares the same definition of wealth18One definition ofwealth is that it is a ldquotangible or intangible thing that makesa person family or group better offrdquo19 Under this definitionoil or a mineral would be considered wealth if it makes aperson family or group better off Certainly a person likeMr Getler is obviously doing better off in terms of moneywith his work and therefore he is wealthier under thoseterms Howeverthe resources that make Getler wealthy havenot necessarily benefited Congoacutes people Minerals or oilas said by Patrice Lumumba belongs to the people of DRCit is the responsbility of the State to manage its benefits andto share it among the population The wealth of a country isthe wealth of their people

However the wealth of natural resources revenues doesnot frequently bring benefits to the majority of thepopulation but rather a handful of elites The United Nationsoffice of the Special Adviser on Africa affirmed that the richesderived from the ldquoexploitation of natural resources are notonly used for sustainaing armies but also for personalenrichment and building political supportrdquo20 In additionthe office added that ldquocontrol over natural resources andtheir revenues often stay in the hands of a small elite and isnot used for broader development of the countryrdquo21

18 CNBC 2013 what is wealthy $5 million and plenty of cash19 See the business dictionary httpwwwbusinessdictionarycom

definitionwealthhtml20 United Nations office of the Special Adviser on Africa 2006 Natural

resources and conflicts in Africa transforming a peace liability intoa peace asset Conference Report

21 United Nations office of the Special Adviser on Africa 2006 Ibidem

LIVING IN FEAR

14

Africarsquos wealth blessing or curse

The resource curse

In a sea of wealth there are often oceans of povertyResource-rich countries are often accompanied by slowerthan expected economic growth poor economicdiversification gloomy social welfare indicators devastatingenvironmental impacts rampant corruption high inequalityhuge impoverishment bad governance and as said beforewars and conflicts22 This situation has been termed thetheory of ldquoresource courserdquo which term was used first in1993 by Richard Auty23 In 1995 the theory of the ldquoresourcecurserdquo was popularized thanks to an article of Sachs andWarner24 Both authors showed in their paper that ldquoeconomieswith a high ratio of natural resource exports to GDP in 1971tended to have low growth rates during the subsequentperiod 1971-1989rdquo From there a vast number of literaturehas been written on this matter and is divided between thosethat believe exploitation of natural resources is a curse andthose that believe that it can promote growth and

22 Mildner et al 2011 lsquoScarcity and abundance revisited a literaturereview on natural resources and conflictrsquo International Journal ofConflict and Violence Vol 5 Karl 2005 lsquoCovering oil a guide toEnergy and Developmentrsquo Understanding the resource curse opensociety institute

23 Time 2010 Brief history the resource curse httpcontenttimecomtimemagazinearticle09171199746000html

24 Sachs and Warner 1995 lsquoNatural resources and economic growthrsquoHarvard Institute for International Development

15

1 THE QUEST FOR WEALTH

development in developing countries25 Others for instanceprefer to use different terminology like Exxon corporatewhich has said ldquowe donacutet like to call it the oil curse weprefer governance curse We are private investors and it isnot our role to tell governments how to spend their moneyrdquo26

Africarsquos wealth

Africa is full of natural resources and there are manycountries considered as having a huge wealth Oil gasminerals timber fertile land water are often mentioned asthe riches of the continent However oil and minerals arethe favourites of some of the top leaders of the continentAngola with oil and diamonds Nigeria with oil GuineaEquatorial with oil Algeria with plenty of oil and gasdeposits DRC with minerals and South Sudan with oil justto name some of them

Many would think that all those States with lots of oiland mineral are very wealthy The truth is that although theStates are wealthy the countries are paradoxically full ofpoverty and their populations are not benefiting from thoseresources Moreover in many cases the wealth derived from

25 Pedro (undated) lsquoMainstreaming mineral wealth in growth andpoverty reduction strategiesrsquo Economic Commission for Africa PolicyPaper Ross 1999 lsquoThe political economy of the resource cursersquoWorld Politics n51 Hodler 2004 lsquoThe curse of natural resourcesin fractionalized countriesrsquo Economic department University ofBern SwitzerlandSwilling 2012 lsquoBeyond the resource curse fromresource wars to sustainable resource management in Africarsquo Paperpresented at the Winelands Conference on Integrity and GovernanceStellenbosch Pendergast et al 2008 lsquoCorruption and the curse ofNatural resourcesrsquo Department of Economics University of VictoriaDavis 2012 Replicating Sachs and Warner the 1997 Working PaperColorado School of Mines Neumayer 2004 Does the resource cursehold for growth in genuine income as well World Developmentvol 32

LIVING IN FEAR

16

oil and minerals mostly fuel wars and conflicts While somedie while some are displaced while some are injured orrape Some on the contrary are making money lots andlots of money hellip and while they make money they just puta blind eye on the horrors occurring outside the fence Thisis well described in the Harker report on the Sudanese warand the role of oil corporations ldquoIf the oil companies donrsquotknow whatrsquos going on theyrsquore not looking over the fencesof their compoundsrdquo27

Although some may believe that the importance of theoil and mineral sectors is the creation of jobs for thepopulation this has been denied by several authors

The oil gas and mining sectors are notoriously poorwhen it comes to job creation An offshore platformtapping deep-sea reserves will create few if anypositions for locals Only recently protests werereported outside Rio Tintorsquos QMM mineral sandsoperation in the south of Madagascar due to highlocal unemployment The best way to convertnatural resource wealth into jobs is to take theproceeds and invest in other more labor-intensiveindustries such as agriculture or manufacturing28

Nigeria provides a good example where communities living inthe Niger Delta have not benefited from oil extraction whichon the contrary has created serious conflicts as seen in Box 1

On the question of whether oil is a blesssing or a curse toAfrica the African Development Bank concluded that it is a

26 The Economist 2005 lsquoThe paradox of plentyrsquo27 Canadian Ministry of Foreign Affairs 2000 Human Security in

Sudan The report of Canadian Assessment Mission httpw w w e c o s o n l i n e o r g r e p o r t s 2 0 0 0 Human20Security20in20Sudanpdf

28Africa progress panel 2013 Africaacutes mineral wealth eternally cursedhttpwwwafricaprogresspanelorgafricas-mineral-wealth-eternally-cursed

17

1 THE QUEST FOR WEALTH

ldquohuge blessingrdquo29 It justifies that with the following analysis

We estimate that Africa has 120bn barrels of oilreserves no less than half of Saudi Arabia and 600million hectares of uncultivated arable land halfof the world total We at the African DevelopmentBank (AfDB) estimate that the continentrsquos naturalresources will contribute over $30bn per annumin government revenues over the next 20 years30

Box 1 Oil is a curse for the Niger Delta people

Most people think of oil states as wealthy states ButNigeria proves that sometimes the opposite is true It isAfricarsquos leading oil producer and yet it is one of theworldrsquos 20 poorest countries Whatrsquos more the peopleliving in the Niger Delta the countryrsquos oil-producingregion are among Nigeriarsquos most impoverishedcommunities with a large percentage of the populationhaving to survive on less than one dollar a day For thesepeople lsquoblack goldrsquo has not brought prosperity ordevelopment Instead it has increased corruption socialproblems environmental damage and armed conflictThe many billions of US dollars in oil revenue that havepoured into the country during its oil industryrsquos 50-yearhistory have completely bypassed these communitiesSource Petra Hannen 2011 lsquoBlessing our Coursersquo GIZmagazine akzent

29 African Development Bank 2013 lsquoAfricarsquos mineral wealth a blessingor a cursersquo httpwwwafdborgenblogsafdb-president-this-is-africas-hourpostafricas-mineral-wealth-a-blessing-or-a-curse-12336

30 African Development Bank 2013 Africaacutes mineral wealth a blessingor a curse httpwwwafdborgenblogsafdb-president-this-is-africas-hourpostafricas-mineral-wealth-a-blessing-or-a-curse-12336

LIVING IN FEAR

18

Africa continues the exploitation of its naturalresources

Most of the African Governments that discover naturalresources in their territory eagerly move forward with theexploration of those Therefore natural resources areexplored all over the continent oil in Ghana manganese inGabon gas in Mozambique just to name a few Often thereis little consideration of the destruction or the conflicts theseextractive activities bring For instance according to the BBCin March 2015 the Congolese Government consideredmodifying the boundaries of the Virunga National Park homeof gorilla mountains and World Heritage site to permit oilexploration activities31

DRC and South Sudan as well are exploring a joint projectnow DRC has a frontier with South Sudan in the Northeastpart of the country While historically both ndash referring alsoto Sudan ndash did not often have a common grounds after theIndependence of South Sudan in 2011 it appears possiblethat natural resources may unite them more closely IreneMuloni Minister for Energy and Minerals Development fromUganda announced in an interview in February 2015 thatSouth Sudan and the DRC have expressed interest in theconstruction of an oil pipeline of over 1000 km to the Kenyancoast32 Although yet to be implemented there have beendiscussions and plans to construct a pipeline that would unite

31 BBC 2015 DR Congo seeks Virunga park bounary httpwwwbbccomnewsworld-africa-31876577See also New York Times2014 Oil dispute takes a page from Congoacutes bloody past httpwwwnytimescom20141116worldoil-dispute-takes-a-page-from-congos-bloody-pasthtml_r=1

32 Platts 2015 South Sudan DR Congo interested in Ugandan crudeoil export pipeline minister httpwwwplattscomlatest-newsoilkampalasouth-sudan-dr-congo-interested-in-ugandan-crude-26025080

19

1 THE QUEST FOR WEALTH

oil production and distribution in several African countriesincluding South Sudan Uganda Kenya Democratic Republicof Congo (DRC) and maybe others33

The forthcoming chapters will develop more elementsaround this topic in order to conclude some final remarkswith the particular case studies of DRC and South Sudan

33 The Economist 2013 Pipeline poacuteker httpwwweconomistcomnewsmiddle-east-and-africa21578402-east-africa-danger-throwing-away-part-its-new-found-oil

20

LIVING IN FEAR

Minerals and Wars at the GreatLakes Wealth Death and Massive

Poverty in the Heart of Africa

Our internal difficulties tribal war and the nucleiof political opposition seemed to have beenaccidentally concentrated in the regions with ourrichest mineral and power resources We know howall this was organised and in particular whosupports it today in our house

Our Katanga because of its uranium copper andgold and our Bakwanga in Kasai because of itsdiamonds have become hotbeds of imperialistintrigues The object of these intrigues is torecapture economic control of our country

Patrice Lumumba speech in Leopoldville in August 25th1960 34

34 Speech at the opening of the All-African Conference in Leopoldville in1960 See httpwwwassatashakurorgforumshoulders-our-freedom-fighters42970-collected-speeches-writings-patrice-lumumbahtml

2

21

2 MINERALS AND WARS AT THE GREAT LAKES

Lumumba the first democratically elected Prime Ministerof the Republic of Congo gave a speech in 1960 that wasremarkably prescient of the fate of Democratic Republic ofCongo (DRC) today Conflict minerals and ldquotribal warsrdquo gohand in hand in the DRC historyrsquos past decades Lumumbawas planning to get the DRCrsquos related difficulties undercontrol however he was executed a few months after thespeech by a firing squad in January 1961 The US throughthe CIA the United Kingdom through the M16 and Belgiumwere all blamed for their involvement in his death35

Paradoxically ldquothe assassinations were made by the ordersof those who proclaim themselves to be champions ofdemocracy and respecters of human rightsrdquo36 Externalmeddling and intervention in Congorsquos affairs by foreigncountries is another of the concurrent and repeated situationsthat continue in recent history of the DRC37

Wars and minerals peace at last

hellip The heart of Africa is bleeding hellip

Two wars raged in DRC from 1996-1997 and from 1998-2003 Contrary to what some affirm these were not ethnicconflicts but resource wars38 No coincidence that the

35 BBC 2013 M16 and the death of Patrice Lumumba httpwwwbbccomnewsworld-africa-22006446

36 VVAA 1992 Congo (Zaire) Democratie neo-coloniale ou deuxiemeIndependance Ed LrsquoHarmattan

37 The Guardian 2011 Patrice Lumumba the most importantassassination of the 20th centuryhttpwwwtheguardiancomglobal-developmentpoverty-matters2011jan17patrice-lumumba-50th-anniversary-assassination

38 See Friends of the Congo websitehttpwwwfriendsofthecongoorgresource-centercongo-primerhtml See also Lanotte 2003 RDCguerre sans frontiers Editions Complexe

22

LIVING IN FEAR

country possesses extraordinary mineral wealth with someof the most valuable and strategic minerals on earth suchas coltan diamond cobalt copper gold tin zincmanganese timber and others The highest concentrationof mining activities existin the Eastern part of the countryTo illustrate the predominance of mining here we wouldunderline the affirmation of the Katanga Minister ofPlanning who said that 72 of the territory of Katanga isdevoted to mining No surprise why the IMF has namedDRC one of the worldrsquos mining giants of today39 Themagazine African Business stated in 2009 that ldquothe totalmineral wealth of the DRC was estimated to be some $24trillionrdquo40 As Lumumba indicated back in 1960 the samescenario repeated in recent years ndash minerals and conflictscontinue to go hand by hand

DR Congo possesses some 80 of the worldrsquoscoltan ore reserves(hellip) Additionally the DRCongo produces significant quantities ofdiamonds gold cassiterite copper cobalt (ofwhich it has the worldrsquos largest reservesalthough the trade is largely controlled byZimbabwe) oil tin zinc gold and coffee Thecountry has large reserves of uranium it wasCongolese uranium that was used for theManhattan Project that produced the worldrsquosfirst atomic bombs dropped on Japan The vastcountry also has more than half of sub-SaharanAfricarsquos timber stocks

Source African Business

39 IMF 2013 DRC Poverty reduction strategy paper N 1322640 African Business 2009 DR Congo $24 trillion fortune

23

2 MINERALS AND WARS AT THE GREAT LAKES

The casualties over the years are overwhelming Whileeverybody is familiar with the death toll during the genocidein Rwanda estimated between 500000 and 800000 peoplethere is much less awareness about the conflict situation inCongo The International Rescue Committee has estimatedthat the conflict and humanitarian crisis in the DemocraticRepublic of Congo has taken a death toll of 54 million peoplefrom 1998 to 200741 A CNN correspondent in trying togive an illustration of the heavy toll made the followingcomparative analysis

The wars in that country ndash RD Congo ndash haveclaimed nearly the same number of lives as havinga 911 every single day for 360 days the genocidethat struck Rwanda in 1994 the ethnic cleansingthat overwhelmed Bosnia in the mid-1990s thegenocide that took place in Darfur the number ofpeople killed in the great tsunami that struck Asiain 2004 and the number of people who died inHiroshima and Nagasaki mdash all combined and thendoubled42

Rwanda and Uganda were actively involved in the invasionof Congo in both wars The second war was known as theGreat War of Africa involving nine countries and more than20 armed groups According to Cynthia Ann McKinney aUS Congresswoman from the Democratic Party and an

41 IRC 2007 IRC study shows Congorsquos neglected crisis leaves 54 milliondead httpwwwrescueorgnewsirc-study-shows-congos-neglected-crisis-leaves-54-million-dead-peace-deal-n-kivu-increased-aidmdash4331 Some groups put the death toll much higher See GlobalResearch webpage httpwwwglobalresearchcathe-war-that-did-not-make-the-headlines-over-five-million-dead-in-congo7957

42 CNN 2012 Why the world is ignoring Congo war httpeditioncnncom20121127opinioncongo-war-ignored-vava-tampa

24

LIVING IN FEAR

expert on the Great Lakes issues while invading DRC in theSecond Congo War the US continued providing financialsupport to the governments of Rwanda and Uganda43 Howwas this allowed US President Bill Clinton was personallyin Rwanda in March 1998 only a few months before theRwandese army invaded Congo44 President Clinton was inAfrica at that time addressing its presidents includingPresidents Kagame and Museveni as leaders of the ldquoAfricanRenaissancerdquo and seeing a bright future for Africa45 ThereClinton made an important call to embrace peace How wasit possible to talk about peace while these allies were directlyengaging in war Moreover with the experience of thegenocide in Rwanda how could it be that foreign powersclosely involved in the region particularly the United Stateslet this occur again How did they allow wars and conflictsthat killed millions of people How could they allow whatmany called another genocide in Congo

On a positive note at last in recent months the calls forpeace have been growing from many different stakeholdersIn May 2014 US Secretary of State John Kerry after ameeting with DRC President Kabila stated that ldquoachievinga lasting peace in the DRC is a priority of President ObamardquoHe added ldquoNow I canrsquot emphasize enough how importantthat process is in identifying and resolving the root causesof the conflict in the DRC as well as in the entire GreatLakes regionrdquo46 Not a minor task going to the roots causes

43 Order of Indictment from Juzgao de instruccion numero CuatroAudiencia Nacional Case 320008-D 6-2-2008

44 See CBS News httpwwwcbsnewscomnewstext-of-clintons-rwanda-speech

45 Schaefer 2000 The Keys to an African Economic Renaissance httpwwwheritageorgresearchreports200005the-keys-to-an-african-economic-renaissance

46 See US Dept of State 2014 Press Availability on the DRC and theGreat Lakes Region httpwwwstategovsecretaryremarks201405225587htm

25

2 MINERALS AND WARS AT THE GREAT LAKES

of those problems in the Great Lakes Indeed achieving peaceand reconciliation in the Great Lakes Region in countriesthat had suffered like DRC is a difficult and cumbersometask and making it by finding the ldquorealrdquo root causes can bea very complex and lengthy exercise taking decades orlonger

The situation remains tense We recall that in 2006 theUN Security Council issued a resolution condemning ldquotheactivities of militias and armed groups operating in the GreatLakes regionrdquo47 Almost a decade later those armed groupsare still there and despite the efforts made the situationremains tense and insecure A report of the Group of Expertson the RDC published in 2015 by the United Nations SecurityCouncil concludes that in DRC despite a defeat of one of therebel groups ndash the Movement of 23 March ndash at the end of2013 this ldquofailed to translate into significant gains in securityand security and stability in 2014rdquo48 For example in thebeginning of 2015 a rebel group from Uganda the AlliedDemocratic Forces (ADF) created havoc in North Kivuwhere 17 people were hacked to death with machetes49

47 UN Security Council 2006 Resolution 1653 (2006) SRES165348 UN Security Council 2015 Final report of the Group of Experts on

the DRC S20151949 UN Security Council 2015 March 2015 monthly forecast http

wwwsecuritycouncilreportorgmonthly-forecast2015-03democratic_republic_of_the_congo_7phpVP-BX5Sm4agmailto

26

LIVING IN FEAR

Armed groups militias and criminal networkswithin the military structure making a lucrativebusiness out of minerals

The UN has solidly demonstrated that natural resources areused to finance armed groups and therefore to fuel war inthe region 50 The UN concludes that ldquoarmed groups continueto control many mining sites and to profit from mining andthe minerals traderdquo51 Later on those minerals particularlytin tungsten and tantalum are smuggled to neighbouringcountries For example one of the armed groups theMovement of 23 March (M23) responsible for taking Gomaat the end of 2012 was financing its organisation fromnatural resources in Eastern Congo In relation to thisparticular case the UN asserts that ldquoseveral traders havecontributed to financing M23 rebels using profits resultingfrom the smuggling of Congolese minerals into Rwandardquo52

Besides the rebel groups a criminal network within theArmed Forces of the DRC (FARDC) was involved in the illegalexploitation of natural resources The types of involvementinclude illegal taxation protection rackets and indirectcommercial control to more direct coercive control53

For some top army officials their military work wasconverted into economic businesses Indeed the existing

50 UN Security Council 2014 Final report of the Group of Experts onthe Democratic Republic of the Congo

51 Ibidem52 Ibidem53 UN Security Council 2010 Letter dated 26 October 2010 from the

Group of Experts on the DRC addressed to the Chair of the SecurityCouncil Committee established pursuant resolution 1533 (2004) S2010596

27

2 MINERALS AND WARS AT THE GREAT LAKES

practices made the UN qualify the war as a ldquolucrativebusinessrdquo

illegal exploitation of resources by BurundiRwanda and Uganda took different forms includingconfiscation extraction forced monopoly andprice-fixing The first two forms reachedproportions that made the war in the DRC a verylucrative business There are strong indicationsthat even if security and political reasons werethe professed motivation to move into the easternDRC some top army officials clearly had economicand financial objectives54

The most UN recent reports affirm that ldquomany armed groupsin Eastern Democratic Republic of the Congo have derivedtheir revenue from the production of and trade in naturalresourcesrdquo55

54 UN Security Council 2001 Security Council condemns ilegal exploitationof Democratic Republic of Congoacutes natural resources Press Releasehttpwwwunorgpressen2001sc7057dochtm

55 UN Security Council 2014 Final report of the Group of Experts on theDRC S201442

28

LIVING IN FEAR

Insecurity still booming in Eastern Congo

As already mentioned the momentum created bythe defeat of the Movement of 23 March inNovember 2013 failed to translate into significantgains in security and stability in 2014 in EasternDemocratic Republic of the Congo A militaryoperation against the Allied Democratic Forces(ADF) significantly weakened but did not defeatthe sanctioned armed group An expected militaryoperation against the Forces deacutemocratiques delibeacuteration du Rwanda (FDLR) did not materializeand as of the end of November 2014 efforts tonegotiate the disarmament of this sanctionedarmed group failed to produce meaningful resultsIn addition numerous Congolese and foreignarmed groups contributed to instability inOrientale North Kivu South Kivu and KatangaprovincesADF FDLR Nduma Defence for Congo (led bysanctioned individual Sheka Ntabo Ntaberi) andother armed groups continued to recruit train anduse child soldiers in 2014 Armed groups alsocommitted a variety of other abuses includingtorture enslavement and sexual violence Therewere mass killings in June in Mutarule (South Kivu)and in October and November in Beni territory(North Kivu)

Source United Nations Security Council 201556

29

2 MINERALS AND WARS AT THE GREAT LAKES

One of the problems the existing insecurity and conflicts havecreated is the proliferation of internally displaced peopleestimated in September 2014 at 27 million people57

UN peacekeeping operation in Congo

In July1999 Heads of State of Angola DRC NamibiaRwanda Uganda Zambia and Zimbabwe signed the Lusakaagreement focusing on the establishment of a ceasefire asone of the other components necessary for the deploymentof a UN peacekeeping force

The first UN Peacekeeping operation in DRC wasestablished in November 1999 after the Lusaka Ceasefireagreement It was called the UN Mission in the DRC(MONUC) In 2010 it was renamed the UN OrganizationStabilization Mission in the DRC (MONUSCO)

Ten years later despite the deployment of MONUC thesecurity challenges in DRC ndash particularly in the Eastern Partof the country ndash remain high58 There is still a strong presenceof armed groups chronic humanitarian crisis continuoushuman rights violations and continued illegal exploitationof natural resources In the light of this context the UNcreated an ldquoIntervention brigaderdquo with a key objective ofneutralizing armed groups59 As of today the MONUSCOand the intervention brigade are operational but are theresignificant security changes

56 Ibidem57 See global humanitarian assistance webpage http

wwwglobalhumanitarianassistanceorgcountryprofiledemocratic-republic-of-congo

58 UN Security Council 2010 Resolution 192559 UN Security Council 2013 Resolution 2098

30

LIVING IN FEAR

60 UN Security Council 2014 Final report of the Group of Experts on theDRC S201442

61 PR Newswire 2014 Rwanda has become worldacutes largest coltanexporterhttpwwwprnewswirecomnews-releasesrwanda-has-become-worlds-largest-coltan-exporter-reports-kt-press-300010371html

62 PR Newswire 2014 Rwanda has become worldacutes largest coltanexporter

63 Africa Briefing 2015 Rwanda has abundant deposits of best qualitycoltan Kagame affirms httpafricabriefingorgp=478

Legitimate exports or smuggling conflictminerals

It is well known that many of the minerals in Eastern Congoare smuggled and do not follow legal channels For instancethe UN estimates that 98 of the gold produced in DRC issmuggled out of the DRC making the country lose millionsof dollars in tax revenue60

In December 2014 numerous media covered a story onRwanda and coltan PR Newswire affirmed that ldquoRwandahas become worldacutes largest coltan exporterrdquo61 The dataprovided concluded that in 2013 Rwanda exported around2500000 kg of tantalum which constituted 28 of the total8807232Kg of tantalum produced globally The overallrevenue from the coltan was estimated at around $140 M62

Rwandese President Paul Kagame was quoted as affirmingthat the production was local and dismissed all possibleallegations of plundering the coltan from Congo He affirmedldquoRwanda has not only enough coltan but of a very highquality (hellip) we can even pay for a ticket give them a visaand take them to the minesrdquo63

Contrary to such statements there are many reports thatcoltan is smuggled from Congo to Rwanda and that Rwandadoes not have significant coltan mining on its own For

31

2 MINERALS AND WARS AT THE GREAT LAKES

instance a 2012 report prepared by a European Foundationaffirmed that ldquoRwanda does not house any industrial coltanmines which would suggest legitimate Rwandan coltanproductionrdquo64 A US governmental agency which analyzesthe mining sector in Congo made a table with coltan exportedfrom Rwanda qualifying it as ldquoconflict mineralsrdquo as seen inTable 165 Since there is no known conflict in Rwanda it canonly refer to Rwanda exports of minerals originating froman external conflict zone the DRC

Table 1 Estimates of exports of conflictminerals from Rwanda for Fiscal years2009-2013 in Metric Tons

Year Tantalum

FY 2009 958

FY 2010 827

FY2011 915

FY2012 1139

FY 2013 2466

Source Based on United States Government Accountability Office 2014

64 Van Teeffelen 2012 The EU raw materials policy and mining in RwandaEvert Vermeer Foundation

65 United States Government Accountability Office 2014 Conflictminerals stakeholder options for responsible sourcing are expandingbut more information on smelters is needed

32

LIVING IN FEAR

In this particular situation either somebody is wrong orsomebody is lying Hopefully future events will unveil thetruth around the nature of the coltan exports from Rwandato clarify whether they are a legitimate export or theconsequence of smuggling conflict minerals

Greed for minerals everybody wants a pieceof Congo66

What is at the origin of those wars and instability of theCongo While there could be diverse factors for conflictthere is one that seems to be always recurrent and is recog-nized by most authors and by relevant UN reports the racefor minerals and natural resources The UN recognized thatin the Second Congo War minerals were the coveted trophyand that all actors ldquobuilt up a self-financing war economycentred on mineral exploitationrdquo67 The conflicts that con-tinued after the Second Congo War like those in Kivu andIturi provinces are recognized as well to be fuelled by tradein minerals Along the same lines Palou underlines the causesof the conflict by stating that ldquoalthough from that time un-til the present day the Rwandan regime has expressed itsconcern about the security of its border with the then Zaireobjectively the reality is that control over this strategic areandash Eastern Congo ndash and its valuable mineral resources has

66 See video at Congo Justice httpcongojusticeorg67 UN 2002 Final report of the Panel of Experts on the illegal exploitation

of natural resources and other forms of wealth of the DemocraticRepublic of the Congo S20021146

33

2 MINERALS AND WARS AT THE GREAT LAKES

proved to be at the heart of two wars that have left a hugenumber of victimsrdquo68 In conclusion a 2001 UN report as-serted that ldquothe conflict of DRC has become mainly aboutaccess control and trade of five key mineral resourcescoltan diamond copper cobalt and gold The wealth of thecountry is appealing and hard to resist in the context oflawlessness and the weakness of the central authorityrdquo69

Congolese and regional elite have also profited from thissituation as well and the appalling quantum of the plunderare reflected in the following report from UN

The elite network of Congolese and Zimbabweanpolitical military and commercial interests seeksto maintain its grip on the main mineral resourcesmdash diamonds cobalt copper germanium mdash of theGovernment-controlled area This network hastransferred ownership of at least US$ 5 billion ofassets from the State mining sector to privatecompanies under its control in the past three yearswith no compensation or benefit for the Statetreasury of the Democratic Republic of the Congo70

Funds that could have been used for public services havebeen diverted from the public coffers by fraud or by theexcuse of war effort71 The Congolese population has paid

68 Palou 2010 International Justice plunder in war human rights andmultinationals

69 UN Security Council 2001 Report of the Panel of Experts on theillegal exploitation of natural resources and other forms of wealth ofthe Democratic Republic of the Congo S2001357

70 UN Security Council 2002 Final report of the Panel of Experts on theilegal exploitation of natural resources and other forms of wealth ofthe Democratic Republic of the Congo S20021146

71 Ibidem

34

LIVING IN FEAR

dearly in this situation In terms of human development it isinstructive that the UNDP estimated in 2013 that RDCwas in the low human development category ndash positioningthe country at 186 out of 187 countries and territories72

The Role of Transnational Corporations (Tncs)and the private sector

Other key players involved in the conflict are Transnationalsand the private sector A UN Report published a few yearsafter the Second Congo War started affirmed that ldquothe roleof the private sector in the exploitation of natural resourcesand the continuation of the war has been vitalrdquo73 The reportalso added that ldquoa number of companies have been involvedand have fuelled the war directly trading arms for naturalresourcesrdquo74 Other observers share the view that ldquoWesternMultinationals have been one group responsible for thepillage and illegal exploitation of Congo mineral resourcesrdquo75

There are a large number of big foreign corporationsinvolved in mining in DRC including those from CanadaSouth Africa UK USA and others Despite the opacity ofmost of the activities of the private sector numerousexamples have been reported of how TNCs are responsiblefor human rights abuses and other illegal activites Thereare also many reports of the dangerous connectionsestablished with the political and military elite in order tofacilitate their businesses These are some examples

72 UNDP 2014 Sustaining human progress reducing vulnerabilities andbuilding resilience Congo (Democratic Republic of the) httphdrundporgsitesallthemeshdr_themecountry-notesCODpdf

73 UN 2001 Report of the Panel of Experts on the illegal exploitation ofnatural resources and other forms of wealth of the Democratic Republicof the Congo S2001357

74 UN 2001 Ibidem75 Palou Ibidem

35

2 MINERALS AND WARS AT THE GREAT LAKES

bull Glencore Anglo-Swiss giant in the raw material sectorwith a turnover of US $ 2397 billion in 2013 was beingaccused in 2014 of adopting a military-style response tothe problem of artisanal mining close to its mines ldquoonseveral occasions over the past 18 months mine policehave fired live ammunition in pursuit of artisanal minerson Glencorersquos site resulting in deaths and seriousinjuriesrdquo76 They are as well responsible forcontamination of the water supply with acid content andvery high and concentrations of copper and cobaltFinally the company operates some of its concessionsinside a reserve ndashndash something that in principle is illegalaccording to the RDC Mining Code77

bull An independent investigation unveiled that two miningcompanies Glencore and the Eurasian Natural ResourcesCorporation were involved in underpricing assets incomplex deals featuring offshore companies causinglosses to the DRC of no less than $136 billionIntermediary companies in the deals were linked to DanGerler78 In addition the DRC public prosecutorreportedly told mining companies that they had toreimburse $37 billion in taxes duties and fines79

bull AngloGold Ashanti part of the AngloAmericancorporation was accused of establishing links and

76 Peyer et al 2014 PR or Progress Glencoreacutes corporate responsibility inthe DRC Bread for all RAID Fastenopfer

77 Ibidem78 CRS 2014 Democratic Republic of Congo Background and US Policy79 Reuters 2014 Disputed Congo report says miners owe $37 billion in

tax fines httpwwwreuterscomarticle20140130us-congo-democratic-mining-idUSBREA0T12L20140130

36

LIVING IN FEAR

supporting one armed group the Nationalist andIntegrationist Front (FNI)80

bull In 2004 fighting between soldiers and rebels in Kilwaended in serious human rights violations againstcivilians including summary executions arbitraryarrests rape and torture Anvil Mining operated theDikulushi copper mine near Kilwa and was accused ofproviding vehicles and planes to the Congolese armedforces during this event The legal case ended in theCanadian Supreme Court in 2012 which ruled that itwould not hear the plaintiff rsquos appeal ndash they were led bythe Canadian Association Against Impunity (anassociation representing survivors of the incidents inOctober 2004)81

bull In May 1997 Citibank NY a financial institution hasbeen accused of giving $5 million loan to a Congolesemilitia allied with Rwanda82

bull American Mineral Fields (AMF) cut a $1 billion dealwith Kabila immediately after his forces captured GomaThe negotiations were led by ldquoKabilarsquos US-trainedfinance ministerrdquo who gave ldquoAMF exclusive explorationrights to zinc copper and cobalt mines in the area MikeMcMurrough a friend of US President Bill Clinton wasthen the chair of AMF83

80 Human rights watch 2005 DRC Gold fuels massive human rightsatrocities httpwwwhrworgennews20050601dr-congo-gold-fuels-massive-human-rights-atrocities

81 Business and human rights resource center 2012 Anvil Mining Lawsuit(re DRC) httpbusiness-humanrightsorgenanvil-mining-lawsuit-re-dem-rep-of-congo

82 Global research 2008 Congo Resource wars httpwwwglobalresearchcacongo-resource-wars8310

83 Global research 2008 Ibidem

37

2 MINERALS AND WARS AT THE GREAT LAKES

UN and some other independent reports generally makebroad statements about the role of corporations includingciting some of the companies however they fall short ofproviding details of the modus operandi of those companiesand in establishing or suggesting concrete measures to stopthe conflicts and solve the negative impacts on the DRCpopulation and environment A 2002 UN Report listed 85companies considered by the Panel to be in violation of theOECD Guidelines for Multinational Enterprises84 Very littlehas been done after the UN report was published

A poor country Until when

In 1969 World Bank President Robert McNamara embarkedon a trip to Africa to try to discover ldquowhat are therequirements for developmentrdquo85 At that time the WorldBank in its information document described the country asrich in natural resources but at the same time poor and witha strong mining sector

In spite of its rich natural resources and greatpotential the Congo is still a poor country (hellip)Mining and metallurgy play a leading role in theeconomy86

84 UN 2002 Final Report of the Panel of Experts on the Illegal Exploitationof Natural Resources and other Forms of Wealth of the DemocraticRepublic of the Congo S20021146

85 Records of President Robert S McNamara Travel briefs CongoKinshasa (01021969-03031969) 1772506 Reference Code WBIBRDIDA 03 EXC-10-4540S World Bank Group archives WashingtonDC United States

86 Ibidem

38

LIVING IN FEAR

More than forty years later not much has changed asupdated data shows In DRC seven out of ten householdsare poor87 Most of its nearly 60 million people areldquodesperately poor living on less than $1 a dayrdquo88 DRC is aleast developed country a fragile State that has been in thetop 10 recipients of humanitarian assistance in nine of thelast 10 years Between 2003 and 2012 DRC received US$176billion in official development assistance (ODA) making itthe 10th largest recipient89In 2012 the Democratic Republicof Congo (DRC) received US$286 billion in net officialdevelopment assistance90

With so many natural resources isnrsquot there money to getpeople out of poverty The mining sector is oftenacknowledged as being capable of contributing to povertyreduction However those mineral benefits are oftencreamed off by powerful interests and do not get to thehands of the majority of the population According to DFIDldquofiscal receipts from the minerals sector are siphoned off bypowerful interest groups instead of being used in the publicsectorrdquo91

The analysis of Mr Antonino Giambrone sheds more lightabout the earnings and who profits from mining

While the average Congolese worker earns $10 permonth the average Congolese coltan-miner earnsanywhere from $10 to $50 per week Uganda

87 IMF 2013 DRC Poverty reduction strategy paper N 1322688 DFID 2008 Democratic Republic of Congo Country Plan89 View global humanitarian assistance webpage http

wwwglobalhumanitarianassistanceorgcountryprofiledemocratic-republic-of-congo

90 CRS 2014 Democratic Republic of Congo Background and US Policy91 DFID 2008 Democratic Republic of Congo Country Plan

39

2 MINERALS AND WARS AT THE GREAT LAKES

Rwandan and Congolese rebels have earned manymillions of dollars in sales of coltan which theyhave used to finance their war efforts in the CongoBetweeen 1999 and 2000 the Rwandan army aloneearned at least $20 million a month from coltan92

Food insecurity is often a consequence of poverty One ofthe causes of existing food insecurity is the abandonment ofthe agriculture sector partly due to conflicts The governmentstated that it would like to strengthen the smallholdersldquowhile ensuring at the same time the protection of thecountryrsquos natural resourcesrdquo93

War impacts on the environment

The wars have had devastating impact on the environmentNational parks for instance home of many endangeredspecies are also affected by the exploitation of minerals94

There are numerous reports on the precarious situation ofwildlife in the region For instance between 1995 and 19994000 out of 12000 elephants were killed in the GarambaPark in North-eastern DRC95 The situation was also seriousin other parks For instance in Kahuzi-Biega Park a zonerich in coltan only 2 out of 350 elephant families remained

92 Giambrone 2006 The extraction of natural resources as a source ofconflict Etfo voice

93 IMF 2013 DRC Poverty reduction strategy paper N 1322694 Seeh ttpwww lenntech comenv ironmental -ef fec ts -

warhtmixzz3CuGZqE3M95 UN 2001 Report of the Panel of Experts on the illegal exploitation of

natural resources and other forms of wealth of the Democratic Republicof the Congo S2001357

40

LIVING IN FEAR

in 200096 Mountain gorillas are also under threat due tocontinued civil unrest and the presence of armed militiasmakes survey and conservation work difficult in the DRCrsquosprotected areas97

Deforestation is also one of the common impactsWorldwatch explains the implication of having refugeespopulation inhabiting RDC degraded forest areas

For two years beginning in late 1994 for exampleabout 720000 Rwandans inhabited refugee campson the fringes of Virunga National Park They allneeded wood for cooking fires and for buildingshelters and some also earned extra money bymanufacturing charcoal As a result up to 80000people entered the park and carted away up to1000 tons of wood every day By mid-1996 105square kilometers of forest had been affected toone degree or another by their activities 35 squarekilometers had been stripped bare98

Besides the need for fuelwood by refugees movement ofmilitary hardware through forests and woodlands also causeserious damage to forests and the landscape generally

96 Ibidem97 See WWF webpage httpwwfpandaorgwhat_we_doendangered_species

great_apesgorillasmountain_gorilla98 Worldwatch 2008 War and Environment httpwwwworldwatchorg

node5520

3South Sudan The Oil Way

99 Washington Post 2012 lsquoSouth Sudan civilians are trapped in conflictover oilrsquo httpwwwwashingtonpostcomworldsouth-sudan-civi l i ans-are- trapped-in-conf l ict -over-o i l20120501gIQAUX6buT_storyhtml

100 See UN Mission in South Sudan web page httpwwwunmultimediaorgtvunifeed201404south-sudan-bentiu-massacre

101 Reuters 2014 Bentiu massacre is game-changer in South Sudanconflict says UN official httpwwwtheguardiancomworld2014apr22bentiu-massacre-south-sudan-united-nations

41

ldquoIf we had no oil we would not be attackedrdquo

Nyak a 27-year-old sitting outside herhut in Bentiu South Sudan 201299

In April 2014 Bentiu the capital of the oil producing UnityState was the scenario of one of the worst massacres of thecivil war between South Sudanese forces100 Hundreds ofpeople were killed in the fighting that took place betweenthe Sudan Peoplersquos Liberation Army (SPLA) and anti-government forces in the oil-rich State101

42

LIVING IN FEAR

Civil wars and conflict

Since its independence in 1956 Sudan has been at war andconflict for most of its modern history Specialists in conflictand security have described the history of modern Sudan asldquoan unremitting sequence of wars punctuated by oft-violatedpeace agreementsrdquo102 The First Sudanese Civil War (1955ndash1972) was followed by a Second Sudanese Civil War (1983ndash2005) with barely 11 years breathing space of tenuoussecurity

The Second Civil War ended when both sides signed theComprehensive Peace Agreement in 2005 That agreementgave autonomy to South Sudan within Sudan However areferendum held in January 2011 moved the region towardsecession and then in July 2011 independence was achievedand South Sudan became an autonomous nation103 Theprocess that led to South Sudanrsquos independence was stronglysupported by the US government which backed Juba in itstwo decades struggle against Khartoum104 It should be notedthat even during the 11 years of supposed peace there wereconflicts on a regular basis particularly in the border areasbetween South Sudan and Sudan105 Two years after theindependence the first South Sudanese Civil War started inDecember 2013 The civil war erupted as a result of a power

102 Cox and Snapper 2013 The Strategic Importance of South Sudan TelAviv University

103 National Geographic 2013 South Sudan oil the environment andborder conflicts httpvoicesnationalgeographiccom2013032286550

104 See webpagehttpwwwworkersorgarticles20140101south-sudan-yet-another-oil-war

105 International Crisis Group 2006 Sudan Saving peace in the Easthttpwwwcrisisgrouporgenregionsafricahorn-of-africasudan102-sudan-saving-peace-in-the-eastaspx BBC 2015 South SudanProfile httpwwwbbccomnewsworld-africa-14019202

43

3 SOUTH SUDAN THE OIL WAY

struggle between president Salva Kiir from the Dinka ethnicgroup and his deputy Riek Machar from the Nuer ethnicgroup whom he had sacked As at the time of this writingthe civil war continues

Sudan vs South Sudan

The tensions and conflicts after the independence of SouthSudan from its neighbour Sudan did not stop in 2011 Topleaders from both sides accuse and threaten each other innumerous occasions For instance Sudanese President Bashirpromised to teach South Sudan a ldquofinal lesson by forcerdquo106

South Sudan President firmly swore that ldquowhether Umar al-Bashir likes it or not one day Abyei will rejoin the southrdquo107

Abyei

Abyei is traditionally the home of the Ngok Dinka asubdivision of the Dinka tribe with strong links to the Dinkain South Sudan Besides the Dinka Misseriya herders aremembers of nomadic Arab tribes that seasonally cross Abyeiand other nearby areas with their cattle in search of waterand pasture108

Since the signing of the Peace Agreement in 2005 betweenthe Government of Sudan and the SPLM the dispute over

106 The Washington Post 2012 lsquoSudanese president vows war againstSouth Sudanrsquo httpwwwwashingtonpostcomworldsudanese-president-threatens-force-against-south-sudan-over-oil-field20120419gIQAJ0G8ST_storyhtml

107 The Global Intelligence Files 2013 Sudan- President Kiir says Abyeiwill ldquorejoinrdquo South Sudan httpssearchwikileaksorggifilesviewemailid=674314

108 Enough Project 2013 What is the Abyei Area and why is it disputedhttpwwwenoughprojectorgblogsenough-101-what-abyei-area-and-why-it-disputed

44

LIVING IN FEAR

the future status of the Abyei area has beenone of the bigbarriers to stability in the region109Abyei is an oil-rich areadisputed by Sudan and South Sudan and stands out as thehotspot of bigger tension beetween Sudan and South Sudannowadays

The conflicts over Abyei have a history of more than 50years After the First Civil war the parties signatories to thepeace pact agreed that Abyei would hold a referendum todetermine whether they would be part of Sudan or a newlyregion in the South The second war commenced in 1983and the foreseen referendum was not done

In 2009 the Permanent Court of Arbitration in the Hagueruled on Abyei territory giving concessions to the Governmentof Sudan and the Southern Sudan Heglig and other closeroil-fields remained out of Abyei area while the rest of theAbyei region remained under control of the Ngok Dinka anethnic group close to Southern Sudan and keen on voting tojoin the South in a future referendum110Another referendumwas scheduled to be done in parallel with the South Sudanreferendum in 2011 but once again this never took place

Although a series of temporary security arrangementswere agreed in January and March 2011111 in May SudaneseArmy tanks entered the town of Abyei and by the 22nd ofMay they seized control of the town112The government ofSudan launched numerous military attacks in the disputed

109 UN Security Council 2011 Report of the Secretary-General on thesituation in Abyei S2011451

110 New York Times 2009 lsquoCourt redraws disputed area in Sudanrsquo httpwwwnytimescom20090723worldafrica23sudanhtml_r=1amp

111 UN Security Council 2011 Report of the Secretary-General on thesituation in Abyei S2011451

112 Reuters 2011 North Sudan seizes disputed Abyei thousands fleehttpwwwreuterscomarticle20110522us-sudan-abyei-north-idUSTRE74L14L20110522

45

3 SOUTH SUDAN THE OIL WAY

border of area where much of Sudanacutes remaining oil fieldsare situated113 Two years later the fighting remains intensein parts of South Kordofan and Blue Nile114 More than 2million people have been internally displaced or severelyaffected by the conflict since 2011115

In addition to military attacks other actions contributedto the tension There have been cattle raids by the MissiriyandashArab nomadic cattle herders inhabiting the area ndash on theNgok Dinka ndasha subdivision of the Dinka tribe inhabitingthis area In occasions more than 200 cows were stolenwith a large part of it recovered by the UN Interim SecurityForce for Abyei(UNISFA) These raids increase further thealready tense situation in the region and in particular thevery tense situation among the Missiriya and the NgokDinka116

113 The Conversation 2012 Oil fuels the conflict between Sudan andSouth Sudan ndashand it keeps getting hotter

114 OCHA 2014 South Kordofan and Blue Nile population movementsfact sheet httpreliefwebintsitesreliefwebintfilesresourcesSouth20Kordofan20and20Blue20Nile20Population20Movements20Fact20Sheet20-201920May202014pdfReuters 2013 Khartoum says rebels based in South Sudan caused oilpipeline blast

115 OCHA 2014 Ibidem116 See Human Security baseline assessment for Sudan and South Sudan

webpage httpwwwsmallarmssurveysudanorgdefacts-figuresborderdisputed-areasabyeihtml

46

LIVING IN FEAR

An oil-centered conflict

ldquoThe violence underscores the extent to which oilis at the heart of the dispute Khartoum whichcontrols the pipelines that take oil out of SouthSudan depends heavily on oil transit fees SouthSudan which depends on oil for 98 percent of itsrevenue has refused to pay the fees which it saysare exorbitantKhartoum responded by seizing oil tankers carryingSouth Sudanese oil and imposing economicblockades That prompted South Sudan to shutdown its entire oil production in February Thatmonth Sudan allegedly bombed an oilfield inSouth Sudan that was nine miles from the borderrdquo

Washington Post 2012

Missiriya attacks continue as of today UNISFA reported thatin March 2015 100 armed Missiriya killed several peopleand burnt over 20 houses in a village in the southern part ofAbyei117 Many of those attacks occur despite the presenceof UN peacekeepers in the zone

In this context a UN force was deployed in 2011 withmore than 4000 personnel mostly Ethiopian with theobjective of ensuring the demilitarization of the Abyei areaand particularly checking the Sudan Armed Forces and theSudan Peoplersquos Liberation Army Interestingly the UN forceshad also the task to provide security for oil infrastructure inthe Abyei Area in cooperation with the Abyei PoliceService118 In February 2015 the Security Council extended

117 Sudan Tribune 2015 South Sudan condemns deadly clashes in Abyeihttpwwwsudantribunecomspipphparticle54191

118 UN Security Council 2011 Resolution 1990 (2011) SRES1990(2011)

47

3 SOUTH SUDAN THE OIL WAY

the mandate of the UNISFA again until July 2015119 The AbyeiJoint Oversight Committee (AJOC) decided in May 2013 thatAbyei should adopt a status as weapons-free area and thatonly UNISFA would be authorized to carry weapons in thearea120

The situation in the area is still very fragile121 For instancevarious resolutions have called for the redeployement of allmilitary personnel from Abyei including those protecting itsoil infrastructure However the Sudanese Governmentskeeps at the Diffra oil complex around 150 Sudan oil policein a clear violation of an agreement and Security Councilresolutions adopted in 2011122 The UN Security council ina recent resolution

Condemns the presence of Diffra Oil Police unitsdeployed in the Abyei Area as well as the repeatedentry of armed militias into the territory andreiterates its demands that immediately andwithout preconditions the Government of Sudanredeploy the Oil Police in Diffra from the AbyeiArea ()123

Conflicts escalating over oil Heglig battles

In 2012 despite the Permanent Court of Arbitration ruling124

which placed Heglig oilfields in the Sudanese territories

119 UN News Center 2015 Security Council extends UN peacekeepingforce in Abyei through July 2015

120 UN Security Council 2015 Ibidem121 UN Security Council 2015 Security Council adopting resolution 2205

(2015) extends interim force in Abyei until 15 july voicing concernover delays in Borde Mechanismrsquos operation httpwwwunorgpressen2015sc11800dochtm

122 UN Security Council 2014 Report of the Secretary-General on thesituation in Abyei S2014518

123 UN Security Council 2015 Ibidem124 See Permanent Court of Arbritation webpage httpwwwlocgov

lawwebservletlloc_newsdisp3_l205401463_text

48

LIVING IN FEAR

the South Sudanese army launched an attack over Heglig125

South Sudanrsquos army took control of the oil-producing townof Heglig The South Sudan move did not enjoy sympathyfrom many countries including its allies such as the US andBritain126 The African Unionrsquos (AU) Peace and SecurityCouncil considered Sudanrsquos occupation of Heglig as illegal127

At the end after a few days South Sudan pulled back itstroops from Heglig even though President Salva Kiir stillclaims that Heglig is a part of South Sudan and is expectinginternational arbitration

Oil and geopolitics

The implications of the oil economy are self-telling Prior tothe separation of Sudan from South Sudan in 2011 theunified Sudan was the second-largest non-OPEC oil producerin Africa in 2010 When they separated Sudan and SouthSudanrsquos production diminished and together they rankedas the fourth-largest non-OPEC African oil producer in 2013Particularly the split of the country in oil revenues economicterms was a huge blow to Sudan with its crude oil exportrevenues falling from almost $11 billion in 2010 to around$18 billion in 2012128 It has been estimated that oilcontributes 98 of South Sudan government income morethan for any other government in the world129

125 Wall Street Journal 2012 Sudan escalates fight over oil httpwwwwsjcomarticlesSB10001424052702304444604577339461981143808

126 The Guardian 2012 South Sudan to withdraw from disputed oiltownhttpwwwtheguardiancomworld2012apr20south-sudan-withdraw-oil-town

127 IRIN 2012 Sudan-South Sudan Heglig and the border128 US Energy Information Administration 2014 Country analysis brief

Sudan and South SudanhttpwwweiagovcountriesanalysisbriefsSudansudanpdf

129 Global Witness 2009 Fuelling mistrust

49

3 SOUTH SUDAN THE OIL WAY

Although oil exploration started at the end of the 1950showever no success was achieved with the activities of Italianoil company Agip130 Discoveries were found in the years tofollow The first oil discovery was made in 1979 when theAmerican company Chevron found oil near the Darfur-Kordofan boundary Three years later Chevron made twolarger discoveries the Heglig and Unity oilfields which asof today are the most productive However by 1984 Chevronstopped its operations when some of its workers were killedby an armed group By 1988 the company dismantled all ofits operations in Bentiu and Unity provinces131

As a landlocked country all the oil in South Sudan had tobe extracted and exported via a pipeline The pipeline wasconstructed by China National Petroleum Corporation andit covered a length of around 1600 kilometers132 Ittransports the oil from South Sudan to the Red Sea Thecost of the pipeline was estimated at $1 billion and it wasfinished in 1999133At the time of the construction of thepipeline Sudan provided less than 1 of Chinarsquos oil importsbut a few years later by 2009 the investments of Chinatotalled more than $8 billion134

130 Understanding Sudan 2009 Fact sheet two A history of oil in theSudan httpunderstandingsudanorgOilOilResourcesL2FS2-HistoryofOilinSudanpdf

131 Understanding Sudan Ibidem132 The Conversation 2012 Oil fuels the conflict between Sudan and

South Sudan ndashand it keeps getting hotter133 Sitarek 2001 The human price of oil ICE Case Studies Number 83

httpwww1americanedutedicesudansanctionshtm16134 The Conversation 2012 Ibidem

50

LIVING IN FEAR

Source US Energy Information Administration 2014

South Sudan becameindependenth in July2011 Taking aboutthree-quarters of theproduction A disputeover transit fees ledSouth Sudan to haltproduction for most of2012

Oil production inSudan and South Sudan

thousand barrels per day

51

3 SOUTH SUDAN THE OIL WAY

Main oil companies in Sudan and South Sudan

While initially many companies involved were of Westernorigin most of the companies now involved in the oil sectorare from China and Malaysia

Source US Energy Information Administration 2014 Countryanalysis Brief Sudan and South Sudan

Row over oil tariffs

By 2011 both countries did not agree on how much SouthSudan should pay to export its oil through the pipelines inSudan Sudan requested a fee of 33 dollars a barrel whileSouth Sudan said the highest fee they could afford was 2

Table 2 Main oil companies in Sudan and South Sudan

52

LIVING IN FEAR

dollars a barrel135 Following this lack of agreement SouthSudan halted crude oil production in early 2012

This decision worsened the economic situation in bothcountries as both depend hugely on money from oil exportsfor their revenues However an agreement was reached andin April 2013 South Sudan restarted oil production136

Causes of the Sudanese Civil War

Wars in Sudan have been often portrayed quite simplisticallyas an ArabMuslim north versus and an AfricanCristiansouth While certainly ethnicity and religion played a rolethe conflict has been mainly fought over natural resources137

Today oil is the countryrsquos main natural resource and ithas been estimated that it accounts for 98 of South Sudanrsquosrevenue138 The multibillion potential of their revenuehowever has not translated into wealth and benefits for themajority of the population of South Sudan First of all it hasnot solved the problem of security as since the very inceptionof the State of South Sudan in 2011 there were conflicts inmany areas of the country particularly in the borderline withSudan A 2013 report from the World Bank illustrates thisby asserting that ldquodespite South Sudanrsquos great resourcewealth its population is one of the most deprived due todecades of neglect and war and the distortions of the oil

135 IPS 2011 South Sudan rows over exorbitant fees for pipeline use136 Reuters 2013 South Sudan resumes oil output after ending row with

Sudan over transit fees137 Caas 2007 Natural resources and conflict in Sudan138 See World Bank webpagehttpwwwworldbankorgencountry

southsudanoverview

53

3 SOUTH SUDAN THE OIL WAY

economyrdquo139 Indeed oil reserves sitting on a disputed borderbetween Sudan and South Sudan have not translated yetinto wealth for the majority of citizens of South SudanInstead most of the inhabitants of the country remain deeplypoor and do not enjoy even basic rights to access potablewater and adequate sanitation140

Oil has been a main cause for the war and conflicts inSudan For instance it influenced the end of the peaceagreement obtained after the first civil war This first civilwar ended in 1972 with the Addis Ababa Agreement Theagreement established a system of peaceful co-existence witha single country by guaranteeing aNorthern basedgovernment but granted at the same time autonomy in theSouth This however was not going to last long as thediscovery of oil at the end of the 1970s in Southern Sudanchanged the ldquocoexistencerdquo idea In 1978 Sudanese PresidentNimeiry decided to embark on oil exploration project thatwould lead to the finding of oil in commercial quantities Inorder to control the oil within the hands of the Northernbased Government military force was used and in additionto imposing islamic law which led to the new civil warstarting in 1983141

139 World Bank 2013 Interim Strategy Note (FY 2013-2014) httpwww-wdsworldbankorgexternaldefaultWDSContentServerWDSPIB20130207000333037_20130207110223RenderedPDF747670ISN0P1290Official0Use0Only090pdf

140 National Geographic 2013 South Sudan oil the environment andborder conflicts httpvoicesnationalgeographiccom2013032286550

141 Sitarek 2001 The human price of oil ICE Case Studies Number 83httpwww1americanedutedicesudansanctionshtm16

54

LIVING IN FEAR

Numerous authors have identified natural resources ashaving a direct correlation with wars and conflicts142 Ananalysis by Ross of the University of California (UCLA) ofthirteen wars and conflicts concluded that in the case ofSudan oil was one of the key causes of the second civil warand an incentive for advancing the independence of SouthSudan143 Ross describes his conclusion in the followingmanner

War in Sudan began in 1983 when SudanesePresident Nimeiry took a series of measures thatupset the delicate balance between thepredominantly Muslim north and the heavilyChristian and Animist south among these measureswas his decision to place newly discovered oil inthe countryrsquos south under the jurisdiction of thenorth and to build an oil refinery in the northinstead of the south The Sudan Peoplersquos LiberationArmy (SPLA) subsequently complained that thenorth was stealing the resources of the southincluding oil demanded that work cease on apipeline to take oil from the south to the refineryin the north and in February 1984 attacked an oilexploration base killing three foreign workers andbringing the project to a halt144

142 Varisco 2010 lsquoA study on the inter-relation between armed conflictand natural resources and its implications for conflict resolution andpeace buildingrsquo Journal of Peace Conflict and Development issue 15Ross 2003 How do natural resources influence civil war Evidencefrom 13 cases httpwwwsscnetuclaedupoliscifacultyrossHowDoesNat3pdf

143 Ross Ibidem144 Ross Ibidem

55

3 SOUTH SUDAN THE OIL WAY

Even when the different parties were discussing an agreementon ldquono attacks on civilians or civilian objectsrdquo oil was playinga central role It is instructive to note that the Sudanesegovernment desired language in the text stating that oilinstallations were ldquocivilian objectsrdquo while the SPLA wantedthe contrary145

Human Rights Watch reached the same conclusion thatoil without doubt has been a key fuel for war particularlysince the end of the 90s when crude oil was first exportedfrom Sudan in 1999146

Oil became the main objective and a principal causeof war (hellip) The large-scale exploitation of oil byforeign companies operating in the theatre of warin Southern Sudan has increased human rightsabuses there and has exacerbated the long-runningconflict in Sudan a conflict marked by gross rightsabuses ndashtwo million dead four million displacedsince 1983 ndashand recurring famine and epidemics147

Also the UN makes clear statements on the issue Specialenvoy Leonardo Franco expressed in a report that oilexacerbated the conflict

the economic political and strategic implicationssurrounding oil exploitation in western Upper Nilewhich have seriously exacerbated the conflictthereby causing a deterioration in the overall

145 Ibidem146 Human Rights Watch 2003 Sudan oil and human rights147 Human Rights Watch 2003 Sudan oil and human rights

56

LIVING IN FEAR

situation of human rights and respect forhumanitarian law and narrowing the slim chancesfor peace148

Indeed multiple causes and elements contributed to theconflicts It was recognized that ethnicity and religion wereimportant elements however the key dimension is controlover natural resources particularly oil Added to this are alsotensions over land and resources and the promotion by thegovernment of crops like cotton and sugar which displacedcertain groups of people149 Similar conclusions were reachedyears back by a Canadian Government Mission in Sudanwhich fully recognized some ethnic disputes as well asdisputes over other natural resources however oil was thekey factor which made things really dramatic

148 UN 2000 Interim report of the Special Rapporteur of the Commissionon human rights on the situation of human rights in the Sudan A55374 httpwwwunorgdocumentsgadocs55a55374pdf Seealso UN 1999 Situation of human rights in Sudan UN Doc A54467

149 University of Massachusetts (undated) Modern conflicts conflictprofile SudanhttpwwwperiumassedufileadminpdfSudan1pdf

57

3 SOUTH SUDAN THE OIL WAY

The Harker mission pointed out that while therehave always been pressures on the Dinka in theHeglig- Ruweng area as a result of inter-tribalfighting with Arab nomads for grazing areas anddry-season water the situation had worsened withthe beginning of oilexploration and had continuedto deteriorate over theyears because of the periodicoffensives launched by the Government and itsallies resulting in destructionand mass populationdisplacement150

South Sudan has one of the largest oil reserves inSub Saharan Africa and the commodity is thelifeline of the countryrsquos economy accounting for98 percent of the governmentrsquos financial resources

Whoever controls South Sudanrsquos oil thereforecould seize the upper hand in the battle for power

Source France 24 2013 lsquoBattle for oil adds newdimension to South Sudan conflictrsquo

Whoever controls South Sudanrsquos oil therefore could seizethe upper hand in the battle for power

The same scenario applies to the South Sudan Civil Warwhich initially was also portrayed along ethnic line TheDinka ethnic group of President Salva Kiir has fought rebelsallied with former vice president Riek Machar of the Nuer

150 UN 2000 Interim report of the Special Rapporteur of the Commissionon human rights on the situation of human rights in the Sudan A55374 Ibidem

58

LIVING IN FEAR

ethnic group However increasingly ldquothe focus of the fightingis shifting to the battle to control the countryrsquos mostimportant natural resource ndash oilrdquo151 The oilfields haveliterally become the battlefields

Consequences of war and conflict

The damage inflicted on people as a consequence of war ishuge Back in 2001 US Secretary of State Colin Powellqualified the war in Sudan in the following terms ldquoThere isperhaps no greater tragedy on the face of the earth todaythan the tragedy that is unfolding in the Sudanrdquo152 Firstthere is a large number of deaths due to war and war relatedcauses and also a huge number of displaced people Thedeath toll derived from the Second Civil Sudanese War isestimated at two million The US Commitee for refugeesasserted that ldquothis massive loss of life surpasses the civiliandeath toll in any war since World War IIrdquo153 In the mostrecent civil war the South Sudanese Civil War that startedin December 2013 by April 2014 the death toll wasestimated to be at 10000154

Besides the death toll there are estimated more than fourmillion people of the Southern Sudanese population forced

151 France 24 2013 Battle for oil adds new dimension to South Sudanconflicthttpwwwfrance24comen20131227-battle-oil-adds-new-dimension-south-sudan-conflict

152 Human Rights Watch 2003 Ibidem153 See US Committee for Refugees webpage in 2001 http

webarchiveorgweb20041210024759httpwwwrefugeesorgnewscrisissudanhtm

154 International crisis group 2014 South Sudan a civil war by any othernamehttpwwwcrisisgrouporg~mediaFilesafricahorn-of-africasouth20sudan217-south-sudan-a-civil-war-by-any-other-namepdf

59

3 SOUTH SUDAN THE OIL WAY

to flee their homes at one time or another It has also beenargued that the development of oilfields has led to the forcedremoval of the local population In the words of the lateJohn Garang oil was a ldquokiller itrsquos evicting our civilianpopulationrdquo claiming 100 000 people displaced due to thiscause155

Children are some of the main victims of conflict beingrecruited for instance for war and suffering sexual violenceFrom March 2011 to September 2014 the UN estimatesthat there were 1243 incidents affecting 68776 children156

UN reports indicate that both armed groups have usedchildren ldquoon a large scale and committed other graveviolations including killing maiming and sexual violencerdquo157

For instance in 2015 an incident was reported where closeto 100 children were abducted some as young as 13 Armedsoldiers were advancing house to house looking for boysand taking them by force158 According to UNICEF this occuredin Wau Shilluk close to the city of Malakal in Upper NileState159

Not surprisingly as put by a high UN representativepeople are desperate for peace

155 BBC 2001 Garang Oil firms are targetshttpnewsbbccouk2hiafrica1393481stm

156 UN Security Council 2014 Report of the Secretary-General on childrenand armed conflict in South Sudan S2014884

157 Ibidem158 The Guardian 2015 South Sudan gunmen kidnap at least 89 boys

from village near Malakal httpwwwtheguardiancomworld2015feb22south-sudan-gunmen-kidnap-89-boys-village-malakal-child-soldiers

159 The Guardian 2015 South Sudan gunmen kidnap at least 89 boysfrom village near Malakal

60

LIVING IN FEAR

People are desperate for peace They are tired ofliving in fear Many have had to flee several timesThey are exhausted They lack water they areextremely worried for their children who are notin school and at risk of being recruited into armedgroups Sexual violence is rife All people want isto live in safety security and stability160

Wars have also an impact on food security and nutrition Asof February 2015 there was an alert that the food situationwas critical in South Sudan for more than 25 millionpeople161 This was famine related to war Ulrika BlomCountry Director for Norwegian Refugee Council in 2015succinctly stated ldquoThere is an urgent need for a solution onthe conflict so that people are able to resume their dailylives in dignity and not be dependent on massive foodassistancerdquo162

The harsh consequences of war are inevitable and occurfrom a systematic destruction of infrastructure erosion ofthe human capital and weakening of essential institutions

Besides causing an appalling loss of life Sudanrsquoslong civil war eroded the capital base The wardepleted the labour force while roads irrigationsystems and other key components of rural

160 Under-Secretary-General for Humanitarian Affairs and Emergency ReliefCoordinator Valerie Amos remarks to the press Juba South Sudan 9February 2015 httpreliefwebintreportsouth-sudanunder-secretary-general-humanitarian-affairs-and-emergency-relief-coordinator-1

161 UN Security Council 2015 Reports of the Secretary-General on theSudan and South Sudan SPV7392

162 Norwegian Refugee Council 2015 Conflict a cause of hunger in SouthSudan httpwwwnrcnodid=9192498

61

3 SOUTH SUDAN THE OIL WAY

infrastructure were destroyed damaged orneglected It also weakened institutions divertedfinancial capital from economic development andundermined interpersonal trust which is criticalto productive business dealings163

Some have tried to put a figure on the costs of war A recentreport estimates that the cost of the civil war may be between$223 and $28 billion over the next five years for SouthSudan alone if the factions fail to bring peace to the worldrsquosnewest country164

UN peacekeeping operations

In July 2011 the Security Council determined that thesituation in South Sudan constituted a threat to internationalpeace and security in the region and established the UNMission in the Republic of South Sudan (UNMISS)165 Thekey elements of the mandate is to consolidate peace andsecurity However after the civil war broke in July 2013 inthe light of significant human rights violations the large-scale displacement of persons the UNMISS mandate wasreshaped and a focus was given to the protection of civiliansand creation of the conditions for delivery of humanitarianassistance166

163 IFAD 2013 Enabling poor rural people to overcome poverty in SouthSudan

164 Frontier Economics 2015 South Sudan the cost of war httpwwwfrontier-economicscomdocuments201501south-sudan-cost-warpdf

165 UN Security Council 2011 Resolution 1996166 UN Security Council 2014 Resolution 2155

62

LIVING IN FEAR

In June 2011 a month before the establishement ofUNMISS a second UN peacekeeping operation wasestablished in the disputed border between Sudan and SouthSudan The United Nations Interim Security Force for Abyei(UNISFA) was created in a context of escalating violenceand tensions and population displacement167 One of the topobjectives was to achieve the demilitarization of the Abyeifrom any force other than UNISFA and the Abyei PoliceService facilitate the delivery of humanitarian aidstrenghten the capacity of the Abyei Police Service and incooperation with the police provide security for oilinfrastructure in the Abyei area168

Corporations and conflicts with communities

Since the conclusion of the 2005 Peace Agreement betweenthe Government of Sudan (GoS) and Sudan PeoplersquosLiberation MovementArmy (SPLM) negative impacts ofoil exploration and extraction have continued to ignitemistrust among local communities towards the oilcompanies Many problems from the oil activities wereidentified such as water pollution and uncompensateddispossession of land However oil companies or thegovernment did little to assess correct and reduce suchimpacts169 In this context many communities chose the ldquopath

167 UN Security Council 2011 Resolution 1990168 UN Security Council 2011 Resolution 1990169 ECOS 2014 Scrutiny of South Sudanacutes oil industry http

w w w e c o s o n l i n e o r g r e p o r t s 2 0 1 4 Scrutiny_of_South_Sudans_Oil_Industrypdf

63

3 SOUTH SUDAN THE OIL WAY

of confrontation with oil companiesrdquo170 For instance byblocking and interfering in oil operations by truck blockagesand other stoppages171

Resentment of local communities againstoil companies

The negative consequences of oil developmenthave been causing deep resentment against oilcompanies in many oil-rich parts of SouthernSudan Arriving in any oil area where activeexploitation is ongoing one is often confrontedwith persistent complaints from local people aboutpoor management of ldquoproduced waterrdquo which isblamed for pollution of the environment This isoften linked to unexplained deaths of animals andstrange or new human ailments Moreover the oilinfrastructure such as oil roads wells and pipesare frequently blamed for disrupting the means oflivelihoods of local people as well as destructionof property

Source ECOS

170 ECOS 2014 Ibidem171 ECOS 2014 Ibidem

64

LIVING IN FEAR

Lundin Oil Consortium facing war and violencein their work territory

In 2010 the European Coalition on Oil in Sudan (ECOS)requested an investigation on the activities of the LundinGroup and its connection with the conflict in Sudan and thepossible ldquocomplicity in the commission of war crimes andcrimes against humanityrdquo172 During the Second Civil War in1997 a consortium of oil companies led by the Swedish oilcompany Lundin Oil AB (ldquoLundinrdquo) signed a contract withthe Government for the exploration of oil in the concessionarea called Block 5A that was not at that time under fullGovernment control The other members of the Consortiumwere Petronas Carigali Overseas Sdn Bhd (ldquoPetronasrdquo) fromMalaysia OMV (Sudan) Exploration GmbH (ldquoOMVrdquo) fromAustria and the Sudanese state-owned oil company SudapetLtd

Before the start of explorations the area around Block5A was relatively peaceful When the oil exploration startedthe escalation of violence and war followed suit173 Accordingto the European Coilation on oil in Sudan Block 5A ldquobecamethe scene of intense fighting and gross human rightsviolations as soon as the Lundin Consortium started oilexploration activities on the groundrdquo Right from thebeginning there are reports of significant war and violence

172 ECOS 2010 Unpaid debt The Legacy of Lundin Petronas and OMV inSudan 1997-2003 Press Release httpwwwecosonlineorgreports2010Press_release_UNPAID_DEBT

173 ECOS 2010 Unpaid debt The Legacy of Lundin Petronas and OMV inSudan 1997-2003 httpwwwecosonlineorgreports2010UNPAID_DEBT_textonlywebpdf

65

3 SOUTH SUDAN THE OIL WAY

where villages and towns were burnt and looted Tens ofthousands of people in Block 5A were also moved out fromthe exploration areas

In 1999 the Lundin Group discovered major reserves ofoil This accelerated the Government desire to control allthe areas surrounding the well and the infighting intensifiedLundinrsquos explorations in Block 5A had to be suspended twicedue to insecurity174

The consequences of all the violence towards thepopulation which were in the middle of the power battlefor controlling Block 5A were severe abuse of all humanrights and war crimes More than 10000 people were killedalmost 160000 displaced with thousands of peoplepermanently uprooted from their villages hundreds ofthousands of cattle lost or looted destruction of churchesschools markets medical clinics and many otherincalculable moral damage and inmense loss of income175

Talisman Energy accused of complicity with forceddisplacements

A Canadian company Talisman Energy which at that timewas considered to be the largest independent oil and gascompany in Canada has been accused of indirectly helpingto exacerbate the war and of being complicit in human rightsabuses and crimes against humanity176 Talisman has a 25

174 HRW 2003 Ibidem175 ECOS 2010 Unpaid debt Ibidem See also Medecins sans frontieres

2002 Violence health and access to aid in Unity Statewestern uppernile Sudan httpwwwdoctorswithoutbordersorgsitesusafilessudan_04-2002pdf

176 Africa files 2000 Corporate immunity for oiling repression Talismanin Sudan httpwwwafricafilesorgarticleaspID=621

66

LIVING IN FEAR

stake in the Greater Nile Oil Project Company (GNOPC) aninitiative located in south-central Sudan with threeadditional partners the national petroleum company ofChina (40) the national oil company of Malaysia (30)and the national petroleum company of Sudan (5)177

There were many allegations that people were forcefullydisplaced in the area of the oil field ran by Talisman UNreported that accusations were made on Talisman of ldquobeingaccomplice of human rights abuses in Upper Nile so as toguarantee security for its oil operationsrdquo178

Moreover a report from the Canadian Foreign AffairsMnistry ndashthe Harker Report ndash which undertook a mission toSudan described with concern that fighting was intense inthe areas of oil development in general and that oilextraction may have contributed to relocation of civiliansby force179

Violence and the fear of it impact immediatelyon the peoplersquos use of the land and result in foodinsecurity which in turn propels movement ordisplacement

Contradicting that oil is at stake in the displacement issueTalisman explained that displacement was a result of an inter-tribal issue Once again the Harker report concluded thatthe displacement was because of oil

177 Africa files 2000 Ibidem178 UN Security Council 2000 Interim report of the Special Rapporteur of

the Commission on Human Rights on the situation of human rights inthe Sudan A55374

179 Canadian Ministry of Foreign Affairs 2000 Human Security in SudanThe Report of Canadian Assessment Mission httpwwwecosonlineorgreports2000Human20Security20in20Sudanpdf

67

3 SOUTH SUDAN THE OIL WAY

ldquoFor Talisman so very much seems to be explained as merelyan inter-tribal problem but displacement has gone on andis still going on and in Ruweng County it is hard to denythat displacement is now and has been for some timebecause of oilrdquo180

Talisman Energy decided in 2002 to end its controversialfour-year investment in Sudan by selling its 25 percent stakein the Greater Nile Petroleum Operating Company to anIndian firm Most of the rumours is that the reasons for thiswas the strong pressure from the US particularly to end itswork in Sudan in order to stop indirectly supporting theGovernment in Sudan with its oil revenue181

The oil way developing what

Sharing the wealth with the Sudanese people The resourcecurse again

As said before 98 of the governmentrsquos revenue comesfrom oil production royalties and South Sudan sits on thethird-largest oil reserves in Africa182 It was estimated in 2011that South Sudan controlled 75 of the overall oil productionof Sudan and South Sudan altogether ndasharound 500000barrels per day However South Sudan remains dependenton the North for processing refinement and export to theRed Sea

180 Canadian Ministry of Foreign Affairs 2000 Ibidem181 New York Times 2002 Talisman to sell its stake in company in Sudan

httpwwwnytimescom20021031businesstalisman-to-sell-its-stake-in-company-in-sudanhtml

182 Africa Business Initiative 2011 Investment climate upate Sudanhttpswwwuschambercomsitesdefaultfileslegacyinternationalafricafiles16920_AfricaNewsletter_Sudanpdf

68

LIVING IN FEAR

Paradoxically South Sudan is considered a fragile StateSitting on oil as has occured to many other countries acrossAfrica and abroad does not guarantee wealth for the majorityof the population A 2013 report concluded that ldquoover thelast decade Sudan has been the largest recipient ofhumanitarian assistance by some distance receiving US$106 billion over the periodrdquo183 90 per cent of the populationearn less than a dollar a day184

Oil money through the State budget is expected to serveto finance all the key governmental activities of the Statesuch as agriculture health infrastructures and educationDespite the fact that the benefits from oil are substantialthere are numerous questions arising about the destiny ofall the oil money For instance how could it be explainedthat one of the sectors more financed is the military andsecurity apparatus Since South Sudanrsquos independence theGovernment has allocated 38 of oil revenue to the militaryand security services with only 10 and 7 ininfrastructures and education respectively185 In 2012 SouthSudan was the among top 8 African countries having militaryexpenditure of almost $1 billion186 For instance TheEconomist reports that South Sudan bought 100 Ukrainian

183 Global humanitarian assistance 2013 Global humanitarian assistancehttpwwwglobalhumanitarianassistanceorgwp-contentuploads201307GHA-Report-2013pdf

184 Kebede 2014 The role of oil in South Sudanhttpswwwruoruottawacabitstream10393315631KEBEDE20Solomon2020145pdf

185 The Guardian 2014 South Suan is divided by the spoils of oil notethnicity httpwwwtheguardiancomcommentisfree2014jan14south-sudan-divided-oil-ethnicity-violence

186 LAVDC 2014 Les quatre puissances militaires regionales dacuteAfriquehttpwwwlavdcnetportailles-quatre-puissances-militaires-regionales-dafrique

69

3 SOUTH SUDAN THE OIL WAY

T-72 tanks187 At the same time agriculture and livestock hasbeen completely neglected despite the fact that more than80 of the population depend on that sector for fulfiliingtheir basic needs

Where the money goes

Daniel Wuor Joak former MP in South Sudan LegislativeAssembly and Minister of Education Science and Technologyin Upper Nile State claims that between 2005 and 2014both the Government of South Sudan (GOSS) and theRepublic of South Sudan (RSS) have been receiving onaverage not less than two billion of USD per year Somehave already manifested the unclarities over the destiny ofall that money as described by Mr Wuor Joak

Since 2005 upwards both the GOSS and RSS havebeen receiving no less than 18 billion USD in oilrevenues without implementing any majordevelopmental projects like roads network linkingdifferent States in South Sudan conducive learningschools from basics to universities level referralmedical facilities clean drinking water in remoteareas throughout the country setting up vibrantand credible institutions which can adhere to rulesof law All these things have not been implementeddue to poor system of governance under leadershipof Salva Kiir Mayardit Most of the counties have

187 The Economist 2014 Arms and the African

70

LIVING IN FEAR

no roads linking them with their State capitals andlack schools health centres clean drinking wateretc South Sudanese population in the rural areasthroughout the country are still living in the sameconditions as they were under Khartoumrsquos rule interms of scarcity of development188

Speaking more directly Kebede made firm remarks aboutthe overall situation in South Sudan

In general poverty corruption bad governance andviolence characterized the resource curse in SouthSudan A relatively small group of elite capturesvast wealth while leaving much of their societywithout access to the minimum resource necessaryfor long term wellbeing As a result South Sudanremains one of the worldacutes least-developedcountries despite its oil (hellip) hellipmuch of the oilrevenue has been squandered189

188 Wuor Joak 2014 Major Causes of the Current Conflict in Sudan SouthSudan News Agency

189 Kebede 2014 The role of oil in South Sudanhttpsw w w r u o r u o t t a w a c a b i t s t r e a m 1 0 3 9 3 3 1 5 6 3 1 KEBEDE20Solomon2020145pdf

71

3 SOUTH SUDAN THE OIL WAY

Even before the current tensions Bentiu saw little benefitfrom oil The streets are unpaved and covered with trashelectricity is scarce reserved for those with privategenerators () Most expect more violence Bentiu hasbecome more militarized with armed soldiers placed atcheck points and at the bridge Troops are constantlymoving to the front Weapons are being flown into theairport

ldquoThe oil is a curse ldquoMohammed Abdurahman Kili 56mumbled from his hospital bed his body covered withburns He was inside his shop in a crowded market onthe edge of town when a Sudanese warplane attackedkilling a 9-year-old child and another person and settinghis shop on fire

Washington Post 2012

President Salva Kiir recognized in 2012 that corrupt officialshad stolen from the people of South Sudan and the amountlost or taken by lead government and military officials mightbe as much as $4 billion190 Kiir sent a letter to 75 SouthSudanese officials or individuals close to the governmentasking them return all the amount lost The letter describedin general terms how the money got ldquolostrdquo

An estimated $4 billion are unaccounted for orsimply put stolen by current and former officialsas well as corrupt individuals with close ties togovernment officials Most of these funds have beentaken out of the country and deposited in foreignaccounts Some have purchased properties oftenpaid in cash191

190 Ibidem191 Paanluel Wel South Sudanese bloggers httppaanluelwelcom2012

0601letter-from-president-kiir-on-corruption-4-billion-dollars-stolen192 Sudan Tribune 2013 South Sudanacutes Kiir accuses army of corruption

72

LIVING IN FEAR

A year later Kiir accused the armed forces of being corruptHe said that despite the big budget allocations made to thearmy there were even no ldquovehicles to transport soldiers onmissionsrdquo192 Two years later the issue remained unclearand the names of the officials referred to in the letter wereyet to be disclosed However Kiir accused Machar of beingresponsible for a lot of corrupted activities in the country193

Machar responded to Kiir by saying that his claims wereunfounded and then also accusing him of such practices194

It seems South Sudan epitomises all the features of theresource curse argued in Chapter 1195 How can the corruptionbe prevented How can the money go to the people It isalso important to note that the oil sector provides littleemployment to the people of South Sudan Most of thehousehold income and employment is generated in theagriculture and farming sector primarily196 Would investingin other sectors like agriculture that provide real wealth tothe people make a difference

193 Sudan Tribune 2014 South Sudan rebel leader should face corruptioncharges Kiir

194 Sudan Tribune 2014 South Sudan Macharacutes Rebentildes dismiss corruptionaccusations no spiritual powers httpallafricacomstories201407221384html

195 Kebede 2014 The role of oil in South Sudan Ibidem196 Tizikara et al 2012 Post-conflict development of Agriculture in South

Sudan perspective on approaches to capacity strenghtening httpwwwerailsnetimagesfarasecretariatkigali-movementfileKigali20MovementPost-Coflict20Agriculture_South20Sudanpdf

73

3 SOUTH SUDAN THE OIL WAY

Environment

As experienced in oilfileds in other parts of the world the oilfields here are also leaving a significant impact on theenvironment and local communities A three year study inThar Jath and Mala fields in Unity State show thatgroundwater is very polluted making the water unsafe forhuman consumption197 The study made by a team of SouthSudanese and German geologists concluded that water usedby 180000 people was too salty to drink and containdangerous amounts of heavy metals198

In many occasions the oil fields that causeenvironmental pollution are even abandoned due to the warSome observers identified that oil pipelines damaged duringthe conflict were leaking199

South Sudan must produce for its needs

In 2015 the Minister of Finance of South Sudan David DengAthorbei made a statement saying that the country shouldbe self-sufficient in agriculture terms and in addition itneeds to increase its non-oil revenue and to achieve peace200

197 Rueskamp et al 2014 Effect of oil exploration and production on thesalinity of a marginally permeable aquifer system in the Thar Jath-Mala- and Unity Oil fields Southern Sudan Zbl Geol Palaont Teil IJ

198 Radio Tamazuj 2015 Study Direct link between oil exploration andwater pollution in Unity httpsradiotamazujorgenarticlestudy-E28098direct-linkE28099-between-oil-exploration-and-water-pollution-unity

199 Star Africa 2014 South Sudan Oil leaks cause pollution fears httpenstarafricacomnewsssudan-oil-leaks-cause-pollution-fearshtml

200 Bloomberg 2015 South Sudan Finance Minister says food output canoffset oil httpwwwbloombergcomnewsarticles2015-01-20south-sudan-finance-minister-says-food-output-can-offset-oil-1-

74

LIVING IN FEAR

He also made a call for a reduction of the countryrsquos relianceon agriculture imports particularly in the context of aneconomy affected by the plunge in global oil prices201

Peter Biar Ajak from the Center for Strategic Analysis andResearch in Juba illustrates the macroeconomic weaknessesof South Sudan today because of its oil dependence

South Sudanrsquos oil-dependent economy is nearingcatastrophe The production of crude oil has droppedby about 35 percent since the conflict began Thatcombined with a drop of roughly 45 percent in globaloil prices since the summer has meant a substantialreduction in the governmentrsquos oil revenues andenormous fiscal and budgetary ressures

Since South Sudan exports almost nothing asidefrom oil and imports almost everything else tradeand monetary policy have also been buffeted byfalling oil revenues Access to foreign currency hasbecome extremely limited The prices of manyimported goods have risen There are shortages ofpetrol which must be imported because SouthSudan has no refinery202

Indeed a dynamic agriculture sector may be key for peaceand development in South Sudan More than 95 of thecountryrsquos population is dependent on farming fishing orherding to meet their daily food needs and income as well203

201 Bloomberg 2015 Ibidem202 Biar Ajak 2015Sanctions for peace in South Sudan The New York Times

January 7th203 FAO in emergencies httpwwwfaoorgemergenciescountries

detailenc147627

75

3 SOUTH SUDAN THE OIL WAY

204 Business Daily 2011 South Sudanrsquos vast agricultural sector potentialuntapped

205 Norwegian Refugee Council 2015 Conflict a cause of hunger in SouthSudan httpreliefwebintreportsouth-sudanconflict-cause-hunger-south-sudan OCHA 2015 South Sudan Crisis Situation reportn 74 httpreliefwebintsitesreliefwebintfilesresourcesSouth_Sudan_Situation_Report_No_74pdf

206 OECD 2014 Fragile States 2014 Domestic revenue mobilisation infragile states httpwwwoecdorgdacgovernance-peaceconflictandfragilitydocsFSR-2014pdf

South Sudan has good soil and climatic conditions and morethan 70 of its land area is suitable for crop productionThere are many that believe that the investment in theagriculture sector has more potential than oil however thisthinking has not received due attention from local andforeign investors204 Efforts towards making agriculture workare vital for peace and stabililty in the country It is urgentlyneeded to work on this area particularly when at presentthere are 25 million in Sudan at risk of starvation205 andaround one third of the population are food insecure plusmore than a million displaced

The dependency on income from natural resourcesleaves fragile states vulnerable It exposes them toshocks in commodity prices ndash as demonstrated bythe sudden fall in commodity prices in 2009following the 2002-2008 boom Neither is it asustainable source of incomeSouth Sudanrsquos oilproduction for instance is projected to decreasesteadily in future years and become negligible by2035

Source OECD206

76

LIVING IN FEAR

207 UN Security Council 2015 Resolution 2206 SRES2006(2015)httpwwwunorggasearchview_docaspsymbol=SRES2206 (2015)

208 Sudan Tribune 2015 South Sudan unhappy with US support for sanctionshttpwwwsudantribunecomspipphparticle54232

209 Washington Post 2014 US appears unable to pull South Sudan backfrom the brink of civil war httpwwwwashingtonpostcomworldus-appears-unable-to-pull-south-sudan-back-from-the-brink-of-civil-w a r 2 0 1 4 0 5 0 3 d 9 2 8 0 b d a - 3 8 6 b - 4 2 4 9 - 9 4 e 0 -b5292610e5bb_storyhtml

210 Ibidem

US fallen dream

In 2015 the UN imposed a travel ban and assets freeze againstindividuals or entities which engaged in or provided supportfor acts that threaten peace security and stability of SouthSudan207 The US was behind the draft and the submission ofthe resolution This resolution prompted an angry reactionfrom the South Sudanese The South Sudanese presidencywas said to be extremely disappointed about the US ledmove208

In the past the relationship between the US and SouthSudan was completely diferent The United States was themain promoter and supporter of the worldrsquos newest nationThe Washington Post for instance asserted that ldquoSouth Sudanowes its existence to the United Statesrdquo209 The expectationscreated were high before its started its independence andsome believed that Sudan would be able to manage thecountry breaking the so-called ldquoAfrican model of pettyrivalries corruption and oppressionrdquo210 Despite all the hopesput on the young nation as of today no solution has beenfound to the ongoing war

77

3 SOUTH SUDAN THE OIL WAY

The US was the largest donor to Sudan in the years priorto independence providing 339 of the total aid to Sudanbetween 2000 to 2009211 The United States (US$472million) was the largest donor of humanitarian assistanceto South Sudan in 2012 followed by the United Kingdom(US$96 million)212 For many years Sudan was the thirdlargest recipient of US aid only after Iraq and Afghanistan213

The inteligence and information systems of theAmericans on the ground in Sudan seemed to have beenrelatively good214hellip however how come they did not foreseethat South Sudan was quickly descending once again on theavenue of a country at civil war For instance the problemsbetween President Salva Kiir and his deputy were not newAlready more than two years before the civil war started inJune 2011 in a speech in Juba the President accused hisDeputy Riek Machar ldquoof running a parallel governmentwithin the governmentrdquo215 Couldnrsquot they have preventedanother conflict Why did they fall into ridiculouscontradictions as the one recently revealed via wikileakssuggesting that the US was funding both armies in

211 Development initiatives (undated) Sudan Aid Factsheet 1995-2009httpwwwglobalhumanitarianassistanceorgwp-contentuploads201102Sudan-Aid-Factsheet-2011pdf

212 See global humanitarian assistamce ebpage httpwwwglobalhumanitarianassistanceorgcountryprofilesouth-sudan

213 The Atlantic 2011 US played key role in Southern Sudanacutes longjourney to Independence

214 The Global Intelligence files 2013 SudanUSMIL ndash SPLA trying toget US to hook it up httpssearchwikileaksorggifilesviewemailid=5047664

215 Sudan Tribune 2011 Salva Kiir exposes his rift with Machar overSouth Sudan transitional constitution httpssearchwikileaksorggifilesviewemailid=3831682

78

LIVING IN FEAR

contention the Government force of Salva Kiir and the rebelsof Riek Machar216 Why are both paid by the UShellip to dowhat As one reporter questioned why are they ldquopaid tokill each otherrdquo217

216 RT 2015 US officials tussle over arms embargo sanctions in oil-flushSouth Sudan httprtcomusa226387-south-sudan-sanctions-war

217 RT 2015 Ibidem

Seven Million

ldquoA peaceful DR Congo could transform Africa almostovernight but is there a way outrdquo218

There is always a way out However peace is not an easything particularly under certain circunstances When youhave lost your father your mother your uncle your sisterwhat else can you lose Can you still believe in peaceTwoof the bloodiest conflicts in recent decades in the world haveoccurred in Africa The Second Civil War in Sudan has leftaproximately two million casualties and the conflict in DRCis estimated to have snuffed life out of no less than fivemillion people

How many more

How does one begin to quantify the dead when they are inthe hundreds of thousands No less than seven million livesof Congolese and South Sudanese were taken away due towars and conflicts fuelled by natural resources How many

218 African Business 2009 DR Congo $24 trillion fortune

4

79

80

LIVING IN FEAR

more How many more before the world wakes up to acteffectively towards ending all those conflictsProbably unless you are one survivor from those experiencesyou would never be truly able to understand what it meansto lose entire families and friends you would never be trulyable as well to understand what it means to feel fear foryour life and the life of your close relatives

When you start counting sometimes you forget thatpeople are not numbers There are names behind thenumbers A family A life As we write this book people aredying needlessly in the DRC and in South Sudan Calculatingdead people due to conflicts in this part of the world is verydifficult due to statistical challenges and so it is conceivablethat probably the number of victims is much larger than sevenmillion (7000000) When would the volume of bloodshedthe number of lives taken be enough for the belligerentofficials to make real peace How many more should fallAthousand more Another one million The pain sadness anddestruction that those conflicts generate should not beaccepted any more

Oil and minerals the main cause of ongoingconflicts and war

Some authors argue that minerals and oil are not a cause ofwar but ldquocompetition for them could amplify and expediteconflictrdquo219 In this book as chapter two and three haveshown oil and minerals are the main motor behind theconflict in recent decades in DRC and South Sudan It would

219 UN Security Council 2013 Natural resource wealth fails to translateinto equivalent benefits for people fuelling conflict to instability DeputySecretary-General tells Security Council httpwwwunorgpressen2013sc11037dochtm

81

4 SEVEN MILLION

be very difficult if not impossible to expect those conflictsif their territories were resource poor Oil and minerals arefull of blood An activist poet wrote We Thought it was Oilbut it was Blood220 Although he was writing about the NigerDelta situation we see a universal application in that phrase

In both countries described there were other elements andfactors to take into consideration however it can be saidthat control over natural resources was the most importantcause on both conflicts in DRC and South Sudan In bothcases oil and minerals fuelled those wars and in manyoccasions these resources have inspired fueled and sustainedarmies operating in the territories of both countries

A Statersquos wealth means nothing if not shared withthe majority of the population

DRC and South Sudan ought to be wealthy countriesUnfortunately having a wealth of natural resources doesnot mean that it belongs to the citizens or that the wealthwould be shared among the population of a given State AState is a nation or territory considered as an organizedpolitical community under one government221 A goodgovernment should be the one that takes care of its citizensand shares the wealth among its citizens and not justdistribute it among an elite Jan Eliasson Deputy Secretary-General of the United Nations stated that ldquoin too manycountries a wealth of resources including timber oil coaldiamonds and precious metals failed to translate into

220 Nnimmo Bassey 1998 We Thought it was Oil but it was Blood IbadanKraft Books

221 See httpwwwoxforddictionariescomdefinitionenglishstate

82

LIVING IN FEAR

equivalent wealth for the people Only a powerful fewbenefitrdquo222

The State is expected to perform an adequateimplementation of human rights granted by several UNdeclarations and conventions including the right to foodright to health right to shelter right to clothing right towork farmersacute rights etc Paradoxically the violations andabuses of human rights have been constant in DRC and SouthSudan Both countries have suffered from acts of war oncivilian population both have as well a large number ofdisplaced people with no access to food without healthcarewithout shelter and without any work Both countries havemore than 90 people living below one dollar per day andthey are considered among least developed countries andfragile states Due to this both are some of the biggestrecipients of humanitarian aid Moreover both have hugesecurity problems shown for instance by the presence ofUN peacekeeping operations Out of the 17th worldwideongoing peacekeeping UN operations three are in DRCSouth Sudan and in Abyeia disputed territory between Sudanand South Sudan

They possess resources that have a huge monetary valueand that in most cases have the involvement of foreigncountries and corporations and other stakeholders of theprivate sector which are ready to pay enormous sums ofmoney to gain control of the natural resources belonging toother countries If no war or significant armed conflict takes

222 UN Security Council 2013 Natural resource wealth fails to translateinto equivalent benefits for people fuelling conflict to instability DeputySecretary-General tells Security Council httpwwwunorgpressen2013sc11037dochtm

83

4 SEVEN MILLION

place common elements among those countries that possesssuch resources in Africa is the existence of massive povertyand corruption and in most cases this is contrasted withmega-rich individuals Letacutes take for instance the case ofoil-rich Angola where the president and his daughter possessmultibillionaire fortunes while at the same time the majorityof the country population is living on less than two dollarsper day223

Greed power and control over natural resources

It must be noted as well that often oil and minerals involvemillions and multibillion profits With such large sums ofmoney greed power and control take the driving seat ofwhatever country government in the world When theprospects for such money flow arrives many leaders andelites start distancing themselves from the majority of thepopulation and stop thinking about the welfare of their ownpeople

At the centre of most of the conflicts in both countriesare struggles for power and control of natural resourcesMinerals and oils are the main cause of the ongoing conflictsand wars Unfortunately most commentators qualify therecent civil war in South Sudan as a ldquopower strugglerdquo withoutfurther qualifications In South Sudan who gets the oil getsthe power Therefore the power struggle is a war overnatural resources for control of the oil in the country Areporter affirmed that ldquowhoever controls South Sudanrsquos oiltherefore could seize the upper hand in the battle for

223 Forbes 2013 Daddyacutes girl how an African ldquoprincessrdquo banked $3 billionin a country living on $2 day httpwwwforbescomsiteskerryadolan20130814how-isabel-dos-santos-took-the-short-route-to-become-africas-richest-woman

84

LIVING IN FEAR

224 France 24 2013 Battle for oil adds new dimension to South SudanConflict httpwwwfrance24comen20131227-battle-oil-adds-new-dimension-south-sudan-conflict

225 OECD 2014 Fragile States 2014 Domestic revenue mobilisation infragile states httpwwwoecdorgdacgovernance-peaceconflictandfragilitydocsFSR-2014pdf

powerrdquo224 In both countriesrsquo non-renewable natural resourcetook a dominant share of the fiscal revenue of DRC andSouth Sudan ndash 82 in the DRC and 98 in South Sudan225

Who controls those resources controls the countryThe case of South Sudan where the president has

recognized the disappearance of $4 billion by corruptindividuals is compelling President Salva Kiir pinpointed thespirit behind the rot ldquoOnce we got to power we forgot whatwe fought for and began to enrich ourselves at the expenseof our peoplerdquo This might also include him as well becauseit is difficult to imagine that such huge amount of money couldbe stolen without the leader noticing anything at all

Greed for minerals and oil is at the heart of the massivedeath toll and impoverishment of the Congolese and SouthSudanese people in recent decades It can be affirmed quitecomfortably that if the Eastern part of the DRC would havenot sat on huge mineral reserves it would be very difficultto imagine all the conflicts that have occurred in that zoneIt can be affirmed as well that without oil ongoing wars inSouth Sudan might most probably never have occured

Peace is the only way forward

Achieving peace is a complex issue To create peace thereare many issues to resolve with all stakeholders such as

85

4 SEVEN MILLION

mutual accusations of support to rebel groups226 goodgovernance transparency demobilisation and disarmamentof local militia etc227

A positive but vital first step is that there are calls at veryhigh levels in both countries and at international fora Thismust be followed with open debate on the core causes of theconflict and ways of achieving reconciliation It does notappear that lasting peace can be achieved otherwise In thatprocess the people need to be put at the centre ofdevelopment policies and actions in both countries in orderto stop the plunder reverse environmental degradation andfight poverty As long as the political military and corporateelite maintain their control of the natural resources of thecountry the devastating plunder will continue to the benefitof only such elite and a handful of corporations

226 UN Security Council 2015 Reports of the Secretary-General on theSudan and South Sudan SPV7392

227 The Guardian 2014 South Sudan is divided by the spoils of oil notethnicity httpwwwtheguardiancomcommentisfree2014jan14south-sudan-divided-oil-ethnicity-violence

INDEX

AAbyei Joint Oversight

Committee (AJOC) 47Abyei Police Service 46 62Abyei 43-home of the Ngok Dinka 43

45Africa 18 20 see minerals

-and wars at the greatlakes 20 25-armed groups in 26-criminal networks in 26-death in 20-exploitation naturalresources in 18-militias in 26-minerals in 20-poverty in 20-wealth in 20

Africarsquos wealth 14-and resource curse 14-blessing or curse 14

African Business 22African Development Bank

(AfDB) 16 17

African Unionrsquos (AU) Peaceand Security Council 48

Algeria 15Allied Democratic Forces

(ADF) 25 28-in North Kivu 25

American Mineral Fields(AMF) 36

AngloAmerican corporation35

AngloGold Ashanti 35Anvil Mining 36Armed Forces of the DRC

(FARDC) 26Athorbei David Deng 73Auty Richard 14

BBBC 18Blom Ulrika 59Blue Nile 45

CCentral African Republic 7China National Petroleum

Corporation 49

86

INDEX

87

Citibank NY 36Clinton Bill 24 36Conflict minerals 30 see

Rwanda-legitimate exports of 30-smuggling of 30

Conflicts 7-and natural resources 7-causes of 10 80-uniqueness of 10

Congolese Government 18

DDemocratic Republic of

Congo (DRC) 7-85-and (MONUC) 29-greed for minerals in 32-UN peacekeeping opera-tion in 29

Diffra oil complex 47DR Congo 79

EEastern Congo 28

-insecurity in 28Eliasson Jan 81

-Deputy Secretary-Generalof the United Nations 81

European Coalition on Oil inSudan (ECOS) 63

Exploration GmbH (OMV)64

Exxon corporate 15

FFirst Sudanese Civil War 42Forces deacutemocratiques de

libeacuteration du Rwanda(FDLR) 28

GGabon 18

-oil in 18Gertler Dan 12 13Ghana 18

-oil in 18Giambrone Antonino 38Glencore Anglo-Swiss 35Government of South Sudan

(GOSS) 69Government of Sudan (GoS)

62Great War of Africa 23Greater Nile Oil Project

Company (GNOPC) 6667

Guinea Equatorial 15

HHague 44Permanent Court of Arbitra-

tion in 44Human Rights Watch 55

IIMF 22International Rescue Commi-

ttee 23

LIVING IN FEAR

88

JJoak Daniel Wuor 69Juba 74

-Center for StrategicAnalysis and Research in74

Katanga Minister of Planning22

KKenya 19Kerry John 24Kiir Salva 43 84

LLibya 7Lumumba Patrice 13 20Lundin Oil Consortium 63

MMachar Riek 43 57 77 78Madagascar 16Mala fields 73Malakal 59Mali 7Mayardit Salva Kiir 69McKinney Cynthia Ann 23

-US Congresswomanfrom the Democratic Party23

McMurrough Mike 36McNamara Robert 37

-as World Bank President37

Minerals 20 see Africa-and death 20

-and poverty 20-and wars at the GreatLakes 20-and wealth 20

Mozambique 18-gas in 18

Muloni Irene 18

NNationalist and Integrationist

Front (FNI) 36Natural resources 8 83 see

conflicts-and conflict 8-and greed 83-and power 83-and wars 8-control over 83

Niger Delta 16-oil is a curse for 16

N o n - g o v e r n m e n t a lorganisations (NGOs) 12

Non-OPEC African oilproducer 48

Norwegian Refugee Council59

OOECD Guidelines for

Multinational Enterprises37

Oil 48-and geopolitics 48

PPeace 84

INDEX

89

-as way forward 84Petronas Carigali Overseas

Sdn Bhd (Petronas) 64Powell Colin 58PR Newswire 30President Kabila 24President Obama 24

RRDC Mining Code 35Republic of South Sudan

(RSS) 69Rio Tintorsquos QMM 16Ruweng County 67Rwanda 24 31

-conflict minerals from 31

SSecond Congo War 24 32

34Second Sudanese Civil War

42Somalia 7South Kordofan 45South Sudan Civil War 57South Sudan 11 18 19 41

-Dinka ethnic group in 4357-Nuer ethnic group in 4357the oil way 41-UN peacekeeping opera-tions 61

South Sudanese Civil War 58Sudan 79

-Second Civil War in 79

Sudan Armed Forces 46Sudan oil police 47Sudan Peoplersquos Liberation

Army (SPLA) 41 46 5462-civil wars and conflict in41

Sudan vs South Sudan 43-and Heglig battles 47-and peace agreement 43-main oil companies in 51-oil-centered conflict 46-Row over oil tariffs 51

Sudanese Civil War 52-and Addis AbabaAgreement 53-and Islamic law 53-causes of 52

Swedish oil company LundinOil AB (Lundin) 64

TTalisman Energy 65Thar Jath 73Transnational Corporations

(Tncs) 34-and the private sector 34

UUganda 19 24UN Interim Security Force for

Abyei (UNISFA)UN Mission in the Republic of

South Sudan (UNMISS)61 62

UN Organization Stabiliza-

LIVING IN FEAR

90

tion Mission in the DRC(MONUSCO) 29

UN peacekeeping operations11

UN Security Council 11UNICEF 59UNISFA 47United Nations Office of the

Special Adviser on Africa(OSAA) 8

United Nations SecurityCouncil 25

United Nations 13University of California

(UCLA) 54 55Upper Nile State 59 69US fallen dream 76

VVirunga National Park 18

WWar and conflict 58

-consequences of 58Wars and minerals 21

-cobalt 22-coltan 22-copper 22-diamond 22-gold 22-manganese 22-peace at last 21-timber 22-tin 22-zinc 22

Wau Shilluk 59We Thought it was Oil but it

was Blood 81Wealth 12 13

-for whom 13-quest for 12

World Heritage site 18Worldwatch 40

Page 2: LIVING IN FEAR - Health of Mother Earth Foundation...Les quatre puissances militaires regionales d´Afrique. 12 LAVDC. 2014. Les quatre puissances militaires regionales d´Afrique

Juan Lopez Villar

LIVING IN FEARWars conflict and natural resources in the

heart of Africa

Published for

Health of Mother Earth Foundation (HOMEF)|214 Uselu-Lagos Road POBox 10577

| Ugbowo Benin City Nigeria| T +234 52 941 321 | M +234 803 727 4395 | wwwhomeforg

|Health_Earth

by

Kraft Books Limited6A Polytechnic Road Sango Ibadan

Box 22084 University of Ibadan Post OfficeIbadan Oyo State Nigeria

+234 (0)803 348 2474 +234 (0)805 129 1191E-mail kraftbooksyahoocomkraftbookslimitedgmailcom

Website wwwkraftbookslimitedcom

copy Juan Lopez Villar

First published 2016

ISBN 978ndash978ndash918ndash379ndash1

All Rights Reserved

First printing August 2016

CONTENTS

Prologue 7

1 The Quest for Wealth 12

2 Minerals and Wars at the Great Lakes 20Wealth Death and Massive Poverty inthe Heart of Africa

3 South Sudan The Oil Way 41

4 Seven Million 79

Index 86

PROLOGUE

Conflicts and natural resources

Sudanrsquos history of oil production has been a historyof violent conflict Soon after the discovery of oil inthe southern region in the late 1970s the secondSudanese civil war broke out1

South Sudan today is going through a civil war and in parallelit is in the middle of ongoing conflicts with Sudan for controlof oil rich areas in the Northern parts of the country

A study made for the African Development Bankconcludes that in the past 40 years there has been moreviolent conflicts in Africa than on the other continentsMoreover the wars in Africa have lasted longer and havebeen deadlier2 Libya Mali Democratic Republic of Congo(DRC) Somalia Central African Republic hellip So many warshellip So many conflicts hellip So much sufferinghellip

1 Bonn International Center for Conversion 2013 lsquoOil investmentand conflict in Upper Nile State South Sudanrsquo Brief 48

2 Hoeffler 2008 lsquoDealing with the consequences of violent conflictsin Africarsquo Background paper for the African Development Bankhttpusersoxacuk~ball0144consequencespdf

7

8

LIVING IN FEAR

Natural resources wars and conflict

Wars and armed conflicts are the major illnesses of thehumankind Since the birth of humankind we have not beenable to stop killing each other Thousands of years after wecontinue creating wars and armed conflicts

Why is that Today natural resources like oil and mineralsare at the heart of many conflicts around the world and so-called ldquohigh-value natural resources have been associatedwith dozens of armed conflicts millions of deaths and thecollapse of several peace processesrdquo3 Numerous reports andstatistical evidence confirm that those resources have beenldquosparking and fueling armed civil conflictsrdquo4 The UnitedNations Office of the Special Adviser on Africa (OSAA) alsoaffirms that ldquonatural resource have been shown to play akey role in the conflicts that have plagued a number ofAfrican countries over the last decade both motivating andfuelling armed conflictsrdquo5Moreover some scholars affirmthat ldquowhen internal conflict occurs in a region that has oilreserves it lasts twice as long as conflicts that occur in areaswithout oil reserves and combatant deaths are twice ashighrdquo6

Corporations working with natural resources have beencomplicit in many conflicts For instance during the Sudanwar oil corporations have allowed their facilities to be used

3 Lujala et al 2011 lsquoHigh-value natural resources a blessing or acurse for peacersquo Sustainable Development Law and Policy Vol 12

4 Lujala et al Ibiacutedem5 United Nations Office of the Special Adviser on Africa 2006 lsquoNatural

resources and conflict in Africa transforming a peace liability intoa peace assetrsquo Conference Report

6 Lujala et al 2011 lsquoHigh-value natural resources a blessing or acurse for peacersquo Sustainable Development Law and Policy Vol 12

9

PROLOGUE

for military purposes that led subsequently to attacks oncivilians One example is the case of the Heglig airstrip withinthe territory of the concession of the Canadian corporateTalisman

the military use of Heglig airstrip has been moreor less constant since May 1999 (hellip) flights clearlylinked to the oil war have been a regular feature oflife at the Heglig airstrip which is adjacent to theoil workersrsquo compound It is operated by theconsortium and Canadian chartered helicoptersand fixed wing aircraft which use the strip haveshared the facilities with helicopter gunships andAntonov bombers of the Government of SudanThese have armed and re-fuelled at Heglig and fromthere attacked civilians7

Natural resources have also been associated with the increaseof military spending on the continent Military expenditurein Africa is on the rise experiencing the highest progressionin the world from 2002-20118Algeria tops the list of militaryspending in Africa with over $10 billion9 They were followedby Angola with $6 billion and then South Africa with a bitmore than $4 billion in 201310 The increase of Africarsquosexpenditure is mainly due to the oil revenues from countries

7 Canadian Ministry of Foreign Affairs 2000 lsquoHuman Security in SudanThe report of Canadian Assessment Missionrsquo httpwwwecosonlineorgreports2000Human20Security20in20Sudanpdf

8 LAVDC 2014 lsquoLes quatre puissances militaires regionales dacuteAfriquersquo httpwwwlavdcnetportailles-quatre-puissances-militaires-regionales-dafrique

9 The Economist 2014 lsquoArms and the Africanrsquo httpwwweconomistcomnewsmiddle-east-and-africa21633901-continents-armies-are-going-spending-spree-arms-and-african

10 The Economist 2014 Ibidem

10

LIVING IN FEAR

like Algeria and Angola Angolarsquos military spending rose byover 36 in just one year Another oil producer that hasmade significant outlays on military spending is Ghanawhich almost tripled its arms budget from $109 to $306million between 2012 and 201311 Not surprisingly DRC alsorecently augmented significantly their spending by 3412

Causes of conflicts

Often there is a trend to simplify one main cause for aparticular conflict such as religious ethnic or tribal oreconomicpolitical power struggles For example very oftenthe conflicts in Sudan have been described as religious warsbetween Northern Muslims and Christiananimists from theSouth Our analysis in Chapter 3 will illuminate a differentperspective In general wars and conflicts tend to besurrounded by multiple factors and causes some with moredominance than others It is precisely in that complexity ofelements and factors that we can find the reasons why acountry has embarked in wars and conflicts However atthe same time there is often one cause that is the prevalentand dominant one in each conflict This will also be examinedin the forthcoming chapters

Every conflict is unique

While conflicts may have similar elements every one of themis unique in its own way13 This book explores the generalrelation between wars conflicts and natural resourcesfocusing in particular on two African countries Democratic

11 LAVDC 2014 Les quatre puissances militaires regionales dacuteAfrique12 LAVDC 2014 Les quatre puissances militaires regionales dacuteAfrique13 Bongani 2012 lsquoNatural resources and conflict unlocking the

economic dimensioacuten of peace-building in Africarsquo Briefing n 74

11

PROLOGUE

Republic of Congo (DRC) and South Sudan Both countrieshave gone through some of the bloodiest wars and conflictsin recent decades in the world Peace efforts have been madeat the UN level to try to minimize the conflict situations In2014 both countries had UN peacekeeping operationsmandated by the UN Security Council to promote protectand monitor human rights in DRC and South Sudan14 Weaim to provide a succinct but comprehensive overview ofboth conflicts and show their relation with natural resources

14 In 2014 there were ongoing 17 peacekeeping operations under theUN There were DRC and South Sudan ndashAbyei- See Office of theHigh Commissioner for Human Rights httpwwwohchrorgENCountriesPagesPeaceMissionsIndexaspx

LIVING IN FEAR

12

The Quest for WealthldquoDan Gertler is essentially looting Congo at the expense of

its peoplerdquo15

If there is wealth in DRC Dan Gertler has found a goodpiece of it The 41-years-old Israeli-born Dan Getler has adeclared fortune estimated at $144 billion While he isformally based in Bnei Brak Israel he has made his billiondollars fortune in the mining sector of DRC He is also verywell known for being a close friend of President JosephKabila16 Gertler is criticized over his way of doing businessand has been accused by non-governmental organisations(NGOs) to have obtained mining assets on the cheap bycavorting with politicians17 Congolese NGOs have said abouthim for example that ldquohe has political connections so statecompanies sell him mines for low prices and he sells themon for huge profitsrdquo The quest for wealth attracts manyGertler-like types to the African continent one of thewealthiest places of the planet

1

15 Affirmation of Jean Pierre Muteba head of a group of NGOs thatmonitor mining in DRC at The Washington Post 2012 Dan Gertlerearns billions as mine deals fail to enrich Congo

16 Forbes profile of Dan Getler httpwwwforbescomprofiledan-gertler

17 Forbes Ibiacutedem

13

1 THE QUEST FOR WEALTH

Wealth for whom

Everybody wants to be wealthier however not everybodyshares the same definition of wealth18One definition ofwealth is that it is a ldquotangible or intangible thing that makesa person family or group better offrdquo19 Under this definitionoil or a mineral would be considered wealth if it makes aperson family or group better off Certainly a person likeMr Getler is obviously doing better off in terms of moneywith his work and therefore he is wealthier under thoseterms Howeverthe resources that make Getler wealthy havenot necessarily benefited Congoacutes people Minerals or oilas said by Patrice Lumumba belongs to the people of DRCit is the responsbility of the State to manage its benefits andto share it among the population The wealth of a country isthe wealth of their people

However the wealth of natural resources revenues doesnot frequently bring benefits to the majority of thepopulation but rather a handful of elites The United Nationsoffice of the Special Adviser on Africa affirmed that the richesderived from the ldquoexploitation of natural resources are notonly used for sustainaing armies but also for personalenrichment and building political supportrdquo20 In additionthe office added that ldquocontrol over natural resources andtheir revenues often stay in the hands of a small elite and isnot used for broader development of the countryrdquo21

18 CNBC 2013 what is wealthy $5 million and plenty of cash19 See the business dictionary httpwwwbusinessdictionarycom

definitionwealthhtml20 United Nations office of the Special Adviser on Africa 2006 Natural

resources and conflicts in Africa transforming a peace liability intoa peace asset Conference Report

21 United Nations office of the Special Adviser on Africa 2006 Ibidem

LIVING IN FEAR

14

Africarsquos wealth blessing or curse

The resource curse

In a sea of wealth there are often oceans of povertyResource-rich countries are often accompanied by slowerthan expected economic growth poor economicdiversification gloomy social welfare indicators devastatingenvironmental impacts rampant corruption high inequalityhuge impoverishment bad governance and as said beforewars and conflicts22 This situation has been termed thetheory of ldquoresource courserdquo which term was used first in1993 by Richard Auty23 In 1995 the theory of the ldquoresourcecurserdquo was popularized thanks to an article of Sachs andWarner24 Both authors showed in their paper that ldquoeconomieswith a high ratio of natural resource exports to GDP in 1971tended to have low growth rates during the subsequentperiod 1971-1989rdquo From there a vast number of literaturehas been written on this matter and is divided between thosethat believe exploitation of natural resources is a curse andthose that believe that it can promote growth and

22 Mildner et al 2011 lsquoScarcity and abundance revisited a literaturereview on natural resources and conflictrsquo International Journal ofConflict and Violence Vol 5 Karl 2005 lsquoCovering oil a guide toEnergy and Developmentrsquo Understanding the resource curse opensociety institute

23 Time 2010 Brief history the resource curse httpcontenttimecomtimemagazinearticle09171199746000html

24 Sachs and Warner 1995 lsquoNatural resources and economic growthrsquoHarvard Institute for International Development

15

1 THE QUEST FOR WEALTH

development in developing countries25 Others for instanceprefer to use different terminology like Exxon corporatewhich has said ldquowe donacutet like to call it the oil curse weprefer governance curse We are private investors and it isnot our role to tell governments how to spend their moneyrdquo26

Africarsquos wealth

Africa is full of natural resources and there are manycountries considered as having a huge wealth Oil gasminerals timber fertile land water are often mentioned asthe riches of the continent However oil and minerals arethe favourites of some of the top leaders of the continentAngola with oil and diamonds Nigeria with oil GuineaEquatorial with oil Algeria with plenty of oil and gasdeposits DRC with minerals and South Sudan with oil justto name some of them

Many would think that all those States with lots of oiland mineral are very wealthy The truth is that although theStates are wealthy the countries are paradoxically full ofpoverty and their populations are not benefiting from thoseresources Moreover in many cases the wealth derived from

25 Pedro (undated) lsquoMainstreaming mineral wealth in growth andpoverty reduction strategiesrsquo Economic Commission for Africa PolicyPaper Ross 1999 lsquoThe political economy of the resource cursersquoWorld Politics n51 Hodler 2004 lsquoThe curse of natural resourcesin fractionalized countriesrsquo Economic department University ofBern SwitzerlandSwilling 2012 lsquoBeyond the resource curse fromresource wars to sustainable resource management in Africarsquo Paperpresented at the Winelands Conference on Integrity and GovernanceStellenbosch Pendergast et al 2008 lsquoCorruption and the curse ofNatural resourcesrsquo Department of Economics University of VictoriaDavis 2012 Replicating Sachs and Warner the 1997 Working PaperColorado School of Mines Neumayer 2004 Does the resource cursehold for growth in genuine income as well World Developmentvol 32

LIVING IN FEAR

16

oil and minerals mostly fuel wars and conflicts While somedie while some are displaced while some are injured orrape Some on the contrary are making money lots andlots of money hellip and while they make money they just puta blind eye on the horrors occurring outside the fence Thisis well described in the Harker report on the Sudanese warand the role of oil corporations ldquoIf the oil companies donrsquotknow whatrsquos going on theyrsquore not looking over the fencesof their compoundsrdquo27

Although some may believe that the importance of theoil and mineral sectors is the creation of jobs for thepopulation this has been denied by several authors

The oil gas and mining sectors are notoriously poorwhen it comes to job creation An offshore platformtapping deep-sea reserves will create few if anypositions for locals Only recently protests werereported outside Rio Tintorsquos QMM mineral sandsoperation in the south of Madagascar due to highlocal unemployment The best way to convertnatural resource wealth into jobs is to take theproceeds and invest in other more labor-intensiveindustries such as agriculture or manufacturing28

Nigeria provides a good example where communities living inthe Niger Delta have not benefited from oil extraction whichon the contrary has created serious conflicts as seen in Box 1

On the question of whether oil is a blesssing or a curse toAfrica the African Development Bank concluded that it is a

26 The Economist 2005 lsquoThe paradox of plentyrsquo27 Canadian Ministry of Foreign Affairs 2000 Human Security in

Sudan The report of Canadian Assessment Mission httpw w w e c o s o n l i n e o r g r e p o r t s 2 0 0 0 Human20Security20in20Sudanpdf

28Africa progress panel 2013 Africaacutes mineral wealth eternally cursedhttpwwwafricaprogresspanelorgafricas-mineral-wealth-eternally-cursed

17

1 THE QUEST FOR WEALTH

ldquohuge blessingrdquo29 It justifies that with the following analysis

We estimate that Africa has 120bn barrels of oilreserves no less than half of Saudi Arabia and 600million hectares of uncultivated arable land halfof the world total We at the African DevelopmentBank (AfDB) estimate that the continentrsquos naturalresources will contribute over $30bn per annumin government revenues over the next 20 years30

Box 1 Oil is a curse for the Niger Delta people

Most people think of oil states as wealthy states ButNigeria proves that sometimes the opposite is true It isAfricarsquos leading oil producer and yet it is one of theworldrsquos 20 poorest countries Whatrsquos more the peopleliving in the Niger Delta the countryrsquos oil-producingregion are among Nigeriarsquos most impoverishedcommunities with a large percentage of the populationhaving to survive on less than one dollar a day For thesepeople lsquoblack goldrsquo has not brought prosperity ordevelopment Instead it has increased corruption socialproblems environmental damage and armed conflictThe many billions of US dollars in oil revenue that havepoured into the country during its oil industryrsquos 50-yearhistory have completely bypassed these communitiesSource Petra Hannen 2011 lsquoBlessing our Coursersquo GIZmagazine akzent

29 African Development Bank 2013 lsquoAfricarsquos mineral wealth a blessingor a cursersquo httpwwwafdborgenblogsafdb-president-this-is-africas-hourpostafricas-mineral-wealth-a-blessing-or-a-curse-12336

30 African Development Bank 2013 Africaacutes mineral wealth a blessingor a curse httpwwwafdborgenblogsafdb-president-this-is-africas-hourpostafricas-mineral-wealth-a-blessing-or-a-curse-12336

LIVING IN FEAR

18

Africa continues the exploitation of its naturalresources

Most of the African Governments that discover naturalresources in their territory eagerly move forward with theexploration of those Therefore natural resources areexplored all over the continent oil in Ghana manganese inGabon gas in Mozambique just to name a few Often thereis little consideration of the destruction or the conflicts theseextractive activities bring For instance according to the BBCin March 2015 the Congolese Government consideredmodifying the boundaries of the Virunga National Park homeof gorilla mountains and World Heritage site to permit oilexploration activities31

DRC and South Sudan as well are exploring a joint projectnow DRC has a frontier with South Sudan in the Northeastpart of the country While historically both ndash referring alsoto Sudan ndash did not often have a common grounds after theIndependence of South Sudan in 2011 it appears possiblethat natural resources may unite them more closely IreneMuloni Minister for Energy and Minerals Development fromUganda announced in an interview in February 2015 thatSouth Sudan and the DRC have expressed interest in theconstruction of an oil pipeline of over 1000 km to the Kenyancoast32 Although yet to be implemented there have beendiscussions and plans to construct a pipeline that would unite

31 BBC 2015 DR Congo seeks Virunga park bounary httpwwwbbccomnewsworld-africa-31876577See also New York Times2014 Oil dispute takes a page from Congoacutes bloody past httpwwwnytimescom20141116worldoil-dispute-takes-a-page-from-congos-bloody-pasthtml_r=1

32 Platts 2015 South Sudan DR Congo interested in Ugandan crudeoil export pipeline minister httpwwwplattscomlatest-newsoilkampalasouth-sudan-dr-congo-interested-in-ugandan-crude-26025080

19

1 THE QUEST FOR WEALTH

oil production and distribution in several African countriesincluding South Sudan Uganda Kenya Democratic Republicof Congo (DRC) and maybe others33

The forthcoming chapters will develop more elementsaround this topic in order to conclude some final remarkswith the particular case studies of DRC and South Sudan

33 The Economist 2013 Pipeline poacuteker httpwwweconomistcomnewsmiddle-east-and-africa21578402-east-africa-danger-throwing-away-part-its-new-found-oil

20

LIVING IN FEAR

Minerals and Wars at the GreatLakes Wealth Death and Massive

Poverty in the Heart of Africa

Our internal difficulties tribal war and the nucleiof political opposition seemed to have beenaccidentally concentrated in the regions with ourrichest mineral and power resources We know howall this was organised and in particular whosupports it today in our house

Our Katanga because of its uranium copper andgold and our Bakwanga in Kasai because of itsdiamonds have become hotbeds of imperialistintrigues The object of these intrigues is torecapture economic control of our country

Patrice Lumumba speech in Leopoldville in August 25th1960 34

34 Speech at the opening of the All-African Conference in Leopoldville in1960 See httpwwwassatashakurorgforumshoulders-our-freedom-fighters42970-collected-speeches-writings-patrice-lumumbahtml

2

21

2 MINERALS AND WARS AT THE GREAT LAKES

Lumumba the first democratically elected Prime Ministerof the Republic of Congo gave a speech in 1960 that wasremarkably prescient of the fate of Democratic Republic ofCongo (DRC) today Conflict minerals and ldquotribal warsrdquo gohand in hand in the DRC historyrsquos past decades Lumumbawas planning to get the DRCrsquos related difficulties undercontrol however he was executed a few months after thespeech by a firing squad in January 1961 The US throughthe CIA the United Kingdom through the M16 and Belgiumwere all blamed for their involvement in his death35

Paradoxically ldquothe assassinations were made by the ordersof those who proclaim themselves to be champions ofdemocracy and respecters of human rightsrdquo36 Externalmeddling and intervention in Congorsquos affairs by foreigncountries is another of the concurrent and repeated situationsthat continue in recent history of the DRC37

Wars and minerals peace at last

hellip The heart of Africa is bleeding hellip

Two wars raged in DRC from 1996-1997 and from 1998-2003 Contrary to what some affirm these were not ethnicconflicts but resource wars38 No coincidence that the

35 BBC 2013 M16 and the death of Patrice Lumumba httpwwwbbccomnewsworld-africa-22006446

36 VVAA 1992 Congo (Zaire) Democratie neo-coloniale ou deuxiemeIndependance Ed LrsquoHarmattan

37 The Guardian 2011 Patrice Lumumba the most importantassassination of the 20th centuryhttpwwwtheguardiancomglobal-developmentpoverty-matters2011jan17patrice-lumumba-50th-anniversary-assassination

38 See Friends of the Congo websitehttpwwwfriendsofthecongoorgresource-centercongo-primerhtml See also Lanotte 2003 RDCguerre sans frontiers Editions Complexe

22

LIVING IN FEAR

country possesses extraordinary mineral wealth with someof the most valuable and strategic minerals on earth suchas coltan diamond cobalt copper gold tin zincmanganese timber and others The highest concentrationof mining activities existin the Eastern part of the countryTo illustrate the predominance of mining here we wouldunderline the affirmation of the Katanga Minister ofPlanning who said that 72 of the territory of Katanga isdevoted to mining No surprise why the IMF has namedDRC one of the worldrsquos mining giants of today39 Themagazine African Business stated in 2009 that ldquothe totalmineral wealth of the DRC was estimated to be some $24trillionrdquo40 As Lumumba indicated back in 1960 the samescenario repeated in recent years ndash minerals and conflictscontinue to go hand by hand

DR Congo possesses some 80 of the worldrsquoscoltan ore reserves(hellip) Additionally the DRCongo produces significant quantities ofdiamonds gold cassiterite copper cobalt (ofwhich it has the worldrsquos largest reservesalthough the trade is largely controlled byZimbabwe) oil tin zinc gold and coffee Thecountry has large reserves of uranium it wasCongolese uranium that was used for theManhattan Project that produced the worldrsquosfirst atomic bombs dropped on Japan The vastcountry also has more than half of sub-SaharanAfricarsquos timber stocks

Source African Business

39 IMF 2013 DRC Poverty reduction strategy paper N 1322640 African Business 2009 DR Congo $24 trillion fortune

23

2 MINERALS AND WARS AT THE GREAT LAKES

The casualties over the years are overwhelming Whileeverybody is familiar with the death toll during the genocidein Rwanda estimated between 500000 and 800000 peoplethere is much less awareness about the conflict situation inCongo The International Rescue Committee has estimatedthat the conflict and humanitarian crisis in the DemocraticRepublic of Congo has taken a death toll of 54 million peoplefrom 1998 to 200741 A CNN correspondent in trying togive an illustration of the heavy toll made the followingcomparative analysis

The wars in that country ndash RD Congo ndash haveclaimed nearly the same number of lives as havinga 911 every single day for 360 days the genocidethat struck Rwanda in 1994 the ethnic cleansingthat overwhelmed Bosnia in the mid-1990s thegenocide that took place in Darfur the number ofpeople killed in the great tsunami that struck Asiain 2004 and the number of people who died inHiroshima and Nagasaki mdash all combined and thendoubled42

Rwanda and Uganda were actively involved in the invasionof Congo in both wars The second war was known as theGreat War of Africa involving nine countries and more than20 armed groups According to Cynthia Ann McKinney aUS Congresswoman from the Democratic Party and an

41 IRC 2007 IRC study shows Congorsquos neglected crisis leaves 54 milliondead httpwwwrescueorgnewsirc-study-shows-congos-neglected-crisis-leaves-54-million-dead-peace-deal-n-kivu-increased-aidmdash4331 Some groups put the death toll much higher See GlobalResearch webpage httpwwwglobalresearchcathe-war-that-did-not-make-the-headlines-over-five-million-dead-in-congo7957

42 CNN 2012 Why the world is ignoring Congo war httpeditioncnncom20121127opinioncongo-war-ignored-vava-tampa

24

LIVING IN FEAR

expert on the Great Lakes issues while invading DRC in theSecond Congo War the US continued providing financialsupport to the governments of Rwanda and Uganda43 Howwas this allowed US President Bill Clinton was personallyin Rwanda in March 1998 only a few months before theRwandese army invaded Congo44 President Clinton was inAfrica at that time addressing its presidents includingPresidents Kagame and Museveni as leaders of the ldquoAfricanRenaissancerdquo and seeing a bright future for Africa45 ThereClinton made an important call to embrace peace How wasit possible to talk about peace while these allies were directlyengaging in war Moreover with the experience of thegenocide in Rwanda how could it be that foreign powersclosely involved in the region particularly the United Stateslet this occur again How did they allow wars and conflictsthat killed millions of people How could they allow whatmany called another genocide in Congo

On a positive note at last in recent months the calls forpeace have been growing from many different stakeholdersIn May 2014 US Secretary of State John Kerry after ameeting with DRC President Kabila stated that ldquoachievinga lasting peace in the DRC is a priority of President ObamardquoHe added ldquoNow I canrsquot emphasize enough how importantthat process is in identifying and resolving the root causesof the conflict in the DRC as well as in the entire GreatLakes regionrdquo46 Not a minor task going to the roots causes

43 Order of Indictment from Juzgao de instruccion numero CuatroAudiencia Nacional Case 320008-D 6-2-2008

44 See CBS News httpwwwcbsnewscomnewstext-of-clintons-rwanda-speech

45 Schaefer 2000 The Keys to an African Economic Renaissance httpwwwheritageorgresearchreports200005the-keys-to-an-african-economic-renaissance

46 See US Dept of State 2014 Press Availability on the DRC and theGreat Lakes Region httpwwwstategovsecretaryremarks201405225587htm

25

2 MINERALS AND WARS AT THE GREAT LAKES

of those problems in the Great Lakes Indeed achieving peaceand reconciliation in the Great Lakes Region in countriesthat had suffered like DRC is a difficult and cumbersometask and making it by finding the ldquorealrdquo root causes can bea very complex and lengthy exercise taking decades orlonger

The situation remains tense We recall that in 2006 theUN Security Council issued a resolution condemning ldquotheactivities of militias and armed groups operating in the GreatLakes regionrdquo47 Almost a decade later those armed groupsare still there and despite the efforts made the situationremains tense and insecure A report of the Group of Expertson the RDC published in 2015 by the United Nations SecurityCouncil concludes that in DRC despite a defeat of one of therebel groups ndash the Movement of 23 March ndash at the end of2013 this ldquofailed to translate into significant gains in securityand security and stability in 2014rdquo48 For example in thebeginning of 2015 a rebel group from Uganda the AlliedDemocratic Forces (ADF) created havoc in North Kivuwhere 17 people were hacked to death with machetes49

47 UN Security Council 2006 Resolution 1653 (2006) SRES165348 UN Security Council 2015 Final report of the Group of Experts on

the DRC S20151949 UN Security Council 2015 March 2015 monthly forecast http

wwwsecuritycouncilreportorgmonthly-forecast2015-03democratic_republic_of_the_congo_7phpVP-BX5Sm4agmailto

26

LIVING IN FEAR

Armed groups militias and criminal networkswithin the military structure making a lucrativebusiness out of minerals

The UN has solidly demonstrated that natural resources areused to finance armed groups and therefore to fuel war inthe region 50 The UN concludes that ldquoarmed groups continueto control many mining sites and to profit from mining andthe minerals traderdquo51 Later on those minerals particularlytin tungsten and tantalum are smuggled to neighbouringcountries For example one of the armed groups theMovement of 23 March (M23) responsible for taking Gomaat the end of 2012 was financing its organisation fromnatural resources in Eastern Congo In relation to thisparticular case the UN asserts that ldquoseveral traders havecontributed to financing M23 rebels using profits resultingfrom the smuggling of Congolese minerals into Rwandardquo52

Besides the rebel groups a criminal network within theArmed Forces of the DRC (FARDC) was involved in the illegalexploitation of natural resources The types of involvementinclude illegal taxation protection rackets and indirectcommercial control to more direct coercive control53

For some top army officials their military work wasconverted into economic businesses Indeed the existing

50 UN Security Council 2014 Final report of the Group of Experts onthe Democratic Republic of the Congo

51 Ibidem52 Ibidem53 UN Security Council 2010 Letter dated 26 October 2010 from the

Group of Experts on the DRC addressed to the Chair of the SecurityCouncil Committee established pursuant resolution 1533 (2004) S2010596

27

2 MINERALS AND WARS AT THE GREAT LAKES

practices made the UN qualify the war as a ldquolucrativebusinessrdquo

illegal exploitation of resources by BurundiRwanda and Uganda took different forms includingconfiscation extraction forced monopoly andprice-fixing The first two forms reachedproportions that made the war in the DRC a verylucrative business There are strong indicationsthat even if security and political reasons werethe professed motivation to move into the easternDRC some top army officials clearly had economicand financial objectives54

The most UN recent reports affirm that ldquomany armed groupsin Eastern Democratic Republic of the Congo have derivedtheir revenue from the production of and trade in naturalresourcesrdquo55

54 UN Security Council 2001 Security Council condemns ilegal exploitationof Democratic Republic of Congoacutes natural resources Press Releasehttpwwwunorgpressen2001sc7057dochtm

55 UN Security Council 2014 Final report of the Group of Experts on theDRC S201442

28

LIVING IN FEAR

Insecurity still booming in Eastern Congo

As already mentioned the momentum created bythe defeat of the Movement of 23 March inNovember 2013 failed to translate into significantgains in security and stability in 2014 in EasternDemocratic Republic of the Congo A militaryoperation against the Allied Democratic Forces(ADF) significantly weakened but did not defeatthe sanctioned armed group An expected militaryoperation against the Forces deacutemocratiques delibeacuteration du Rwanda (FDLR) did not materializeand as of the end of November 2014 efforts tonegotiate the disarmament of this sanctionedarmed group failed to produce meaningful resultsIn addition numerous Congolese and foreignarmed groups contributed to instability inOrientale North Kivu South Kivu and KatangaprovincesADF FDLR Nduma Defence for Congo (led bysanctioned individual Sheka Ntabo Ntaberi) andother armed groups continued to recruit train anduse child soldiers in 2014 Armed groups alsocommitted a variety of other abuses includingtorture enslavement and sexual violence Therewere mass killings in June in Mutarule (South Kivu)and in October and November in Beni territory(North Kivu)

Source United Nations Security Council 201556

29

2 MINERALS AND WARS AT THE GREAT LAKES

One of the problems the existing insecurity and conflicts havecreated is the proliferation of internally displaced peopleestimated in September 2014 at 27 million people57

UN peacekeeping operation in Congo

In July1999 Heads of State of Angola DRC NamibiaRwanda Uganda Zambia and Zimbabwe signed the Lusakaagreement focusing on the establishment of a ceasefire asone of the other components necessary for the deploymentof a UN peacekeeping force

The first UN Peacekeeping operation in DRC wasestablished in November 1999 after the Lusaka Ceasefireagreement It was called the UN Mission in the DRC(MONUC) In 2010 it was renamed the UN OrganizationStabilization Mission in the DRC (MONUSCO)

Ten years later despite the deployment of MONUC thesecurity challenges in DRC ndash particularly in the Eastern Partof the country ndash remain high58 There is still a strong presenceof armed groups chronic humanitarian crisis continuoushuman rights violations and continued illegal exploitationof natural resources In the light of this context the UNcreated an ldquoIntervention brigaderdquo with a key objective ofneutralizing armed groups59 As of today the MONUSCOand the intervention brigade are operational but are theresignificant security changes

56 Ibidem57 See global humanitarian assistance webpage http

wwwglobalhumanitarianassistanceorgcountryprofiledemocratic-republic-of-congo

58 UN Security Council 2010 Resolution 192559 UN Security Council 2013 Resolution 2098

30

LIVING IN FEAR

60 UN Security Council 2014 Final report of the Group of Experts on theDRC S201442

61 PR Newswire 2014 Rwanda has become worldacutes largest coltanexporterhttpwwwprnewswirecomnews-releasesrwanda-has-become-worlds-largest-coltan-exporter-reports-kt-press-300010371html

62 PR Newswire 2014 Rwanda has become worldacutes largest coltanexporter

63 Africa Briefing 2015 Rwanda has abundant deposits of best qualitycoltan Kagame affirms httpafricabriefingorgp=478

Legitimate exports or smuggling conflictminerals

It is well known that many of the minerals in Eastern Congoare smuggled and do not follow legal channels For instancethe UN estimates that 98 of the gold produced in DRC issmuggled out of the DRC making the country lose millionsof dollars in tax revenue60

In December 2014 numerous media covered a story onRwanda and coltan PR Newswire affirmed that ldquoRwandahas become worldacutes largest coltan exporterrdquo61 The dataprovided concluded that in 2013 Rwanda exported around2500000 kg of tantalum which constituted 28 of the total8807232Kg of tantalum produced globally The overallrevenue from the coltan was estimated at around $140 M62

Rwandese President Paul Kagame was quoted as affirmingthat the production was local and dismissed all possibleallegations of plundering the coltan from Congo He affirmedldquoRwanda has not only enough coltan but of a very highquality (hellip) we can even pay for a ticket give them a visaand take them to the minesrdquo63

Contrary to such statements there are many reports thatcoltan is smuggled from Congo to Rwanda and that Rwandadoes not have significant coltan mining on its own For

31

2 MINERALS AND WARS AT THE GREAT LAKES

instance a 2012 report prepared by a European Foundationaffirmed that ldquoRwanda does not house any industrial coltanmines which would suggest legitimate Rwandan coltanproductionrdquo64 A US governmental agency which analyzesthe mining sector in Congo made a table with coltan exportedfrom Rwanda qualifying it as ldquoconflict mineralsrdquo as seen inTable 165 Since there is no known conflict in Rwanda it canonly refer to Rwanda exports of minerals originating froman external conflict zone the DRC

Table 1 Estimates of exports of conflictminerals from Rwanda for Fiscal years2009-2013 in Metric Tons

Year Tantalum

FY 2009 958

FY 2010 827

FY2011 915

FY2012 1139

FY 2013 2466

Source Based on United States Government Accountability Office 2014

64 Van Teeffelen 2012 The EU raw materials policy and mining in RwandaEvert Vermeer Foundation

65 United States Government Accountability Office 2014 Conflictminerals stakeholder options for responsible sourcing are expandingbut more information on smelters is needed

32

LIVING IN FEAR

In this particular situation either somebody is wrong orsomebody is lying Hopefully future events will unveil thetruth around the nature of the coltan exports from Rwandato clarify whether they are a legitimate export or theconsequence of smuggling conflict minerals

Greed for minerals everybody wants a pieceof Congo66

What is at the origin of those wars and instability of theCongo While there could be diverse factors for conflictthere is one that seems to be always recurrent and is recog-nized by most authors and by relevant UN reports the racefor minerals and natural resources The UN recognized thatin the Second Congo War minerals were the coveted trophyand that all actors ldquobuilt up a self-financing war economycentred on mineral exploitationrdquo67 The conflicts that con-tinued after the Second Congo War like those in Kivu andIturi provinces are recognized as well to be fuelled by tradein minerals Along the same lines Palou underlines the causesof the conflict by stating that ldquoalthough from that time un-til the present day the Rwandan regime has expressed itsconcern about the security of its border with the then Zaireobjectively the reality is that control over this strategic areandash Eastern Congo ndash and its valuable mineral resources has

66 See video at Congo Justice httpcongojusticeorg67 UN 2002 Final report of the Panel of Experts on the illegal exploitation

of natural resources and other forms of wealth of the DemocraticRepublic of the Congo S20021146

33

2 MINERALS AND WARS AT THE GREAT LAKES

proved to be at the heart of two wars that have left a hugenumber of victimsrdquo68 In conclusion a 2001 UN report as-serted that ldquothe conflict of DRC has become mainly aboutaccess control and trade of five key mineral resourcescoltan diamond copper cobalt and gold The wealth of thecountry is appealing and hard to resist in the context oflawlessness and the weakness of the central authorityrdquo69

Congolese and regional elite have also profited from thissituation as well and the appalling quantum of the plunderare reflected in the following report from UN

The elite network of Congolese and Zimbabweanpolitical military and commercial interests seeksto maintain its grip on the main mineral resourcesmdash diamonds cobalt copper germanium mdash of theGovernment-controlled area This network hastransferred ownership of at least US$ 5 billion ofassets from the State mining sector to privatecompanies under its control in the past three yearswith no compensation or benefit for the Statetreasury of the Democratic Republic of the Congo70

Funds that could have been used for public services havebeen diverted from the public coffers by fraud or by theexcuse of war effort71 The Congolese population has paid

68 Palou 2010 International Justice plunder in war human rights andmultinationals

69 UN Security Council 2001 Report of the Panel of Experts on theillegal exploitation of natural resources and other forms of wealth ofthe Democratic Republic of the Congo S2001357

70 UN Security Council 2002 Final report of the Panel of Experts on theilegal exploitation of natural resources and other forms of wealth ofthe Democratic Republic of the Congo S20021146

71 Ibidem

34

LIVING IN FEAR

dearly in this situation In terms of human development it isinstructive that the UNDP estimated in 2013 that RDCwas in the low human development category ndash positioningthe country at 186 out of 187 countries and territories72

The Role of Transnational Corporations (Tncs)and the private sector

Other key players involved in the conflict are Transnationalsand the private sector A UN Report published a few yearsafter the Second Congo War started affirmed that ldquothe roleof the private sector in the exploitation of natural resourcesand the continuation of the war has been vitalrdquo73 The reportalso added that ldquoa number of companies have been involvedand have fuelled the war directly trading arms for naturalresourcesrdquo74 Other observers share the view that ldquoWesternMultinationals have been one group responsible for thepillage and illegal exploitation of Congo mineral resourcesrdquo75

There are a large number of big foreign corporationsinvolved in mining in DRC including those from CanadaSouth Africa UK USA and others Despite the opacity ofmost of the activities of the private sector numerousexamples have been reported of how TNCs are responsiblefor human rights abuses and other illegal activites Thereare also many reports of the dangerous connectionsestablished with the political and military elite in order tofacilitate their businesses These are some examples

72 UNDP 2014 Sustaining human progress reducing vulnerabilities andbuilding resilience Congo (Democratic Republic of the) httphdrundporgsitesallthemeshdr_themecountry-notesCODpdf

73 UN 2001 Report of the Panel of Experts on the illegal exploitation ofnatural resources and other forms of wealth of the Democratic Republicof the Congo S2001357

74 UN 2001 Ibidem75 Palou Ibidem

35

2 MINERALS AND WARS AT THE GREAT LAKES

bull Glencore Anglo-Swiss giant in the raw material sectorwith a turnover of US $ 2397 billion in 2013 was beingaccused in 2014 of adopting a military-style response tothe problem of artisanal mining close to its mines ldquoonseveral occasions over the past 18 months mine policehave fired live ammunition in pursuit of artisanal minerson Glencorersquos site resulting in deaths and seriousinjuriesrdquo76 They are as well responsible forcontamination of the water supply with acid content andvery high and concentrations of copper and cobaltFinally the company operates some of its concessionsinside a reserve ndashndash something that in principle is illegalaccording to the RDC Mining Code77

bull An independent investigation unveiled that two miningcompanies Glencore and the Eurasian Natural ResourcesCorporation were involved in underpricing assets incomplex deals featuring offshore companies causinglosses to the DRC of no less than $136 billionIntermediary companies in the deals were linked to DanGerler78 In addition the DRC public prosecutorreportedly told mining companies that they had toreimburse $37 billion in taxes duties and fines79

bull AngloGold Ashanti part of the AngloAmericancorporation was accused of establishing links and

76 Peyer et al 2014 PR or Progress Glencoreacutes corporate responsibility inthe DRC Bread for all RAID Fastenopfer

77 Ibidem78 CRS 2014 Democratic Republic of Congo Background and US Policy79 Reuters 2014 Disputed Congo report says miners owe $37 billion in

tax fines httpwwwreuterscomarticle20140130us-congo-democratic-mining-idUSBREA0T12L20140130

36

LIVING IN FEAR

supporting one armed group the Nationalist andIntegrationist Front (FNI)80

bull In 2004 fighting between soldiers and rebels in Kilwaended in serious human rights violations againstcivilians including summary executions arbitraryarrests rape and torture Anvil Mining operated theDikulushi copper mine near Kilwa and was accused ofproviding vehicles and planes to the Congolese armedforces during this event The legal case ended in theCanadian Supreme Court in 2012 which ruled that itwould not hear the plaintiff rsquos appeal ndash they were led bythe Canadian Association Against Impunity (anassociation representing survivors of the incidents inOctober 2004)81

bull In May 1997 Citibank NY a financial institution hasbeen accused of giving $5 million loan to a Congolesemilitia allied with Rwanda82

bull American Mineral Fields (AMF) cut a $1 billion dealwith Kabila immediately after his forces captured GomaThe negotiations were led by ldquoKabilarsquos US-trainedfinance ministerrdquo who gave ldquoAMF exclusive explorationrights to zinc copper and cobalt mines in the area MikeMcMurrough a friend of US President Bill Clinton wasthen the chair of AMF83

80 Human rights watch 2005 DRC Gold fuels massive human rightsatrocities httpwwwhrworgennews20050601dr-congo-gold-fuels-massive-human-rights-atrocities

81 Business and human rights resource center 2012 Anvil Mining Lawsuit(re DRC) httpbusiness-humanrightsorgenanvil-mining-lawsuit-re-dem-rep-of-congo

82 Global research 2008 Congo Resource wars httpwwwglobalresearchcacongo-resource-wars8310

83 Global research 2008 Ibidem

37

2 MINERALS AND WARS AT THE GREAT LAKES

UN and some other independent reports generally makebroad statements about the role of corporations includingciting some of the companies however they fall short ofproviding details of the modus operandi of those companiesand in establishing or suggesting concrete measures to stopthe conflicts and solve the negative impacts on the DRCpopulation and environment A 2002 UN Report listed 85companies considered by the Panel to be in violation of theOECD Guidelines for Multinational Enterprises84 Very littlehas been done after the UN report was published

A poor country Until when

In 1969 World Bank President Robert McNamara embarkedon a trip to Africa to try to discover ldquowhat are therequirements for developmentrdquo85 At that time the WorldBank in its information document described the country asrich in natural resources but at the same time poor and witha strong mining sector

In spite of its rich natural resources and greatpotential the Congo is still a poor country (hellip)Mining and metallurgy play a leading role in theeconomy86

84 UN 2002 Final Report of the Panel of Experts on the Illegal Exploitationof Natural Resources and other Forms of Wealth of the DemocraticRepublic of the Congo S20021146

85 Records of President Robert S McNamara Travel briefs CongoKinshasa (01021969-03031969) 1772506 Reference Code WBIBRDIDA 03 EXC-10-4540S World Bank Group archives WashingtonDC United States

86 Ibidem

38

LIVING IN FEAR

More than forty years later not much has changed asupdated data shows In DRC seven out of ten householdsare poor87 Most of its nearly 60 million people areldquodesperately poor living on less than $1 a dayrdquo88 DRC is aleast developed country a fragile State that has been in thetop 10 recipients of humanitarian assistance in nine of thelast 10 years Between 2003 and 2012 DRC received US$176billion in official development assistance (ODA) making itthe 10th largest recipient89In 2012 the Democratic Republicof Congo (DRC) received US$286 billion in net officialdevelopment assistance90

With so many natural resources isnrsquot there money to getpeople out of poverty The mining sector is oftenacknowledged as being capable of contributing to povertyreduction However those mineral benefits are oftencreamed off by powerful interests and do not get to thehands of the majority of the population According to DFIDldquofiscal receipts from the minerals sector are siphoned off bypowerful interest groups instead of being used in the publicsectorrdquo91

The analysis of Mr Antonino Giambrone sheds more lightabout the earnings and who profits from mining

While the average Congolese worker earns $10 permonth the average Congolese coltan-miner earnsanywhere from $10 to $50 per week Uganda

87 IMF 2013 DRC Poverty reduction strategy paper N 1322688 DFID 2008 Democratic Republic of Congo Country Plan89 View global humanitarian assistance webpage http

wwwglobalhumanitarianassistanceorgcountryprofiledemocratic-republic-of-congo

90 CRS 2014 Democratic Republic of Congo Background and US Policy91 DFID 2008 Democratic Republic of Congo Country Plan

39

2 MINERALS AND WARS AT THE GREAT LAKES

Rwandan and Congolese rebels have earned manymillions of dollars in sales of coltan which theyhave used to finance their war efforts in the CongoBetweeen 1999 and 2000 the Rwandan army aloneearned at least $20 million a month from coltan92

Food insecurity is often a consequence of poverty One ofthe causes of existing food insecurity is the abandonment ofthe agriculture sector partly due to conflicts The governmentstated that it would like to strengthen the smallholdersldquowhile ensuring at the same time the protection of thecountryrsquos natural resourcesrdquo93

War impacts on the environment

The wars have had devastating impact on the environmentNational parks for instance home of many endangeredspecies are also affected by the exploitation of minerals94

There are numerous reports on the precarious situation ofwildlife in the region For instance between 1995 and 19994000 out of 12000 elephants were killed in the GarambaPark in North-eastern DRC95 The situation was also seriousin other parks For instance in Kahuzi-Biega Park a zonerich in coltan only 2 out of 350 elephant families remained

92 Giambrone 2006 The extraction of natural resources as a source ofconflict Etfo voice

93 IMF 2013 DRC Poverty reduction strategy paper N 1322694 Seeh ttpwww lenntech comenv ironmental -ef fec ts -

warhtmixzz3CuGZqE3M95 UN 2001 Report of the Panel of Experts on the illegal exploitation of

natural resources and other forms of wealth of the Democratic Republicof the Congo S2001357

40

LIVING IN FEAR

in 200096 Mountain gorillas are also under threat due tocontinued civil unrest and the presence of armed militiasmakes survey and conservation work difficult in the DRCrsquosprotected areas97

Deforestation is also one of the common impactsWorldwatch explains the implication of having refugeespopulation inhabiting RDC degraded forest areas

For two years beginning in late 1994 for exampleabout 720000 Rwandans inhabited refugee campson the fringes of Virunga National Park They allneeded wood for cooking fires and for buildingshelters and some also earned extra money bymanufacturing charcoal As a result up to 80000people entered the park and carted away up to1000 tons of wood every day By mid-1996 105square kilometers of forest had been affected toone degree or another by their activities 35 squarekilometers had been stripped bare98

Besides the need for fuelwood by refugees movement ofmilitary hardware through forests and woodlands also causeserious damage to forests and the landscape generally

96 Ibidem97 See WWF webpage httpwwfpandaorgwhat_we_doendangered_species

great_apesgorillasmountain_gorilla98 Worldwatch 2008 War and Environment httpwwwworldwatchorg

node5520

3South Sudan The Oil Way

99 Washington Post 2012 lsquoSouth Sudan civilians are trapped in conflictover oilrsquo httpwwwwashingtonpostcomworldsouth-sudan-civi l i ans-are- trapped-in-conf l ict -over-o i l20120501gIQAUX6buT_storyhtml

100 See UN Mission in South Sudan web page httpwwwunmultimediaorgtvunifeed201404south-sudan-bentiu-massacre

101 Reuters 2014 Bentiu massacre is game-changer in South Sudanconflict says UN official httpwwwtheguardiancomworld2014apr22bentiu-massacre-south-sudan-united-nations

41

ldquoIf we had no oil we would not be attackedrdquo

Nyak a 27-year-old sitting outside herhut in Bentiu South Sudan 201299

In April 2014 Bentiu the capital of the oil producing UnityState was the scenario of one of the worst massacres of thecivil war between South Sudanese forces100 Hundreds ofpeople were killed in the fighting that took place betweenthe Sudan Peoplersquos Liberation Army (SPLA) and anti-government forces in the oil-rich State101

42

LIVING IN FEAR

Civil wars and conflict

Since its independence in 1956 Sudan has been at war andconflict for most of its modern history Specialists in conflictand security have described the history of modern Sudan asldquoan unremitting sequence of wars punctuated by oft-violatedpeace agreementsrdquo102 The First Sudanese Civil War (1955ndash1972) was followed by a Second Sudanese Civil War (1983ndash2005) with barely 11 years breathing space of tenuoussecurity

The Second Civil War ended when both sides signed theComprehensive Peace Agreement in 2005 That agreementgave autonomy to South Sudan within Sudan However areferendum held in January 2011 moved the region towardsecession and then in July 2011 independence was achievedand South Sudan became an autonomous nation103 Theprocess that led to South Sudanrsquos independence was stronglysupported by the US government which backed Juba in itstwo decades struggle against Khartoum104 It should be notedthat even during the 11 years of supposed peace there wereconflicts on a regular basis particularly in the border areasbetween South Sudan and Sudan105 Two years after theindependence the first South Sudanese Civil War started inDecember 2013 The civil war erupted as a result of a power

102 Cox and Snapper 2013 The Strategic Importance of South Sudan TelAviv University

103 National Geographic 2013 South Sudan oil the environment andborder conflicts httpvoicesnationalgeographiccom2013032286550

104 See webpagehttpwwwworkersorgarticles20140101south-sudan-yet-another-oil-war

105 International Crisis Group 2006 Sudan Saving peace in the Easthttpwwwcrisisgrouporgenregionsafricahorn-of-africasudan102-sudan-saving-peace-in-the-eastaspx BBC 2015 South SudanProfile httpwwwbbccomnewsworld-africa-14019202

43

3 SOUTH SUDAN THE OIL WAY

struggle between president Salva Kiir from the Dinka ethnicgroup and his deputy Riek Machar from the Nuer ethnicgroup whom he had sacked As at the time of this writingthe civil war continues

Sudan vs South Sudan

The tensions and conflicts after the independence of SouthSudan from its neighbour Sudan did not stop in 2011 Topleaders from both sides accuse and threaten each other innumerous occasions For instance Sudanese President Bashirpromised to teach South Sudan a ldquofinal lesson by forcerdquo106

South Sudan President firmly swore that ldquowhether Umar al-Bashir likes it or not one day Abyei will rejoin the southrdquo107

Abyei

Abyei is traditionally the home of the Ngok Dinka asubdivision of the Dinka tribe with strong links to the Dinkain South Sudan Besides the Dinka Misseriya herders aremembers of nomadic Arab tribes that seasonally cross Abyeiand other nearby areas with their cattle in search of waterand pasture108

Since the signing of the Peace Agreement in 2005 betweenthe Government of Sudan and the SPLM the dispute over

106 The Washington Post 2012 lsquoSudanese president vows war againstSouth Sudanrsquo httpwwwwashingtonpostcomworldsudanese-president-threatens-force-against-south-sudan-over-oil-field20120419gIQAJ0G8ST_storyhtml

107 The Global Intelligence Files 2013 Sudan- President Kiir says Abyeiwill ldquorejoinrdquo South Sudan httpssearchwikileaksorggifilesviewemailid=674314

108 Enough Project 2013 What is the Abyei Area and why is it disputedhttpwwwenoughprojectorgblogsenough-101-what-abyei-area-and-why-it-disputed

44

LIVING IN FEAR

the future status of the Abyei area has beenone of the bigbarriers to stability in the region109Abyei is an oil-rich areadisputed by Sudan and South Sudan and stands out as thehotspot of bigger tension beetween Sudan and South Sudannowadays

The conflicts over Abyei have a history of more than 50years After the First Civil war the parties signatories to thepeace pact agreed that Abyei would hold a referendum todetermine whether they would be part of Sudan or a newlyregion in the South The second war commenced in 1983and the foreseen referendum was not done

In 2009 the Permanent Court of Arbitration in the Hagueruled on Abyei territory giving concessions to the Governmentof Sudan and the Southern Sudan Heglig and other closeroil-fields remained out of Abyei area while the rest of theAbyei region remained under control of the Ngok Dinka anethnic group close to Southern Sudan and keen on voting tojoin the South in a future referendum110Another referendumwas scheduled to be done in parallel with the South Sudanreferendum in 2011 but once again this never took place

Although a series of temporary security arrangementswere agreed in January and March 2011111 in May SudaneseArmy tanks entered the town of Abyei and by the 22nd ofMay they seized control of the town112The government ofSudan launched numerous military attacks in the disputed

109 UN Security Council 2011 Report of the Secretary-General on thesituation in Abyei S2011451

110 New York Times 2009 lsquoCourt redraws disputed area in Sudanrsquo httpwwwnytimescom20090723worldafrica23sudanhtml_r=1amp

111 UN Security Council 2011 Report of the Secretary-General on thesituation in Abyei S2011451

112 Reuters 2011 North Sudan seizes disputed Abyei thousands fleehttpwwwreuterscomarticle20110522us-sudan-abyei-north-idUSTRE74L14L20110522

45

3 SOUTH SUDAN THE OIL WAY

border of area where much of Sudanacutes remaining oil fieldsare situated113 Two years later the fighting remains intensein parts of South Kordofan and Blue Nile114 More than 2million people have been internally displaced or severelyaffected by the conflict since 2011115

In addition to military attacks other actions contributedto the tension There have been cattle raids by the MissiriyandashArab nomadic cattle herders inhabiting the area ndash on theNgok Dinka ndasha subdivision of the Dinka tribe inhabitingthis area In occasions more than 200 cows were stolenwith a large part of it recovered by the UN Interim SecurityForce for Abyei(UNISFA) These raids increase further thealready tense situation in the region and in particular thevery tense situation among the Missiriya and the NgokDinka116

113 The Conversation 2012 Oil fuels the conflict between Sudan andSouth Sudan ndashand it keeps getting hotter

114 OCHA 2014 South Kordofan and Blue Nile population movementsfact sheet httpreliefwebintsitesreliefwebintfilesresourcesSouth20Kordofan20and20Blue20Nile20Population20Movements20Fact20Sheet20-201920May202014pdfReuters 2013 Khartoum says rebels based in South Sudan caused oilpipeline blast

115 OCHA 2014 Ibidem116 See Human Security baseline assessment for Sudan and South Sudan

webpage httpwwwsmallarmssurveysudanorgdefacts-figuresborderdisputed-areasabyeihtml

46

LIVING IN FEAR

An oil-centered conflict

ldquoThe violence underscores the extent to which oilis at the heart of the dispute Khartoum whichcontrols the pipelines that take oil out of SouthSudan depends heavily on oil transit fees SouthSudan which depends on oil for 98 percent of itsrevenue has refused to pay the fees which it saysare exorbitantKhartoum responded by seizing oil tankers carryingSouth Sudanese oil and imposing economicblockades That prompted South Sudan to shutdown its entire oil production in February Thatmonth Sudan allegedly bombed an oilfield inSouth Sudan that was nine miles from the borderrdquo

Washington Post 2012

Missiriya attacks continue as of today UNISFA reported thatin March 2015 100 armed Missiriya killed several peopleand burnt over 20 houses in a village in the southern part ofAbyei117 Many of those attacks occur despite the presenceof UN peacekeepers in the zone

In this context a UN force was deployed in 2011 withmore than 4000 personnel mostly Ethiopian with theobjective of ensuring the demilitarization of the Abyei areaand particularly checking the Sudan Armed Forces and theSudan Peoplersquos Liberation Army Interestingly the UN forceshad also the task to provide security for oil infrastructure inthe Abyei Area in cooperation with the Abyei PoliceService118 In February 2015 the Security Council extended

117 Sudan Tribune 2015 South Sudan condemns deadly clashes in Abyeihttpwwwsudantribunecomspipphparticle54191

118 UN Security Council 2011 Resolution 1990 (2011) SRES1990(2011)

47

3 SOUTH SUDAN THE OIL WAY

the mandate of the UNISFA again until July 2015119 The AbyeiJoint Oversight Committee (AJOC) decided in May 2013 thatAbyei should adopt a status as weapons-free area and thatonly UNISFA would be authorized to carry weapons in thearea120

The situation in the area is still very fragile121 For instancevarious resolutions have called for the redeployement of allmilitary personnel from Abyei including those protecting itsoil infrastructure However the Sudanese Governmentskeeps at the Diffra oil complex around 150 Sudan oil policein a clear violation of an agreement and Security Councilresolutions adopted in 2011122 The UN Security council ina recent resolution

Condemns the presence of Diffra Oil Police unitsdeployed in the Abyei Area as well as the repeatedentry of armed militias into the territory andreiterates its demands that immediately andwithout preconditions the Government of Sudanredeploy the Oil Police in Diffra from the AbyeiArea ()123

Conflicts escalating over oil Heglig battles

In 2012 despite the Permanent Court of Arbitration ruling124

which placed Heglig oilfields in the Sudanese territories

119 UN News Center 2015 Security Council extends UN peacekeepingforce in Abyei through July 2015

120 UN Security Council 2015 Ibidem121 UN Security Council 2015 Security Council adopting resolution 2205

(2015) extends interim force in Abyei until 15 july voicing concernover delays in Borde Mechanismrsquos operation httpwwwunorgpressen2015sc11800dochtm

122 UN Security Council 2014 Report of the Secretary-General on thesituation in Abyei S2014518

123 UN Security Council 2015 Ibidem124 See Permanent Court of Arbritation webpage httpwwwlocgov

lawwebservletlloc_newsdisp3_l205401463_text

48

LIVING IN FEAR

the South Sudanese army launched an attack over Heglig125

South Sudanrsquos army took control of the oil-producing townof Heglig The South Sudan move did not enjoy sympathyfrom many countries including its allies such as the US andBritain126 The African Unionrsquos (AU) Peace and SecurityCouncil considered Sudanrsquos occupation of Heglig as illegal127

At the end after a few days South Sudan pulled back itstroops from Heglig even though President Salva Kiir stillclaims that Heglig is a part of South Sudan and is expectinginternational arbitration

Oil and geopolitics

The implications of the oil economy are self-telling Prior tothe separation of Sudan from South Sudan in 2011 theunified Sudan was the second-largest non-OPEC oil producerin Africa in 2010 When they separated Sudan and SouthSudanrsquos production diminished and together they rankedas the fourth-largest non-OPEC African oil producer in 2013Particularly the split of the country in oil revenues economicterms was a huge blow to Sudan with its crude oil exportrevenues falling from almost $11 billion in 2010 to around$18 billion in 2012128 It has been estimated that oilcontributes 98 of South Sudan government income morethan for any other government in the world129

125 Wall Street Journal 2012 Sudan escalates fight over oil httpwwwwsjcomarticlesSB10001424052702304444604577339461981143808

126 The Guardian 2012 South Sudan to withdraw from disputed oiltownhttpwwwtheguardiancomworld2012apr20south-sudan-withdraw-oil-town

127 IRIN 2012 Sudan-South Sudan Heglig and the border128 US Energy Information Administration 2014 Country analysis brief

Sudan and South SudanhttpwwweiagovcountriesanalysisbriefsSudansudanpdf

129 Global Witness 2009 Fuelling mistrust

49

3 SOUTH SUDAN THE OIL WAY

Although oil exploration started at the end of the 1950showever no success was achieved with the activities of Italianoil company Agip130 Discoveries were found in the years tofollow The first oil discovery was made in 1979 when theAmerican company Chevron found oil near the Darfur-Kordofan boundary Three years later Chevron made twolarger discoveries the Heglig and Unity oilfields which asof today are the most productive However by 1984 Chevronstopped its operations when some of its workers were killedby an armed group By 1988 the company dismantled all ofits operations in Bentiu and Unity provinces131

As a landlocked country all the oil in South Sudan had tobe extracted and exported via a pipeline The pipeline wasconstructed by China National Petroleum Corporation andit covered a length of around 1600 kilometers132 Ittransports the oil from South Sudan to the Red Sea Thecost of the pipeline was estimated at $1 billion and it wasfinished in 1999133At the time of the construction of thepipeline Sudan provided less than 1 of Chinarsquos oil importsbut a few years later by 2009 the investments of Chinatotalled more than $8 billion134

130 Understanding Sudan 2009 Fact sheet two A history of oil in theSudan httpunderstandingsudanorgOilOilResourcesL2FS2-HistoryofOilinSudanpdf

131 Understanding Sudan Ibidem132 The Conversation 2012 Oil fuels the conflict between Sudan and

South Sudan ndashand it keeps getting hotter133 Sitarek 2001 The human price of oil ICE Case Studies Number 83

httpwww1americanedutedicesudansanctionshtm16134 The Conversation 2012 Ibidem

50

LIVING IN FEAR

Source US Energy Information Administration 2014

South Sudan becameindependenth in July2011 Taking aboutthree-quarters of theproduction A disputeover transit fees ledSouth Sudan to haltproduction for most of2012

Oil production inSudan and South Sudan

thousand barrels per day

51

3 SOUTH SUDAN THE OIL WAY

Main oil companies in Sudan and South Sudan

While initially many companies involved were of Westernorigin most of the companies now involved in the oil sectorare from China and Malaysia

Source US Energy Information Administration 2014 Countryanalysis Brief Sudan and South Sudan

Row over oil tariffs

By 2011 both countries did not agree on how much SouthSudan should pay to export its oil through the pipelines inSudan Sudan requested a fee of 33 dollars a barrel whileSouth Sudan said the highest fee they could afford was 2

Table 2 Main oil companies in Sudan and South Sudan

52

LIVING IN FEAR

dollars a barrel135 Following this lack of agreement SouthSudan halted crude oil production in early 2012

This decision worsened the economic situation in bothcountries as both depend hugely on money from oil exportsfor their revenues However an agreement was reached andin April 2013 South Sudan restarted oil production136

Causes of the Sudanese Civil War

Wars in Sudan have been often portrayed quite simplisticallyas an ArabMuslim north versus and an AfricanCristiansouth While certainly ethnicity and religion played a rolethe conflict has been mainly fought over natural resources137

Today oil is the countryrsquos main natural resource and ithas been estimated that it accounts for 98 of South Sudanrsquosrevenue138 The multibillion potential of their revenuehowever has not translated into wealth and benefits for themajority of the population of South Sudan First of all it hasnot solved the problem of security as since the very inceptionof the State of South Sudan in 2011 there were conflicts inmany areas of the country particularly in the borderline withSudan A 2013 report from the World Bank illustrates thisby asserting that ldquodespite South Sudanrsquos great resourcewealth its population is one of the most deprived due todecades of neglect and war and the distortions of the oil

135 IPS 2011 South Sudan rows over exorbitant fees for pipeline use136 Reuters 2013 South Sudan resumes oil output after ending row with

Sudan over transit fees137 Caas 2007 Natural resources and conflict in Sudan138 See World Bank webpagehttpwwwworldbankorgencountry

southsudanoverview

53

3 SOUTH SUDAN THE OIL WAY

economyrdquo139 Indeed oil reserves sitting on a disputed borderbetween Sudan and South Sudan have not translated yetinto wealth for the majority of citizens of South SudanInstead most of the inhabitants of the country remain deeplypoor and do not enjoy even basic rights to access potablewater and adequate sanitation140

Oil has been a main cause for the war and conflicts inSudan For instance it influenced the end of the peaceagreement obtained after the first civil war This first civilwar ended in 1972 with the Addis Ababa Agreement Theagreement established a system of peaceful co-existence witha single country by guaranteeing aNorthern basedgovernment but granted at the same time autonomy in theSouth This however was not going to last long as thediscovery of oil at the end of the 1970s in Southern Sudanchanged the ldquocoexistencerdquo idea In 1978 Sudanese PresidentNimeiry decided to embark on oil exploration project thatwould lead to the finding of oil in commercial quantities Inorder to control the oil within the hands of the Northernbased Government military force was used and in additionto imposing islamic law which led to the new civil warstarting in 1983141

139 World Bank 2013 Interim Strategy Note (FY 2013-2014) httpwww-wdsworldbankorgexternaldefaultWDSContentServerWDSPIB20130207000333037_20130207110223RenderedPDF747670ISN0P1290Official0Use0Only090pdf

140 National Geographic 2013 South Sudan oil the environment andborder conflicts httpvoicesnationalgeographiccom2013032286550

141 Sitarek 2001 The human price of oil ICE Case Studies Number 83httpwww1americanedutedicesudansanctionshtm16

54

LIVING IN FEAR

Numerous authors have identified natural resources ashaving a direct correlation with wars and conflicts142 Ananalysis by Ross of the University of California (UCLA) ofthirteen wars and conflicts concluded that in the case ofSudan oil was one of the key causes of the second civil warand an incentive for advancing the independence of SouthSudan143 Ross describes his conclusion in the followingmanner

War in Sudan began in 1983 when SudanesePresident Nimeiry took a series of measures thatupset the delicate balance between thepredominantly Muslim north and the heavilyChristian and Animist south among these measureswas his decision to place newly discovered oil inthe countryrsquos south under the jurisdiction of thenorth and to build an oil refinery in the northinstead of the south The Sudan Peoplersquos LiberationArmy (SPLA) subsequently complained that thenorth was stealing the resources of the southincluding oil demanded that work cease on apipeline to take oil from the south to the refineryin the north and in February 1984 attacked an oilexploration base killing three foreign workers andbringing the project to a halt144

142 Varisco 2010 lsquoA study on the inter-relation between armed conflictand natural resources and its implications for conflict resolution andpeace buildingrsquo Journal of Peace Conflict and Development issue 15Ross 2003 How do natural resources influence civil war Evidencefrom 13 cases httpwwwsscnetuclaedupoliscifacultyrossHowDoesNat3pdf

143 Ross Ibidem144 Ross Ibidem

55

3 SOUTH SUDAN THE OIL WAY

Even when the different parties were discussing an agreementon ldquono attacks on civilians or civilian objectsrdquo oil was playinga central role It is instructive to note that the Sudanesegovernment desired language in the text stating that oilinstallations were ldquocivilian objectsrdquo while the SPLA wantedthe contrary145

Human Rights Watch reached the same conclusion thatoil without doubt has been a key fuel for war particularlysince the end of the 90s when crude oil was first exportedfrom Sudan in 1999146

Oil became the main objective and a principal causeof war (hellip) The large-scale exploitation of oil byforeign companies operating in the theatre of warin Southern Sudan has increased human rightsabuses there and has exacerbated the long-runningconflict in Sudan a conflict marked by gross rightsabuses ndashtwo million dead four million displacedsince 1983 ndashand recurring famine and epidemics147

Also the UN makes clear statements on the issue Specialenvoy Leonardo Franco expressed in a report that oilexacerbated the conflict

the economic political and strategic implicationssurrounding oil exploitation in western Upper Nilewhich have seriously exacerbated the conflictthereby causing a deterioration in the overall

145 Ibidem146 Human Rights Watch 2003 Sudan oil and human rights147 Human Rights Watch 2003 Sudan oil and human rights

56

LIVING IN FEAR

situation of human rights and respect forhumanitarian law and narrowing the slim chancesfor peace148

Indeed multiple causes and elements contributed to theconflicts It was recognized that ethnicity and religion wereimportant elements however the key dimension is controlover natural resources particularly oil Added to this are alsotensions over land and resources and the promotion by thegovernment of crops like cotton and sugar which displacedcertain groups of people149 Similar conclusions were reachedyears back by a Canadian Government Mission in Sudanwhich fully recognized some ethnic disputes as well asdisputes over other natural resources however oil was thekey factor which made things really dramatic

148 UN 2000 Interim report of the Special Rapporteur of the Commissionon human rights on the situation of human rights in the Sudan A55374 httpwwwunorgdocumentsgadocs55a55374pdf Seealso UN 1999 Situation of human rights in Sudan UN Doc A54467

149 University of Massachusetts (undated) Modern conflicts conflictprofile SudanhttpwwwperiumassedufileadminpdfSudan1pdf

57

3 SOUTH SUDAN THE OIL WAY

The Harker mission pointed out that while therehave always been pressures on the Dinka in theHeglig- Ruweng area as a result of inter-tribalfighting with Arab nomads for grazing areas anddry-season water the situation had worsened withthe beginning of oilexploration and had continuedto deteriorate over theyears because of the periodicoffensives launched by the Government and itsallies resulting in destructionand mass populationdisplacement150

South Sudan has one of the largest oil reserves inSub Saharan Africa and the commodity is thelifeline of the countryrsquos economy accounting for98 percent of the governmentrsquos financial resources

Whoever controls South Sudanrsquos oil thereforecould seize the upper hand in the battle for power

Source France 24 2013 lsquoBattle for oil adds newdimension to South Sudan conflictrsquo

Whoever controls South Sudanrsquos oil therefore could seizethe upper hand in the battle for power

The same scenario applies to the South Sudan Civil Warwhich initially was also portrayed along ethnic line TheDinka ethnic group of President Salva Kiir has fought rebelsallied with former vice president Riek Machar of the Nuer

150 UN 2000 Interim report of the Special Rapporteur of the Commissionon human rights on the situation of human rights in the Sudan A55374 Ibidem

58

LIVING IN FEAR

ethnic group However increasingly ldquothe focus of the fightingis shifting to the battle to control the countryrsquos mostimportant natural resource ndash oilrdquo151 The oilfields haveliterally become the battlefields

Consequences of war and conflict

The damage inflicted on people as a consequence of war ishuge Back in 2001 US Secretary of State Colin Powellqualified the war in Sudan in the following terms ldquoThere isperhaps no greater tragedy on the face of the earth todaythan the tragedy that is unfolding in the Sudanrdquo152 Firstthere is a large number of deaths due to war and war relatedcauses and also a huge number of displaced people Thedeath toll derived from the Second Civil Sudanese War isestimated at two million The US Commitee for refugeesasserted that ldquothis massive loss of life surpasses the civiliandeath toll in any war since World War IIrdquo153 In the mostrecent civil war the South Sudanese Civil War that startedin December 2013 by April 2014 the death toll wasestimated to be at 10000154

Besides the death toll there are estimated more than fourmillion people of the Southern Sudanese population forced

151 France 24 2013 Battle for oil adds new dimension to South Sudanconflicthttpwwwfrance24comen20131227-battle-oil-adds-new-dimension-south-sudan-conflict

152 Human Rights Watch 2003 Ibidem153 See US Committee for Refugees webpage in 2001 http

webarchiveorgweb20041210024759httpwwwrefugeesorgnewscrisissudanhtm

154 International crisis group 2014 South Sudan a civil war by any othernamehttpwwwcrisisgrouporg~mediaFilesafricahorn-of-africasouth20sudan217-south-sudan-a-civil-war-by-any-other-namepdf

59

3 SOUTH SUDAN THE OIL WAY

to flee their homes at one time or another It has also beenargued that the development of oilfields has led to the forcedremoval of the local population In the words of the lateJohn Garang oil was a ldquokiller itrsquos evicting our civilianpopulationrdquo claiming 100 000 people displaced due to thiscause155

Children are some of the main victims of conflict beingrecruited for instance for war and suffering sexual violenceFrom March 2011 to September 2014 the UN estimatesthat there were 1243 incidents affecting 68776 children156

UN reports indicate that both armed groups have usedchildren ldquoon a large scale and committed other graveviolations including killing maiming and sexual violencerdquo157

For instance in 2015 an incident was reported where closeto 100 children were abducted some as young as 13 Armedsoldiers were advancing house to house looking for boysand taking them by force158 According to UNICEF this occuredin Wau Shilluk close to the city of Malakal in Upper NileState159

Not surprisingly as put by a high UN representativepeople are desperate for peace

155 BBC 2001 Garang Oil firms are targetshttpnewsbbccouk2hiafrica1393481stm

156 UN Security Council 2014 Report of the Secretary-General on childrenand armed conflict in South Sudan S2014884

157 Ibidem158 The Guardian 2015 South Sudan gunmen kidnap at least 89 boys

from village near Malakal httpwwwtheguardiancomworld2015feb22south-sudan-gunmen-kidnap-89-boys-village-malakal-child-soldiers

159 The Guardian 2015 South Sudan gunmen kidnap at least 89 boysfrom village near Malakal

60

LIVING IN FEAR

People are desperate for peace They are tired ofliving in fear Many have had to flee several timesThey are exhausted They lack water they areextremely worried for their children who are notin school and at risk of being recruited into armedgroups Sexual violence is rife All people want isto live in safety security and stability160

Wars have also an impact on food security and nutrition Asof February 2015 there was an alert that the food situationwas critical in South Sudan for more than 25 millionpeople161 This was famine related to war Ulrika BlomCountry Director for Norwegian Refugee Council in 2015succinctly stated ldquoThere is an urgent need for a solution onthe conflict so that people are able to resume their dailylives in dignity and not be dependent on massive foodassistancerdquo162

The harsh consequences of war are inevitable and occurfrom a systematic destruction of infrastructure erosion ofthe human capital and weakening of essential institutions

Besides causing an appalling loss of life Sudanrsquoslong civil war eroded the capital base The wardepleted the labour force while roads irrigationsystems and other key components of rural

160 Under-Secretary-General for Humanitarian Affairs and Emergency ReliefCoordinator Valerie Amos remarks to the press Juba South Sudan 9February 2015 httpreliefwebintreportsouth-sudanunder-secretary-general-humanitarian-affairs-and-emergency-relief-coordinator-1

161 UN Security Council 2015 Reports of the Secretary-General on theSudan and South Sudan SPV7392

162 Norwegian Refugee Council 2015 Conflict a cause of hunger in SouthSudan httpwwwnrcnodid=9192498

61

3 SOUTH SUDAN THE OIL WAY

infrastructure were destroyed damaged orneglected It also weakened institutions divertedfinancial capital from economic development andundermined interpersonal trust which is criticalto productive business dealings163

Some have tried to put a figure on the costs of war A recentreport estimates that the cost of the civil war may be between$223 and $28 billion over the next five years for SouthSudan alone if the factions fail to bring peace to the worldrsquosnewest country164

UN peacekeeping operations

In July 2011 the Security Council determined that thesituation in South Sudan constituted a threat to internationalpeace and security in the region and established the UNMission in the Republic of South Sudan (UNMISS)165 Thekey elements of the mandate is to consolidate peace andsecurity However after the civil war broke in July 2013 inthe light of significant human rights violations the large-scale displacement of persons the UNMISS mandate wasreshaped and a focus was given to the protection of civiliansand creation of the conditions for delivery of humanitarianassistance166

163 IFAD 2013 Enabling poor rural people to overcome poverty in SouthSudan

164 Frontier Economics 2015 South Sudan the cost of war httpwwwfrontier-economicscomdocuments201501south-sudan-cost-warpdf

165 UN Security Council 2011 Resolution 1996166 UN Security Council 2014 Resolution 2155

62

LIVING IN FEAR

In June 2011 a month before the establishement ofUNMISS a second UN peacekeeping operation wasestablished in the disputed border between Sudan and SouthSudan The United Nations Interim Security Force for Abyei(UNISFA) was created in a context of escalating violenceand tensions and population displacement167 One of the topobjectives was to achieve the demilitarization of the Abyeifrom any force other than UNISFA and the Abyei PoliceService facilitate the delivery of humanitarian aidstrenghten the capacity of the Abyei Police Service and incooperation with the police provide security for oilinfrastructure in the Abyei area168

Corporations and conflicts with communities

Since the conclusion of the 2005 Peace Agreement betweenthe Government of Sudan (GoS) and Sudan PeoplersquosLiberation MovementArmy (SPLM) negative impacts ofoil exploration and extraction have continued to ignitemistrust among local communities towards the oilcompanies Many problems from the oil activities wereidentified such as water pollution and uncompensateddispossession of land However oil companies or thegovernment did little to assess correct and reduce suchimpacts169 In this context many communities chose the ldquopath

167 UN Security Council 2011 Resolution 1990168 UN Security Council 2011 Resolution 1990169 ECOS 2014 Scrutiny of South Sudanacutes oil industry http

w w w e c o s o n l i n e o r g r e p o r t s 2 0 1 4 Scrutiny_of_South_Sudans_Oil_Industrypdf

63

3 SOUTH SUDAN THE OIL WAY

of confrontation with oil companiesrdquo170 For instance byblocking and interfering in oil operations by truck blockagesand other stoppages171

Resentment of local communities againstoil companies

The negative consequences of oil developmenthave been causing deep resentment against oilcompanies in many oil-rich parts of SouthernSudan Arriving in any oil area where activeexploitation is ongoing one is often confrontedwith persistent complaints from local people aboutpoor management of ldquoproduced waterrdquo which isblamed for pollution of the environment This isoften linked to unexplained deaths of animals andstrange or new human ailments Moreover the oilinfrastructure such as oil roads wells and pipesare frequently blamed for disrupting the means oflivelihoods of local people as well as destructionof property

Source ECOS

170 ECOS 2014 Ibidem171 ECOS 2014 Ibidem

64

LIVING IN FEAR

Lundin Oil Consortium facing war and violencein their work territory

In 2010 the European Coalition on Oil in Sudan (ECOS)requested an investigation on the activities of the LundinGroup and its connection with the conflict in Sudan and thepossible ldquocomplicity in the commission of war crimes andcrimes against humanityrdquo172 During the Second Civil War in1997 a consortium of oil companies led by the Swedish oilcompany Lundin Oil AB (ldquoLundinrdquo) signed a contract withthe Government for the exploration of oil in the concessionarea called Block 5A that was not at that time under fullGovernment control The other members of the Consortiumwere Petronas Carigali Overseas Sdn Bhd (ldquoPetronasrdquo) fromMalaysia OMV (Sudan) Exploration GmbH (ldquoOMVrdquo) fromAustria and the Sudanese state-owned oil company SudapetLtd

Before the start of explorations the area around Block5A was relatively peaceful When the oil exploration startedthe escalation of violence and war followed suit173 Accordingto the European Coilation on oil in Sudan Block 5A ldquobecamethe scene of intense fighting and gross human rightsviolations as soon as the Lundin Consortium started oilexploration activities on the groundrdquo Right from thebeginning there are reports of significant war and violence

172 ECOS 2010 Unpaid debt The Legacy of Lundin Petronas and OMV inSudan 1997-2003 Press Release httpwwwecosonlineorgreports2010Press_release_UNPAID_DEBT

173 ECOS 2010 Unpaid debt The Legacy of Lundin Petronas and OMV inSudan 1997-2003 httpwwwecosonlineorgreports2010UNPAID_DEBT_textonlywebpdf

65

3 SOUTH SUDAN THE OIL WAY

where villages and towns were burnt and looted Tens ofthousands of people in Block 5A were also moved out fromthe exploration areas

In 1999 the Lundin Group discovered major reserves ofoil This accelerated the Government desire to control allthe areas surrounding the well and the infighting intensifiedLundinrsquos explorations in Block 5A had to be suspended twicedue to insecurity174

The consequences of all the violence towards thepopulation which were in the middle of the power battlefor controlling Block 5A were severe abuse of all humanrights and war crimes More than 10000 people were killedalmost 160000 displaced with thousands of peoplepermanently uprooted from their villages hundreds ofthousands of cattle lost or looted destruction of churchesschools markets medical clinics and many otherincalculable moral damage and inmense loss of income175

Talisman Energy accused of complicity with forceddisplacements

A Canadian company Talisman Energy which at that timewas considered to be the largest independent oil and gascompany in Canada has been accused of indirectly helpingto exacerbate the war and of being complicit in human rightsabuses and crimes against humanity176 Talisman has a 25

174 HRW 2003 Ibidem175 ECOS 2010 Unpaid debt Ibidem See also Medecins sans frontieres

2002 Violence health and access to aid in Unity Statewestern uppernile Sudan httpwwwdoctorswithoutbordersorgsitesusafilessudan_04-2002pdf

176 Africa files 2000 Corporate immunity for oiling repression Talismanin Sudan httpwwwafricafilesorgarticleaspID=621

66

LIVING IN FEAR

stake in the Greater Nile Oil Project Company (GNOPC) aninitiative located in south-central Sudan with threeadditional partners the national petroleum company ofChina (40) the national oil company of Malaysia (30)and the national petroleum company of Sudan (5)177

There were many allegations that people were forcefullydisplaced in the area of the oil field ran by Talisman UNreported that accusations were made on Talisman of ldquobeingaccomplice of human rights abuses in Upper Nile so as toguarantee security for its oil operationsrdquo178

Moreover a report from the Canadian Foreign AffairsMnistry ndashthe Harker Report ndash which undertook a mission toSudan described with concern that fighting was intense inthe areas of oil development in general and that oilextraction may have contributed to relocation of civiliansby force179

Violence and the fear of it impact immediatelyon the peoplersquos use of the land and result in foodinsecurity which in turn propels movement ordisplacement

Contradicting that oil is at stake in the displacement issueTalisman explained that displacement was a result of an inter-tribal issue Once again the Harker report concluded thatthe displacement was because of oil

177 Africa files 2000 Ibidem178 UN Security Council 2000 Interim report of the Special Rapporteur of

the Commission on Human Rights on the situation of human rights inthe Sudan A55374

179 Canadian Ministry of Foreign Affairs 2000 Human Security in SudanThe Report of Canadian Assessment Mission httpwwwecosonlineorgreports2000Human20Security20in20Sudanpdf

67

3 SOUTH SUDAN THE OIL WAY

ldquoFor Talisman so very much seems to be explained as merelyan inter-tribal problem but displacement has gone on andis still going on and in Ruweng County it is hard to denythat displacement is now and has been for some timebecause of oilrdquo180

Talisman Energy decided in 2002 to end its controversialfour-year investment in Sudan by selling its 25 percent stakein the Greater Nile Petroleum Operating Company to anIndian firm Most of the rumours is that the reasons for thiswas the strong pressure from the US particularly to end itswork in Sudan in order to stop indirectly supporting theGovernment in Sudan with its oil revenue181

The oil way developing what

Sharing the wealth with the Sudanese people The resourcecurse again

As said before 98 of the governmentrsquos revenue comesfrom oil production royalties and South Sudan sits on thethird-largest oil reserves in Africa182 It was estimated in 2011that South Sudan controlled 75 of the overall oil productionof Sudan and South Sudan altogether ndasharound 500000barrels per day However South Sudan remains dependenton the North for processing refinement and export to theRed Sea

180 Canadian Ministry of Foreign Affairs 2000 Ibidem181 New York Times 2002 Talisman to sell its stake in company in Sudan

httpwwwnytimescom20021031businesstalisman-to-sell-its-stake-in-company-in-sudanhtml

182 Africa Business Initiative 2011 Investment climate upate Sudanhttpswwwuschambercomsitesdefaultfileslegacyinternationalafricafiles16920_AfricaNewsletter_Sudanpdf

68

LIVING IN FEAR

Paradoxically South Sudan is considered a fragile StateSitting on oil as has occured to many other countries acrossAfrica and abroad does not guarantee wealth for the majorityof the population A 2013 report concluded that ldquoover thelast decade Sudan has been the largest recipient ofhumanitarian assistance by some distance receiving US$106 billion over the periodrdquo183 90 per cent of the populationearn less than a dollar a day184

Oil money through the State budget is expected to serveto finance all the key governmental activities of the Statesuch as agriculture health infrastructures and educationDespite the fact that the benefits from oil are substantialthere are numerous questions arising about the destiny ofall the oil money For instance how could it be explainedthat one of the sectors more financed is the military andsecurity apparatus Since South Sudanrsquos independence theGovernment has allocated 38 of oil revenue to the militaryand security services with only 10 and 7 ininfrastructures and education respectively185 In 2012 SouthSudan was the among top 8 African countries having militaryexpenditure of almost $1 billion186 For instance TheEconomist reports that South Sudan bought 100 Ukrainian

183 Global humanitarian assistance 2013 Global humanitarian assistancehttpwwwglobalhumanitarianassistanceorgwp-contentuploads201307GHA-Report-2013pdf

184 Kebede 2014 The role of oil in South Sudanhttpswwwruoruottawacabitstream10393315631KEBEDE20Solomon2020145pdf

185 The Guardian 2014 South Suan is divided by the spoils of oil notethnicity httpwwwtheguardiancomcommentisfree2014jan14south-sudan-divided-oil-ethnicity-violence

186 LAVDC 2014 Les quatre puissances militaires regionales dacuteAfriquehttpwwwlavdcnetportailles-quatre-puissances-militaires-regionales-dafrique

69

3 SOUTH SUDAN THE OIL WAY

T-72 tanks187 At the same time agriculture and livestock hasbeen completely neglected despite the fact that more than80 of the population depend on that sector for fulfiliingtheir basic needs

Where the money goes

Daniel Wuor Joak former MP in South Sudan LegislativeAssembly and Minister of Education Science and Technologyin Upper Nile State claims that between 2005 and 2014both the Government of South Sudan (GOSS) and theRepublic of South Sudan (RSS) have been receiving onaverage not less than two billion of USD per year Somehave already manifested the unclarities over the destiny ofall that money as described by Mr Wuor Joak

Since 2005 upwards both the GOSS and RSS havebeen receiving no less than 18 billion USD in oilrevenues without implementing any majordevelopmental projects like roads network linkingdifferent States in South Sudan conducive learningschools from basics to universities level referralmedical facilities clean drinking water in remoteareas throughout the country setting up vibrantand credible institutions which can adhere to rulesof law All these things have not been implementeddue to poor system of governance under leadershipof Salva Kiir Mayardit Most of the counties have

187 The Economist 2014 Arms and the African

70

LIVING IN FEAR

no roads linking them with their State capitals andlack schools health centres clean drinking wateretc South Sudanese population in the rural areasthroughout the country are still living in the sameconditions as they were under Khartoumrsquos rule interms of scarcity of development188

Speaking more directly Kebede made firm remarks aboutthe overall situation in South Sudan

In general poverty corruption bad governance andviolence characterized the resource curse in SouthSudan A relatively small group of elite capturesvast wealth while leaving much of their societywithout access to the minimum resource necessaryfor long term wellbeing As a result South Sudanremains one of the worldacutes least-developedcountries despite its oil (hellip) hellipmuch of the oilrevenue has been squandered189

188 Wuor Joak 2014 Major Causes of the Current Conflict in Sudan SouthSudan News Agency

189 Kebede 2014 The role of oil in South Sudanhttpsw w w r u o r u o t t a w a c a b i t s t r e a m 1 0 3 9 3 3 1 5 6 3 1 KEBEDE20Solomon2020145pdf

71

3 SOUTH SUDAN THE OIL WAY

Even before the current tensions Bentiu saw little benefitfrom oil The streets are unpaved and covered with trashelectricity is scarce reserved for those with privategenerators () Most expect more violence Bentiu hasbecome more militarized with armed soldiers placed atcheck points and at the bridge Troops are constantlymoving to the front Weapons are being flown into theairport

ldquoThe oil is a curse ldquoMohammed Abdurahman Kili 56mumbled from his hospital bed his body covered withburns He was inside his shop in a crowded market onthe edge of town when a Sudanese warplane attackedkilling a 9-year-old child and another person and settinghis shop on fire

Washington Post 2012

President Salva Kiir recognized in 2012 that corrupt officialshad stolen from the people of South Sudan and the amountlost or taken by lead government and military officials mightbe as much as $4 billion190 Kiir sent a letter to 75 SouthSudanese officials or individuals close to the governmentasking them return all the amount lost The letter describedin general terms how the money got ldquolostrdquo

An estimated $4 billion are unaccounted for orsimply put stolen by current and former officialsas well as corrupt individuals with close ties togovernment officials Most of these funds have beentaken out of the country and deposited in foreignaccounts Some have purchased properties oftenpaid in cash191

190 Ibidem191 Paanluel Wel South Sudanese bloggers httppaanluelwelcom2012

0601letter-from-president-kiir-on-corruption-4-billion-dollars-stolen192 Sudan Tribune 2013 South Sudanacutes Kiir accuses army of corruption

72

LIVING IN FEAR

A year later Kiir accused the armed forces of being corruptHe said that despite the big budget allocations made to thearmy there were even no ldquovehicles to transport soldiers onmissionsrdquo192 Two years later the issue remained unclearand the names of the officials referred to in the letter wereyet to be disclosed However Kiir accused Machar of beingresponsible for a lot of corrupted activities in the country193

Machar responded to Kiir by saying that his claims wereunfounded and then also accusing him of such practices194

It seems South Sudan epitomises all the features of theresource curse argued in Chapter 1195 How can the corruptionbe prevented How can the money go to the people It isalso important to note that the oil sector provides littleemployment to the people of South Sudan Most of thehousehold income and employment is generated in theagriculture and farming sector primarily196 Would investingin other sectors like agriculture that provide real wealth tothe people make a difference

193 Sudan Tribune 2014 South Sudan rebel leader should face corruptioncharges Kiir

194 Sudan Tribune 2014 South Sudan Macharacutes Rebentildes dismiss corruptionaccusations no spiritual powers httpallafricacomstories201407221384html

195 Kebede 2014 The role of oil in South Sudan Ibidem196 Tizikara et al 2012 Post-conflict development of Agriculture in South

Sudan perspective on approaches to capacity strenghtening httpwwwerailsnetimagesfarasecretariatkigali-movementfileKigali20MovementPost-Coflict20Agriculture_South20Sudanpdf

73

3 SOUTH SUDAN THE OIL WAY

Environment

As experienced in oilfileds in other parts of the world the oilfields here are also leaving a significant impact on theenvironment and local communities A three year study inThar Jath and Mala fields in Unity State show thatgroundwater is very polluted making the water unsafe forhuman consumption197 The study made by a team of SouthSudanese and German geologists concluded that water usedby 180000 people was too salty to drink and containdangerous amounts of heavy metals198

In many occasions the oil fields that causeenvironmental pollution are even abandoned due to the warSome observers identified that oil pipelines damaged duringthe conflict were leaking199

South Sudan must produce for its needs

In 2015 the Minister of Finance of South Sudan David DengAthorbei made a statement saying that the country shouldbe self-sufficient in agriculture terms and in addition itneeds to increase its non-oil revenue and to achieve peace200

197 Rueskamp et al 2014 Effect of oil exploration and production on thesalinity of a marginally permeable aquifer system in the Thar Jath-Mala- and Unity Oil fields Southern Sudan Zbl Geol Palaont Teil IJ

198 Radio Tamazuj 2015 Study Direct link between oil exploration andwater pollution in Unity httpsradiotamazujorgenarticlestudy-E28098direct-linkE28099-between-oil-exploration-and-water-pollution-unity

199 Star Africa 2014 South Sudan Oil leaks cause pollution fears httpenstarafricacomnewsssudan-oil-leaks-cause-pollution-fearshtml

200 Bloomberg 2015 South Sudan Finance Minister says food output canoffset oil httpwwwbloombergcomnewsarticles2015-01-20south-sudan-finance-minister-says-food-output-can-offset-oil-1-

74

LIVING IN FEAR

He also made a call for a reduction of the countryrsquos relianceon agriculture imports particularly in the context of aneconomy affected by the plunge in global oil prices201

Peter Biar Ajak from the Center for Strategic Analysis andResearch in Juba illustrates the macroeconomic weaknessesof South Sudan today because of its oil dependence

South Sudanrsquos oil-dependent economy is nearingcatastrophe The production of crude oil has droppedby about 35 percent since the conflict began Thatcombined with a drop of roughly 45 percent in globaloil prices since the summer has meant a substantialreduction in the governmentrsquos oil revenues andenormous fiscal and budgetary ressures

Since South Sudan exports almost nothing asidefrom oil and imports almost everything else tradeand monetary policy have also been buffeted byfalling oil revenues Access to foreign currency hasbecome extremely limited The prices of manyimported goods have risen There are shortages ofpetrol which must be imported because SouthSudan has no refinery202

Indeed a dynamic agriculture sector may be key for peaceand development in South Sudan More than 95 of thecountryrsquos population is dependent on farming fishing orherding to meet their daily food needs and income as well203

201 Bloomberg 2015 Ibidem202 Biar Ajak 2015Sanctions for peace in South Sudan The New York Times

January 7th203 FAO in emergencies httpwwwfaoorgemergenciescountries

detailenc147627

75

3 SOUTH SUDAN THE OIL WAY

204 Business Daily 2011 South Sudanrsquos vast agricultural sector potentialuntapped

205 Norwegian Refugee Council 2015 Conflict a cause of hunger in SouthSudan httpreliefwebintreportsouth-sudanconflict-cause-hunger-south-sudan OCHA 2015 South Sudan Crisis Situation reportn 74 httpreliefwebintsitesreliefwebintfilesresourcesSouth_Sudan_Situation_Report_No_74pdf

206 OECD 2014 Fragile States 2014 Domestic revenue mobilisation infragile states httpwwwoecdorgdacgovernance-peaceconflictandfragilitydocsFSR-2014pdf

South Sudan has good soil and climatic conditions and morethan 70 of its land area is suitable for crop productionThere are many that believe that the investment in theagriculture sector has more potential than oil however thisthinking has not received due attention from local andforeign investors204 Efforts towards making agriculture workare vital for peace and stabililty in the country It is urgentlyneeded to work on this area particularly when at presentthere are 25 million in Sudan at risk of starvation205 andaround one third of the population are food insecure plusmore than a million displaced

The dependency on income from natural resourcesleaves fragile states vulnerable It exposes them toshocks in commodity prices ndash as demonstrated bythe sudden fall in commodity prices in 2009following the 2002-2008 boom Neither is it asustainable source of incomeSouth Sudanrsquos oilproduction for instance is projected to decreasesteadily in future years and become negligible by2035

Source OECD206

76

LIVING IN FEAR

207 UN Security Council 2015 Resolution 2206 SRES2006(2015)httpwwwunorggasearchview_docaspsymbol=SRES2206 (2015)

208 Sudan Tribune 2015 South Sudan unhappy with US support for sanctionshttpwwwsudantribunecomspipphparticle54232

209 Washington Post 2014 US appears unable to pull South Sudan backfrom the brink of civil war httpwwwwashingtonpostcomworldus-appears-unable-to-pull-south-sudan-back-from-the-brink-of-civil-w a r 2 0 1 4 0 5 0 3 d 9 2 8 0 b d a - 3 8 6 b - 4 2 4 9 - 9 4 e 0 -b5292610e5bb_storyhtml

210 Ibidem

US fallen dream

In 2015 the UN imposed a travel ban and assets freeze againstindividuals or entities which engaged in or provided supportfor acts that threaten peace security and stability of SouthSudan207 The US was behind the draft and the submission ofthe resolution This resolution prompted an angry reactionfrom the South Sudanese The South Sudanese presidencywas said to be extremely disappointed about the US ledmove208

In the past the relationship between the US and SouthSudan was completely diferent The United States was themain promoter and supporter of the worldrsquos newest nationThe Washington Post for instance asserted that ldquoSouth Sudanowes its existence to the United Statesrdquo209 The expectationscreated were high before its started its independence andsome believed that Sudan would be able to manage thecountry breaking the so-called ldquoAfrican model of pettyrivalries corruption and oppressionrdquo210 Despite all the hopesput on the young nation as of today no solution has beenfound to the ongoing war

77

3 SOUTH SUDAN THE OIL WAY

The US was the largest donor to Sudan in the years priorto independence providing 339 of the total aid to Sudanbetween 2000 to 2009211 The United States (US$472million) was the largest donor of humanitarian assistanceto South Sudan in 2012 followed by the United Kingdom(US$96 million)212 For many years Sudan was the thirdlargest recipient of US aid only after Iraq and Afghanistan213

The inteligence and information systems of theAmericans on the ground in Sudan seemed to have beenrelatively good214hellip however how come they did not foreseethat South Sudan was quickly descending once again on theavenue of a country at civil war For instance the problemsbetween President Salva Kiir and his deputy were not newAlready more than two years before the civil war started inJune 2011 in a speech in Juba the President accused hisDeputy Riek Machar ldquoof running a parallel governmentwithin the governmentrdquo215 Couldnrsquot they have preventedanother conflict Why did they fall into ridiculouscontradictions as the one recently revealed via wikileakssuggesting that the US was funding both armies in

211 Development initiatives (undated) Sudan Aid Factsheet 1995-2009httpwwwglobalhumanitarianassistanceorgwp-contentuploads201102Sudan-Aid-Factsheet-2011pdf

212 See global humanitarian assistamce ebpage httpwwwglobalhumanitarianassistanceorgcountryprofilesouth-sudan

213 The Atlantic 2011 US played key role in Southern Sudanacutes longjourney to Independence

214 The Global Intelligence files 2013 SudanUSMIL ndash SPLA trying toget US to hook it up httpssearchwikileaksorggifilesviewemailid=5047664

215 Sudan Tribune 2011 Salva Kiir exposes his rift with Machar overSouth Sudan transitional constitution httpssearchwikileaksorggifilesviewemailid=3831682

78

LIVING IN FEAR

contention the Government force of Salva Kiir and the rebelsof Riek Machar216 Why are both paid by the UShellip to dowhat As one reporter questioned why are they ldquopaid tokill each otherrdquo217

216 RT 2015 US officials tussle over arms embargo sanctions in oil-flushSouth Sudan httprtcomusa226387-south-sudan-sanctions-war

217 RT 2015 Ibidem

Seven Million

ldquoA peaceful DR Congo could transform Africa almostovernight but is there a way outrdquo218

There is always a way out However peace is not an easything particularly under certain circunstances When youhave lost your father your mother your uncle your sisterwhat else can you lose Can you still believe in peaceTwoof the bloodiest conflicts in recent decades in the world haveoccurred in Africa The Second Civil War in Sudan has leftaproximately two million casualties and the conflict in DRCis estimated to have snuffed life out of no less than fivemillion people

How many more

How does one begin to quantify the dead when they are inthe hundreds of thousands No less than seven million livesof Congolese and South Sudanese were taken away due towars and conflicts fuelled by natural resources How many

218 African Business 2009 DR Congo $24 trillion fortune

4

79

80

LIVING IN FEAR

more How many more before the world wakes up to acteffectively towards ending all those conflictsProbably unless you are one survivor from those experiencesyou would never be truly able to understand what it meansto lose entire families and friends you would never be trulyable as well to understand what it means to feel fear foryour life and the life of your close relatives

When you start counting sometimes you forget thatpeople are not numbers There are names behind thenumbers A family A life As we write this book people aredying needlessly in the DRC and in South Sudan Calculatingdead people due to conflicts in this part of the world is verydifficult due to statistical challenges and so it is conceivablethat probably the number of victims is much larger than sevenmillion (7000000) When would the volume of bloodshedthe number of lives taken be enough for the belligerentofficials to make real peace How many more should fallAthousand more Another one million The pain sadness anddestruction that those conflicts generate should not beaccepted any more

Oil and minerals the main cause of ongoingconflicts and war

Some authors argue that minerals and oil are not a cause ofwar but ldquocompetition for them could amplify and expediteconflictrdquo219 In this book as chapter two and three haveshown oil and minerals are the main motor behind theconflict in recent decades in DRC and South Sudan It would

219 UN Security Council 2013 Natural resource wealth fails to translateinto equivalent benefits for people fuelling conflict to instability DeputySecretary-General tells Security Council httpwwwunorgpressen2013sc11037dochtm

81

4 SEVEN MILLION

be very difficult if not impossible to expect those conflictsif their territories were resource poor Oil and minerals arefull of blood An activist poet wrote We Thought it was Oilbut it was Blood220 Although he was writing about the NigerDelta situation we see a universal application in that phrase

In both countries described there were other elements andfactors to take into consideration however it can be saidthat control over natural resources was the most importantcause on both conflicts in DRC and South Sudan In bothcases oil and minerals fuelled those wars and in manyoccasions these resources have inspired fueled and sustainedarmies operating in the territories of both countries

A Statersquos wealth means nothing if not shared withthe majority of the population

DRC and South Sudan ought to be wealthy countriesUnfortunately having a wealth of natural resources doesnot mean that it belongs to the citizens or that the wealthwould be shared among the population of a given State AState is a nation or territory considered as an organizedpolitical community under one government221 A goodgovernment should be the one that takes care of its citizensand shares the wealth among its citizens and not justdistribute it among an elite Jan Eliasson Deputy Secretary-General of the United Nations stated that ldquoin too manycountries a wealth of resources including timber oil coaldiamonds and precious metals failed to translate into

220 Nnimmo Bassey 1998 We Thought it was Oil but it was Blood IbadanKraft Books

221 See httpwwwoxforddictionariescomdefinitionenglishstate

82

LIVING IN FEAR

equivalent wealth for the people Only a powerful fewbenefitrdquo222

The State is expected to perform an adequateimplementation of human rights granted by several UNdeclarations and conventions including the right to foodright to health right to shelter right to clothing right towork farmersacute rights etc Paradoxically the violations andabuses of human rights have been constant in DRC and SouthSudan Both countries have suffered from acts of war oncivilian population both have as well a large number ofdisplaced people with no access to food without healthcarewithout shelter and without any work Both countries havemore than 90 people living below one dollar per day andthey are considered among least developed countries andfragile states Due to this both are some of the biggestrecipients of humanitarian aid Moreover both have hugesecurity problems shown for instance by the presence ofUN peacekeeping operations Out of the 17th worldwideongoing peacekeeping UN operations three are in DRCSouth Sudan and in Abyeia disputed territory between Sudanand South Sudan

They possess resources that have a huge monetary valueand that in most cases have the involvement of foreigncountries and corporations and other stakeholders of theprivate sector which are ready to pay enormous sums ofmoney to gain control of the natural resources belonging toother countries If no war or significant armed conflict takes

222 UN Security Council 2013 Natural resource wealth fails to translateinto equivalent benefits for people fuelling conflict to instability DeputySecretary-General tells Security Council httpwwwunorgpressen2013sc11037dochtm

83

4 SEVEN MILLION

place common elements among those countries that possesssuch resources in Africa is the existence of massive povertyand corruption and in most cases this is contrasted withmega-rich individuals Letacutes take for instance the case ofoil-rich Angola where the president and his daughter possessmultibillionaire fortunes while at the same time the majorityof the country population is living on less than two dollarsper day223

Greed power and control over natural resources

It must be noted as well that often oil and minerals involvemillions and multibillion profits With such large sums ofmoney greed power and control take the driving seat ofwhatever country government in the world When theprospects for such money flow arrives many leaders andelites start distancing themselves from the majority of thepopulation and stop thinking about the welfare of their ownpeople

At the centre of most of the conflicts in both countriesare struggles for power and control of natural resourcesMinerals and oils are the main cause of the ongoing conflictsand wars Unfortunately most commentators qualify therecent civil war in South Sudan as a ldquopower strugglerdquo withoutfurther qualifications In South Sudan who gets the oil getsthe power Therefore the power struggle is a war overnatural resources for control of the oil in the country Areporter affirmed that ldquowhoever controls South Sudanrsquos oiltherefore could seize the upper hand in the battle for

223 Forbes 2013 Daddyacutes girl how an African ldquoprincessrdquo banked $3 billionin a country living on $2 day httpwwwforbescomsiteskerryadolan20130814how-isabel-dos-santos-took-the-short-route-to-become-africas-richest-woman

84

LIVING IN FEAR

224 France 24 2013 Battle for oil adds new dimension to South SudanConflict httpwwwfrance24comen20131227-battle-oil-adds-new-dimension-south-sudan-conflict

225 OECD 2014 Fragile States 2014 Domestic revenue mobilisation infragile states httpwwwoecdorgdacgovernance-peaceconflictandfragilitydocsFSR-2014pdf

powerrdquo224 In both countriesrsquo non-renewable natural resourcetook a dominant share of the fiscal revenue of DRC andSouth Sudan ndash 82 in the DRC and 98 in South Sudan225

Who controls those resources controls the countryThe case of South Sudan where the president has

recognized the disappearance of $4 billion by corruptindividuals is compelling President Salva Kiir pinpointed thespirit behind the rot ldquoOnce we got to power we forgot whatwe fought for and began to enrich ourselves at the expenseof our peoplerdquo This might also include him as well becauseit is difficult to imagine that such huge amount of money couldbe stolen without the leader noticing anything at all

Greed for minerals and oil is at the heart of the massivedeath toll and impoverishment of the Congolese and SouthSudanese people in recent decades It can be affirmed quitecomfortably that if the Eastern part of the DRC would havenot sat on huge mineral reserves it would be very difficultto imagine all the conflicts that have occurred in that zoneIt can be affirmed as well that without oil ongoing wars inSouth Sudan might most probably never have occured

Peace is the only way forward

Achieving peace is a complex issue To create peace thereare many issues to resolve with all stakeholders such as

85

4 SEVEN MILLION

mutual accusations of support to rebel groups226 goodgovernance transparency demobilisation and disarmamentof local militia etc227

A positive but vital first step is that there are calls at veryhigh levels in both countries and at international fora Thismust be followed with open debate on the core causes of theconflict and ways of achieving reconciliation It does notappear that lasting peace can be achieved otherwise In thatprocess the people need to be put at the centre ofdevelopment policies and actions in both countries in orderto stop the plunder reverse environmental degradation andfight poverty As long as the political military and corporateelite maintain their control of the natural resources of thecountry the devastating plunder will continue to the benefitof only such elite and a handful of corporations

226 UN Security Council 2015 Reports of the Secretary-General on theSudan and South Sudan SPV7392

227 The Guardian 2014 South Sudan is divided by the spoils of oil notethnicity httpwwwtheguardiancomcommentisfree2014jan14south-sudan-divided-oil-ethnicity-violence

INDEX

AAbyei Joint Oversight

Committee (AJOC) 47Abyei Police Service 46 62Abyei 43-home of the Ngok Dinka 43

45Africa 18 20 see minerals

-and wars at the greatlakes 20 25-armed groups in 26-criminal networks in 26-death in 20-exploitation naturalresources in 18-militias in 26-minerals in 20-poverty in 20-wealth in 20

Africarsquos wealth 14-and resource curse 14-blessing or curse 14

African Business 22African Development Bank

(AfDB) 16 17

African Unionrsquos (AU) Peaceand Security Council 48

Algeria 15Allied Democratic Forces

(ADF) 25 28-in North Kivu 25

American Mineral Fields(AMF) 36

AngloAmerican corporation35

AngloGold Ashanti 35Anvil Mining 36Armed Forces of the DRC

(FARDC) 26Athorbei David Deng 73Auty Richard 14

BBBC 18Blom Ulrika 59Blue Nile 45

CCentral African Republic 7China National Petroleum

Corporation 49

86

INDEX

87

Citibank NY 36Clinton Bill 24 36Conflict minerals 30 see

Rwanda-legitimate exports of 30-smuggling of 30

Conflicts 7-and natural resources 7-causes of 10 80-uniqueness of 10

Congolese Government 18

DDemocratic Republic of

Congo (DRC) 7-85-and (MONUC) 29-greed for minerals in 32-UN peacekeeping opera-tion in 29

Diffra oil complex 47DR Congo 79

EEastern Congo 28

-insecurity in 28Eliasson Jan 81

-Deputy Secretary-Generalof the United Nations 81

European Coalition on Oil inSudan (ECOS) 63

Exploration GmbH (OMV)64

Exxon corporate 15

FFirst Sudanese Civil War 42Forces deacutemocratiques de

libeacuteration du Rwanda(FDLR) 28

GGabon 18

-oil in 18Gertler Dan 12 13Ghana 18

-oil in 18Giambrone Antonino 38Glencore Anglo-Swiss 35Government of South Sudan

(GOSS) 69Government of Sudan (GoS)

62Great War of Africa 23Greater Nile Oil Project

Company (GNOPC) 6667

Guinea Equatorial 15

HHague 44Permanent Court of Arbitra-

tion in 44Human Rights Watch 55

IIMF 22International Rescue Commi-

ttee 23

LIVING IN FEAR

88

JJoak Daniel Wuor 69Juba 74

-Center for StrategicAnalysis and Research in74

Katanga Minister of Planning22

KKenya 19Kerry John 24Kiir Salva 43 84

LLibya 7Lumumba Patrice 13 20Lundin Oil Consortium 63

MMachar Riek 43 57 77 78Madagascar 16Mala fields 73Malakal 59Mali 7Mayardit Salva Kiir 69McKinney Cynthia Ann 23

-US Congresswomanfrom the Democratic Party23

McMurrough Mike 36McNamara Robert 37

-as World Bank President37

Minerals 20 see Africa-and death 20

-and poverty 20-and wars at the GreatLakes 20-and wealth 20

Mozambique 18-gas in 18

Muloni Irene 18

NNationalist and Integrationist

Front (FNI) 36Natural resources 8 83 see

conflicts-and conflict 8-and greed 83-and power 83-and wars 8-control over 83

Niger Delta 16-oil is a curse for 16

N o n - g o v e r n m e n t a lorganisations (NGOs) 12

Non-OPEC African oilproducer 48

Norwegian Refugee Council59

OOECD Guidelines for

Multinational Enterprises37

Oil 48-and geopolitics 48

PPeace 84

INDEX

89

-as way forward 84Petronas Carigali Overseas

Sdn Bhd (Petronas) 64Powell Colin 58PR Newswire 30President Kabila 24President Obama 24

RRDC Mining Code 35Republic of South Sudan

(RSS) 69Rio Tintorsquos QMM 16Ruweng County 67Rwanda 24 31

-conflict minerals from 31

SSecond Congo War 24 32

34Second Sudanese Civil War

42Somalia 7South Kordofan 45South Sudan Civil War 57South Sudan 11 18 19 41

-Dinka ethnic group in 4357-Nuer ethnic group in 4357the oil way 41-UN peacekeeping opera-tions 61

South Sudanese Civil War 58Sudan 79

-Second Civil War in 79

Sudan Armed Forces 46Sudan oil police 47Sudan Peoplersquos Liberation

Army (SPLA) 41 46 5462-civil wars and conflict in41

Sudan vs South Sudan 43-and Heglig battles 47-and peace agreement 43-main oil companies in 51-oil-centered conflict 46-Row over oil tariffs 51

Sudanese Civil War 52-and Addis AbabaAgreement 53-and Islamic law 53-causes of 52

Swedish oil company LundinOil AB (Lundin) 64

TTalisman Energy 65Thar Jath 73Transnational Corporations

(Tncs) 34-and the private sector 34

UUganda 19 24UN Interim Security Force for

Abyei (UNISFA)UN Mission in the Republic of

South Sudan (UNMISS)61 62

UN Organization Stabiliza-

LIVING IN FEAR

90

tion Mission in the DRC(MONUSCO) 29

UN peacekeeping operations11

UN Security Council 11UNICEF 59UNISFA 47United Nations Office of the

Special Adviser on Africa(OSAA) 8

United Nations SecurityCouncil 25

United Nations 13University of California

(UCLA) 54 55Upper Nile State 59 69US fallen dream 76

VVirunga National Park 18

WWar and conflict 58

-consequences of 58Wars and minerals 21

-cobalt 22-coltan 22-copper 22-diamond 22-gold 22-manganese 22-peace at last 21-timber 22-tin 22-zinc 22

Wau Shilluk 59We Thought it was Oil but it

was Blood 81Wealth 12 13

-for whom 13-quest for 12

World Heritage site 18Worldwatch 40

Page 3: LIVING IN FEAR - Health of Mother Earth Foundation...Les quatre puissances militaires regionales d´Afrique. 12 LAVDC. 2014. Les quatre puissances militaires regionales d´Afrique

Published for

Health of Mother Earth Foundation (HOMEF)|214 Uselu-Lagos Road POBox 10577

| Ugbowo Benin City Nigeria| T +234 52 941 321 | M +234 803 727 4395 | wwwhomeforg

|Health_Earth

by

Kraft Books Limited6A Polytechnic Road Sango Ibadan

Box 22084 University of Ibadan Post OfficeIbadan Oyo State Nigeria

+234 (0)803 348 2474 +234 (0)805 129 1191E-mail kraftbooksyahoocomkraftbookslimitedgmailcom

Website wwwkraftbookslimitedcom

copy Juan Lopez Villar

First published 2016

ISBN 978ndash978ndash918ndash379ndash1

All Rights Reserved

First printing August 2016

CONTENTS

Prologue 7

1 The Quest for Wealth 12

2 Minerals and Wars at the Great Lakes 20Wealth Death and Massive Poverty inthe Heart of Africa

3 South Sudan The Oil Way 41

4 Seven Million 79

Index 86

PROLOGUE

Conflicts and natural resources

Sudanrsquos history of oil production has been a historyof violent conflict Soon after the discovery of oil inthe southern region in the late 1970s the secondSudanese civil war broke out1

South Sudan today is going through a civil war and in parallelit is in the middle of ongoing conflicts with Sudan for controlof oil rich areas in the Northern parts of the country

A study made for the African Development Bankconcludes that in the past 40 years there has been moreviolent conflicts in Africa than on the other continentsMoreover the wars in Africa have lasted longer and havebeen deadlier2 Libya Mali Democratic Republic of Congo(DRC) Somalia Central African Republic hellip So many warshellip So many conflicts hellip So much sufferinghellip

1 Bonn International Center for Conversion 2013 lsquoOil investmentand conflict in Upper Nile State South Sudanrsquo Brief 48

2 Hoeffler 2008 lsquoDealing with the consequences of violent conflictsin Africarsquo Background paper for the African Development Bankhttpusersoxacuk~ball0144consequencespdf

7

8

LIVING IN FEAR

Natural resources wars and conflict

Wars and armed conflicts are the major illnesses of thehumankind Since the birth of humankind we have not beenable to stop killing each other Thousands of years after wecontinue creating wars and armed conflicts

Why is that Today natural resources like oil and mineralsare at the heart of many conflicts around the world and so-called ldquohigh-value natural resources have been associatedwith dozens of armed conflicts millions of deaths and thecollapse of several peace processesrdquo3 Numerous reports andstatistical evidence confirm that those resources have beenldquosparking and fueling armed civil conflictsrdquo4 The UnitedNations Office of the Special Adviser on Africa (OSAA) alsoaffirms that ldquonatural resource have been shown to play akey role in the conflicts that have plagued a number ofAfrican countries over the last decade both motivating andfuelling armed conflictsrdquo5Moreover some scholars affirmthat ldquowhen internal conflict occurs in a region that has oilreserves it lasts twice as long as conflicts that occur in areaswithout oil reserves and combatant deaths are twice ashighrdquo6

Corporations working with natural resources have beencomplicit in many conflicts For instance during the Sudanwar oil corporations have allowed their facilities to be used

3 Lujala et al 2011 lsquoHigh-value natural resources a blessing or acurse for peacersquo Sustainable Development Law and Policy Vol 12

4 Lujala et al Ibiacutedem5 United Nations Office of the Special Adviser on Africa 2006 lsquoNatural

resources and conflict in Africa transforming a peace liability intoa peace assetrsquo Conference Report

6 Lujala et al 2011 lsquoHigh-value natural resources a blessing or acurse for peacersquo Sustainable Development Law and Policy Vol 12

9

PROLOGUE

for military purposes that led subsequently to attacks oncivilians One example is the case of the Heglig airstrip withinthe territory of the concession of the Canadian corporateTalisman

the military use of Heglig airstrip has been moreor less constant since May 1999 (hellip) flights clearlylinked to the oil war have been a regular feature oflife at the Heglig airstrip which is adjacent to theoil workersrsquo compound It is operated by theconsortium and Canadian chartered helicoptersand fixed wing aircraft which use the strip haveshared the facilities with helicopter gunships andAntonov bombers of the Government of SudanThese have armed and re-fuelled at Heglig and fromthere attacked civilians7

Natural resources have also been associated with the increaseof military spending on the continent Military expenditurein Africa is on the rise experiencing the highest progressionin the world from 2002-20118Algeria tops the list of militaryspending in Africa with over $10 billion9 They were followedby Angola with $6 billion and then South Africa with a bitmore than $4 billion in 201310 The increase of Africarsquosexpenditure is mainly due to the oil revenues from countries

7 Canadian Ministry of Foreign Affairs 2000 lsquoHuman Security in SudanThe report of Canadian Assessment Missionrsquo httpwwwecosonlineorgreports2000Human20Security20in20Sudanpdf

8 LAVDC 2014 lsquoLes quatre puissances militaires regionales dacuteAfriquersquo httpwwwlavdcnetportailles-quatre-puissances-militaires-regionales-dafrique

9 The Economist 2014 lsquoArms and the Africanrsquo httpwwweconomistcomnewsmiddle-east-and-africa21633901-continents-armies-are-going-spending-spree-arms-and-african

10 The Economist 2014 Ibidem

10

LIVING IN FEAR

like Algeria and Angola Angolarsquos military spending rose byover 36 in just one year Another oil producer that hasmade significant outlays on military spending is Ghanawhich almost tripled its arms budget from $109 to $306million between 2012 and 201311 Not surprisingly DRC alsorecently augmented significantly their spending by 3412

Causes of conflicts

Often there is a trend to simplify one main cause for aparticular conflict such as religious ethnic or tribal oreconomicpolitical power struggles For example very oftenthe conflicts in Sudan have been described as religious warsbetween Northern Muslims and Christiananimists from theSouth Our analysis in Chapter 3 will illuminate a differentperspective In general wars and conflicts tend to besurrounded by multiple factors and causes some with moredominance than others It is precisely in that complexity ofelements and factors that we can find the reasons why acountry has embarked in wars and conflicts However atthe same time there is often one cause that is the prevalentand dominant one in each conflict This will also be examinedin the forthcoming chapters

Every conflict is unique

While conflicts may have similar elements every one of themis unique in its own way13 This book explores the generalrelation between wars conflicts and natural resourcesfocusing in particular on two African countries Democratic

11 LAVDC 2014 Les quatre puissances militaires regionales dacuteAfrique12 LAVDC 2014 Les quatre puissances militaires regionales dacuteAfrique13 Bongani 2012 lsquoNatural resources and conflict unlocking the

economic dimensioacuten of peace-building in Africarsquo Briefing n 74

11

PROLOGUE

Republic of Congo (DRC) and South Sudan Both countrieshave gone through some of the bloodiest wars and conflictsin recent decades in the world Peace efforts have been madeat the UN level to try to minimize the conflict situations In2014 both countries had UN peacekeeping operationsmandated by the UN Security Council to promote protectand monitor human rights in DRC and South Sudan14 Weaim to provide a succinct but comprehensive overview ofboth conflicts and show their relation with natural resources

14 In 2014 there were ongoing 17 peacekeeping operations under theUN There were DRC and South Sudan ndashAbyei- See Office of theHigh Commissioner for Human Rights httpwwwohchrorgENCountriesPagesPeaceMissionsIndexaspx

LIVING IN FEAR

12

The Quest for WealthldquoDan Gertler is essentially looting Congo at the expense of

its peoplerdquo15

If there is wealth in DRC Dan Gertler has found a goodpiece of it The 41-years-old Israeli-born Dan Getler has adeclared fortune estimated at $144 billion While he isformally based in Bnei Brak Israel he has made his billiondollars fortune in the mining sector of DRC He is also verywell known for being a close friend of President JosephKabila16 Gertler is criticized over his way of doing businessand has been accused by non-governmental organisations(NGOs) to have obtained mining assets on the cheap bycavorting with politicians17 Congolese NGOs have said abouthim for example that ldquohe has political connections so statecompanies sell him mines for low prices and he sells themon for huge profitsrdquo The quest for wealth attracts manyGertler-like types to the African continent one of thewealthiest places of the planet

1

15 Affirmation of Jean Pierre Muteba head of a group of NGOs thatmonitor mining in DRC at The Washington Post 2012 Dan Gertlerearns billions as mine deals fail to enrich Congo

16 Forbes profile of Dan Getler httpwwwforbescomprofiledan-gertler

17 Forbes Ibiacutedem

13

1 THE QUEST FOR WEALTH

Wealth for whom

Everybody wants to be wealthier however not everybodyshares the same definition of wealth18One definition ofwealth is that it is a ldquotangible or intangible thing that makesa person family or group better offrdquo19 Under this definitionoil or a mineral would be considered wealth if it makes aperson family or group better off Certainly a person likeMr Getler is obviously doing better off in terms of moneywith his work and therefore he is wealthier under thoseterms Howeverthe resources that make Getler wealthy havenot necessarily benefited Congoacutes people Minerals or oilas said by Patrice Lumumba belongs to the people of DRCit is the responsbility of the State to manage its benefits andto share it among the population The wealth of a country isthe wealth of their people

However the wealth of natural resources revenues doesnot frequently bring benefits to the majority of thepopulation but rather a handful of elites The United Nationsoffice of the Special Adviser on Africa affirmed that the richesderived from the ldquoexploitation of natural resources are notonly used for sustainaing armies but also for personalenrichment and building political supportrdquo20 In additionthe office added that ldquocontrol over natural resources andtheir revenues often stay in the hands of a small elite and isnot used for broader development of the countryrdquo21

18 CNBC 2013 what is wealthy $5 million and plenty of cash19 See the business dictionary httpwwwbusinessdictionarycom

definitionwealthhtml20 United Nations office of the Special Adviser on Africa 2006 Natural

resources and conflicts in Africa transforming a peace liability intoa peace asset Conference Report

21 United Nations office of the Special Adviser on Africa 2006 Ibidem

LIVING IN FEAR

14

Africarsquos wealth blessing or curse

The resource curse

In a sea of wealth there are often oceans of povertyResource-rich countries are often accompanied by slowerthan expected economic growth poor economicdiversification gloomy social welfare indicators devastatingenvironmental impacts rampant corruption high inequalityhuge impoverishment bad governance and as said beforewars and conflicts22 This situation has been termed thetheory of ldquoresource courserdquo which term was used first in1993 by Richard Auty23 In 1995 the theory of the ldquoresourcecurserdquo was popularized thanks to an article of Sachs andWarner24 Both authors showed in their paper that ldquoeconomieswith a high ratio of natural resource exports to GDP in 1971tended to have low growth rates during the subsequentperiod 1971-1989rdquo From there a vast number of literaturehas been written on this matter and is divided between thosethat believe exploitation of natural resources is a curse andthose that believe that it can promote growth and

22 Mildner et al 2011 lsquoScarcity and abundance revisited a literaturereview on natural resources and conflictrsquo International Journal ofConflict and Violence Vol 5 Karl 2005 lsquoCovering oil a guide toEnergy and Developmentrsquo Understanding the resource curse opensociety institute

23 Time 2010 Brief history the resource curse httpcontenttimecomtimemagazinearticle09171199746000html

24 Sachs and Warner 1995 lsquoNatural resources and economic growthrsquoHarvard Institute for International Development

15

1 THE QUEST FOR WEALTH

development in developing countries25 Others for instanceprefer to use different terminology like Exxon corporatewhich has said ldquowe donacutet like to call it the oil curse weprefer governance curse We are private investors and it isnot our role to tell governments how to spend their moneyrdquo26

Africarsquos wealth

Africa is full of natural resources and there are manycountries considered as having a huge wealth Oil gasminerals timber fertile land water are often mentioned asthe riches of the continent However oil and minerals arethe favourites of some of the top leaders of the continentAngola with oil and diamonds Nigeria with oil GuineaEquatorial with oil Algeria with plenty of oil and gasdeposits DRC with minerals and South Sudan with oil justto name some of them

Many would think that all those States with lots of oiland mineral are very wealthy The truth is that although theStates are wealthy the countries are paradoxically full ofpoverty and their populations are not benefiting from thoseresources Moreover in many cases the wealth derived from

25 Pedro (undated) lsquoMainstreaming mineral wealth in growth andpoverty reduction strategiesrsquo Economic Commission for Africa PolicyPaper Ross 1999 lsquoThe political economy of the resource cursersquoWorld Politics n51 Hodler 2004 lsquoThe curse of natural resourcesin fractionalized countriesrsquo Economic department University ofBern SwitzerlandSwilling 2012 lsquoBeyond the resource curse fromresource wars to sustainable resource management in Africarsquo Paperpresented at the Winelands Conference on Integrity and GovernanceStellenbosch Pendergast et al 2008 lsquoCorruption and the curse ofNatural resourcesrsquo Department of Economics University of VictoriaDavis 2012 Replicating Sachs and Warner the 1997 Working PaperColorado School of Mines Neumayer 2004 Does the resource cursehold for growth in genuine income as well World Developmentvol 32

LIVING IN FEAR

16

oil and minerals mostly fuel wars and conflicts While somedie while some are displaced while some are injured orrape Some on the contrary are making money lots andlots of money hellip and while they make money they just puta blind eye on the horrors occurring outside the fence Thisis well described in the Harker report on the Sudanese warand the role of oil corporations ldquoIf the oil companies donrsquotknow whatrsquos going on theyrsquore not looking over the fencesof their compoundsrdquo27

Although some may believe that the importance of theoil and mineral sectors is the creation of jobs for thepopulation this has been denied by several authors

The oil gas and mining sectors are notoriously poorwhen it comes to job creation An offshore platformtapping deep-sea reserves will create few if anypositions for locals Only recently protests werereported outside Rio Tintorsquos QMM mineral sandsoperation in the south of Madagascar due to highlocal unemployment The best way to convertnatural resource wealth into jobs is to take theproceeds and invest in other more labor-intensiveindustries such as agriculture or manufacturing28

Nigeria provides a good example where communities living inthe Niger Delta have not benefited from oil extraction whichon the contrary has created serious conflicts as seen in Box 1

On the question of whether oil is a blesssing or a curse toAfrica the African Development Bank concluded that it is a

26 The Economist 2005 lsquoThe paradox of plentyrsquo27 Canadian Ministry of Foreign Affairs 2000 Human Security in

Sudan The report of Canadian Assessment Mission httpw w w e c o s o n l i n e o r g r e p o r t s 2 0 0 0 Human20Security20in20Sudanpdf

28Africa progress panel 2013 Africaacutes mineral wealth eternally cursedhttpwwwafricaprogresspanelorgafricas-mineral-wealth-eternally-cursed

17

1 THE QUEST FOR WEALTH

ldquohuge blessingrdquo29 It justifies that with the following analysis

We estimate that Africa has 120bn barrels of oilreserves no less than half of Saudi Arabia and 600million hectares of uncultivated arable land halfof the world total We at the African DevelopmentBank (AfDB) estimate that the continentrsquos naturalresources will contribute over $30bn per annumin government revenues over the next 20 years30

Box 1 Oil is a curse for the Niger Delta people

Most people think of oil states as wealthy states ButNigeria proves that sometimes the opposite is true It isAfricarsquos leading oil producer and yet it is one of theworldrsquos 20 poorest countries Whatrsquos more the peopleliving in the Niger Delta the countryrsquos oil-producingregion are among Nigeriarsquos most impoverishedcommunities with a large percentage of the populationhaving to survive on less than one dollar a day For thesepeople lsquoblack goldrsquo has not brought prosperity ordevelopment Instead it has increased corruption socialproblems environmental damage and armed conflictThe many billions of US dollars in oil revenue that havepoured into the country during its oil industryrsquos 50-yearhistory have completely bypassed these communitiesSource Petra Hannen 2011 lsquoBlessing our Coursersquo GIZmagazine akzent

29 African Development Bank 2013 lsquoAfricarsquos mineral wealth a blessingor a cursersquo httpwwwafdborgenblogsafdb-president-this-is-africas-hourpostafricas-mineral-wealth-a-blessing-or-a-curse-12336

30 African Development Bank 2013 Africaacutes mineral wealth a blessingor a curse httpwwwafdborgenblogsafdb-president-this-is-africas-hourpostafricas-mineral-wealth-a-blessing-or-a-curse-12336

LIVING IN FEAR

18

Africa continues the exploitation of its naturalresources

Most of the African Governments that discover naturalresources in their territory eagerly move forward with theexploration of those Therefore natural resources areexplored all over the continent oil in Ghana manganese inGabon gas in Mozambique just to name a few Often thereis little consideration of the destruction or the conflicts theseextractive activities bring For instance according to the BBCin March 2015 the Congolese Government consideredmodifying the boundaries of the Virunga National Park homeof gorilla mountains and World Heritage site to permit oilexploration activities31

DRC and South Sudan as well are exploring a joint projectnow DRC has a frontier with South Sudan in the Northeastpart of the country While historically both ndash referring alsoto Sudan ndash did not often have a common grounds after theIndependence of South Sudan in 2011 it appears possiblethat natural resources may unite them more closely IreneMuloni Minister for Energy and Minerals Development fromUganda announced in an interview in February 2015 thatSouth Sudan and the DRC have expressed interest in theconstruction of an oil pipeline of over 1000 km to the Kenyancoast32 Although yet to be implemented there have beendiscussions and plans to construct a pipeline that would unite

31 BBC 2015 DR Congo seeks Virunga park bounary httpwwwbbccomnewsworld-africa-31876577See also New York Times2014 Oil dispute takes a page from Congoacutes bloody past httpwwwnytimescom20141116worldoil-dispute-takes-a-page-from-congos-bloody-pasthtml_r=1

32 Platts 2015 South Sudan DR Congo interested in Ugandan crudeoil export pipeline minister httpwwwplattscomlatest-newsoilkampalasouth-sudan-dr-congo-interested-in-ugandan-crude-26025080

19

1 THE QUEST FOR WEALTH

oil production and distribution in several African countriesincluding South Sudan Uganda Kenya Democratic Republicof Congo (DRC) and maybe others33

The forthcoming chapters will develop more elementsaround this topic in order to conclude some final remarkswith the particular case studies of DRC and South Sudan

33 The Economist 2013 Pipeline poacuteker httpwwweconomistcomnewsmiddle-east-and-africa21578402-east-africa-danger-throwing-away-part-its-new-found-oil

20

LIVING IN FEAR

Minerals and Wars at the GreatLakes Wealth Death and Massive

Poverty in the Heart of Africa

Our internal difficulties tribal war and the nucleiof political opposition seemed to have beenaccidentally concentrated in the regions with ourrichest mineral and power resources We know howall this was organised and in particular whosupports it today in our house

Our Katanga because of its uranium copper andgold and our Bakwanga in Kasai because of itsdiamonds have become hotbeds of imperialistintrigues The object of these intrigues is torecapture economic control of our country

Patrice Lumumba speech in Leopoldville in August 25th1960 34

34 Speech at the opening of the All-African Conference in Leopoldville in1960 See httpwwwassatashakurorgforumshoulders-our-freedom-fighters42970-collected-speeches-writings-patrice-lumumbahtml

2

21

2 MINERALS AND WARS AT THE GREAT LAKES

Lumumba the first democratically elected Prime Ministerof the Republic of Congo gave a speech in 1960 that wasremarkably prescient of the fate of Democratic Republic ofCongo (DRC) today Conflict minerals and ldquotribal warsrdquo gohand in hand in the DRC historyrsquos past decades Lumumbawas planning to get the DRCrsquos related difficulties undercontrol however he was executed a few months after thespeech by a firing squad in January 1961 The US throughthe CIA the United Kingdom through the M16 and Belgiumwere all blamed for their involvement in his death35

Paradoxically ldquothe assassinations were made by the ordersof those who proclaim themselves to be champions ofdemocracy and respecters of human rightsrdquo36 Externalmeddling and intervention in Congorsquos affairs by foreigncountries is another of the concurrent and repeated situationsthat continue in recent history of the DRC37

Wars and minerals peace at last

hellip The heart of Africa is bleeding hellip

Two wars raged in DRC from 1996-1997 and from 1998-2003 Contrary to what some affirm these were not ethnicconflicts but resource wars38 No coincidence that the

35 BBC 2013 M16 and the death of Patrice Lumumba httpwwwbbccomnewsworld-africa-22006446

36 VVAA 1992 Congo (Zaire) Democratie neo-coloniale ou deuxiemeIndependance Ed LrsquoHarmattan

37 The Guardian 2011 Patrice Lumumba the most importantassassination of the 20th centuryhttpwwwtheguardiancomglobal-developmentpoverty-matters2011jan17patrice-lumumba-50th-anniversary-assassination

38 See Friends of the Congo websitehttpwwwfriendsofthecongoorgresource-centercongo-primerhtml See also Lanotte 2003 RDCguerre sans frontiers Editions Complexe

22

LIVING IN FEAR

country possesses extraordinary mineral wealth with someof the most valuable and strategic minerals on earth suchas coltan diamond cobalt copper gold tin zincmanganese timber and others The highest concentrationof mining activities existin the Eastern part of the countryTo illustrate the predominance of mining here we wouldunderline the affirmation of the Katanga Minister ofPlanning who said that 72 of the territory of Katanga isdevoted to mining No surprise why the IMF has namedDRC one of the worldrsquos mining giants of today39 Themagazine African Business stated in 2009 that ldquothe totalmineral wealth of the DRC was estimated to be some $24trillionrdquo40 As Lumumba indicated back in 1960 the samescenario repeated in recent years ndash minerals and conflictscontinue to go hand by hand

DR Congo possesses some 80 of the worldrsquoscoltan ore reserves(hellip) Additionally the DRCongo produces significant quantities ofdiamonds gold cassiterite copper cobalt (ofwhich it has the worldrsquos largest reservesalthough the trade is largely controlled byZimbabwe) oil tin zinc gold and coffee Thecountry has large reserves of uranium it wasCongolese uranium that was used for theManhattan Project that produced the worldrsquosfirst atomic bombs dropped on Japan The vastcountry also has more than half of sub-SaharanAfricarsquos timber stocks

Source African Business

39 IMF 2013 DRC Poverty reduction strategy paper N 1322640 African Business 2009 DR Congo $24 trillion fortune

23

2 MINERALS AND WARS AT THE GREAT LAKES

The casualties over the years are overwhelming Whileeverybody is familiar with the death toll during the genocidein Rwanda estimated between 500000 and 800000 peoplethere is much less awareness about the conflict situation inCongo The International Rescue Committee has estimatedthat the conflict and humanitarian crisis in the DemocraticRepublic of Congo has taken a death toll of 54 million peoplefrom 1998 to 200741 A CNN correspondent in trying togive an illustration of the heavy toll made the followingcomparative analysis

The wars in that country ndash RD Congo ndash haveclaimed nearly the same number of lives as havinga 911 every single day for 360 days the genocidethat struck Rwanda in 1994 the ethnic cleansingthat overwhelmed Bosnia in the mid-1990s thegenocide that took place in Darfur the number ofpeople killed in the great tsunami that struck Asiain 2004 and the number of people who died inHiroshima and Nagasaki mdash all combined and thendoubled42

Rwanda and Uganda were actively involved in the invasionof Congo in both wars The second war was known as theGreat War of Africa involving nine countries and more than20 armed groups According to Cynthia Ann McKinney aUS Congresswoman from the Democratic Party and an

41 IRC 2007 IRC study shows Congorsquos neglected crisis leaves 54 milliondead httpwwwrescueorgnewsirc-study-shows-congos-neglected-crisis-leaves-54-million-dead-peace-deal-n-kivu-increased-aidmdash4331 Some groups put the death toll much higher See GlobalResearch webpage httpwwwglobalresearchcathe-war-that-did-not-make-the-headlines-over-five-million-dead-in-congo7957

42 CNN 2012 Why the world is ignoring Congo war httpeditioncnncom20121127opinioncongo-war-ignored-vava-tampa

24

LIVING IN FEAR

expert on the Great Lakes issues while invading DRC in theSecond Congo War the US continued providing financialsupport to the governments of Rwanda and Uganda43 Howwas this allowed US President Bill Clinton was personallyin Rwanda in March 1998 only a few months before theRwandese army invaded Congo44 President Clinton was inAfrica at that time addressing its presidents includingPresidents Kagame and Museveni as leaders of the ldquoAfricanRenaissancerdquo and seeing a bright future for Africa45 ThereClinton made an important call to embrace peace How wasit possible to talk about peace while these allies were directlyengaging in war Moreover with the experience of thegenocide in Rwanda how could it be that foreign powersclosely involved in the region particularly the United Stateslet this occur again How did they allow wars and conflictsthat killed millions of people How could they allow whatmany called another genocide in Congo

On a positive note at last in recent months the calls forpeace have been growing from many different stakeholdersIn May 2014 US Secretary of State John Kerry after ameeting with DRC President Kabila stated that ldquoachievinga lasting peace in the DRC is a priority of President ObamardquoHe added ldquoNow I canrsquot emphasize enough how importantthat process is in identifying and resolving the root causesof the conflict in the DRC as well as in the entire GreatLakes regionrdquo46 Not a minor task going to the roots causes

43 Order of Indictment from Juzgao de instruccion numero CuatroAudiencia Nacional Case 320008-D 6-2-2008

44 See CBS News httpwwwcbsnewscomnewstext-of-clintons-rwanda-speech

45 Schaefer 2000 The Keys to an African Economic Renaissance httpwwwheritageorgresearchreports200005the-keys-to-an-african-economic-renaissance

46 See US Dept of State 2014 Press Availability on the DRC and theGreat Lakes Region httpwwwstategovsecretaryremarks201405225587htm

25

2 MINERALS AND WARS AT THE GREAT LAKES

of those problems in the Great Lakes Indeed achieving peaceand reconciliation in the Great Lakes Region in countriesthat had suffered like DRC is a difficult and cumbersometask and making it by finding the ldquorealrdquo root causes can bea very complex and lengthy exercise taking decades orlonger

The situation remains tense We recall that in 2006 theUN Security Council issued a resolution condemning ldquotheactivities of militias and armed groups operating in the GreatLakes regionrdquo47 Almost a decade later those armed groupsare still there and despite the efforts made the situationremains tense and insecure A report of the Group of Expertson the RDC published in 2015 by the United Nations SecurityCouncil concludes that in DRC despite a defeat of one of therebel groups ndash the Movement of 23 March ndash at the end of2013 this ldquofailed to translate into significant gains in securityand security and stability in 2014rdquo48 For example in thebeginning of 2015 a rebel group from Uganda the AlliedDemocratic Forces (ADF) created havoc in North Kivuwhere 17 people were hacked to death with machetes49

47 UN Security Council 2006 Resolution 1653 (2006) SRES165348 UN Security Council 2015 Final report of the Group of Experts on

the DRC S20151949 UN Security Council 2015 March 2015 monthly forecast http

wwwsecuritycouncilreportorgmonthly-forecast2015-03democratic_republic_of_the_congo_7phpVP-BX5Sm4agmailto

26

LIVING IN FEAR

Armed groups militias and criminal networkswithin the military structure making a lucrativebusiness out of minerals

The UN has solidly demonstrated that natural resources areused to finance armed groups and therefore to fuel war inthe region 50 The UN concludes that ldquoarmed groups continueto control many mining sites and to profit from mining andthe minerals traderdquo51 Later on those minerals particularlytin tungsten and tantalum are smuggled to neighbouringcountries For example one of the armed groups theMovement of 23 March (M23) responsible for taking Gomaat the end of 2012 was financing its organisation fromnatural resources in Eastern Congo In relation to thisparticular case the UN asserts that ldquoseveral traders havecontributed to financing M23 rebels using profits resultingfrom the smuggling of Congolese minerals into Rwandardquo52

Besides the rebel groups a criminal network within theArmed Forces of the DRC (FARDC) was involved in the illegalexploitation of natural resources The types of involvementinclude illegal taxation protection rackets and indirectcommercial control to more direct coercive control53

For some top army officials their military work wasconverted into economic businesses Indeed the existing

50 UN Security Council 2014 Final report of the Group of Experts onthe Democratic Republic of the Congo

51 Ibidem52 Ibidem53 UN Security Council 2010 Letter dated 26 October 2010 from the

Group of Experts on the DRC addressed to the Chair of the SecurityCouncil Committee established pursuant resolution 1533 (2004) S2010596

27

2 MINERALS AND WARS AT THE GREAT LAKES

practices made the UN qualify the war as a ldquolucrativebusinessrdquo

illegal exploitation of resources by BurundiRwanda and Uganda took different forms includingconfiscation extraction forced monopoly andprice-fixing The first two forms reachedproportions that made the war in the DRC a verylucrative business There are strong indicationsthat even if security and political reasons werethe professed motivation to move into the easternDRC some top army officials clearly had economicand financial objectives54

The most UN recent reports affirm that ldquomany armed groupsin Eastern Democratic Republic of the Congo have derivedtheir revenue from the production of and trade in naturalresourcesrdquo55

54 UN Security Council 2001 Security Council condemns ilegal exploitationof Democratic Republic of Congoacutes natural resources Press Releasehttpwwwunorgpressen2001sc7057dochtm

55 UN Security Council 2014 Final report of the Group of Experts on theDRC S201442

28

LIVING IN FEAR

Insecurity still booming in Eastern Congo

As already mentioned the momentum created bythe defeat of the Movement of 23 March inNovember 2013 failed to translate into significantgains in security and stability in 2014 in EasternDemocratic Republic of the Congo A militaryoperation against the Allied Democratic Forces(ADF) significantly weakened but did not defeatthe sanctioned armed group An expected militaryoperation against the Forces deacutemocratiques delibeacuteration du Rwanda (FDLR) did not materializeand as of the end of November 2014 efforts tonegotiate the disarmament of this sanctionedarmed group failed to produce meaningful resultsIn addition numerous Congolese and foreignarmed groups contributed to instability inOrientale North Kivu South Kivu and KatangaprovincesADF FDLR Nduma Defence for Congo (led bysanctioned individual Sheka Ntabo Ntaberi) andother armed groups continued to recruit train anduse child soldiers in 2014 Armed groups alsocommitted a variety of other abuses includingtorture enslavement and sexual violence Therewere mass killings in June in Mutarule (South Kivu)and in October and November in Beni territory(North Kivu)

Source United Nations Security Council 201556

29

2 MINERALS AND WARS AT THE GREAT LAKES

One of the problems the existing insecurity and conflicts havecreated is the proliferation of internally displaced peopleestimated in September 2014 at 27 million people57

UN peacekeeping operation in Congo

In July1999 Heads of State of Angola DRC NamibiaRwanda Uganda Zambia and Zimbabwe signed the Lusakaagreement focusing on the establishment of a ceasefire asone of the other components necessary for the deploymentof a UN peacekeeping force

The first UN Peacekeeping operation in DRC wasestablished in November 1999 after the Lusaka Ceasefireagreement It was called the UN Mission in the DRC(MONUC) In 2010 it was renamed the UN OrganizationStabilization Mission in the DRC (MONUSCO)

Ten years later despite the deployment of MONUC thesecurity challenges in DRC ndash particularly in the Eastern Partof the country ndash remain high58 There is still a strong presenceof armed groups chronic humanitarian crisis continuoushuman rights violations and continued illegal exploitationof natural resources In the light of this context the UNcreated an ldquoIntervention brigaderdquo with a key objective ofneutralizing armed groups59 As of today the MONUSCOand the intervention brigade are operational but are theresignificant security changes

56 Ibidem57 See global humanitarian assistance webpage http

wwwglobalhumanitarianassistanceorgcountryprofiledemocratic-republic-of-congo

58 UN Security Council 2010 Resolution 192559 UN Security Council 2013 Resolution 2098

30

LIVING IN FEAR

60 UN Security Council 2014 Final report of the Group of Experts on theDRC S201442

61 PR Newswire 2014 Rwanda has become worldacutes largest coltanexporterhttpwwwprnewswirecomnews-releasesrwanda-has-become-worlds-largest-coltan-exporter-reports-kt-press-300010371html

62 PR Newswire 2014 Rwanda has become worldacutes largest coltanexporter

63 Africa Briefing 2015 Rwanda has abundant deposits of best qualitycoltan Kagame affirms httpafricabriefingorgp=478

Legitimate exports or smuggling conflictminerals

It is well known that many of the minerals in Eastern Congoare smuggled and do not follow legal channels For instancethe UN estimates that 98 of the gold produced in DRC issmuggled out of the DRC making the country lose millionsof dollars in tax revenue60

In December 2014 numerous media covered a story onRwanda and coltan PR Newswire affirmed that ldquoRwandahas become worldacutes largest coltan exporterrdquo61 The dataprovided concluded that in 2013 Rwanda exported around2500000 kg of tantalum which constituted 28 of the total8807232Kg of tantalum produced globally The overallrevenue from the coltan was estimated at around $140 M62

Rwandese President Paul Kagame was quoted as affirmingthat the production was local and dismissed all possibleallegations of plundering the coltan from Congo He affirmedldquoRwanda has not only enough coltan but of a very highquality (hellip) we can even pay for a ticket give them a visaand take them to the minesrdquo63

Contrary to such statements there are many reports thatcoltan is smuggled from Congo to Rwanda and that Rwandadoes not have significant coltan mining on its own For

31

2 MINERALS AND WARS AT THE GREAT LAKES

instance a 2012 report prepared by a European Foundationaffirmed that ldquoRwanda does not house any industrial coltanmines which would suggest legitimate Rwandan coltanproductionrdquo64 A US governmental agency which analyzesthe mining sector in Congo made a table with coltan exportedfrom Rwanda qualifying it as ldquoconflict mineralsrdquo as seen inTable 165 Since there is no known conflict in Rwanda it canonly refer to Rwanda exports of minerals originating froman external conflict zone the DRC

Table 1 Estimates of exports of conflictminerals from Rwanda for Fiscal years2009-2013 in Metric Tons

Year Tantalum

FY 2009 958

FY 2010 827

FY2011 915

FY2012 1139

FY 2013 2466

Source Based on United States Government Accountability Office 2014

64 Van Teeffelen 2012 The EU raw materials policy and mining in RwandaEvert Vermeer Foundation

65 United States Government Accountability Office 2014 Conflictminerals stakeholder options for responsible sourcing are expandingbut more information on smelters is needed

32

LIVING IN FEAR

In this particular situation either somebody is wrong orsomebody is lying Hopefully future events will unveil thetruth around the nature of the coltan exports from Rwandato clarify whether they are a legitimate export or theconsequence of smuggling conflict minerals

Greed for minerals everybody wants a pieceof Congo66

What is at the origin of those wars and instability of theCongo While there could be diverse factors for conflictthere is one that seems to be always recurrent and is recog-nized by most authors and by relevant UN reports the racefor minerals and natural resources The UN recognized thatin the Second Congo War minerals were the coveted trophyand that all actors ldquobuilt up a self-financing war economycentred on mineral exploitationrdquo67 The conflicts that con-tinued after the Second Congo War like those in Kivu andIturi provinces are recognized as well to be fuelled by tradein minerals Along the same lines Palou underlines the causesof the conflict by stating that ldquoalthough from that time un-til the present day the Rwandan regime has expressed itsconcern about the security of its border with the then Zaireobjectively the reality is that control over this strategic areandash Eastern Congo ndash and its valuable mineral resources has

66 See video at Congo Justice httpcongojusticeorg67 UN 2002 Final report of the Panel of Experts on the illegal exploitation

of natural resources and other forms of wealth of the DemocraticRepublic of the Congo S20021146

33

2 MINERALS AND WARS AT THE GREAT LAKES

proved to be at the heart of two wars that have left a hugenumber of victimsrdquo68 In conclusion a 2001 UN report as-serted that ldquothe conflict of DRC has become mainly aboutaccess control and trade of five key mineral resourcescoltan diamond copper cobalt and gold The wealth of thecountry is appealing and hard to resist in the context oflawlessness and the weakness of the central authorityrdquo69

Congolese and regional elite have also profited from thissituation as well and the appalling quantum of the plunderare reflected in the following report from UN

The elite network of Congolese and Zimbabweanpolitical military and commercial interests seeksto maintain its grip on the main mineral resourcesmdash diamonds cobalt copper germanium mdash of theGovernment-controlled area This network hastransferred ownership of at least US$ 5 billion ofassets from the State mining sector to privatecompanies under its control in the past three yearswith no compensation or benefit for the Statetreasury of the Democratic Republic of the Congo70

Funds that could have been used for public services havebeen diverted from the public coffers by fraud or by theexcuse of war effort71 The Congolese population has paid

68 Palou 2010 International Justice plunder in war human rights andmultinationals

69 UN Security Council 2001 Report of the Panel of Experts on theillegal exploitation of natural resources and other forms of wealth ofthe Democratic Republic of the Congo S2001357

70 UN Security Council 2002 Final report of the Panel of Experts on theilegal exploitation of natural resources and other forms of wealth ofthe Democratic Republic of the Congo S20021146

71 Ibidem

34

LIVING IN FEAR

dearly in this situation In terms of human development it isinstructive that the UNDP estimated in 2013 that RDCwas in the low human development category ndash positioningthe country at 186 out of 187 countries and territories72

The Role of Transnational Corporations (Tncs)and the private sector

Other key players involved in the conflict are Transnationalsand the private sector A UN Report published a few yearsafter the Second Congo War started affirmed that ldquothe roleof the private sector in the exploitation of natural resourcesand the continuation of the war has been vitalrdquo73 The reportalso added that ldquoa number of companies have been involvedand have fuelled the war directly trading arms for naturalresourcesrdquo74 Other observers share the view that ldquoWesternMultinationals have been one group responsible for thepillage and illegal exploitation of Congo mineral resourcesrdquo75

There are a large number of big foreign corporationsinvolved in mining in DRC including those from CanadaSouth Africa UK USA and others Despite the opacity ofmost of the activities of the private sector numerousexamples have been reported of how TNCs are responsiblefor human rights abuses and other illegal activites Thereare also many reports of the dangerous connectionsestablished with the political and military elite in order tofacilitate their businesses These are some examples

72 UNDP 2014 Sustaining human progress reducing vulnerabilities andbuilding resilience Congo (Democratic Republic of the) httphdrundporgsitesallthemeshdr_themecountry-notesCODpdf

73 UN 2001 Report of the Panel of Experts on the illegal exploitation ofnatural resources and other forms of wealth of the Democratic Republicof the Congo S2001357

74 UN 2001 Ibidem75 Palou Ibidem

35

2 MINERALS AND WARS AT THE GREAT LAKES

bull Glencore Anglo-Swiss giant in the raw material sectorwith a turnover of US $ 2397 billion in 2013 was beingaccused in 2014 of adopting a military-style response tothe problem of artisanal mining close to its mines ldquoonseveral occasions over the past 18 months mine policehave fired live ammunition in pursuit of artisanal minerson Glencorersquos site resulting in deaths and seriousinjuriesrdquo76 They are as well responsible forcontamination of the water supply with acid content andvery high and concentrations of copper and cobaltFinally the company operates some of its concessionsinside a reserve ndashndash something that in principle is illegalaccording to the RDC Mining Code77

bull An independent investigation unveiled that two miningcompanies Glencore and the Eurasian Natural ResourcesCorporation were involved in underpricing assets incomplex deals featuring offshore companies causinglosses to the DRC of no less than $136 billionIntermediary companies in the deals were linked to DanGerler78 In addition the DRC public prosecutorreportedly told mining companies that they had toreimburse $37 billion in taxes duties and fines79

bull AngloGold Ashanti part of the AngloAmericancorporation was accused of establishing links and

76 Peyer et al 2014 PR or Progress Glencoreacutes corporate responsibility inthe DRC Bread for all RAID Fastenopfer

77 Ibidem78 CRS 2014 Democratic Republic of Congo Background and US Policy79 Reuters 2014 Disputed Congo report says miners owe $37 billion in

tax fines httpwwwreuterscomarticle20140130us-congo-democratic-mining-idUSBREA0T12L20140130

36

LIVING IN FEAR

supporting one armed group the Nationalist andIntegrationist Front (FNI)80

bull In 2004 fighting between soldiers and rebels in Kilwaended in serious human rights violations againstcivilians including summary executions arbitraryarrests rape and torture Anvil Mining operated theDikulushi copper mine near Kilwa and was accused ofproviding vehicles and planes to the Congolese armedforces during this event The legal case ended in theCanadian Supreme Court in 2012 which ruled that itwould not hear the plaintiff rsquos appeal ndash they were led bythe Canadian Association Against Impunity (anassociation representing survivors of the incidents inOctober 2004)81

bull In May 1997 Citibank NY a financial institution hasbeen accused of giving $5 million loan to a Congolesemilitia allied with Rwanda82

bull American Mineral Fields (AMF) cut a $1 billion dealwith Kabila immediately after his forces captured GomaThe negotiations were led by ldquoKabilarsquos US-trainedfinance ministerrdquo who gave ldquoAMF exclusive explorationrights to zinc copper and cobalt mines in the area MikeMcMurrough a friend of US President Bill Clinton wasthen the chair of AMF83

80 Human rights watch 2005 DRC Gold fuels massive human rightsatrocities httpwwwhrworgennews20050601dr-congo-gold-fuels-massive-human-rights-atrocities

81 Business and human rights resource center 2012 Anvil Mining Lawsuit(re DRC) httpbusiness-humanrightsorgenanvil-mining-lawsuit-re-dem-rep-of-congo

82 Global research 2008 Congo Resource wars httpwwwglobalresearchcacongo-resource-wars8310

83 Global research 2008 Ibidem

37

2 MINERALS AND WARS AT THE GREAT LAKES

UN and some other independent reports generally makebroad statements about the role of corporations includingciting some of the companies however they fall short ofproviding details of the modus operandi of those companiesand in establishing or suggesting concrete measures to stopthe conflicts and solve the negative impacts on the DRCpopulation and environment A 2002 UN Report listed 85companies considered by the Panel to be in violation of theOECD Guidelines for Multinational Enterprises84 Very littlehas been done after the UN report was published

A poor country Until when

In 1969 World Bank President Robert McNamara embarkedon a trip to Africa to try to discover ldquowhat are therequirements for developmentrdquo85 At that time the WorldBank in its information document described the country asrich in natural resources but at the same time poor and witha strong mining sector

In spite of its rich natural resources and greatpotential the Congo is still a poor country (hellip)Mining and metallurgy play a leading role in theeconomy86

84 UN 2002 Final Report of the Panel of Experts on the Illegal Exploitationof Natural Resources and other Forms of Wealth of the DemocraticRepublic of the Congo S20021146

85 Records of President Robert S McNamara Travel briefs CongoKinshasa (01021969-03031969) 1772506 Reference Code WBIBRDIDA 03 EXC-10-4540S World Bank Group archives WashingtonDC United States

86 Ibidem

38

LIVING IN FEAR

More than forty years later not much has changed asupdated data shows In DRC seven out of ten householdsare poor87 Most of its nearly 60 million people areldquodesperately poor living on less than $1 a dayrdquo88 DRC is aleast developed country a fragile State that has been in thetop 10 recipients of humanitarian assistance in nine of thelast 10 years Between 2003 and 2012 DRC received US$176billion in official development assistance (ODA) making itthe 10th largest recipient89In 2012 the Democratic Republicof Congo (DRC) received US$286 billion in net officialdevelopment assistance90

With so many natural resources isnrsquot there money to getpeople out of poverty The mining sector is oftenacknowledged as being capable of contributing to povertyreduction However those mineral benefits are oftencreamed off by powerful interests and do not get to thehands of the majority of the population According to DFIDldquofiscal receipts from the minerals sector are siphoned off bypowerful interest groups instead of being used in the publicsectorrdquo91

The analysis of Mr Antonino Giambrone sheds more lightabout the earnings and who profits from mining

While the average Congolese worker earns $10 permonth the average Congolese coltan-miner earnsanywhere from $10 to $50 per week Uganda

87 IMF 2013 DRC Poverty reduction strategy paper N 1322688 DFID 2008 Democratic Republic of Congo Country Plan89 View global humanitarian assistance webpage http

wwwglobalhumanitarianassistanceorgcountryprofiledemocratic-republic-of-congo

90 CRS 2014 Democratic Republic of Congo Background and US Policy91 DFID 2008 Democratic Republic of Congo Country Plan

39

2 MINERALS AND WARS AT THE GREAT LAKES

Rwandan and Congolese rebels have earned manymillions of dollars in sales of coltan which theyhave used to finance their war efforts in the CongoBetweeen 1999 and 2000 the Rwandan army aloneearned at least $20 million a month from coltan92

Food insecurity is often a consequence of poverty One ofthe causes of existing food insecurity is the abandonment ofthe agriculture sector partly due to conflicts The governmentstated that it would like to strengthen the smallholdersldquowhile ensuring at the same time the protection of thecountryrsquos natural resourcesrdquo93

War impacts on the environment

The wars have had devastating impact on the environmentNational parks for instance home of many endangeredspecies are also affected by the exploitation of minerals94

There are numerous reports on the precarious situation ofwildlife in the region For instance between 1995 and 19994000 out of 12000 elephants were killed in the GarambaPark in North-eastern DRC95 The situation was also seriousin other parks For instance in Kahuzi-Biega Park a zonerich in coltan only 2 out of 350 elephant families remained

92 Giambrone 2006 The extraction of natural resources as a source ofconflict Etfo voice

93 IMF 2013 DRC Poverty reduction strategy paper N 1322694 Seeh ttpwww lenntech comenv ironmental -ef fec ts -

warhtmixzz3CuGZqE3M95 UN 2001 Report of the Panel of Experts on the illegal exploitation of

natural resources and other forms of wealth of the Democratic Republicof the Congo S2001357

40

LIVING IN FEAR

in 200096 Mountain gorillas are also under threat due tocontinued civil unrest and the presence of armed militiasmakes survey and conservation work difficult in the DRCrsquosprotected areas97

Deforestation is also one of the common impactsWorldwatch explains the implication of having refugeespopulation inhabiting RDC degraded forest areas

For two years beginning in late 1994 for exampleabout 720000 Rwandans inhabited refugee campson the fringes of Virunga National Park They allneeded wood for cooking fires and for buildingshelters and some also earned extra money bymanufacturing charcoal As a result up to 80000people entered the park and carted away up to1000 tons of wood every day By mid-1996 105square kilometers of forest had been affected toone degree or another by their activities 35 squarekilometers had been stripped bare98

Besides the need for fuelwood by refugees movement ofmilitary hardware through forests and woodlands also causeserious damage to forests and the landscape generally

96 Ibidem97 See WWF webpage httpwwfpandaorgwhat_we_doendangered_species

great_apesgorillasmountain_gorilla98 Worldwatch 2008 War and Environment httpwwwworldwatchorg

node5520

3South Sudan The Oil Way

99 Washington Post 2012 lsquoSouth Sudan civilians are trapped in conflictover oilrsquo httpwwwwashingtonpostcomworldsouth-sudan-civi l i ans-are- trapped-in-conf l ict -over-o i l20120501gIQAUX6buT_storyhtml

100 See UN Mission in South Sudan web page httpwwwunmultimediaorgtvunifeed201404south-sudan-bentiu-massacre

101 Reuters 2014 Bentiu massacre is game-changer in South Sudanconflict says UN official httpwwwtheguardiancomworld2014apr22bentiu-massacre-south-sudan-united-nations

41

ldquoIf we had no oil we would not be attackedrdquo

Nyak a 27-year-old sitting outside herhut in Bentiu South Sudan 201299

In April 2014 Bentiu the capital of the oil producing UnityState was the scenario of one of the worst massacres of thecivil war between South Sudanese forces100 Hundreds ofpeople were killed in the fighting that took place betweenthe Sudan Peoplersquos Liberation Army (SPLA) and anti-government forces in the oil-rich State101

42

LIVING IN FEAR

Civil wars and conflict

Since its independence in 1956 Sudan has been at war andconflict for most of its modern history Specialists in conflictand security have described the history of modern Sudan asldquoan unremitting sequence of wars punctuated by oft-violatedpeace agreementsrdquo102 The First Sudanese Civil War (1955ndash1972) was followed by a Second Sudanese Civil War (1983ndash2005) with barely 11 years breathing space of tenuoussecurity

The Second Civil War ended when both sides signed theComprehensive Peace Agreement in 2005 That agreementgave autonomy to South Sudan within Sudan However areferendum held in January 2011 moved the region towardsecession and then in July 2011 independence was achievedand South Sudan became an autonomous nation103 Theprocess that led to South Sudanrsquos independence was stronglysupported by the US government which backed Juba in itstwo decades struggle against Khartoum104 It should be notedthat even during the 11 years of supposed peace there wereconflicts on a regular basis particularly in the border areasbetween South Sudan and Sudan105 Two years after theindependence the first South Sudanese Civil War started inDecember 2013 The civil war erupted as a result of a power

102 Cox and Snapper 2013 The Strategic Importance of South Sudan TelAviv University

103 National Geographic 2013 South Sudan oil the environment andborder conflicts httpvoicesnationalgeographiccom2013032286550

104 See webpagehttpwwwworkersorgarticles20140101south-sudan-yet-another-oil-war

105 International Crisis Group 2006 Sudan Saving peace in the Easthttpwwwcrisisgrouporgenregionsafricahorn-of-africasudan102-sudan-saving-peace-in-the-eastaspx BBC 2015 South SudanProfile httpwwwbbccomnewsworld-africa-14019202

43

3 SOUTH SUDAN THE OIL WAY

struggle between president Salva Kiir from the Dinka ethnicgroup and his deputy Riek Machar from the Nuer ethnicgroup whom he had sacked As at the time of this writingthe civil war continues

Sudan vs South Sudan

The tensions and conflicts after the independence of SouthSudan from its neighbour Sudan did not stop in 2011 Topleaders from both sides accuse and threaten each other innumerous occasions For instance Sudanese President Bashirpromised to teach South Sudan a ldquofinal lesson by forcerdquo106

South Sudan President firmly swore that ldquowhether Umar al-Bashir likes it or not one day Abyei will rejoin the southrdquo107

Abyei

Abyei is traditionally the home of the Ngok Dinka asubdivision of the Dinka tribe with strong links to the Dinkain South Sudan Besides the Dinka Misseriya herders aremembers of nomadic Arab tribes that seasonally cross Abyeiand other nearby areas with their cattle in search of waterand pasture108

Since the signing of the Peace Agreement in 2005 betweenthe Government of Sudan and the SPLM the dispute over

106 The Washington Post 2012 lsquoSudanese president vows war againstSouth Sudanrsquo httpwwwwashingtonpostcomworldsudanese-president-threatens-force-against-south-sudan-over-oil-field20120419gIQAJ0G8ST_storyhtml

107 The Global Intelligence Files 2013 Sudan- President Kiir says Abyeiwill ldquorejoinrdquo South Sudan httpssearchwikileaksorggifilesviewemailid=674314

108 Enough Project 2013 What is the Abyei Area and why is it disputedhttpwwwenoughprojectorgblogsenough-101-what-abyei-area-and-why-it-disputed

44

LIVING IN FEAR

the future status of the Abyei area has beenone of the bigbarriers to stability in the region109Abyei is an oil-rich areadisputed by Sudan and South Sudan and stands out as thehotspot of bigger tension beetween Sudan and South Sudannowadays

The conflicts over Abyei have a history of more than 50years After the First Civil war the parties signatories to thepeace pact agreed that Abyei would hold a referendum todetermine whether they would be part of Sudan or a newlyregion in the South The second war commenced in 1983and the foreseen referendum was not done

In 2009 the Permanent Court of Arbitration in the Hagueruled on Abyei territory giving concessions to the Governmentof Sudan and the Southern Sudan Heglig and other closeroil-fields remained out of Abyei area while the rest of theAbyei region remained under control of the Ngok Dinka anethnic group close to Southern Sudan and keen on voting tojoin the South in a future referendum110Another referendumwas scheduled to be done in parallel with the South Sudanreferendum in 2011 but once again this never took place

Although a series of temporary security arrangementswere agreed in January and March 2011111 in May SudaneseArmy tanks entered the town of Abyei and by the 22nd ofMay they seized control of the town112The government ofSudan launched numerous military attacks in the disputed

109 UN Security Council 2011 Report of the Secretary-General on thesituation in Abyei S2011451

110 New York Times 2009 lsquoCourt redraws disputed area in Sudanrsquo httpwwwnytimescom20090723worldafrica23sudanhtml_r=1amp

111 UN Security Council 2011 Report of the Secretary-General on thesituation in Abyei S2011451

112 Reuters 2011 North Sudan seizes disputed Abyei thousands fleehttpwwwreuterscomarticle20110522us-sudan-abyei-north-idUSTRE74L14L20110522

45

3 SOUTH SUDAN THE OIL WAY

border of area where much of Sudanacutes remaining oil fieldsare situated113 Two years later the fighting remains intensein parts of South Kordofan and Blue Nile114 More than 2million people have been internally displaced or severelyaffected by the conflict since 2011115

In addition to military attacks other actions contributedto the tension There have been cattle raids by the MissiriyandashArab nomadic cattle herders inhabiting the area ndash on theNgok Dinka ndasha subdivision of the Dinka tribe inhabitingthis area In occasions more than 200 cows were stolenwith a large part of it recovered by the UN Interim SecurityForce for Abyei(UNISFA) These raids increase further thealready tense situation in the region and in particular thevery tense situation among the Missiriya and the NgokDinka116

113 The Conversation 2012 Oil fuels the conflict between Sudan andSouth Sudan ndashand it keeps getting hotter

114 OCHA 2014 South Kordofan and Blue Nile population movementsfact sheet httpreliefwebintsitesreliefwebintfilesresourcesSouth20Kordofan20and20Blue20Nile20Population20Movements20Fact20Sheet20-201920May202014pdfReuters 2013 Khartoum says rebels based in South Sudan caused oilpipeline blast

115 OCHA 2014 Ibidem116 See Human Security baseline assessment for Sudan and South Sudan

webpage httpwwwsmallarmssurveysudanorgdefacts-figuresborderdisputed-areasabyeihtml

46

LIVING IN FEAR

An oil-centered conflict

ldquoThe violence underscores the extent to which oilis at the heart of the dispute Khartoum whichcontrols the pipelines that take oil out of SouthSudan depends heavily on oil transit fees SouthSudan which depends on oil for 98 percent of itsrevenue has refused to pay the fees which it saysare exorbitantKhartoum responded by seizing oil tankers carryingSouth Sudanese oil and imposing economicblockades That prompted South Sudan to shutdown its entire oil production in February Thatmonth Sudan allegedly bombed an oilfield inSouth Sudan that was nine miles from the borderrdquo

Washington Post 2012

Missiriya attacks continue as of today UNISFA reported thatin March 2015 100 armed Missiriya killed several peopleand burnt over 20 houses in a village in the southern part ofAbyei117 Many of those attacks occur despite the presenceof UN peacekeepers in the zone

In this context a UN force was deployed in 2011 withmore than 4000 personnel mostly Ethiopian with theobjective of ensuring the demilitarization of the Abyei areaand particularly checking the Sudan Armed Forces and theSudan Peoplersquos Liberation Army Interestingly the UN forceshad also the task to provide security for oil infrastructure inthe Abyei Area in cooperation with the Abyei PoliceService118 In February 2015 the Security Council extended

117 Sudan Tribune 2015 South Sudan condemns deadly clashes in Abyeihttpwwwsudantribunecomspipphparticle54191

118 UN Security Council 2011 Resolution 1990 (2011) SRES1990(2011)

47

3 SOUTH SUDAN THE OIL WAY

the mandate of the UNISFA again until July 2015119 The AbyeiJoint Oversight Committee (AJOC) decided in May 2013 thatAbyei should adopt a status as weapons-free area and thatonly UNISFA would be authorized to carry weapons in thearea120

The situation in the area is still very fragile121 For instancevarious resolutions have called for the redeployement of allmilitary personnel from Abyei including those protecting itsoil infrastructure However the Sudanese Governmentskeeps at the Diffra oil complex around 150 Sudan oil policein a clear violation of an agreement and Security Councilresolutions adopted in 2011122 The UN Security council ina recent resolution

Condemns the presence of Diffra Oil Police unitsdeployed in the Abyei Area as well as the repeatedentry of armed militias into the territory andreiterates its demands that immediately andwithout preconditions the Government of Sudanredeploy the Oil Police in Diffra from the AbyeiArea ()123

Conflicts escalating over oil Heglig battles

In 2012 despite the Permanent Court of Arbitration ruling124

which placed Heglig oilfields in the Sudanese territories

119 UN News Center 2015 Security Council extends UN peacekeepingforce in Abyei through July 2015

120 UN Security Council 2015 Ibidem121 UN Security Council 2015 Security Council adopting resolution 2205

(2015) extends interim force in Abyei until 15 july voicing concernover delays in Borde Mechanismrsquos operation httpwwwunorgpressen2015sc11800dochtm

122 UN Security Council 2014 Report of the Secretary-General on thesituation in Abyei S2014518

123 UN Security Council 2015 Ibidem124 See Permanent Court of Arbritation webpage httpwwwlocgov

lawwebservletlloc_newsdisp3_l205401463_text

48

LIVING IN FEAR

the South Sudanese army launched an attack over Heglig125

South Sudanrsquos army took control of the oil-producing townof Heglig The South Sudan move did not enjoy sympathyfrom many countries including its allies such as the US andBritain126 The African Unionrsquos (AU) Peace and SecurityCouncil considered Sudanrsquos occupation of Heglig as illegal127

At the end after a few days South Sudan pulled back itstroops from Heglig even though President Salva Kiir stillclaims that Heglig is a part of South Sudan and is expectinginternational arbitration

Oil and geopolitics

The implications of the oil economy are self-telling Prior tothe separation of Sudan from South Sudan in 2011 theunified Sudan was the second-largest non-OPEC oil producerin Africa in 2010 When they separated Sudan and SouthSudanrsquos production diminished and together they rankedas the fourth-largest non-OPEC African oil producer in 2013Particularly the split of the country in oil revenues economicterms was a huge blow to Sudan with its crude oil exportrevenues falling from almost $11 billion in 2010 to around$18 billion in 2012128 It has been estimated that oilcontributes 98 of South Sudan government income morethan for any other government in the world129

125 Wall Street Journal 2012 Sudan escalates fight over oil httpwwwwsjcomarticlesSB10001424052702304444604577339461981143808

126 The Guardian 2012 South Sudan to withdraw from disputed oiltownhttpwwwtheguardiancomworld2012apr20south-sudan-withdraw-oil-town

127 IRIN 2012 Sudan-South Sudan Heglig and the border128 US Energy Information Administration 2014 Country analysis brief

Sudan and South SudanhttpwwweiagovcountriesanalysisbriefsSudansudanpdf

129 Global Witness 2009 Fuelling mistrust

49

3 SOUTH SUDAN THE OIL WAY

Although oil exploration started at the end of the 1950showever no success was achieved with the activities of Italianoil company Agip130 Discoveries were found in the years tofollow The first oil discovery was made in 1979 when theAmerican company Chevron found oil near the Darfur-Kordofan boundary Three years later Chevron made twolarger discoveries the Heglig and Unity oilfields which asof today are the most productive However by 1984 Chevronstopped its operations when some of its workers were killedby an armed group By 1988 the company dismantled all ofits operations in Bentiu and Unity provinces131

As a landlocked country all the oil in South Sudan had tobe extracted and exported via a pipeline The pipeline wasconstructed by China National Petroleum Corporation andit covered a length of around 1600 kilometers132 Ittransports the oil from South Sudan to the Red Sea Thecost of the pipeline was estimated at $1 billion and it wasfinished in 1999133At the time of the construction of thepipeline Sudan provided less than 1 of Chinarsquos oil importsbut a few years later by 2009 the investments of Chinatotalled more than $8 billion134

130 Understanding Sudan 2009 Fact sheet two A history of oil in theSudan httpunderstandingsudanorgOilOilResourcesL2FS2-HistoryofOilinSudanpdf

131 Understanding Sudan Ibidem132 The Conversation 2012 Oil fuels the conflict between Sudan and

South Sudan ndashand it keeps getting hotter133 Sitarek 2001 The human price of oil ICE Case Studies Number 83

httpwww1americanedutedicesudansanctionshtm16134 The Conversation 2012 Ibidem

50

LIVING IN FEAR

Source US Energy Information Administration 2014

South Sudan becameindependenth in July2011 Taking aboutthree-quarters of theproduction A disputeover transit fees ledSouth Sudan to haltproduction for most of2012

Oil production inSudan and South Sudan

thousand barrels per day

51

3 SOUTH SUDAN THE OIL WAY

Main oil companies in Sudan and South Sudan

While initially many companies involved were of Westernorigin most of the companies now involved in the oil sectorare from China and Malaysia

Source US Energy Information Administration 2014 Countryanalysis Brief Sudan and South Sudan

Row over oil tariffs

By 2011 both countries did not agree on how much SouthSudan should pay to export its oil through the pipelines inSudan Sudan requested a fee of 33 dollars a barrel whileSouth Sudan said the highest fee they could afford was 2

Table 2 Main oil companies in Sudan and South Sudan

52

LIVING IN FEAR

dollars a barrel135 Following this lack of agreement SouthSudan halted crude oil production in early 2012

This decision worsened the economic situation in bothcountries as both depend hugely on money from oil exportsfor their revenues However an agreement was reached andin April 2013 South Sudan restarted oil production136

Causes of the Sudanese Civil War

Wars in Sudan have been often portrayed quite simplisticallyas an ArabMuslim north versus and an AfricanCristiansouth While certainly ethnicity and religion played a rolethe conflict has been mainly fought over natural resources137

Today oil is the countryrsquos main natural resource and ithas been estimated that it accounts for 98 of South Sudanrsquosrevenue138 The multibillion potential of their revenuehowever has not translated into wealth and benefits for themajority of the population of South Sudan First of all it hasnot solved the problem of security as since the very inceptionof the State of South Sudan in 2011 there were conflicts inmany areas of the country particularly in the borderline withSudan A 2013 report from the World Bank illustrates thisby asserting that ldquodespite South Sudanrsquos great resourcewealth its population is one of the most deprived due todecades of neglect and war and the distortions of the oil

135 IPS 2011 South Sudan rows over exorbitant fees for pipeline use136 Reuters 2013 South Sudan resumes oil output after ending row with

Sudan over transit fees137 Caas 2007 Natural resources and conflict in Sudan138 See World Bank webpagehttpwwwworldbankorgencountry

southsudanoverview

53

3 SOUTH SUDAN THE OIL WAY

economyrdquo139 Indeed oil reserves sitting on a disputed borderbetween Sudan and South Sudan have not translated yetinto wealth for the majority of citizens of South SudanInstead most of the inhabitants of the country remain deeplypoor and do not enjoy even basic rights to access potablewater and adequate sanitation140

Oil has been a main cause for the war and conflicts inSudan For instance it influenced the end of the peaceagreement obtained after the first civil war This first civilwar ended in 1972 with the Addis Ababa Agreement Theagreement established a system of peaceful co-existence witha single country by guaranteeing aNorthern basedgovernment but granted at the same time autonomy in theSouth This however was not going to last long as thediscovery of oil at the end of the 1970s in Southern Sudanchanged the ldquocoexistencerdquo idea In 1978 Sudanese PresidentNimeiry decided to embark on oil exploration project thatwould lead to the finding of oil in commercial quantities Inorder to control the oil within the hands of the Northernbased Government military force was used and in additionto imposing islamic law which led to the new civil warstarting in 1983141

139 World Bank 2013 Interim Strategy Note (FY 2013-2014) httpwww-wdsworldbankorgexternaldefaultWDSContentServerWDSPIB20130207000333037_20130207110223RenderedPDF747670ISN0P1290Official0Use0Only090pdf

140 National Geographic 2013 South Sudan oil the environment andborder conflicts httpvoicesnationalgeographiccom2013032286550

141 Sitarek 2001 The human price of oil ICE Case Studies Number 83httpwww1americanedutedicesudansanctionshtm16

54

LIVING IN FEAR

Numerous authors have identified natural resources ashaving a direct correlation with wars and conflicts142 Ananalysis by Ross of the University of California (UCLA) ofthirteen wars and conflicts concluded that in the case ofSudan oil was one of the key causes of the second civil warand an incentive for advancing the independence of SouthSudan143 Ross describes his conclusion in the followingmanner

War in Sudan began in 1983 when SudanesePresident Nimeiry took a series of measures thatupset the delicate balance between thepredominantly Muslim north and the heavilyChristian and Animist south among these measureswas his decision to place newly discovered oil inthe countryrsquos south under the jurisdiction of thenorth and to build an oil refinery in the northinstead of the south The Sudan Peoplersquos LiberationArmy (SPLA) subsequently complained that thenorth was stealing the resources of the southincluding oil demanded that work cease on apipeline to take oil from the south to the refineryin the north and in February 1984 attacked an oilexploration base killing three foreign workers andbringing the project to a halt144

142 Varisco 2010 lsquoA study on the inter-relation between armed conflictand natural resources and its implications for conflict resolution andpeace buildingrsquo Journal of Peace Conflict and Development issue 15Ross 2003 How do natural resources influence civil war Evidencefrom 13 cases httpwwwsscnetuclaedupoliscifacultyrossHowDoesNat3pdf

143 Ross Ibidem144 Ross Ibidem

55

3 SOUTH SUDAN THE OIL WAY

Even when the different parties were discussing an agreementon ldquono attacks on civilians or civilian objectsrdquo oil was playinga central role It is instructive to note that the Sudanesegovernment desired language in the text stating that oilinstallations were ldquocivilian objectsrdquo while the SPLA wantedthe contrary145

Human Rights Watch reached the same conclusion thatoil without doubt has been a key fuel for war particularlysince the end of the 90s when crude oil was first exportedfrom Sudan in 1999146

Oil became the main objective and a principal causeof war (hellip) The large-scale exploitation of oil byforeign companies operating in the theatre of warin Southern Sudan has increased human rightsabuses there and has exacerbated the long-runningconflict in Sudan a conflict marked by gross rightsabuses ndashtwo million dead four million displacedsince 1983 ndashand recurring famine and epidemics147

Also the UN makes clear statements on the issue Specialenvoy Leonardo Franco expressed in a report that oilexacerbated the conflict

the economic political and strategic implicationssurrounding oil exploitation in western Upper Nilewhich have seriously exacerbated the conflictthereby causing a deterioration in the overall

145 Ibidem146 Human Rights Watch 2003 Sudan oil and human rights147 Human Rights Watch 2003 Sudan oil and human rights

56

LIVING IN FEAR

situation of human rights and respect forhumanitarian law and narrowing the slim chancesfor peace148

Indeed multiple causes and elements contributed to theconflicts It was recognized that ethnicity and religion wereimportant elements however the key dimension is controlover natural resources particularly oil Added to this are alsotensions over land and resources and the promotion by thegovernment of crops like cotton and sugar which displacedcertain groups of people149 Similar conclusions were reachedyears back by a Canadian Government Mission in Sudanwhich fully recognized some ethnic disputes as well asdisputes over other natural resources however oil was thekey factor which made things really dramatic

148 UN 2000 Interim report of the Special Rapporteur of the Commissionon human rights on the situation of human rights in the Sudan A55374 httpwwwunorgdocumentsgadocs55a55374pdf Seealso UN 1999 Situation of human rights in Sudan UN Doc A54467

149 University of Massachusetts (undated) Modern conflicts conflictprofile SudanhttpwwwperiumassedufileadminpdfSudan1pdf

57

3 SOUTH SUDAN THE OIL WAY

The Harker mission pointed out that while therehave always been pressures on the Dinka in theHeglig- Ruweng area as a result of inter-tribalfighting with Arab nomads for grazing areas anddry-season water the situation had worsened withthe beginning of oilexploration and had continuedto deteriorate over theyears because of the periodicoffensives launched by the Government and itsallies resulting in destructionand mass populationdisplacement150

South Sudan has one of the largest oil reserves inSub Saharan Africa and the commodity is thelifeline of the countryrsquos economy accounting for98 percent of the governmentrsquos financial resources

Whoever controls South Sudanrsquos oil thereforecould seize the upper hand in the battle for power

Source France 24 2013 lsquoBattle for oil adds newdimension to South Sudan conflictrsquo

Whoever controls South Sudanrsquos oil therefore could seizethe upper hand in the battle for power

The same scenario applies to the South Sudan Civil Warwhich initially was also portrayed along ethnic line TheDinka ethnic group of President Salva Kiir has fought rebelsallied with former vice president Riek Machar of the Nuer

150 UN 2000 Interim report of the Special Rapporteur of the Commissionon human rights on the situation of human rights in the Sudan A55374 Ibidem

58

LIVING IN FEAR

ethnic group However increasingly ldquothe focus of the fightingis shifting to the battle to control the countryrsquos mostimportant natural resource ndash oilrdquo151 The oilfields haveliterally become the battlefields

Consequences of war and conflict

The damage inflicted on people as a consequence of war ishuge Back in 2001 US Secretary of State Colin Powellqualified the war in Sudan in the following terms ldquoThere isperhaps no greater tragedy on the face of the earth todaythan the tragedy that is unfolding in the Sudanrdquo152 Firstthere is a large number of deaths due to war and war relatedcauses and also a huge number of displaced people Thedeath toll derived from the Second Civil Sudanese War isestimated at two million The US Commitee for refugeesasserted that ldquothis massive loss of life surpasses the civiliandeath toll in any war since World War IIrdquo153 In the mostrecent civil war the South Sudanese Civil War that startedin December 2013 by April 2014 the death toll wasestimated to be at 10000154

Besides the death toll there are estimated more than fourmillion people of the Southern Sudanese population forced

151 France 24 2013 Battle for oil adds new dimension to South Sudanconflicthttpwwwfrance24comen20131227-battle-oil-adds-new-dimension-south-sudan-conflict

152 Human Rights Watch 2003 Ibidem153 See US Committee for Refugees webpage in 2001 http

webarchiveorgweb20041210024759httpwwwrefugeesorgnewscrisissudanhtm

154 International crisis group 2014 South Sudan a civil war by any othernamehttpwwwcrisisgrouporg~mediaFilesafricahorn-of-africasouth20sudan217-south-sudan-a-civil-war-by-any-other-namepdf

59

3 SOUTH SUDAN THE OIL WAY

to flee their homes at one time or another It has also beenargued that the development of oilfields has led to the forcedremoval of the local population In the words of the lateJohn Garang oil was a ldquokiller itrsquos evicting our civilianpopulationrdquo claiming 100 000 people displaced due to thiscause155

Children are some of the main victims of conflict beingrecruited for instance for war and suffering sexual violenceFrom March 2011 to September 2014 the UN estimatesthat there were 1243 incidents affecting 68776 children156

UN reports indicate that both armed groups have usedchildren ldquoon a large scale and committed other graveviolations including killing maiming and sexual violencerdquo157

For instance in 2015 an incident was reported where closeto 100 children were abducted some as young as 13 Armedsoldiers were advancing house to house looking for boysand taking them by force158 According to UNICEF this occuredin Wau Shilluk close to the city of Malakal in Upper NileState159

Not surprisingly as put by a high UN representativepeople are desperate for peace

155 BBC 2001 Garang Oil firms are targetshttpnewsbbccouk2hiafrica1393481stm

156 UN Security Council 2014 Report of the Secretary-General on childrenand armed conflict in South Sudan S2014884

157 Ibidem158 The Guardian 2015 South Sudan gunmen kidnap at least 89 boys

from village near Malakal httpwwwtheguardiancomworld2015feb22south-sudan-gunmen-kidnap-89-boys-village-malakal-child-soldiers

159 The Guardian 2015 South Sudan gunmen kidnap at least 89 boysfrom village near Malakal

60

LIVING IN FEAR

People are desperate for peace They are tired ofliving in fear Many have had to flee several timesThey are exhausted They lack water they areextremely worried for their children who are notin school and at risk of being recruited into armedgroups Sexual violence is rife All people want isto live in safety security and stability160

Wars have also an impact on food security and nutrition Asof February 2015 there was an alert that the food situationwas critical in South Sudan for more than 25 millionpeople161 This was famine related to war Ulrika BlomCountry Director for Norwegian Refugee Council in 2015succinctly stated ldquoThere is an urgent need for a solution onthe conflict so that people are able to resume their dailylives in dignity and not be dependent on massive foodassistancerdquo162

The harsh consequences of war are inevitable and occurfrom a systematic destruction of infrastructure erosion ofthe human capital and weakening of essential institutions

Besides causing an appalling loss of life Sudanrsquoslong civil war eroded the capital base The wardepleted the labour force while roads irrigationsystems and other key components of rural

160 Under-Secretary-General for Humanitarian Affairs and Emergency ReliefCoordinator Valerie Amos remarks to the press Juba South Sudan 9February 2015 httpreliefwebintreportsouth-sudanunder-secretary-general-humanitarian-affairs-and-emergency-relief-coordinator-1

161 UN Security Council 2015 Reports of the Secretary-General on theSudan and South Sudan SPV7392

162 Norwegian Refugee Council 2015 Conflict a cause of hunger in SouthSudan httpwwwnrcnodid=9192498

61

3 SOUTH SUDAN THE OIL WAY

infrastructure were destroyed damaged orneglected It also weakened institutions divertedfinancial capital from economic development andundermined interpersonal trust which is criticalto productive business dealings163

Some have tried to put a figure on the costs of war A recentreport estimates that the cost of the civil war may be between$223 and $28 billion over the next five years for SouthSudan alone if the factions fail to bring peace to the worldrsquosnewest country164

UN peacekeeping operations

In July 2011 the Security Council determined that thesituation in South Sudan constituted a threat to internationalpeace and security in the region and established the UNMission in the Republic of South Sudan (UNMISS)165 Thekey elements of the mandate is to consolidate peace andsecurity However after the civil war broke in July 2013 inthe light of significant human rights violations the large-scale displacement of persons the UNMISS mandate wasreshaped and a focus was given to the protection of civiliansand creation of the conditions for delivery of humanitarianassistance166

163 IFAD 2013 Enabling poor rural people to overcome poverty in SouthSudan

164 Frontier Economics 2015 South Sudan the cost of war httpwwwfrontier-economicscomdocuments201501south-sudan-cost-warpdf

165 UN Security Council 2011 Resolution 1996166 UN Security Council 2014 Resolution 2155

62

LIVING IN FEAR

In June 2011 a month before the establishement ofUNMISS a second UN peacekeeping operation wasestablished in the disputed border between Sudan and SouthSudan The United Nations Interim Security Force for Abyei(UNISFA) was created in a context of escalating violenceand tensions and population displacement167 One of the topobjectives was to achieve the demilitarization of the Abyeifrom any force other than UNISFA and the Abyei PoliceService facilitate the delivery of humanitarian aidstrenghten the capacity of the Abyei Police Service and incooperation with the police provide security for oilinfrastructure in the Abyei area168

Corporations and conflicts with communities

Since the conclusion of the 2005 Peace Agreement betweenthe Government of Sudan (GoS) and Sudan PeoplersquosLiberation MovementArmy (SPLM) negative impacts ofoil exploration and extraction have continued to ignitemistrust among local communities towards the oilcompanies Many problems from the oil activities wereidentified such as water pollution and uncompensateddispossession of land However oil companies or thegovernment did little to assess correct and reduce suchimpacts169 In this context many communities chose the ldquopath

167 UN Security Council 2011 Resolution 1990168 UN Security Council 2011 Resolution 1990169 ECOS 2014 Scrutiny of South Sudanacutes oil industry http

w w w e c o s o n l i n e o r g r e p o r t s 2 0 1 4 Scrutiny_of_South_Sudans_Oil_Industrypdf

63

3 SOUTH SUDAN THE OIL WAY

of confrontation with oil companiesrdquo170 For instance byblocking and interfering in oil operations by truck blockagesand other stoppages171

Resentment of local communities againstoil companies

The negative consequences of oil developmenthave been causing deep resentment against oilcompanies in many oil-rich parts of SouthernSudan Arriving in any oil area where activeexploitation is ongoing one is often confrontedwith persistent complaints from local people aboutpoor management of ldquoproduced waterrdquo which isblamed for pollution of the environment This isoften linked to unexplained deaths of animals andstrange or new human ailments Moreover the oilinfrastructure such as oil roads wells and pipesare frequently blamed for disrupting the means oflivelihoods of local people as well as destructionof property

Source ECOS

170 ECOS 2014 Ibidem171 ECOS 2014 Ibidem

64

LIVING IN FEAR

Lundin Oil Consortium facing war and violencein their work territory

In 2010 the European Coalition on Oil in Sudan (ECOS)requested an investigation on the activities of the LundinGroup and its connection with the conflict in Sudan and thepossible ldquocomplicity in the commission of war crimes andcrimes against humanityrdquo172 During the Second Civil War in1997 a consortium of oil companies led by the Swedish oilcompany Lundin Oil AB (ldquoLundinrdquo) signed a contract withthe Government for the exploration of oil in the concessionarea called Block 5A that was not at that time under fullGovernment control The other members of the Consortiumwere Petronas Carigali Overseas Sdn Bhd (ldquoPetronasrdquo) fromMalaysia OMV (Sudan) Exploration GmbH (ldquoOMVrdquo) fromAustria and the Sudanese state-owned oil company SudapetLtd

Before the start of explorations the area around Block5A was relatively peaceful When the oil exploration startedthe escalation of violence and war followed suit173 Accordingto the European Coilation on oil in Sudan Block 5A ldquobecamethe scene of intense fighting and gross human rightsviolations as soon as the Lundin Consortium started oilexploration activities on the groundrdquo Right from thebeginning there are reports of significant war and violence

172 ECOS 2010 Unpaid debt The Legacy of Lundin Petronas and OMV inSudan 1997-2003 Press Release httpwwwecosonlineorgreports2010Press_release_UNPAID_DEBT

173 ECOS 2010 Unpaid debt The Legacy of Lundin Petronas and OMV inSudan 1997-2003 httpwwwecosonlineorgreports2010UNPAID_DEBT_textonlywebpdf

65

3 SOUTH SUDAN THE OIL WAY

where villages and towns were burnt and looted Tens ofthousands of people in Block 5A were also moved out fromthe exploration areas

In 1999 the Lundin Group discovered major reserves ofoil This accelerated the Government desire to control allthe areas surrounding the well and the infighting intensifiedLundinrsquos explorations in Block 5A had to be suspended twicedue to insecurity174

The consequences of all the violence towards thepopulation which were in the middle of the power battlefor controlling Block 5A were severe abuse of all humanrights and war crimes More than 10000 people were killedalmost 160000 displaced with thousands of peoplepermanently uprooted from their villages hundreds ofthousands of cattle lost or looted destruction of churchesschools markets medical clinics and many otherincalculable moral damage and inmense loss of income175

Talisman Energy accused of complicity with forceddisplacements

A Canadian company Talisman Energy which at that timewas considered to be the largest independent oil and gascompany in Canada has been accused of indirectly helpingto exacerbate the war and of being complicit in human rightsabuses and crimes against humanity176 Talisman has a 25

174 HRW 2003 Ibidem175 ECOS 2010 Unpaid debt Ibidem See also Medecins sans frontieres

2002 Violence health and access to aid in Unity Statewestern uppernile Sudan httpwwwdoctorswithoutbordersorgsitesusafilessudan_04-2002pdf

176 Africa files 2000 Corporate immunity for oiling repression Talismanin Sudan httpwwwafricafilesorgarticleaspID=621

66

LIVING IN FEAR

stake in the Greater Nile Oil Project Company (GNOPC) aninitiative located in south-central Sudan with threeadditional partners the national petroleum company ofChina (40) the national oil company of Malaysia (30)and the national petroleum company of Sudan (5)177

There were many allegations that people were forcefullydisplaced in the area of the oil field ran by Talisman UNreported that accusations were made on Talisman of ldquobeingaccomplice of human rights abuses in Upper Nile so as toguarantee security for its oil operationsrdquo178

Moreover a report from the Canadian Foreign AffairsMnistry ndashthe Harker Report ndash which undertook a mission toSudan described with concern that fighting was intense inthe areas of oil development in general and that oilextraction may have contributed to relocation of civiliansby force179

Violence and the fear of it impact immediatelyon the peoplersquos use of the land and result in foodinsecurity which in turn propels movement ordisplacement

Contradicting that oil is at stake in the displacement issueTalisman explained that displacement was a result of an inter-tribal issue Once again the Harker report concluded thatthe displacement was because of oil

177 Africa files 2000 Ibidem178 UN Security Council 2000 Interim report of the Special Rapporteur of

the Commission on Human Rights on the situation of human rights inthe Sudan A55374

179 Canadian Ministry of Foreign Affairs 2000 Human Security in SudanThe Report of Canadian Assessment Mission httpwwwecosonlineorgreports2000Human20Security20in20Sudanpdf

67

3 SOUTH SUDAN THE OIL WAY

ldquoFor Talisman so very much seems to be explained as merelyan inter-tribal problem but displacement has gone on andis still going on and in Ruweng County it is hard to denythat displacement is now and has been for some timebecause of oilrdquo180

Talisman Energy decided in 2002 to end its controversialfour-year investment in Sudan by selling its 25 percent stakein the Greater Nile Petroleum Operating Company to anIndian firm Most of the rumours is that the reasons for thiswas the strong pressure from the US particularly to end itswork in Sudan in order to stop indirectly supporting theGovernment in Sudan with its oil revenue181

The oil way developing what

Sharing the wealth with the Sudanese people The resourcecurse again

As said before 98 of the governmentrsquos revenue comesfrom oil production royalties and South Sudan sits on thethird-largest oil reserves in Africa182 It was estimated in 2011that South Sudan controlled 75 of the overall oil productionof Sudan and South Sudan altogether ndasharound 500000barrels per day However South Sudan remains dependenton the North for processing refinement and export to theRed Sea

180 Canadian Ministry of Foreign Affairs 2000 Ibidem181 New York Times 2002 Talisman to sell its stake in company in Sudan

httpwwwnytimescom20021031businesstalisman-to-sell-its-stake-in-company-in-sudanhtml

182 Africa Business Initiative 2011 Investment climate upate Sudanhttpswwwuschambercomsitesdefaultfileslegacyinternationalafricafiles16920_AfricaNewsletter_Sudanpdf

68

LIVING IN FEAR

Paradoxically South Sudan is considered a fragile StateSitting on oil as has occured to many other countries acrossAfrica and abroad does not guarantee wealth for the majorityof the population A 2013 report concluded that ldquoover thelast decade Sudan has been the largest recipient ofhumanitarian assistance by some distance receiving US$106 billion over the periodrdquo183 90 per cent of the populationearn less than a dollar a day184

Oil money through the State budget is expected to serveto finance all the key governmental activities of the Statesuch as agriculture health infrastructures and educationDespite the fact that the benefits from oil are substantialthere are numerous questions arising about the destiny ofall the oil money For instance how could it be explainedthat one of the sectors more financed is the military andsecurity apparatus Since South Sudanrsquos independence theGovernment has allocated 38 of oil revenue to the militaryand security services with only 10 and 7 ininfrastructures and education respectively185 In 2012 SouthSudan was the among top 8 African countries having militaryexpenditure of almost $1 billion186 For instance TheEconomist reports that South Sudan bought 100 Ukrainian

183 Global humanitarian assistance 2013 Global humanitarian assistancehttpwwwglobalhumanitarianassistanceorgwp-contentuploads201307GHA-Report-2013pdf

184 Kebede 2014 The role of oil in South Sudanhttpswwwruoruottawacabitstream10393315631KEBEDE20Solomon2020145pdf

185 The Guardian 2014 South Suan is divided by the spoils of oil notethnicity httpwwwtheguardiancomcommentisfree2014jan14south-sudan-divided-oil-ethnicity-violence

186 LAVDC 2014 Les quatre puissances militaires regionales dacuteAfriquehttpwwwlavdcnetportailles-quatre-puissances-militaires-regionales-dafrique

69

3 SOUTH SUDAN THE OIL WAY

T-72 tanks187 At the same time agriculture and livestock hasbeen completely neglected despite the fact that more than80 of the population depend on that sector for fulfiliingtheir basic needs

Where the money goes

Daniel Wuor Joak former MP in South Sudan LegislativeAssembly and Minister of Education Science and Technologyin Upper Nile State claims that between 2005 and 2014both the Government of South Sudan (GOSS) and theRepublic of South Sudan (RSS) have been receiving onaverage not less than two billion of USD per year Somehave already manifested the unclarities over the destiny ofall that money as described by Mr Wuor Joak

Since 2005 upwards both the GOSS and RSS havebeen receiving no less than 18 billion USD in oilrevenues without implementing any majordevelopmental projects like roads network linkingdifferent States in South Sudan conducive learningschools from basics to universities level referralmedical facilities clean drinking water in remoteareas throughout the country setting up vibrantand credible institutions which can adhere to rulesof law All these things have not been implementeddue to poor system of governance under leadershipof Salva Kiir Mayardit Most of the counties have

187 The Economist 2014 Arms and the African

70

LIVING IN FEAR

no roads linking them with their State capitals andlack schools health centres clean drinking wateretc South Sudanese population in the rural areasthroughout the country are still living in the sameconditions as they were under Khartoumrsquos rule interms of scarcity of development188

Speaking more directly Kebede made firm remarks aboutthe overall situation in South Sudan

In general poverty corruption bad governance andviolence characterized the resource curse in SouthSudan A relatively small group of elite capturesvast wealth while leaving much of their societywithout access to the minimum resource necessaryfor long term wellbeing As a result South Sudanremains one of the worldacutes least-developedcountries despite its oil (hellip) hellipmuch of the oilrevenue has been squandered189

188 Wuor Joak 2014 Major Causes of the Current Conflict in Sudan SouthSudan News Agency

189 Kebede 2014 The role of oil in South Sudanhttpsw w w r u o r u o t t a w a c a b i t s t r e a m 1 0 3 9 3 3 1 5 6 3 1 KEBEDE20Solomon2020145pdf

71

3 SOUTH SUDAN THE OIL WAY

Even before the current tensions Bentiu saw little benefitfrom oil The streets are unpaved and covered with trashelectricity is scarce reserved for those with privategenerators () Most expect more violence Bentiu hasbecome more militarized with armed soldiers placed atcheck points and at the bridge Troops are constantlymoving to the front Weapons are being flown into theairport

ldquoThe oil is a curse ldquoMohammed Abdurahman Kili 56mumbled from his hospital bed his body covered withburns He was inside his shop in a crowded market onthe edge of town when a Sudanese warplane attackedkilling a 9-year-old child and another person and settinghis shop on fire

Washington Post 2012

President Salva Kiir recognized in 2012 that corrupt officialshad stolen from the people of South Sudan and the amountlost or taken by lead government and military officials mightbe as much as $4 billion190 Kiir sent a letter to 75 SouthSudanese officials or individuals close to the governmentasking them return all the amount lost The letter describedin general terms how the money got ldquolostrdquo

An estimated $4 billion are unaccounted for orsimply put stolen by current and former officialsas well as corrupt individuals with close ties togovernment officials Most of these funds have beentaken out of the country and deposited in foreignaccounts Some have purchased properties oftenpaid in cash191

190 Ibidem191 Paanluel Wel South Sudanese bloggers httppaanluelwelcom2012

0601letter-from-president-kiir-on-corruption-4-billion-dollars-stolen192 Sudan Tribune 2013 South Sudanacutes Kiir accuses army of corruption

72

LIVING IN FEAR

A year later Kiir accused the armed forces of being corruptHe said that despite the big budget allocations made to thearmy there were even no ldquovehicles to transport soldiers onmissionsrdquo192 Two years later the issue remained unclearand the names of the officials referred to in the letter wereyet to be disclosed However Kiir accused Machar of beingresponsible for a lot of corrupted activities in the country193

Machar responded to Kiir by saying that his claims wereunfounded and then also accusing him of such practices194

It seems South Sudan epitomises all the features of theresource curse argued in Chapter 1195 How can the corruptionbe prevented How can the money go to the people It isalso important to note that the oil sector provides littleemployment to the people of South Sudan Most of thehousehold income and employment is generated in theagriculture and farming sector primarily196 Would investingin other sectors like agriculture that provide real wealth tothe people make a difference

193 Sudan Tribune 2014 South Sudan rebel leader should face corruptioncharges Kiir

194 Sudan Tribune 2014 South Sudan Macharacutes Rebentildes dismiss corruptionaccusations no spiritual powers httpallafricacomstories201407221384html

195 Kebede 2014 The role of oil in South Sudan Ibidem196 Tizikara et al 2012 Post-conflict development of Agriculture in South

Sudan perspective on approaches to capacity strenghtening httpwwwerailsnetimagesfarasecretariatkigali-movementfileKigali20MovementPost-Coflict20Agriculture_South20Sudanpdf

73

3 SOUTH SUDAN THE OIL WAY

Environment

As experienced in oilfileds in other parts of the world the oilfields here are also leaving a significant impact on theenvironment and local communities A three year study inThar Jath and Mala fields in Unity State show thatgroundwater is very polluted making the water unsafe forhuman consumption197 The study made by a team of SouthSudanese and German geologists concluded that water usedby 180000 people was too salty to drink and containdangerous amounts of heavy metals198

In many occasions the oil fields that causeenvironmental pollution are even abandoned due to the warSome observers identified that oil pipelines damaged duringthe conflict were leaking199

South Sudan must produce for its needs

In 2015 the Minister of Finance of South Sudan David DengAthorbei made a statement saying that the country shouldbe self-sufficient in agriculture terms and in addition itneeds to increase its non-oil revenue and to achieve peace200

197 Rueskamp et al 2014 Effect of oil exploration and production on thesalinity of a marginally permeable aquifer system in the Thar Jath-Mala- and Unity Oil fields Southern Sudan Zbl Geol Palaont Teil IJ

198 Radio Tamazuj 2015 Study Direct link between oil exploration andwater pollution in Unity httpsradiotamazujorgenarticlestudy-E28098direct-linkE28099-between-oil-exploration-and-water-pollution-unity

199 Star Africa 2014 South Sudan Oil leaks cause pollution fears httpenstarafricacomnewsssudan-oil-leaks-cause-pollution-fearshtml

200 Bloomberg 2015 South Sudan Finance Minister says food output canoffset oil httpwwwbloombergcomnewsarticles2015-01-20south-sudan-finance-minister-says-food-output-can-offset-oil-1-

74

LIVING IN FEAR

He also made a call for a reduction of the countryrsquos relianceon agriculture imports particularly in the context of aneconomy affected by the plunge in global oil prices201

Peter Biar Ajak from the Center for Strategic Analysis andResearch in Juba illustrates the macroeconomic weaknessesof South Sudan today because of its oil dependence

South Sudanrsquos oil-dependent economy is nearingcatastrophe The production of crude oil has droppedby about 35 percent since the conflict began Thatcombined with a drop of roughly 45 percent in globaloil prices since the summer has meant a substantialreduction in the governmentrsquos oil revenues andenormous fiscal and budgetary ressures

Since South Sudan exports almost nothing asidefrom oil and imports almost everything else tradeand monetary policy have also been buffeted byfalling oil revenues Access to foreign currency hasbecome extremely limited The prices of manyimported goods have risen There are shortages ofpetrol which must be imported because SouthSudan has no refinery202

Indeed a dynamic agriculture sector may be key for peaceand development in South Sudan More than 95 of thecountryrsquos population is dependent on farming fishing orherding to meet their daily food needs and income as well203

201 Bloomberg 2015 Ibidem202 Biar Ajak 2015Sanctions for peace in South Sudan The New York Times

January 7th203 FAO in emergencies httpwwwfaoorgemergenciescountries

detailenc147627

75

3 SOUTH SUDAN THE OIL WAY

204 Business Daily 2011 South Sudanrsquos vast agricultural sector potentialuntapped

205 Norwegian Refugee Council 2015 Conflict a cause of hunger in SouthSudan httpreliefwebintreportsouth-sudanconflict-cause-hunger-south-sudan OCHA 2015 South Sudan Crisis Situation reportn 74 httpreliefwebintsitesreliefwebintfilesresourcesSouth_Sudan_Situation_Report_No_74pdf

206 OECD 2014 Fragile States 2014 Domestic revenue mobilisation infragile states httpwwwoecdorgdacgovernance-peaceconflictandfragilitydocsFSR-2014pdf

South Sudan has good soil and climatic conditions and morethan 70 of its land area is suitable for crop productionThere are many that believe that the investment in theagriculture sector has more potential than oil however thisthinking has not received due attention from local andforeign investors204 Efforts towards making agriculture workare vital for peace and stabililty in the country It is urgentlyneeded to work on this area particularly when at presentthere are 25 million in Sudan at risk of starvation205 andaround one third of the population are food insecure plusmore than a million displaced

The dependency on income from natural resourcesleaves fragile states vulnerable It exposes them toshocks in commodity prices ndash as demonstrated bythe sudden fall in commodity prices in 2009following the 2002-2008 boom Neither is it asustainable source of incomeSouth Sudanrsquos oilproduction for instance is projected to decreasesteadily in future years and become negligible by2035

Source OECD206

76

LIVING IN FEAR

207 UN Security Council 2015 Resolution 2206 SRES2006(2015)httpwwwunorggasearchview_docaspsymbol=SRES2206 (2015)

208 Sudan Tribune 2015 South Sudan unhappy with US support for sanctionshttpwwwsudantribunecomspipphparticle54232

209 Washington Post 2014 US appears unable to pull South Sudan backfrom the brink of civil war httpwwwwashingtonpostcomworldus-appears-unable-to-pull-south-sudan-back-from-the-brink-of-civil-w a r 2 0 1 4 0 5 0 3 d 9 2 8 0 b d a - 3 8 6 b - 4 2 4 9 - 9 4 e 0 -b5292610e5bb_storyhtml

210 Ibidem

US fallen dream

In 2015 the UN imposed a travel ban and assets freeze againstindividuals or entities which engaged in or provided supportfor acts that threaten peace security and stability of SouthSudan207 The US was behind the draft and the submission ofthe resolution This resolution prompted an angry reactionfrom the South Sudanese The South Sudanese presidencywas said to be extremely disappointed about the US ledmove208

In the past the relationship between the US and SouthSudan was completely diferent The United States was themain promoter and supporter of the worldrsquos newest nationThe Washington Post for instance asserted that ldquoSouth Sudanowes its existence to the United Statesrdquo209 The expectationscreated were high before its started its independence andsome believed that Sudan would be able to manage thecountry breaking the so-called ldquoAfrican model of pettyrivalries corruption and oppressionrdquo210 Despite all the hopesput on the young nation as of today no solution has beenfound to the ongoing war

77

3 SOUTH SUDAN THE OIL WAY

The US was the largest donor to Sudan in the years priorto independence providing 339 of the total aid to Sudanbetween 2000 to 2009211 The United States (US$472million) was the largest donor of humanitarian assistanceto South Sudan in 2012 followed by the United Kingdom(US$96 million)212 For many years Sudan was the thirdlargest recipient of US aid only after Iraq and Afghanistan213

The inteligence and information systems of theAmericans on the ground in Sudan seemed to have beenrelatively good214hellip however how come they did not foreseethat South Sudan was quickly descending once again on theavenue of a country at civil war For instance the problemsbetween President Salva Kiir and his deputy were not newAlready more than two years before the civil war started inJune 2011 in a speech in Juba the President accused hisDeputy Riek Machar ldquoof running a parallel governmentwithin the governmentrdquo215 Couldnrsquot they have preventedanother conflict Why did they fall into ridiculouscontradictions as the one recently revealed via wikileakssuggesting that the US was funding both armies in

211 Development initiatives (undated) Sudan Aid Factsheet 1995-2009httpwwwglobalhumanitarianassistanceorgwp-contentuploads201102Sudan-Aid-Factsheet-2011pdf

212 See global humanitarian assistamce ebpage httpwwwglobalhumanitarianassistanceorgcountryprofilesouth-sudan

213 The Atlantic 2011 US played key role in Southern Sudanacutes longjourney to Independence

214 The Global Intelligence files 2013 SudanUSMIL ndash SPLA trying toget US to hook it up httpssearchwikileaksorggifilesviewemailid=5047664

215 Sudan Tribune 2011 Salva Kiir exposes his rift with Machar overSouth Sudan transitional constitution httpssearchwikileaksorggifilesviewemailid=3831682

78

LIVING IN FEAR

contention the Government force of Salva Kiir and the rebelsof Riek Machar216 Why are both paid by the UShellip to dowhat As one reporter questioned why are they ldquopaid tokill each otherrdquo217

216 RT 2015 US officials tussle over arms embargo sanctions in oil-flushSouth Sudan httprtcomusa226387-south-sudan-sanctions-war

217 RT 2015 Ibidem

Seven Million

ldquoA peaceful DR Congo could transform Africa almostovernight but is there a way outrdquo218

There is always a way out However peace is not an easything particularly under certain circunstances When youhave lost your father your mother your uncle your sisterwhat else can you lose Can you still believe in peaceTwoof the bloodiest conflicts in recent decades in the world haveoccurred in Africa The Second Civil War in Sudan has leftaproximately two million casualties and the conflict in DRCis estimated to have snuffed life out of no less than fivemillion people

How many more

How does one begin to quantify the dead when they are inthe hundreds of thousands No less than seven million livesof Congolese and South Sudanese were taken away due towars and conflicts fuelled by natural resources How many

218 African Business 2009 DR Congo $24 trillion fortune

4

79

80

LIVING IN FEAR

more How many more before the world wakes up to acteffectively towards ending all those conflictsProbably unless you are one survivor from those experiencesyou would never be truly able to understand what it meansto lose entire families and friends you would never be trulyable as well to understand what it means to feel fear foryour life and the life of your close relatives

When you start counting sometimes you forget thatpeople are not numbers There are names behind thenumbers A family A life As we write this book people aredying needlessly in the DRC and in South Sudan Calculatingdead people due to conflicts in this part of the world is verydifficult due to statistical challenges and so it is conceivablethat probably the number of victims is much larger than sevenmillion (7000000) When would the volume of bloodshedthe number of lives taken be enough for the belligerentofficials to make real peace How many more should fallAthousand more Another one million The pain sadness anddestruction that those conflicts generate should not beaccepted any more

Oil and minerals the main cause of ongoingconflicts and war

Some authors argue that minerals and oil are not a cause ofwar but ldquocompetition for them could amplify and expediteconflictrdquo219 In this book as chapter two and three haveshown oil and minerals are the main motor behind theconflict in recent decades in DRC and South Sudan It would

219 UN Security Council 2013 Natural resource wealth fails to translateinto equivalent benefits for people fuelling conflict to instability DeputySecretary-General tells Security Council httpwwwunorgpressen2013sc11037dochtm

81

4 SEVEN MILLION

be very difficult if not impossible to expect those conflictsif their territories were resource poor Oil and minerals arefull of blood An activist poet wrote We Thought it was Oilbut it was Blood220 Although he was writing about the NigerDelta situation we see a universal application in that phrase

In both countries described there were other elements andfactors to take into consideration however it can be saidthat control over natural resources was the most importantcause on both conflicts in DRC and South Sudan In bothcases oil and minerals fuelled those wars and in manyoccasions these resources have inspired fueled and sustainedarmies operating in the territories of both countries

A Statersquos wealth means nothing if not shared withthe majority of the population

DRC and South Sudan ought to be wealthy countriesUnfortunately having a wealth of natural resources doesnot mean that it belongs to the citizens or that the wealthwould be shared among the population of a given State AState is a nation or territory considered as an organizedpolitical community under one government221 A goodgovernment should be the one that takes care of its citizensand shares the wealth among its citizens and not justdistribute it among an elite Jan Eliasson Deputy Secretary-General of the United Nations stated that ldquoin too manycountries a wealth of resources including timber oil coaldiamonds and precious metals failed to translate into

220 Nnimmo Bassey 1998 We Thought it was Oil but it was Blood IbadanKraft Books

221 See httpwwwoxforddictionariescomdefinitionenglishstate

82

LIVING IN FEAR

equivalent wealth for the people Only a powerful fewbenefitrdquo222

The State is expected to perform an adequateimplementation of human rights granted by several UNdeclarations and conventions including the right to foodright to health right to shelter right to clothing right towork farmersacute rights etc Paradoxically the violations andabuses of human rights have been constant in DRC and SouthSudan Both countries have suffered from acts of war oncivilian population both have as well a large number ofdisplaced people with no access to food without healthcarewithout shelter and without any work Both countries havemore than 90 people living below one dollar per day andthey are considered among least developed countries andfragile states Due to this both are some of the biggestrecipients of humanitarian aid Moreover both have hugesecurity problems shown for instance by the presence ofUN peacekeeping operations Out of the 17th worldwideongoing peacekeeping UN operations three are in DRCSouth Sudan and in Abyeia disputed territory between Sudanand South Sudan

They possess resources that have a huge monetary valueand that in most cases have the involvement of foreigncountries and corporations and other stakeholders of theprivate sector which are ready to pay enormous sums ofmoney to gain control of the natural resources belonging toother countries If no war or significant armed conflict takes

222 UN Security Council 2013 Natural resource wealth fails to translateinto equivalent benefits for people fuelling conflict to instability DeputySecretary-General tells Security Council httpwwwunorgpressen2013sc11037dochtm

83

4 SEVEN MILLION

place common elements among those countries that possesssuch resources in Africa is the existence of massive povertyand corruption and in most cases this is contrasted withmega-rich individuals Letacutes take for instance the case ofoil-rich Angola where the president and his daughter possessmultibillionaire fortunes while at the same time the majorityof the country population is living on less than two dollarsper day223

Greed power and control over natural resources

It must be noted as well that often oil and minerals involvemillions and multibillion profits With such large sums ofmoney greed power and control take the driving seat ofwhatever country government in the world When theprospects for such money flow arrives many leaders andelites start distancing themselves from the majority of thepopulation and stop thinking about the welfare of their ownpeople

At the centre of most of the conflicts in both countriesare struggles for power and control of natural resourcesMinerals and oils are the main cause of the ongoing conflictsand wars Unfortunately most commentators qualify therecent civil war in South Sudan as a ldquopower strugglerdquo withoutfurther qualifications In South Sudan who gets the oil getsthe power Therefore the power struggle is a war overnatural resources for control of the oil in the country Areporter affirmed that ldquowhoever controls South Sudanrsquos oiltherefore could seize the upper hand in the battle for

223 Forbes 2013 Daddyacutes girl how an African ldquoprincessrdquo banked $3 billionin a country living on $2 day httpwwwforbescomsiteskerryadolan20130814how-isabel-dos-santos-took-the-short-route-to-become-africas-richest-woman

84

LIVING IN FEAR

224 France 24 2013 Battle for oil adds new dimension to South SudanConflict httpwwwfrance24comen20131227-battle-oil-adds-new-dimension-south-sudan-conflict

225 OECD 2014 Fragile States 2014 Domestic revenue mobilisation infragile states httpwwwoecdorgdacgovernance-peaceconflictandfragilitydocsFSR-2014pdf

powerrdquo224 In both countriesrsquo non-renewable natural resourcetook a dominant share of the fiscal revenue of DRC andSouth Sudan ndash 82 in the DRC and 98 in South Sudan225

Who controls those resources controls the countryThe case of South Sudan where the president has

recognized the disappearance of $4 billion by corruptindividuals is compelling President Salva Kiir pinpointed thespirit behind the rot ldquoOnce we got to power we forgot whatwe fought for and began to enrich ourselves at the expenseof our peoplerdquo This might also include him as well becauseit is difficult to imagine that such huge amount of money couldbe stolen without the leader noticing anything at all

Greed for minerals and oil is at the heart of the massivedeath toll and impoverishment of the Congolese and SouthSudanese people in recent decades It can be affirmed quitecomfortably that if the Eastern part of the DRC would havenot sat on huge mineral reserves it would be very difficultto imagine all the conflicts that have occurred in that zoneIt can be affirmed as well that without oil ongoing wars inSouth Sudan might most probably never have occured

Peace is the only way forward

Achieving peace is a complex issue To create peace thereare many issues to resolve with all stakeholders such as

85

4 SEVEN MILLION

mutual accusations of support to rebel groups226 goodgovernance transparency demobilisation and disarmamentof local militia etc227

A positive but vital first step is that there are calls at veryhigh levels in both countries and at international fora Thismust be followed with open debate on the core causes of theconflict and ways of achieving reconciliation It does notappear that lasting peace can be achieved otherwise In thatprocess the people need to be put at the centre ofdevelopment policies and actions in both countries in orderto stop the plunder reverse environmental degradation andfight poverty As long as the political military and corporateelite maintain their control of the natural resources of thecountry the devastating plunder will continue to the benefitof only such elite and a handful of corporations

226 UN Security Council 2015 Reports of the Secretary-General on theSudan and South Sudan SPV7392

227 The Guardian 2014 South Sudan is divided by the spoils of oil notethnicity httpwwwtheguardiancomcommentisfree2014jan14south-sudan-divided-oil-ethnicity-violence

INDEX

AAbyei Joint Oversight

Committee (AJOC) 47Abyei Police Service 46 62Abyei 43-home of the Ngok Dinka 43

45Africa 18 20 see minerals

-and wars at the greatlakes 20 25-armed groups in 26-criminal networks in 26-death in 20-exploitation naturalresources in 18-militias in 26-minerals in 20-poverty in 20-wealth in 20

Africarsquos wealth 14-and resource curse 14-blessing or curse 14

African Business 22African Development Bank

(AfDB) 16 17

African Unionrsquos (AU) Peaceand Security Council 48

Algeria 15Allied Democratic Forces

(ADF) 25 28-in North Kivu 25

American Mineral Fields(AMF) 36

AngloAmerican corporation35

AngloGold Ashanti 35Anvil Mining 36Armed Forces of the DRC

(FARDC) 26Athorbei David Deng 73Auty Richard 14

BBBC 18Blom Ulrika 59Blue Nile 45

CCentral African Republic 7China National Petroleum

Corporation 49

86

INDEX

87

Citibank NY 36Clinton Bill 24 36Conflict minerals 30 see

Rwanda-legitimate exports of 30-smuggling of 30

Conflicts 7-and natural resources 7-causes of 10 80-uniqueness of 10

Congolese Government 18

DDemocratic Republic of

Congo (DRC) 7-85-and (MONUC) 29-greed for minerals in 32-UN peacekeeping opera-tion in 29

Diffra oil complex 47DR Congo 79

EEastern Congo 28

-insecurity in 28Eliasson Jan 81

-Deputy Secretary-Generalof the United Nations 81

European Coalition on Oil inSudan (ECOS) 63

Exploration GmbH (OMV)64

Exxon corporate 15

FFirst Sudanese Civil War 42Forces deacutemocratiques de

libeacuteration du Rwanda(FDLR) 28

GGabon 18

-oil in 18Gertler Dan 12 13Ghana 18

-oil in 18Giambrone Antonino 38Glencore Anglo-Swiss 35Government of South Sudan

(GOSS) 69Government of Sudan (GoS)

62Great War of Africa 23Greater Nile Oil Project

Company (GNOPC) 6667

Guinea Equatorial 15

HHague 44Permanent Court of Arbitra-

tion in 44Human Rights Watch 55

IIMF 22International Rescue Commi-

ttee 23

LIVING IN FEAR

88

JJoak Daniel Wuor 69Juba 74

-Center for StrategicAnalysis and Research in74

Katanga Minister of Planning22

KKenya 19Kerry John 24Kiir Salva 43 84

LLibya 7Lumumba Patrice 13 20Lundin Oil Consortium 63

MMachar Riek 43 57 77 78Madagascar 16Mala fields 73Malakal 59Mali 7Mayardit Salva Kiir 69McKinney Cynthia Ann 23

-US Congresswomanfrom the Democratic Party23

McMurrough Mike 36McNamara Robert 37

-as World Bank President37

Minerals 20 see Africa-and death 20

-and poverty 20-and wars at the GreatLakes 20-and wealth 20

Mozambique 18-gas in 18

Muloni Irene 18

NNationalist and Integrationist

Front (FNI) 36Natural resources 8 83 see

conflicts-and conflict 8-and greed 83-and power 83-and wars 8-control over 83

Niger Delta 16-oil is a curse for 16

N o n - g o v e r n m e n t a lorganisations (NGOs) 12

Non-OPEC African oilproducer 48

Norwegian Refugee Council59

OOECD Guidelines for

Multinational Enterprises37

Oil 48-and geopolitics 48

PPeace 84

INDEX

89

-as way forward 84Petronas Carigali Overseas

Sdn Bhd (Petronas) 64Powell Colin 58PR Newswire 30President Kabila 24President Obama 24

RRDC Mining Code 35Republic of South Sudan

(RSS) 69Rio Tintorsquos QMM 16Ruweng County 67Rwanda 24 31

-conflict minerals from 31

SSecond Congo War 24 32

34Second Sudanese Civil War

42Somalia 7South Kordofan 45South Sudan Civil War 57South Sudan 11 18 19 41

-Dinka ethnic group in 4357-Nuer ethnic group in 4357the oil way 41-UN peacekeeping opera-tions 61

South Sudanese Civil War 58Sudan 79

-Second Civil War in 79

Sudan Armed Forces 46Sudan oil police 47Sudan Peoplersquos Liberation

Army (SPLA) 41 46 5462-civil wars and conflict in41

Sudan vs South Sudan 43-and Heglig battles 47-and peace agreement 43-main oil companies in 51-oil-centered conflict 46-Row over oil tariffs 51

Sudanese Civil War 52-and Addis AbabaAgreement 53-and Islamic law 53-causes of 52

Swedish oil company LundinOil AB (Lundin) 64

TTalisman Energy 65Thar Jath 73Transnational Corporations

(Tncs) 34-and the private sector 34

UUganda 19 24UN Interim Security Force for

Abyei (UNISFA)UN Mission in the Republic of

South Sudan (UNMISS)61 62

UN Organization Stabiliza-

LIVING IN FEAR

90

tion Mission in the DRC(MONUSCO) 29

UN peacekeeping operations11

UN Security Council 11UNICEF 59UNISFA 47United Nations Office of the

Special Adviser on Africa(OSAA) 8

United Nations SecurityCouncil 25

United Nations 13University of California

(UCLA) 54 55Upper Nile State 59 69US fallen dream 76

VVirunga National Park 18

WWar and conflict 58

-consequences of 58Wars and minerals 21

-cobalt 22-coltan 22-copper 22-diamond 22-gold 22-manganese 22-peace at last 21-timber 22-tin 22-zinc 22

Wau Shilluk 59We Thought it was Oil but it

was Blood 81Wealth 12 13

-for whom 13-quest for 12

World Heritage site 18Worldwatch 40

Page 4: LIVING IN FEAR - Health of Mother Earth Foundation...Les quatre puissances militaires regionales d´Afrique. 12 LAVDC. 2014. Les quatre puissances militaires regionales d´Afrique

CONTENTS

Prologue 7

1 The Quest for Wealth 12

2 Minerals and Wars at the Great Lakes 20Wealth Death and Massive Poverty inthe Heart of Africa

3 South Sudan The Oil Way 41

4 Seven Million 79

Index 86

PROLOGUE

Conflicts and natural resources

Sudanrsquos history of oil production has been a historyof violent conflict Soon after the discovery of oil inthe southern region in the late 1970s the secondSudanese civil war broke out1

South Sudan today is going through a civil war and in parallelit is in the middle of ongoing conflicts with Sudan for controlof oil rich areas in the Northern parts of the country

A study made for the African Development Bankconcludes that in the past 40 years there has been moreviolent conflicts in Africa than on the other continentsMoreover the wars in Africa have lasted longer and havebeen deadlier2 Libya Mali Democratic Republic of Congo(DRC) Somalia Central African Republic hellip So many warshellip So many conflicts hellip So much sufferinghellip

1 Bonn International Center for Conversion 2013 lsquoOil investmentand conflict in Upper Nile State South Sudanrsquo Brief 48

2 Hoeffler 2008 lsquoDealing with the consequences of violent conflictsin Africarsquo Background paper for the African Development Bankhttpusersoxacuk~ball0144consequencespdf

7

8

LIVING IN FEAR

Natural resources wars and conflict

Wars and armed conflicts are the major illnesses of thehumankind Since the birth of humankind we have not beenable to stop killing each other Thousands of years after wecontinue creating wars and armed conflicts

Why is that Today natural resources like oil and mineralsare at the heart of many conflicts around the world and so-called ldquohigh-value natural resources have been associatedwith dozens of armed conflicts millions of deaths and thecollapse of several peace processesrdquo3 Numerous reports andstatistical evidence confirm that those resources have beenldquosparking and fueling armed civil conflictsrdquo4 The UnitedNations Office of the Special Adviser on Africa (OSAA) alsoaffirms that ldquonatural resource have been shown to play akey role in the conflicts that have plagued a number ofAfrican countries over the last decade both motivating andfuelling armed conflictsrdquo5Moreover some scholars affirmthat ldquowhen internal conflict occurs in a region that has oilreserves it lasts twice as long as conflicts that occur in areaswithout oil reserves and combatant deaths are twice ashighrdquo6

Corporations working with natural resources have beencomplicit in many conflicts For instance during the Sudanwar oil corporations have allowed their facilities to be used

3 Lujala et al 2011 lsquoHigh-value natural resources a blessing or acurse for peacersquo Sustainable Development Law and Policy Vol 12

4 Lujala et al Ibiacutedem5 United Nations Office of the Special Adviser on Africa 2006 lsquoNatural

resources and conflict in Africa transforming a peace liability intoa peace assetrsquo Conference Report

6 Lujala et al 2011 lsquoHigh-value natural resources a blessing or acurse for peacersquo Sustainable Development Law and Policy Vol 12

9

PROLOGUE

for military purposes that led subsequently to attacks oncivilians One example is the case of the Heglig airstrip withinthe territory of the concession of the Canadian corporateTalisman

the military use of Heglig airstrip has been moreor less constant since May 1999 (hellip) flights clearlylinked to the oil war have been a regular feature oflife at the Heglig airstrip which is adjacent to theoil workersrsquo compound It is operated by theconsortium and Canadian chartered helicoptersand fixed wing aircraft which use the strip haveshared the facilities with helicopter gunships andAntonov bombers of the Government of SudanThese have armed and re-fuelled at Heglig and fromthere attacked civilians7

Natural resources have also been associated with the increaseof military spending on the continent Military expenditurein Africa is on the rise experiencing the highest progressionin the world from 2002-20118Algeria tops the list of militaryspending in Africa with over $10 billion9 They were followedby Angola with $6 billion and then South Africa with a bitmore than $4 billion in 201310 The increase of Africarsquosexpenditure is mainly due to the oil revenues from countries

7 Canadian Ministry of Foreign Affairs 2000 lsquoHuman Security in SudanThe report of Canadian Assessment Missionrsquo httpwwwecosonlineorgreports2000Human20Security20in20Sudanpdf

8 LAVDC 2014 lsquoLes quatre puissances militaires regionales dacuteAfriquersquo httpwwwlavdcnetportailles-quatre-puissances-militaires-regionales-dafrique

9 The Economist 2014 lsquoArms and the Africanrsquo httpwwweconomistcomnewsmiddle-east-and-africa21633901-continents-armies-are-going-spending-spree-arms-and-african

10 The Economist 2014 Ibidem

10

LIVING IN FEAR

like Algeria and Angola Angolarsquos military spending rose byover 36 in just one year Another oil producer that hasmade significant outlays on military spending is Ghanawhich almost tripled its arms budget from $109 to $306million between 2012 and 201311 Not surprisingly DRC alsorecently augmented significantly their spending by 3412

Causes of conflicts

Often there is a trend to simplify one main cause for aparticular conflict such as religious ethnic or tribal oreconomicpolitical power struggles For example very oftenthe conflicts in Sudan have been described as religious warsbetween Northern Muslims and Christiananimists from theSouth Our analysis in Chapter 3 will illuminate a differentperspective In general wars and conflicts tend to besurrounded by multiple factors and causes some with moredominance than others It is precisely in that complexity ofelements and factors that we can find the reasons why acountry has embarked in wars and conflicts However atthe same time there is often one cause that is the prevalentand dominant one in each conflict This will also be examinedin the forthcoming chapters

Every conflict is unique

While conflicts may have similar elements every one of themis unique in its own way13 This book explores the generalrelation between wars conflicts and natural resourcesfocusing in particular on two African countries Democratic

11 LAVDC 2014 Les quatre puissances militaires regionales dacuteAfrique12 LAVDC 2014 Les quatre puissances militaires regionales dacuteAfrique13 Bongani 2012 lsquoNatural resources and conflict unlocking the

economic dimensioacuten of peace-building in Africarsquo Briefing n 74

11

PROLOGUE

Republic of Congo (DRC) and South Sudan Both countrieshave gone through some of the bloodiest wars and conflictsin recent decades in the world Peace efforts have been madeat the UN level to try to minimize the conflict situations In2014 both countries had UN peacekeeping operationsmandated by the UN Security Council to promote protectand monitor human rights in DRC and South Sudan14 Weaim to provide a succinct but comprehensive overview ofboth conflicts and show their relation with natural resources

14 In 2014 there were ongoing 17 peacekeeping operations under theUN There were DRC and South Sudan ndashAbyei- See Office of theHigh Commissioner for Human Rights httpwwwohchrorgENCountriesPagesPeaceMissionsIndexaspx

LIVING IN FEAR

12

The Quest for WealthldquoDan Gertler is essentially looting Congo at the expense of

its peoplerdquo15

If there is wealth in DRC Dan Gertler has found a goodpiece of it The 41-years-old Israeli-born Dan Getler has adeclared fortune estimated at $144 billion While he isformally based in Bnei Brak Israel he has made his billiondollars fortune in the mining sector of DRC He is also verywell known for being a close friend of President JosephKabila16 Gertler is criticized over his way of doing businessand has been accused by non-governmental organisations(NGOs) to have obtained mining assets on the cheap bycavorting with politicians17 Congolese NGOs have said abouthim for example that ldquohe has political connections so statecompanies sell him mines for low prices and he sells themon for huge profitsrdquo The quest for wealth attracts manyGertler-like types to the African continent one of thewealthiest places of the planet

1

15 Affirmation of Jean Pierre Muteba head of a group of NGOs thatmonitor mining in DRC at The Washington Post 2012 Dan Gertlerearns billions as mine deals fail to enrich Congo

16 Forbes profile of Dan Getler httpwwwforbescomprofiledan-gertler

17 Forbes Ibiacutedem

13

1 THE QUEST FOR WEALTH

Wealth for whom

Everybody wants to be wealthier however not everybodyshares the same definition of wealth18One definition ofwealth is that it is a ldquotangible or intangible thing that makesa person family or group better offrdquo19 Under this definitionoil or a mineral would be considered wealth if it makes aperson family or group better off Certainly a person likeMr Getler is obviously doing better off in terms of moneywith his work and therefore he is wealthier under thoseterms Howeverthe resources that make Getler wealthy havenot necessarily benefited Congoacutes people Minerals or oilas said by Patrice Lumumba belongs to the people of DRCit is the responsbility of the State to manage its benefits andto share it among the population The wealth of a country isthe wealth of their people

However the wealth of natural resources revenues doesnot frequently bring benefits to the majority of thepopulation but rather a handful of elites The United Nationsoffice of the Special Adviser on Africa affirmed that the richesderived from the ldquoexploitation of natural resources are notonly used for sustainaing armies but also for personalenrichment and building political supportrdquo20 In additionthe office added that ldquocontrol over natural resources andtheir revenues often stay in the hands of a small elite and isnot used for broader development of the countryrdquo21

18 CNBC 2013 what is wealthy $5 million and plenty of cash19 See the business dictionary httpwwwbusinessdictionarycom

definitionwealthhtml20 United Nations office of the Special Adviser on Africa 2006 Natural

resources and conflicts in Africa transforming a peace liability intoa peace asset Conference Report

21 United Nations office of the Special Adviser on Africa 2006 Ibidem

LIVING IN FEAR

14

Africarsquos wealth blessing or curse

The resource curse

In a sea of wealth there are often oceans of povertyResource-rich countries are often accompanied by slowerthan expected economic growth poor economicdiversification gloomy social welfare indicators devastatingenvironmental impacts rampant corruption high inequalityhuge impoverishment bad governance and as said beforewars and conflicts22 This situation has been termed thetheory of ldquoresource courserdquo which term was used first in1993 by Richard Auty23 In 1995 the theory of the ldquoresourcecurserdquo was popularized thanks to an article of Sachs andWarner24 Both authors showed in their paper that ldquoeconomieswith a high ratio of natural resource exports to GDP in 1971tended to have low growth rates during the subsequentperiod 1971-1989rdquo From there a vast number of literaturehas been written on this matter and is divided between thosethat believe exploitation of natural resources is a curse andthose that believe that it can promote growth and

22 Mildner et al 2011 lsquoScarcity and abundance revisited a literaturereview on natural resources and conflictrsquo International Journal ofConflict and Violence Vol 5 Karl 2005 lsquoCovering oil a guide toEnergy and Developmentrsquo Understanding the resource curse opensociety institute

23 Time 2010 Brief history the resource curse httpcontenttimecomtimemagazinearticle09171199746000html

24 Sachs and Warner 1995 lsquoNatural resources and economic growthrsquoHarvard Institute for International Development

15

1 THE QUEST FOR WEALTH

development in developing countries25 Others for instanceprefer to use different terminology like Exxon corporatewhich has said ldquowe donacutet like to call it the oil curse weprefer governance curse We are private investors and it isnot our role to tell governments how to spend their moneyrdquo26

Africarsquos wealth

Africa is full of natural resources and there are manycountries considered as having a huge wealth Oil gasminerals timber fertile land water are often mentioned asthe riches of the continent However oil and minerals arethe favourites of some of the top leaders of the continentAngola with oil and diamonds Nigeria with oil GuineaEquatorial with oil Algeria with plenty of oil and gasdeposits DRC with minerals and South Sudan with oil justto name some of them

Many would think that all those States with lots of oiland mineral are very wealthy The truth is that although theStates are wealthy the countries are paradoxically full ofpoverty and their populations are not benefiting from thoseresources Moreover in many cases the wealth derived from

25 Pedro (undated) lsquoMainstreaming mineral wealth in growth andpoverty reduction strategiesrsquo Economic Commission for Africa PolicyPaper Ross 1999 lsquoThe political economy of the resource cursersquoWorld Politics n51 Hodler 2004 lsquoThe curse of natural resourcesin fractionalized countriesrsquo Economic department University ofBern SwitzerlandSwilling 2012 lsquoBeyond the resource curse fromresource wars to sustainable resource management in Africarsquo Paperpresented at the Winelands Conference on Integrity and GovernanceStellenbosch Pendergast et al 2008 lsquoCorruption and the curse ofNatural resourcesrsquo Department of Economics University of VictoriaDavis 2012 Replicating Sachs and Warner the 1997 Working PaperColorado School of Mines Neumayer 2004 Does the resource cursehold for growth in genuine income as well World Developmentvol 32

LIVING IN FEAR

16

oil and minerals mostly fuel wars and conflicts While somedie while some are displaced while some are injured orrape Some on the contrary are making money lots andlots of money hellip and while they make money they just puta blind eye on the horrors occurring outside the fence Thisis well described in the Harker report on the Sudanese warand the role of oil corporations ldquoIf the oil companies donrsquotknow whatrsquos going on theyrsquore not looking over the fencesof their compoundsrdquo27

Although some may believe that the importance of theoil and mineral sectors is the creation of jobs for thepopulation this has been denied by several authors

The oil gas and mining sectors are notoriously poorwhen it comes to job creation An offshore platformtapping deep-sea reserves will create few if anypositions for locals Only recently protests werereported outside Rio Tintorsquos QMM mineral sandsoperation in the south of Madagascar due to highlocal unemployment The best way to convertnatural resource wealth into jobs is to take theproceeds and invest in other more labor-intensiveindustries such as agriculture or manufacturing28

Nigeria provides a good example where communities living inthe Niger Delta have not benefited from oil extraction whichon the contrary has created serious conflicts as seen in Box 1

On the question of whether oil is a blesssing or a curse toAfrica the African Development Bank concluded that it is a

26 The Economist 2005 lsquoThe paradox of plentyrsquo27 Canadian Ministry of Foreign Affairs 2000 Human Security in

Sudan The report of Canadian Assessment Mission httpw w w e c o s o n l i n e o r g r e p o r t s 2 0 0 0 Human20Security20in20Sudanpdf

28Africa progress panel 2013 Africaacutes mineral wealth eternally cursedhttpwwwafricaprogresspanelorgafricas-mineral-wealth-eternally-cursed

17

1 THE QUEST FOR WEALTH

ldquohuge blessingrdquo29 It justifies that with the following analysis

We estimate that Africa has 120bn barrels of oilreserves no less than half of Saudi Arabia and 600million hectares of uncultivated arable land halfof the world total We at the African DevelopmentBank (AfDB) estimate that the continentrsquos naturalresources will contribute over $30bn per annumin government revenues over the next 20 years30

Box 1 Oil is a curse for the Niger Delta people

Most people think of oil states as wealthy states ButNigeria proves that sometimes the opposite is true It isAfricarsquos leading oil producer and yet it is one of theworldrsquos 20 poorest countries Whatrsquos more the peopleliving in the Niger Delta the countryrsquos oil-producingregion are among Nigeriarsquos most impoverishedcommunities with a large percentage of the populationhaving to survive on less than one dollar a day For thesepeople lsquoblack goldrsquo has not brought prosperity ordevelopment Instead it has increased corruption socialproblems environmental damage and armed conflictThe many billions of US dollars in oil revenue that havepoured into the country during its oil industryrsquos 50-yearhistory have completely bypassed these communitiesSource Petra Hannen 2011 lsquoBlessing our Coursersquo GIZmagazine akzent

29 African Development Bank 2013 lsquoAfricarsquos mineral wealth a blessingor a cursersquo httpwwwafdborgenblogsafdb-president-this-is-africas-hourpostafricas-mineral-wealth-a-blessing-or-a-curse-12336

30 African Development Bank 2013 Africaacutes mineral wealth a blessingor a curse httpwwwafdborgenblogsafdb-president-this-is-africas-hourpostafricas-mineral-wealth-a-blessing-or-a-curse-12336

LIVING IN FEAR

18

Africa continues the exploitation of its naturalresources

Most of the African Governments that discover naturalresources in their territory eagerly move forward with theexploration of those Therefore natural resources areexplored all over the continent oil in Ghana manganese inGabon gas in Mozambique just to name a few Often thereis little consideration of the destruction or the conflicts theseextractive activities bring For instance according to the BBCin March 2015 the Congolese Government consideredmodifying the boundaries of the Virunga National Park homeof gorilla mountains and World Heritage site to permit oilexploration activities31

DRC and South Sudan as well are exploring a joint projectnow DRC has a frontier with South Sudan in the Northeastpart of the country While historically both ndash referring alsoto Sudan ndash did not often have a common grounds after theIndependence of South Sudan in 2011 it appears possiblethat natural resources may unite them more closely IreneMuloni Minister for Energy and Minerals Development fromUganda announced in an interview in February 2015 thatSouth Sudan and the DRC have expressed interest in theconstruction of an oil pipeline of over 1000 km to the Kenyancoast32 Although yet to be implemented there have beendiscussions and plans to construct a pipeline that would unite

31 BBC 2015 DR Congo seeks Virunga park bounary httpwwwbbccomnewsworld-africa-31876577See also New York Times2014 Oil dispute takes a page from Congoacutes bloody past httpwwwnytimescom20141116worldoil-dispute-takes-a-page-from-congos-bloody-pasthtml_r=1

32 Platts 2015 South Sudan DR Congo interested in Ugandan crudeoil export pipeline minister httpwwwplattscomlatest-newsoilkampalasouth-sudan-dr-congo-interested-in-ugandan-crude-26025080

19

1 THE QUEST FOR WEALTH

oil production and distribution in several African countriesincluding South Sudan Uganda Kenya Democratic Republicof Congo (DRC) and maybe others33

The forthcoming chapters will develop more elementsaround this topic in order to conclude some final remarkswith the particular case studies of DRC and South Sudan

33 The Economist 2013 Pipeline poacuteker httpwwweconomistcomnewsmiddle-east-and-africa21578402-east-africa-danger-throwing-away-part-its-new-found-oil

20

LIVING IN FEAR

Minerals and Wars at the GreatLakes Wealth Death and Massive

Poverty in the Heart of Africa

Our internal difficulties tribal war and the nucleiof political opposition seemed to have beenaccidentally concentrated in the regions with ourrichest mineral and power resources We know howall this was organised and in particular whosupports it today in our house

Our Katanga because of its uranium copper andgold and our Bakwanga in Kasai because of itsdiamonds have become hotbeds of imperialistintrigues The object of these intrigues is torecapture economic control of our country

Patrice Lumumba speech in Leopoldville in August 25th1960 34

34 Speech at the opening of the All-African Conference in Leopoldville in1960 See httpwwwassatashakurorgforumshoulders-our-freedom-fighters42970-collected-speeches-writings-patrice-lumumbahtml

2

21

2 MINERALS AND WARS AT THE GREAT LAKES

Lumumba the first democratically elected Prime Ministerof the Republic of Congo gave a speech in 1960 that wasremarkably prescient of the fate of Democratic Republic ofCongo (DRC) today Conflict minerals and ldquotribal warsrdquo gohand in hand in the DRC historyrsquos past decades Lumumbawas planning to get the DRCrsquos related difficulties undercontrol however he was executed a few months after thespeech by a firing squad in January 1961 The US throughthe CIA the United Kingdom through the M16 and Belgiumwere all blamed for their involvement in his death35

Paradoxically ldquothe assassinations were made by the ordersof those who proclaim themselves to be champions ofdemocracy and respecters of human rightsrdquo36 Externalmeddling and intervention in Congorsquos affairs by foreigncountries is another of the concurrent and repeated situationsthat continue in recent history of the DRC37

Wars and minerals peace at last

hellip The heart of Africa is bleeding hellip

Two wars raged in DRC from 1996-1997 and from 1998-2003 Contrary to what some affirm these were not ethnicconflicts but resource wars38 No coincidence that the

35 BBC 2013 M16 and the death of Patrice Lumumba httpwwwbbccomnewsworld-africa-22006446

36 VVAA 1992 Congo (Zaire) Democratie neo-coloniale ou deuxiemeIndependance Ed LrsquoHarmattan

37 The Guardian 2011 Patrice Lumumba the most importantassassination of the 20th centuryhttpwwwtheguardiancomglobal-developmentpoverty-matters2011jan17patrice-lumumba-50th-anniversary-assassination

38 See Friends of the Congo websitehttpwwwfriendsofthecongoorgresource-centercongo-primerhtml See also Lanotte 2003 RDCguerre sans frontiers Editions Complexe

22

LIVING IN FEAR

country possesses extraordinary mineral wealth with someof the most valuable and strategic minerals on earth suchas coltan diamond cobalt copper gold tin zincmanganese timber and others The highest concentrationof mining activities existin the Eastern part of the countryTo illustrate the predominance of mining here we wouldunderline the affirmation of the Katanga Minister ofPlanning who said that 72 of the territory of Katanga isdevoted to mining No surprise why the IMF has namedDRC one of the worldrsquos mining giants of today39 Themagazine African Business stated in 2009 that ldquothe totalmineral wealth of the DRC was estimated to be some $24trillionrdquo40 As Lumumba indicated back in 1960 the samescenario repeated in recent years ndash minerals and conflictscontinue to go hand by hand

DR Congo possesses some 80 of the worldrsquoscoltan ore reserves(hellip) Additionally the DRCongo produces significant quantities ofdiamonds gold cassiterite copper cobalt (ofwhich it has the worldrsquos largest reservesalthough the trade is largely controlled byZimbabwe) oil tin zinc gold and coffee Thecountry has large reserves of uranium it wasCongolese uranium that was used for theManhattan Project that produced the worldrsquosfirst atomic bombs dropped on Japan The vastcountry also has more than half of sub-SaharanAfricarsquos timber stocks

Source African Business

39 IMF 2013 DRC Poverty reduction strategy paper N 1322640 African Business 2009 DR Congo $24 trillion fortune

23

2 MINERALS AND WARS AT THE GREAT LAKES

The casualties over the years are overwhelming Whileeverybody is familiar with the death toll during the genocidein Rwanda estimated between 500000 and 800000 peoplethere is much less awareness about the conflict situation inCongo The International Rescue Committee has estimatedthat the conflict and humanitarian crisis in the DemocraticRepublic of Congo has taken a death toll of 54 million peoplefrom 1998 to 200741 A CNN correspondent in trying togive an illustration of the heavy toll made the followingcomparative analysis

The wars in that country ndash RD Congo ndash haveclaimed nearly the same number of lives as havinga 911 every single day for 360 days the genocidethat struck Rwanda in 1994 the ethnic cleansingthat overwhelmed Bosnia in the mid-1990s thegenocide that took place in Darfur the number ofpeople killed in the great tsunami that struck Asiain 2004 and the number of people who died inHiroshima and Nagasaki mdash all combined and thendoubled42

Rwanda and Uganda were actively involved in the invasionof Congo in both wars The second war was known as theGreat War of Africa involving nine countries and more than20 armed groups According to Cynthia Ann McKinney aUS Congresswoman from the Democratic Party and an

41 IRC 2007 IRC study shows Congorsquos neglected crisis leaves 54 milliondead httpwwwrescueorgnewsirc-study-shows-congos-neglected-crisis-leaves-54-million-dead-peace-deal-n-kivu-increased-aidmdash4331 Some groups put the death toll much higher See GlobalResearch webpage httpwwwglobalresearchcathe-war-that-did-not-make-the-headlines-over-five-million-dead-in-congo7957

42 CNN 2012 Why the world is ignoring Congo war httpeditioncnncom20121127opinioncongo-war-ignored-vava-tampa

24

LIVING IN FEAR

expert on the Great Lakes issues while invading DRC in theSecond Congo War the US continued providing financialsupport to the governments of Rwanda and Uganda43 Howwas this allowed US President Bill Clinton was personallyin Rwanda in March 1998 only a few months before theRwandese army invaded Congo44 President Clinton was inAfrica at that time addressing its presidents includingPresidents Kagame and Museveni as leaders of the ldquoAfricanRenaissancerdquo and seeing a bright future for Africa45 ThereClinton made an important call to embrace peace How wasit possible to talk about peace while these allies were directlyengaging in war Moreover with the experience of thegenocide in Rwanda how could it be that foreign powersclosely involved in the region particularly the United Stateslet this occur again How did they allow wars and conflictsthat killed millions of people How could they allow whatmany called another genocide in Congo

On a positive note at last in recent months the calls forpeace have been growing from many different stakeholdersIn May 2014 US Secretary of State John Kerry after ameeting with DRC President Kabila stated that ldquoachievinga lasting peace in the DRC is a priority of President ObamardquoHe added ldquoNow I canrsquot emphasize enough how importantthat process is in identifying and resolving the root causesof the conflict in the DRC as well as in the entire GreatLakes regionrdquo46 Not a minor task going to the roots causes

43 Order of Indictment from Juzgao de instruccion numero CuatroAudiencia Nacional Case 320008-D 6-2-2008

44 See CBS News httpwwwcbsnewscomnewstext-of-clintons-rwanda-speech

45 Schaefer 2000 The Keys to an African Economic Renaissance httpwwwheritageorgresearchreports200005the-keys-to-an-african-economic-renaissance

46 See US Dept of State 2014 Press Availability on the DRC and theGreat Lakes Region httpwwwstategovsecretaryremarks201405225587htm

25

2 MINERALS AND WARS AT THE GREAT LAKES

of those problems in the Great Lakes Indeed achieving peaceand reconciliation in the Great Lakes Region in countriesthat had suffered like DRC is a difficult and cumbersometask and making it by finding the ldquorealrdquo root causes can bea very complex and lengthy exercise taking decades orlonger

The situation remains tense We recall that in 2006 theUN Security Council issued a resolution condemning ldquotheactivities of militias and armed groups operating in the GreatLakes regionrdquo47 Almost a decade later those armed groupsare still there and despite the efforts made the situationremains tense and insecure A report of the Group of Expertson the RDC published in 2015 by the United Nations SecurityCouncil concludes that in DRC despite a defeat of one of therebel groups ndash the Movement of 23 March ndash at the end of2013 this ldquofailed to translate into significant gains in securityand security and stability in 2014rdquo48 For example in thebeginning of 2015 a rebel group from Uganda the AlliedDemocratic Forces (ADF) created havoc in North Kivuwhere 17 people were hacked to death with machetes49

47 UN Security Council 2006 Resolution 1653 (2006) SRES165348 UN Security Council 2015 Final report of the Group of Experts on

the DRC S20151949 UN Security Council 2015 March 2015 monthly forecast http

wwwsecuritycouncilreportorgmonthly-forecast2015-03democratic_republic_of_the_congo_7phpVP-BX5Sm4agmailto

26

LIVING IN FEAR

Armed groups militias and criminal networkswithin the military structure making a lucrativebusiness out of minerals

The UN has solidly demonstrated that natural resources areused to finance armed groups and therefore to fuel war inthe region 50 The UN concludes that ldquoarmed groups continueto control many mining sites and to profit from mining andthe minerals traderdquo51 Later on those minerals particularlytin tungsten and tantalum are smuggled to neighbouringcountries For example one of the armed groups theMovement of 23 March (M23) responsible for taking Gomaat the end of 2012 was financing its organisation fromnatural resources in Eastern Congo In relation to thisparticular case the UN asserts that ldquoseveral traders havecontributed to financing M23 rebels using profits resultingfrom the smuggling of Congolese minerals into Rwandardquo52

Besides the rebel groups a criminal network within theArmed Forces of the DRC (FARDC) was involved in the illegalexploitation of natural resources The types of involvementinclude illegal taxation protection rackets and indirectcommercial control to more direct coercive control53

For some top army officials their military work wasconverted into economic businesses Indeed the existing

50 UN Security Council 2014 Final report of the Group of Experts onthe Democratic Republic of the Congo

51 Ibidem52 Ibidem53 UN Security Council 2010 Letter dated 26 October 2010 from the

Group of Experts on the DRC addressed to the Chair of the SecurityCouncil Committee established pursuant resolution 1533 (2004) S2010596

27

2 MINERALS AND WARS AT THE GREAT LAKES

practices made the UN qualify the war as a ldquolucrativebusinessrdquo

illegal exploitation of resources by BurundiRwanda and Uganda took different forms includingconfiscation extraction forced monopoly andprice-fixing The first two forms reachedproportions that made the war in the DRC a verylucrative business There are strong indicationsthat even if security and political reasons werethe professed motivation to move into the easternDRC some top army officials clearly had economicand financial objectives54

The most UN recent reports affirm that ldquomany armed groupsin Eastern Democratic Republic of the Congo have derivedtheir revenue from the production of and trade in naturalresourcesrdquo55

54 UN Security Council 2001 Security Council condemns ilegal exploitationof Democratic Republic of Congoacutes natural resources Press Releasehttpwwwunorgpressen2001sc7057dochtm

55 UN Security Council 2014 Final report of the Group of Experts on theDRC S201442

28

LIVING IN FEAR

Insecurity still booming in Eastern Congo

As already mentioned the momentum created bythe defeat of the Movement of 23 March inNovember 2013 failed to translate into significantgains in security and stability in 2014 in EasternDemocratic Republic of the Congo A militaryoperation against the Allied Democratic Forces(ADF) significantly weakened but did not defeatthe sanctioned armed group An expected militaryoperation against the Forces deacutemocratiques delibeacuteration du Rwanda (FDLR) did not materializeand as of the end of November 2014 efforts tonegotiate the disarmament of this sanctionedarmed group failed to produce meaningful resultsIn addition numerous Congolese and foreignarmed groups contributed to instability inOrientale North Kivu South Kivu and KatangaprovincesADF FDLR Nduma Defence for Congo (led bysanctioned individual Sheka Ntabo Ntaberi) andother armed groups continued to recruit train anduse child soldiers in 2014 Armed groups alsocommitted a variety of other abuses includingtorture enslavement and sexual violence Therewere mass killings in June in Mutarule (South Kivu)and in October and November in Beni territory(North Kivu)

Source United Nations Security Council 201556

29

2 MINERALS AND WARS AT THE GREAT LAKES

One of the problems the existing insecurity and conflicts havecreated is the proliferation of internally displaced peopleestimated in September 2014 at 27 million people57

UN peacekeeping operation in Congo

In July1999 Heads of State of Angola DRC NamibiaRwanda Uganda Zambia and Zimbabwe signed the Lusakaagreement focusing on the establishment of a ceasefire asone of the other components necessary for the deploymentof a UN peacekeeping force

The first UN Peacekeeping operation in DRC wasestablished in November 1999 after the Lusaka Ceasefireagreement It was called the UN Mission in the DRC(MONUC) In 2010 it was renamed the UN OrganizationStabilization Mission in the DRC (MONUSCO)

Ten years later despite the deployment of MONUC thesecurity challenges in DRC ndash particularly in the Eastern Partof the country ndash remain high58 There is still a strong presenceof armed groups chronic humanitarian crisis continuoushuman rights violations and continued illegal exploitationof natural resources In the light of this context the UNcreated an ldquoIntervention brigaderdquo with a key objective ofneutralizing armed groups59 As of today the MONUSCOand the intervention brigade are operational but are theresignificant security changes

56 Ibidem57 See global humanitarian assistance webpage http

wwwglobalhumanitarianassistanceorgcountryprofiledemocratic-republic-of-congo

58 UN Security Council 2010 Resolution 192559 UN Security Council 2013 Resolution 2098

30

LIVING IN FEAR

60 UN Security Council 2014 Final report of the Group of Experts on theDRC S201442

61 PR Newswire 2014 Rwanda has become worldacutes largest coltanexporterhttpwwwprnewswirecomnews-releasesrwanda-has-become-worlds-largest-coltan-exporter-reports-kt-press-300010371html

62 PR Newswire 2014 Rwanda has become worldacutes largest coltanexporter

63 Africa Briefing 2015 Rwanda has abundant deposits of best qualitycoltan Kagame affirms httpafricabriefingorgp=478

Legitimate exports or smuggling conflictminerals

It is well known that many of the minerals in Eastern Congoare smuggled and do not follow legal channels For instancethe UN estimates that 98 of the gold produced in DRC issmuggled out of the DRC making the country lose millionsof dollars in tax revenue60

In December 2014 numerous media covered a story onRwanda and coltan PR Newswire affirmed that ldquoRwandahas become worldacutes largest coltan exporterrdquo61 The dataprovided concluded that in 2013 Rwanda exported around2500000 kg of tantalum which constituted 28 of the total8807232Kg of tantalum produced globally The overallrevenue from the coltan was estimated at around $140 M62

Rwandese President Paul Kagame was quoted as affirmingthat the production was local and dismissed all possibleallegations of plundering the coltan from Congo He affirmedldquoRwanda has not only enough coltan but of a very highquality (hellip) we can even pay for a ticket give them a visaand take them to the minesrdquo63

Contrary to such statements there are many reports thatcoltan is smuggled from Congo to Rwanda and that Rwandadoes not have significant coltan mining on its own For

31

2 MINERALS AND WARS AT THE GREAT LAKES

instance a 2012 report prepared by a European Foundationaffirmed that ldquoRwanda does not house any industrial coltanmines which would suggest legitimate Rwandan coltanproductionrdquo64 A US governmental agency which analyzesthe mining sector in Congo made a table with coltan exportedfrom Rwanda qualifying it as ldquoconflict mineralsrdquo as seen inTable 165 Since there is no known conflict in Rwanda it canonly refer to Rwanda exports of minerals originating froman external conflict zone the DRC

Table 1 Estimates of exports of conflictminerals from Rwanda for Fiscal years2009-2013 in Metric Tons

Year Tantalum

FY 2009 958

FY 2010 827

FY2011 915

FY2012 1139

FY 2013 2466

Source Based on United States Government Accountability Office 2014

64 Van Teeffelen 2012 The EU raw materials policy and mining in RwandaEvert Vermeer Foundation

65 United States Government Accountability Office 2014 Conflictminerals stakeholder options for responsible sourcing are expandingbut more information on smelters is needed

32

LIVING IN FEAR

In this particular situation either somebody is wrong orsomebody is lying Hopefully future events will unveil thetruth around the nature of the coltan exports from Rwandato clarify whether they are a legitimate export or theconsequence of smuggling conflict minerals

Greed for minerals everybody wants a pieceof Congo66

What is at the origin of those wars and instability of theCongo While there could be diverse factors for conflictthere is one that seems to be always recurrent and is recog-nized by most authors and by relevant UN reports the racefor minerals and natural resources The UN recognized thatin the Second Congo War minerals were the coveted trophyand that all actors ldquobuilt up a self-financing war economycentred on mineral exploitationrdquo67 The conflicts that con-tinued after the Second Congo War like those in Kivu andIturi provinces are recognized as well to be fuelled by tradein minerals Along the same lines Palou underlines the causesof the conflict by stating that ldquoalthough from that time un-til the present day the Rwandan regime has expressed itsconcern about the security of its border with the then Zaireobjectively the reality is that control over this strategic areandash Eastern Congo ndash and its valuable mineral resources has

66 See video at Congo Justice httpcongojusticeorg67 UN 2002 Final report of the Panel of Experts on the illegal exploitation

of natural resources and other forms of wealth of the DemocraticRepublic of the Congo S20021146

33

2 MINERALS AND WARS AT THE GREAT LAKES

proved to be at the heart of two wars that have left a hugenumber of victimsrdquo68 In conclusion a 2001 UN report as-serted that ldquothe conflict of DRC has become mainly aboutaccess control and trade of five key mineral resourcescoltan diamond copper cobalt and gold The wealth of thecountry is appealing and hard to resist in the context oflawlessness and the weakness of the central authorityrdquo69

Congolese and regional elite have also profited from thissituation as well and the appalling quantum of the plunderare reflected in the following report from UN

The elite network of Congolese and Zimbabweanpolitical military and commercial interests seeksto maintain its grip on the main mineral resourcesmdash diamonds cobalt copper germanium mdash of theGovernment-controlled area This network hastransferred ownership of at least US$ 5 billion ofassets from the State mining sector to privatecompanies under its control in the past three yearswith no compensation or benefit for the Statetreasury of the Democratic Republic of the Congo70

Funds that could have been used for public services havebeen diverted from the public coffers by fraud or by theexcuse of war effort71 The Congolese population has paid

68 Palou 2010 International Justice plunder in war human rights andmultinationals

69 UN Security Council 2001 Report of the Panel of Experts on theillegal exploitation of natural resources and other forms of wealth ofthe Democratic Republic of the Congo S2001357

70 UN Security Council 2002 Final report of the Panel of Experts on theilegal exploitation of natural resources and other forms of wealth ofthe Democratic Republic of the Congo S20021146

71 Ibidem

34

LIVING IN FEAR

dearly in this situation In terms of human development it isinstructive that the UNDP estimated in 2013 that RDCwas in the low human development category ndash positioningthe country at 186 out of 187 countries and territories72

The Role of Transnational Corporations (Tncs)and the private sector

Other key players involved in the conflict are Transnationalsand the private sector A UN Report published a few yearsafter the Second Congo War started affirmed that ldquothe roleof the private sector in the exploitation of natural resourcesand the continuation of the war has been vitalrdquo73 The reportalso added that ldquoa number of companies have been involvedand have fuelled the war directly trading arms for naturalresourcesrdquo74 Other observers share the view that ldquoWesternMultinationals have been one group responsible for thepillage and illegal exploitation of Congo mineral resourcesrdquo75

There are a large number of big foreign corporationsinvolved in mining in DRC including those from CanadaSouth Africa UK USA and others Despite the opacity ofmost of the activities of the private sector numerousexamples have been reported of how TNCs are responsiblefor human rights abuses and other illegal activites Thereare also many reports of the dangerous connectionsestablished with the political and military elite in order tofacilitate their businesses These are some examples

72 UNDP 2014 Sustaining human progress reducing vulnerabilities andbuilding resilience Congo (Democratic Republic of the) httphdrundporgsitesallthemeshdr_themecountry-notesCODpdf

73 UN 2001 Report of the Panel of Experts on the illegal exploitation ofnatural resources and other forms of wealth of the Democratic Republicof the Congo S2001357

74 UN 2001 Ibidem75 Palou Ibidem

35

2 MINERALS AND WARS AT THE GREAT LAKES

bull Glencore Anglo-Swiss giant in the raw material sectorwith a turnover of US $ 2397 billion in 2013 was beingaccused in 2014 of adopting a military-style response tothe problem of artisanal mining close to its mines ldquoonseveral occasions over the past 18 months mine policehave fired live ammunition in pursuit of artisanal minerson Glencorersquos site resulting in deaths and seriousinjuriesrdquo76 They are as well responsible forcontamination of the water supply with acid content andvery high and concentrations of copper and cobaltFinally the company operates some of its concessionsinside a reserve ndashndash something that in principle is illegalaccording to the RDC Mining Code77

bull An independent investigation unveiled that two miningcompanies Glencore and the Eurasian Natural ResourcesCorporation were involved in underpricing assets incomplex deals featuring offshore companies causinglosses to the DRC of no less than $136 billionIntermediary companies in the deals were linked to DanGerler78 In addition the DRC public prosecutorreportedly told mining companies that they had toreimburse $37 billion in taxes duties and fines79

bull AngloGold Ashanti part of the AngloAmericancorporation was accused of establishing links and

76 Peyer et al 2014 PR or Progress Glencoreacutes corporate responsibility inthe DRC Bread for all RAID Fastenopfer

77 Ibidem78 CRS 2014 Democratic Republic of Congo Background and US Policy79 Reuters 2014 Disputed Congo report says miners owe $37 billion in

tax fines httpwwwreuterscomarticle20140130us-congo-democratic-mining-idUSBREA0T12L20140130

36

LIVING IN FEAR

supporting one armed group the Nationalist andIntegrationist Front (FNI)80

bull In 2004 fighting between soldiers and rebels in Kilwaended in serious human rights violations againstcivilians including summary executions arbitraryarrests rape and torture Anvil Mining operated theDikulushi copper mine near Kilwa and was accused ofproviding vehicles and planes to the Congolese armedforces during this event The legal case ended in theCanadian Supreme Court in 2012 which ruled that itwould not hear the plaintiff rsquos appeal ndash they were led bythe Canadian Association Against Impunity (anassociation representing survivors of the incidents inOctober 2004)81

bull In May 1997 Citibank NY a financial institution hasbeen accused of giving $5 million loan to a Congolesemilitia allied with Rwanda82

bull American Mineral Fields (AMF) cut a $1 billion dealwith Kabila immediately after his forces captured GomaThe negotiations were led by ldquoKabilarsquos US-trainedfinance ministerrdquo who gave ldquoAMF exclusive explorationrights to zinc copper and cobalt mines in the area MikeMcMurrough a friend of US President Bill Clinton wasthen the chair of AMF83

80 Human rights watch 2005 DRC Gold fuels massive human rightsatrocities httpwwwhrworgennews20050601dr-congo-gold-fuels-massive-human-rights-atrocities

81 Business and human rights resource center 2012 Anvil Mining Lawsuit(re DRC) httpbusiness-humanrightsorgenanvil-mining-lawsuit-re-dem-rep-of-congo

82 Global research 2008 Congo Resource wars httpwwwglobalresearchcacongo-resource-wars8310

83 Global research 2008 Ibidem

37

2 MINERALS AND WARS AT THE GREAT LAKES

UN and some other independent reports generally makebroad statements about the role of corporations includingciting some of the companies however they fall short ofproviding details of the modus operandi of those companiesand in establishing or suggesting concrete measures to stopthe conflicts and solve the negative impacts on the DRCpopulation and environment A 2002 UN Report listed 85companies considered by the Panel to be in violation of theOECD Guidelines for Multinational Enterprises84 Very littlehas been done after the UN report was published

A poor country Until when

In 1969 World Bank President Robert McNamara embarkedon a trip to Africa to try to discover ldquowhat are therequirements for developmentrdquo85 At that time the WorldBank in its information document described the country asrich in natural resources but at the same time poor and witha strong mining sector

In spite of its rich natural resources and greatpotential the Congo is still a poor country (hellip)Mining and metallurgy play a leading role in theeconomy86

84 UN 2002 Final Report of the Panel of Experts on the Illegal Exploitationof Natural Resources and other Forms of Wealth of the DemocraticRepublic of the Congo S20021146

85 Records of President Robert S McNamara Travel briefs CongoKinshasa (01021969-03031969) 1772506 Reference Code WBIBRDIDA 03 EXC-10-4540S World Bank Group archives WashingtonDC United States

86 Ibidem

38

LIVING IN FEAR

More than forty years later not much has changed asupdated data shows In DRC seven out of ten householdsare poor87 Most of its nearly 60 million people areldquodesperately poor living on less than $1 a dayrdquo88 DRC is aleast developed country a fragile State that has been in thetop 10 recipients of humanitarian assistance in nine of thelast 10 years Between 2003 and 2012 DRC received US$176billion in official development assistance (ODA) making itthe 10th largest recipient89In 2012 the Democratic Republicof Congo (DRC) received US$286 billion in net officialdevelopment assistance90

With so many natural resources isnrsquot there money to getpeople out of poverty The mining sector is oftenacknowledged as being capable of contributing to povertyreduction However those mineral benefits are oftencreamed off by powerful interests and do not get to thehands of the majority of the population According to DFIDldquofiscal receipts from the minerals sector are siphoned off bypowerful interest groups instead of being used in the publicsectorrdquo91

The analysis of Mr Antonino Giambrone sheds more lightabout the earnings and who profits from mining

While the average Congolese worker earns $10 permonth the average Congolese coltan-miner earnsanywhere from $10 to $50 per week Uganda

87 IMF 2013 DRC Poverty reduction strategy paper N 1322688 DFID 2008 Democratic Republic of Congo Country Plan89 View global humanitarian assistance webpage http

wwwglobalhumanitarianassistanceorgcountryprofiledemocratic-republic-of-congo

90 CRS 2014 Democratic Republic of Congo Background and US Policy91 DFID 2008 Democratic Republic of Congo Country Plan

39

2 MINERALS AND WARS AT THE GREAT LAKES

Rwandan and Congolese rebels have earned manymillions of dollars in sales of coltan which theyhave used to finance their war efforts in the CongoBetweeen 1999 and 2000 the Rwandan army aloneearned at least $20 million a month from coltan92

Food insecurity is often a consequence of poverty One ofthe causes of existing food insecurity is the abandonment ofthe agriculture sector partly due to conflicts The governmentstated that it would like to strengthen the smallholdersldquowhile ensuring at the same time the protection of thecountryrsquos natural resourcesrdquo93

War impacts on the environment

The wars have had devastating impact on the environmentNational parks for instance home of many endangeredspecies are also affected by the exploitation of minerals94

There are numerous reports on the precarious situation ofwildlife in the region For instance between 1995 and 19994000 out of 12000 elephants were killed in the GarambaPark in North-eastern DRC95 The situation was also seriousin other parks For instance in Kahuzi-Biega Park a zonerich in coltan only 2 out of 350 elephant families remained

92 Giambrone 2006 The extraction of natural resources as a source ofconflict Etfo voice

93 IMF 2013 DRC Poverty reduction strategy paper N 1322694 Seeh ttpwww lenntech comenv ironmental -ef fec ts -

warhtmixzz3CuGZqE3M95 UN 2001 Report of the Panel of Experts on the illegal exploitation of

natural resources and other forms of wealth of the Democratic Republicof the Congo S2001357

40

LIVING IN FEAR

in 200096 Mountain gorillas are also under threat due tocontinued civil unrest and the presence of armed militiasmakes survey and conservation work difficult in the DRCrsquosprotected areas97

Deforestation is also one of the common impactsWorldwatch explains the implication of having refugeespopulation inhabiting RDC degraded forest areas

For two years beginning in late 1994 for exampleabout 720000 Rwandans inhabited refugee campson the fringes of Virunga National Park They allneeded wood for cooking fires and for buildingshelters and some also earned extra money bymanufacturing charcoal As a result up to 80000people entered the park and carted away up to1000 tons of wood every day By mid-1996 105square kilometers of forest had been affected toone degree or another by their activities 35 squarekilometers had been stripped bare98

Besides the need for fuelwood by refugees movement ofmilitary hardware through forests and woodlands also causeserious damage to forests and the landscape generally

96 Ibidem97 See WWF webpage httpwwfpandaorgwhat_we_doendangered_species

great_apesgorillasmountain_gorilla98 Worldwatch 2008 War and Environment httpwwwworldwatchorg

node5520

3South Sudan The Oil Way

99 Washington Post 2012 lsquoSouth Sudan civilians are trapped in conflictover oilrsquo httpwwwwashingtonpostcomworldsouth-sudan-civi l i ans-are- trapped-in-conf l ict -over-o i l20120501gIQAUX6buT_storyhtml

100 See UN Mission in South Sudan web page httpwwwunmultimediaorgtvunifeed201404south-sudan-bentiu-massacre

101 Reuters 2014 Bentiu massacre is game-changer in South Sudanconflict says UN official httpwwwtheguardiancomworld2014apr22bentiu-massacre-south-sudan-united-nations

41

ldquoIf we had no oil we would not be attackedrdquo

Nyak a 27-year-old sitting outside herhut in Bentiu South Sudan 201299

In April 2014 Bentiu the capital of the oil producing UnityState was the scenario of one of the worst massacres of thecivil war between South Sudanese forces100 Hundreds ofpeople were killed in the fighting that took place betweenthe Sudan Peoplersquos Liberation Army (SPLA) and anti-government forces in the oil-rich State101

42

LIVING IN FEAR

Civil wars and conflict

Since its independence in 1956 Sudan has been at war andconflict for most of its modern history Specialists in conflictand security have described the history of modern Sudan asldquoan unremitting sequence of wars punctuated by oft-violatedpeace agreementsrdquo102 The First Sudanese Civil War (1955ndash1972) was followed by a Second Sudanese Civil War (1983ndash2005) with barely 11 years breathing space of tenuoussecurity

The Second Civil War ended when both sides signed theComprehensive Peace Agreement in 2005 That agreementgave autonomy to South Sudan within Sudan However areferendum held in January 2011 moved the region towardsecession and then in July 2011 independence was achievedand South Sudan became an autonomous nation103 Theprocess that led to South Sudanrsquos independence was stronglysupported by the US government which backed Juba in itstwo decades struggle against Khartoum104 It should be notedthat even during the 11 years of supposed peace there wereconflicts on a regular basis particularly in the border areasbetween South Sudan and Sudan105 Two years after theindependence the first South Sudanese Civil War started inDecember 2013 The civil war erupted as a result of a power

102 Cox and Snapper 2013 The Strategic Importance of South Sudan TelAviv University

103 National Geographic 2013 South Sudan oil the environment andborder conflicts httpvoicesnationalgeographiccom2013032286550

104 See webpagehttpwwwworkersorgarticles20140101south-sudan-yet-another-oil-war

105 International Crisis Group 2006 Sudan Saving peace in the Easthttpwwwcrisisgrouporgenregionsafricahorn-of-africasudan102-sudan-saving-peace-in-the-eastaspx BBC 2015 South SudanProfile httpwwwbbccomnewsworld-africa-14019202

43

3 SOUTH SUDAN THE OIL WAY

struggle between president Salva Kiir from the Dinka ethnicgroup and his deputy Riek Machar from the Nuer ethnicgroup whom he had sacked As at the time of this writingthe civil war continues

Sudan vs South Sudan

The tensions and conflicts after the independence of SouthSudan from its neighbour Sudan did not stop in 2011 Topleaders from both sides accuse and threaten each other innumerous occasions For instance Sudanese President Bashirpromised to teach South Sudan a ldquofinal lesson by forcerdquo106

South Sudan President firmly swore that ldquowhether Umar al-Bashir likes it or not one day Abyei will rejoin the southrdquo107

Abyei

Abyei is traditionally the home of the Ngok Dinka asubdivision of the Dinka tribe with strong links to the Dinkain South Sudan Besides the Dinka Misseriya herders aremembers of nomadic Arab tribes that seasonally cross Abyeiand other nearby areas with their cattle in search of waterand pasture108

Since the signing of the Peace Agreement in 2005 betweenthe Government of Sudan and the SPLM the dispute over

106 The Washington Post 2012 lsquoSudanese president vows war againstSouth Sudanrsquo httpwwwwashingtonpostcomworldsudanese-president-threatens-force-against-south-sudan-over-oil-field20120419gIQAJ0G8ST_storyhtml

107 The Global Intelligence Files 2013 Sudan- President Kiir says Abyeiwill ldquorejoinrdquo South Sudan httpssearchwikileaksorggifilesviewemailid=674314

108 Enough Project 2013 What is the Abyei Area and why is it disputedhttpwwwenoughprojectorgblogsenough-101-what-abyei-area-and-why-it-disputed

44

LIVING IN FEAR

the future status of the Abyei area has beenone of the bigbarriers to stability in the region109Abyei is an oil-rich areadisputed by Sudan and South Sudan and stands out as thehotspot of bigger tension beetween Sudan and South Sudannowadays

The conflicts over Abyei have a history of more than 50years After the First Civil war the parties signatories to thepeace pact agreed that Abyei would hold a referendum todetermine whether they would be part of Sudan or a newlyregion in the South The second war commenced in 1983and the foreseen referendum was not done

In 2009 the Permanent Court of Arbitration in the Hagueruled on Abyei territory giving concessions to the Governmentof Sudan and the Southern Sudan Heglig and other closeroil-fields remained out of Abyei area while the rest of theAbyei region remained under control of the Ngok Dinka anethnic group close to Southern Sudan and keen on voting tojoin the South in a future referendum110Another referendumwas scheduled to be done in parallel with the South Sudanreferendum in 2011 but once again this never took place

Although a series of temporary security arrangementswere agreed in January and March 2011111 in May SudaneseArmy tanks entered the town of Abyei and by the 22nd ofMay they seized control of the town112The government ofSudan launched numerous military attacks in the disputed

109 UN Security Council 2011 Report of the Secretary-General on thesituation in Abyei S2011451

110 New York Times 2009 lsquoCourt redraws disputed area in Sudanrsquo httpwwwnytimescom20090723worldafrica23sudanhtml_r=1amp

111 UN Security Council 2011 Report of the Secretary-General on thesituation in Abyei S2011451

112 Reuters 2011 North Sudan seizes disputed Abyei thousands fleehttpwwwreuterscomarticle20110522us-sudan-abyei-north-idUSTRE74L14L20110522

45

3 SOUTH SUDAN THE OIL WAY

border of area where much of Sudanacutes remaining oil fieldsare situated113 Two years later the fighting remains intensein parts of South Kordofan and Blue Nile114 More than 2million people have been internally displaced or severelyaffected by the conflict since 2011115

In addition to military attacks other actions contributedto the tension There have been cattle raids by the MissiriyandashArab nomadic cattle herders inhabiting the area ndash on theNgok Dinka ndasha subdivision of the Dinka tribe inhabitingthis area In occasions more than 200 cows were stolenwith a large part of it recovered by the UN Interim SecurityForce for Abyei(UNISFA) These raids increase further thealready tense situation in the region and in particular thevery tense situation among the Missiriya and the NgokDinka116

113 The Conversation 2012 Oil fuels the conflict between Sudan andSouth Sudan ndashand it keeps getting hotter

114 OCHA 2014 South Kordofan and Blue Nile population movementsfact sheet httpreliefwebintsitesreliefwebintfilesresourcesSouth20Kordofan20and20Blue20Nile20Population20Movements20Fact20Sheet20-201920May202014pdfReuters 2013 Khartoum says rebels based in South Sudan caused oilpipeline blast

115 OCHA 2014 Ibidem116 See Human Security baseline assessment for Sudan and South Sudan

webpage httpwwwsmallarmssurveysudanorgdefacts-figuresborderdisputed-areasabyeihtml

46

LIVING IN FEAR

An oil-centered conflict

ldquoThe violence underscores the extent to which oilis at the heart of the dispute Khartoum whichcontrols the pipelines that take oil out of SouthSudan depends heavily on oil transit fees SouthSudan which depends on oil for 98 percent of itsrevenue has refused to pay the fees which it saysare exorbitantKhartoum responded by seizing oil tankers carryingSouth Sudanese oil and imposing economicblockades That prompted South Sudan to shutdown its entire oil production in February Thatmonth Sudan allegedly bombed an oilfield inSouth Sudan that was nine miles from the borderrdquo

Washington Post 2012

Missiriya attacks continue as of today UNISFA reported thatin March 2015 100 armed Missiriya killed several peopleand burnt over 20 houses in a village in the southern part ofAbyei117 Many of those attacks occur despite the presenceof UN peacekeepers in the zone

In this context a UN force was deployed in 2011 withmore than 4000 personnel mostly Ethiopian with theobjective of ensuring the demilitarization of the Abyei areaand particularly checking the Sudan Armed Forces and theSudan Peoplersquos Liberation Army Interestingly the UN forceshad also the task to provide security for oil infrastructure inthe Abyei Area in cooperation with the Abyei PoliceService118 In February 2015 the Security Council extended

117 Sudan Tribune 2015 South Sudan condemns deadly clashes in Abyeihttpwwwsudantribunecomspipphparticle54191

118 UN Security Council 2011 Resolution 1990 (2011) SRES1990(2011)

47

3 SOUTH SUDAN THE OIL WAY

the mandate of the UNISFA again until July 2015119 The AbyeiJoint Oversight Committee (AJOC) decided in May 2013 thatAbyei should adopt a status as weapons-free area and thatonly UNISFA would be authorized to carry weapons in thearea120

The situation in the area is still very fragile121 For instancevarious resolutions have called for the redeployement of allmilitary personnel from Abyei including those protecting itsoil infrastructure However the Sudanese Governmentskeeps at the Diffra oil complex around 150 Sudan oil policein a clear violation of an agreement and Security Councilresolutions adopted in 2011122 The UN Security council ina recent resolution

Condemns the presence of Diffra Oil Police unitsdeployed in the Abyei Area as well as the repeatedentry of armed militias into the territory andreiterates its demands that immediately andwithout preconditions the Government of Sudanredeploy the Oil Police in Diffra from the AbyeiArea ()123

Conflicts escalating over oil Heglig battles

In 2012 despite the Permanent Court of Arbitration ruling124

which placed Heglig oilfields in the Sudanese territories

119 UN News Center 2015 Security Council extends UN peacekeepingforce in Abyei through July 2015

120 UN Security Council 2015 Ibidem121 UN Security Council 2015 Security Council adopting resolution 2205

(2015) extends interim force in Abyei until 15 july voicing concernover delays in Borde Mechanismrsquos operation httpwwwunorgpressen2015sc11800dochtm

122 UN Security Council 2014 Report of the Secretary-General on thesituation in Abyei S2014518

123 UN Security Council 2015 Ibidem124 See Permanent Court of Arbritation webpage httpwwwlocgov

lawwebservletlloc_newsdisp3_l205401463_text

48

LIVING IN FEAR

the South Sudanese army launched an attack over Heglig125

South Sudanrsquos army took control of the oil-producing townof Heglig The South Sudan move did not enjoy sympathyfrom many countries including its allies such as the US andBritain126 The African Unionrsquos (AU) Peace and SecurityCouncil considered Sudanrsquos occupation of Heglig as illegal127

At the end after a few days South Sudan pulled back itstroops from Heglig even though President Salva Kiir stillclaims that Heglig is a part of South Sudan and is expectinginternational arbitration

Oil and geopolitics

The implications of the oil economy are self-telling Prior tothe separation of Sudan from South Sudan in 2011 theunified Sudan was the second-largest non-OPEC oil producerin Africa in 2010 When they separated Sudan and SouthSudanrsquos production diminished and together they rankedas the fourth-largest non-OPEC African oil producer in 2013Particularly the split of the country in oil revenues economicterms was a huge blow to Sudan with its crude oil exportrevenues falling from almost $11 billion in 2010 to around$18 billion in 2012128 It has been estimated that oilcontributes 98 of South Sudan government income morethan for any other government in the world129

125 Wall Street Journal 2012 Sudan escalates fight over oil httpwwwwsjcomarticlesSB10001424052702304444604577339461981143808

126 The Guardian 2012 South Sudan to withdraw from disputed oiltownhttpwwwtheguardiancomworld2012apr20south-sudan-withdraw-oil-town

127 IRIN 2012 Sudan-South Sudan Heglig and the border128 US Energy Information Administration 2014 Country analysis brief

Sudan and South SudanhttpwwweiagovcountriesanalysisbriefsSudansudanpdf

129 Global Witness 2009 Fuelling mistrust

49

3 SOUTH SUDAN THE OIL WAY

Although oil exploration started at the end of the 1950showever no success was achieved with the activities of Italianoil company Agip130 Discoveries were found in the years tofollow The first oil discovery was made in 1979 when theAmerican company Chevron found oil near the Darfur-Kordofan boundary Three years later Chevron made twolarger discoveries the Heglig and Unity oilfields which asof today are the most productive However by 1984 Chevronstopped its operations when some of its workers were killedby an armed group By 1988 the company dismantled all ofits operations in Bentiu and Unity provinces131

As a landlocked country all the oil in South Sudan had tobe extracted and exported via a pipeline The pipeline wasconstructed by China National Petroleum Corporation andit covered a length of around 1600 kilometers132 Ittransports the oil from South Sudan to the Red Sea Thecost of the pipeline was estimated at $1 billion and it wasfinished in 1999133At the time of the construction of thepipeline Sudan provided less than 1 of Chinarsquos oil importsbut a few years later by 2009 the investments of Chinatotalled more than $8 billion134

130 Understanding Sudan 2009 Fact sheet two A history of oil in theSudan httpunderstandingsudanorgOilOilResourcesL2FS2-HistoryofOilinSudanpdf

131 Understanding Sudan Ibidem132 The Conversation 2012 Oil fuels the conflict between Sudan and

South Sudan ndashand it keeps getting hotter133 Sitarek 2001 The human price of oil ICE Case Studies Number 83

httpwww1americanedutedicesudansanctionshtm16134 The Conversation 2012 Ibidem

50

LIVING IN FEAR

Source US Energy Information Administration 2014

South Sudan becameindependenth in July2011 Taking aboutthree-quarters of theproduction A disputeover transit fees ledSouth Sudan to haltproduction for most of2012

Oil production inSudan and South Sudan

thousand barrels per day

51

3 SOUTH SUDAN THE OIL WAY

Main oil companies in Sudan and South Sudan

While initially many companies involved were of Westernorigin most of the companies now involved in the oil sectorare from China and Malaysia

Source US Energy Information Administration 2014 Countryanalysis Brief Sudan and South Sudan

Row over oil tariffs

By 2011 both countries did not agree on how much SouthSudan should pay to export its oil through the pipelines inSudan Sudan requested a fee of 33 dollars a barrel whileSouth Sudan said the highest fee they could afford was 2

Table 2 Main oil companies in Sudan and South Sudan

52

LIVING IN FEAR

dollars a barrel135 Following this lack of agreement SouthSudan halted crude oil production in early 2012

This decision worsened the economic situation in bothcountries as both depend hugely on money from oil exportsfor their revenues However an agreement was reached andin April 2013 South Sudan restarted oil production136

Causes of the Sudanese Civil War

Wars in Sudan have been often portrayed quite simplisticallyas an ArabMuslim north versus and an AfricanCristiansouth While certainly ethnicity and religion played a rolethe conflict has been mainly fought over natural resources137

Today oil is the countryrsquos main natural resource and ithas been estimated that it accounts for 98 of South Sudanrsquosrevenue138 The multibillion potential of their revenuehowever has not translated into wealth and benefits for themajority of the population of South Sudan First of all it hasnot solved the problem of security as since the very inceptionof the State of South Sudan in 2011 there were conflicts inmany areas of the country particularly in the borderline withSudan A 2013 report from the World Bank illustrates thisby asserting that ldquodespite South Sudanrsquos great resourcewealth its population is one of the most deprived due todecades of neglect and war and the distortions of the oil

135 IPS 2011 South Sudan rows over exorbitant fees for pipeline use136 Reuters 2013 South Sudan resumes oil output after ending row with

Sudan over transit fees137 Caas 2007 Natural resources and conflict in Sudan138 See World Bank webpagehttpwwwworldbankorgencountry

southsudanoverview

53

3 SOUTH SUDAN THE OIL WAY

economyrdquo139 Indeed oil reserves sitting on a disputed borderbetween Sudan and South Sudan have not translated yetinto wealth for the majority of citizens of South SudanInstead most of the inhabitants of the country remain deeplypoor and do not enjoy even basic rights to access potablewater and adequate sanitation140

Oil has been a main cause for the war and conflicts inSudan For instance it influenced the end of the peaceagreement obtained after the first civil war This first civilwar ended in 1972 with the Addis Ababa Agreement Theagreement established a system of peaceful co-existence witha single country by guaranteeing aNorthern basedgovernment but granted at the same time autonomy in theSouth This however was not going to last long as thediscovery of oil at the end of the 1970s in Southern Sudanchanged the ldquocoexistencerdquo idea In 1978 Sudanese PresidentNimeiry decided to embark on oil exploration project thatwould lead to the finding of oil in commercial quantities Inorder to control the oil within the hands of the Northernbased Government military force was used and in additionto imposing islamic law which led to the new civil warstarting in 1983141

139 World Bank 2013 Interim Strategy Note (FY 2013-2014) httpwww-wdsworldbankorgexternaldefaultWDSContentServerWDSPIB20130207000333037_20130207110223RenderedPDF747670ISN0P1290Official0Use0Only090pdf

140 National Geographic 2013 South Sudan oil the environment andborder conflicts httpvoicesnationalgeographiccom2013032286550

141 Sitarek 2001 The human price of oil ICE Case Studies Number 83httpwww1americanedutedicesudansanctionshtm16

54

LIVING IN FEAR

Numerous authors have identified natural resources ashaving a direct correlation with wars and conflicts142 Ananalysis by Ross of the University of California (UCLA) ofthirteen wars and conflicts concluded that in the case ofSudan oil was one of the key causes of the second civil warand an incentive for advancing the independence of SouthSudan143 Ross describes his conclusion in the followingmanner

War in Sudan began in 1983 when SudanesePresident Nimeiry took a series of measures thatupset the delicate balance between thepredominantly Muslim north and the heavilyChristian and Animist south among these measureswas his decision to place newly discovered oil inthe countryrsquos south under the jurisdiction of thenorth and to build an oil refinery in the northinstead of the south The Sudan Peoplersquos LiberationArmy (SPLA) subsequently complained that thenorth was stealing the resources of the southincluding oil demanded that work cease on apipeline to take oil from the south to the refineryin the north and in February 1984 attacked an oilexploration base killing three foreign workers andbringing the project to a halt144

142 Varisco 2010 lsquoA study on the inter-relation between armed conflictand natural resources and its implications for conflict resolution andpeace buildingrsquo Journal of Peace Conflict and Development issue 15Ross 2003 How do natural resources influence civil war Evidencefrom 13 cases httpwwwsscnetuclaedupoliscifacultyrossHowDoesNat3pdf

143 Ross Ibidem144 Ross Ibidem

55

3 SOUTH SUDAN THE OIL WAY

Even when the different parties were discussing an agreementon ldquono attacks on civilians or civilian objectsrdquo oil was playinga central role It is instructive to note that the Sudanesegovernment desired language in the text stating that oilinstallations were ldquocivilian objectsrdquo while the SPLA wantedthe contrary145

Human Rights Watch reached the same conclusion thatoil without doubt has been a key fuel for war particularlysince the end of the 90s when crude oil was first exportedfrom Sudan in 1999146

Oil became the main objective and a principal causeof war (hellip) The large-scale exploitation of oil byforeign companies operating in the theatre of warin Southern Sudan has increased human rightsabuses there and has exacerbated the long-runningconflict in Sudan a conflict marked by gross rightsabuses ndashtwo million dead four million displacedsince 1983 ndashand recurring famine and epidemics147

Also the UN makes clear statements on the issue Specialenvoy Leonardo Franco expressed in a report that oilexacerbated the conflict

the economic political and strategic implicationssurrounding oil exploitation in western Upper Nilewhich have seriously exacerbated the conflictthereby causing a deterioration in the overall

145 Ibidem146 Human Rights Watch 2003 Sudan oil and human rights147 Human Rights Watch 2003 Sudan oil and human rights

56

LIVING IN FEAR

situation of human rights and respect forhumanitarian law and narrowing the slim chancesfor peace148

Indeed multiple causes and elements contributed to theconflicts It was recognized that ethnicity and religion wereimportant elements however the key dimension is controlover natural resources particularly oil Added to this are alsotensions over land and resources and the promotion by thegovernment of crops like cotton and sugar which displacedcertain groups of people149 Similar conclusions were reachedyears back by a Canadian Government Mission in Sudanwhich fully recognized some ethnic disputes as well asdisputes over other natural resources however oil was thekey factor which made things really dramatic

148 UN 2000 Interim report of the Special Rapporteur of the Commissionon human rights on the situation of human rights in the Sudan A55374 httpwwwunorgdocumentsgadocs55a55374pdf Seealso UN 1999 Situation of human rights in Sudan UN Doc A54467

149 University of Massachusetts (undated) Modern conflicts conflictprofile SudanhttpwwwperiumassedufileadminpdfSudan1pdf

57

3 SOUTH SUDAN THE OIL WAY

The Harker mission pointed out that while therehave always been pressures on the Dinka in theHeglig- Ruweng area as a result of inter-tribalfighting with Arab nomads for grazing areas anddry-season water the situation had worsened withthe beginning of oilexploration and had continuedto deteriorate over theyears because of the periodicoffensives launched by the Government and itsallies resulting in destructionand mass populationdisplacement150

South Sudan has one of the largest oil reserves inSub Saharan Africa and the commodity is thelifeline of the countryrsquos economy accounting for98 percent of the governmentrsquos financial resources

Whoever controls South Sudanrsquos oil thereforecould seize the upper hand in the battle for power

Source France 24 2013 lsquoBattle for oil adds newdimension to South Sudan conflictrsquo

Whoever controls South Sudanrsquos oil therefore could seizethe upper hand in the battle for power

The same scenario applies to the South Sudan Civil Warwhich initially was also portrayed along ethnic line TheDinka ethnic group of President Salva Kiir has fought rebelsallied with former vice president Riek Machar of the Nuer

150 UN 2000 Interim report of the Special Rapporteur of the Commissionon human rights on the situation of human rights in the Sudan A55374 Ibidem

58

LIVING IN FEAR

ethnic group However increasingly ldquothe focus of the fightingis shifting to the battle to control the countryrsquos mostimportant natural resource ndash oilrdquo151 The oilfields haveliterally become the battlefields

Consequences of war and conflict

The damage inflicted on people as a consequence of war ishuge Back in 2001 US Secretary of State Colin Powellqualified the war in Sudan in the following terms ldquoThere isperhaps no greater tragedy on the face of the earth todaythan the tragedy that is unfolding in the Sudanrdquo152 Firstthere is a large number of deaths due to war and war relatedcauses and also a huge number of displaced people Thedeath toll derived from the Second Civil Sudanese War isestimated at two million The US Commitee for refugeesasserted that ldquothis massive loss of life surpasses the civiliandeath toll in any war since World War IIrdquo153 In the mostrecent civil war the South Sudanese Civil War that startedin December 2013 by April 2014 the death toll wasestimated to be at 10000154

Besides the death toll there are estimated more than fourmillion people of the Southern Sudanese population forced

151 France 24 2013 Battle for oil adds new dimension to South Sudanconflicthttpwwwfrance24comen20131227-battle-oil-adds-new-dimension-south-sudan-conflict

152 Human Rights Watch 2003 Ibidem153 See US Committee for Refugees webpage in 2001 http

webarchiveorgweb20041210024759httpwwwrefugeesorgnewscrisissudanhtm

154 International crisis group 2014 South Sudan a civil war by any othernamehttpwwwcrisisgrouporg~mediaFilesafricahorn-of-africasouth20sudan217-south-sudan-a-civil-war-by-any-other-namepdf

59

3 SOUTH SUDAN THE OIL WAY

to flee their homes at one time or another It has also beenargued that the development of oilfields has led to the forcedremoval of the local population In the words of the lateJohn Garang oil was a ldquokiller itrsquos evicting our civilianpopulationrdquo claiming 100 000 people displaced due to thiscause155

Children are some of the main victims of conflict beingrecruited for instance for war and suffering sexual violenceFrom March 2011 to September 2014 the UN estimatesthat there were 1243 incidents affecting 68776 children156

UN reports indicate that both armed groups have usedchildren ldquoon a large scale and committed other graveviolations including killing maiming and sexual violencerdquo157

For instance in 2015 an incident was reported where closeto 100 children were abducted some as young as 13 Armedsoldiers were advancing house to house looking for boysand taking them by force158 According to UNICEF this occuredin Wau Shilluk close to the city of Malakal in Upper NileState159

Not surprisingly as put by a high UN representativepeople are desperate for peace

155 BBC 2001 Garang Oil firms are targetshttpnewsbbccouk2hiafrica1393481stm

156 UN Security Council 2014 Report of the Secretary-General on childrenand armed conflict in South Sudan S2014884

157 Ibidem158 The Guardian 2015 South Sudan gunmen kidnap at least 89 boys

from village near Malakal httpwwwtheguardiancomworld2015feb22south-sudan-gunmen-kidnap-89-boys-village-malakal-child-soldiers

159 The Guardian 2015 South Sudan gunmen kidnap at least 89 boysfrom village near Malakal

60

LIVING IN FEAR

People are desperate for peace They are tired ofliving in fear Many have had to flee several timesThey are exhausted They lack water they areextremely worried for their children who are notin school and at risk of being recruited into armedgroups Sexual violence is rife All people want isto live in safety security and stability160

Wars have also an impact on food security and nutrition Asof February 2015 there was an alert that the food situationwas critical in South Sudan for more than 25 millionpeople161 This was famine related to war Ulrika BlomCountry Director for Norwegian Refugee Council in 2015succinctly stated ldquoThere is an urgent need for a solution onthe conflict so that people are able to resume their dailylives in dignity and not be dependent on massive foodassistancerdquo162

The harsh consequences of war are inevitable and occurfrom a systematic destruction of infrastructure erosion ofthe human capital and weakening of essential institutions

Besides causing an appalling loss of life Sudanrsquoslong civil war eroded the capital base The wardepleted the labour force while roads irrigationsystems and other key components of rural

160 Under-Secretary-General for Humanitarian Affairs and Emergency ReliefCoordinator Valerie Amos remarks to the press Juba South Sudan 9February 2015 httpreliefwebintreportsouth-sudanunder-secretary-general-humanitarian-affairs-and-emergency-relief-coordinator-1

161 UN Security Council 2015 Reports of the Secretary-General on theSudan and South Sudan SPV7392

162 Norwegian Refugee Council 2015 Conflict a cause of hunger in SouthSudan httpwwwnrcnodid=9192498

61

3 SOUTH SUDAN THE OIL WAY

infrastructure were destroyed damaged orneglected It also weakened institutions divertedfinancial capital from economic development andundermined interpersonal trust which is criticalto productive business dealings163

Some have tried to put a figure on the costs of war A recentreport estimates that the cost of the civil war may be between$223 and $28 billion over the next five years for SouthSudan alone if the factions fail to bring peace to the worldrsquosnewest country164

UN peacekeeping operations

In July 2011 the Security Council determined that thesituation in South Sudan constituted a threat to internationalpeace and security in the region and established the UNMission in the Republic of South Sudan (UNMISS)165 Thekey elements of the mandate is to consolidate peace andsecurity However after the civil war broke in July 2013 inthe light of significant human rights violations the large-scale displacement of persons the UNMISS mandate wasreshaped and a focus was given to the protection of civiliansand creation of the conditions for delivery of humanitarianassistance166

163 IFAD 2013 Enabling poor rural people to overcome poverty in SouthSudan

164 Frontier Economics 2015 South Sudan the cost of war httpwwwfrontier-economicscomdocuments201501south-sudan-cost-warpdf

165 UN Security Council 2011 Resolution 1996166 UN Security Council 2014 Resolution 2155

62

LIVING IN FEAR

In June 2011 a month before the establishement ofUNMISS a second UN peacekeeping operation wasestablished in the disputed border between Sudan and SouthSudan The United Nations Interim Security Force for Abyei(UNISFA) was created in a context of escalating violenceand tensions and population displacement167 One of the topobjectives was to achieve the demilitarization of the Abyeifrom any force other than UNISFA and the Abyei PoliceService facilitate the delivery of humanitarian aidstrenghten the capacity of the Abyei Police Service and incooperation with the police provide security for oilinfrastructure in the Abyei area168

Corporations and conflicts with communities

Since the conclusion of the 2005 Peace Agreement betweenthe Government of Sudan (GoS) and Sudan PeoplersquosLiberation MovementArmy (SPLM) negative impacts ofoil exploration and extraction have continued to ignitemistrust among local communities towards the oilcompanies Many problems from the oil activities wereidentified such as water pollution and uncompensateddispossession of land However oil companies or thegovernment did little to assess correct and reduce suchimpacts169 In this context many communities chose the ldquopath

167 UN Security Council 2011 Resolution 1990168 UN Security Council 2011 Resolution 1990169 ECOS 2014 Scrutiny of South Sudanacutes oil industry http

w w w e c o s o n l i n e o r g r e p o r t s 2 0 1 4 Scrutiny_of_South_Sudans_Oil_Industrypdf

63

3 SOUTH SUDAN THE OIL WAY

of confrontation with oil companiesrdquo170 For instance byblocking and interfering in oil operations by truck blockagesand other stoppages171

Resentment of local communities againstoil companies

The negative consequences of oil developmenthave been causing deep resentment against oilcompanies in many oil-rich parts of SouthernSudan Arriving in any oil area where activeexploitation is ongoing one is often confrontedwith persistent complaints from local people aboutpoor management of ldquoproduced waterrdquo which isblamed for pollution of the environment This isoften linked to unexplained deaths of animals andstrange or new human ailments Moreover the oilinfrastructure such as oil roads wells and pipesare frequently blamed for disrupting the means oflivelihoods of local people as well as destructionof property

Source ECOS

170 ECOS 2014 Ibidem171 ECOS 2014 Ibidem

64

LIVING IN FEAR

Lundin Oil Consortium facing war and violencein their work territory

In 2010 the European Coalition on Oil in Sudan (ECOS)requested an investigation on the activities of the LundinGroup and its connection with the conflict in Sudan and thepossible ldquocomplicity in the commission of war crimes andcrimes against humanityrdquo172 During the Second Civil War in1997 a consortium of oil companies led by the Swedish oilcompany Lundin Oil AB (ldquoLundinrdquo) signed a contract withthe Government for the exploration of oil in the concessionarea called Block 5A that was not at that time under fullGovernment control The other members of the Consortiumwere Petronas Carigali Overseas Sdn Bhd (ldquoPetronasrdquo) fromMalaysia OMV (Sudan) Exploration GmbH (ldquoOMVrdquo) fromAustria and the Sudanese state-owned oil company SudapetLtd

Before the start of explorations the area around Block5A was relatively peaceful When the oil exploration startedthe escalation of violence and war followed suit173 Accordingto the European Coilation on oil in Sudan Block 5A ldquobecamethe scene of intense fighting and gross human rightsviolations as soon as the Lundin Consortium started oilexploration activities on the groundrdquo Right from thebeginning there are reports of significant war and violence

172 ECOS 2010 Unpaid debt The Legacy of Lundin Petronas and OMV inSudan 1997-2003 Press Release httpwwwecosonlineorgreports2010Press_release_UNPAID_DEBT

173 ECOS 2010 Unpaid debt The Legacy of Lundin Petronas and OMV inSudan 1997-2003 httpwwwecosonlineorgreports2010UNPAID_DEBT_textonlywebpdf

65

3 SOUTH SUDAN THE OIL WAY

where villages and towns were burnt and looted Tens ofthousands of people in Block 5A were also moved out fromthe exploration areas

In 1999 the Lundin Group discovered major reserves ofoil This accelerated the Government desire to control allthe areas surrounding the well and the infighting intensifiedLundinrsquos explorations in Block 5A had to be suspended twicedue to insecurity174

The consequences of all the violence towards thepopulation which were in the middle of the power battlefor controlling Block 5A were severe abuse of all humanrights and war crimes More than 10000 people were killedalmost 160000 displaced with thousands of peoplepermanently uprooted from their villages hundreds ofthousands of cattle lost or looted destruction of churchesschools markets medical clinics and many otherincalculable moral damage and inmense loss of income175

Talisman Energy accused of complicity with forceddisplacements

A Canadian company Talisman Energy which at that timewas considered to be the largest independent oil and gascompany in Canada has been accused of indirectly helpingto exacerbate the war and of being complicit in human rightsabuses and crimes against humanity176 Talisman has a 25

174 HRW 2003 Ibidem175 ECOS 2010 Unpaid debt Ibidem See also Medecins sans frontieres

2002 Violence health and access to aid in Unity Statewestern uppernile Sudan httpwwwdoctorswithoutbordersorgsitesusafilessudan_04-2002pdf

176 Africa files 2000 Corporate immunity for oiling repression Talismanin Sudan httpwwwafricafilesorgarticleaspID=621

66

LIVING IN FEAR

stake in the Greater Nile Oil Project Company (GNOPC) aninitiative located in south-central Sudan with threeadditional partners the national petroleum company ofChina (40) the national oil company of Malaysia (30)and the national petroleum company of Sudan (5)177

There were many allegations that people were forcefullydisplaced in the area of the oil field ran by Talisman UNreported that accusations were made on Talisman of ldquobeingaccomplice of human rights abuses in Upper Nile so as toguarantee security for its oil operationsrdquo178

Moreover a report from the Canadian Foreign AffairsMnistry ndashthe Harker Report ndash which undertook a mission toSudan described with concern that fighting was intense inthe areas of oil development in general and that oilextraction may have contributed to relocation of civiliansby force179

Violence and the fear of it impact immediatelyon the peoplersquos use of the land and result in foodinsecurity which in turn propels movement ordisplacement

Contradicting that oil is at stake in the displacement issueTalisman explained that displacement was a result of an inter-tribal issue Once again the Harker report concluded thatthe displacement was because of oil

177 Africa files 2000 Ibidem178 UN Security Council 2000 Interim report of the Special Rapporteur of

the Commission on Human Rights on the situation of human rights inthe Sudan A55374

179 Canadian Ministry of Foreign Affairs 2000 Human Security in SudanThe Report of Canadian Assessment Mission httpwwwecosonlineorgreports2000Human20Security20in20Sudanpdf

67

3 SOUTH SUDAN THE OIL WAY

ldquoFor Talisman so very much seems to be explained as merelyan inter-tribal problem but displacement has gone on andis still going on and in Ruweng County it is hard to denythat displacement is now and has been for some timebecause of oilrdquo180

Talisman Energy decided in 2002 to end its controversialfour-year investment in Sudan by selling its 25 percent stakein the Greater Nile Petroleum Operating Company to anIndian firm Most of the rumours is that the reasons for thiswas the strong pressure from the US particularly to end itswork in Sudan in order to stop indirectly supporting theGovernment in Sudan with its oil revenue181

The oil way developing what

Sharing the wealth with the Sudanese people The resourcecurse again

As said before 98 of the governmentrsquos revenue comesfrom oil production royalties and South Sudan sits on thethird-largest oil reserves in Africa182 It was estimated in 2011that South Sudan controlled 75 of the overall oil productionof Sudan and South Sudan altogether ndasharound 500000barrels per day However South Sudan remains dependenton the North for processing refinement and export to theRed Sea

180 Canadian Ministry of Foreign Affairs 2000 Ibidem181 New York Times 2002 Talisman to sell its stake in company in Sudan

httpwwwnytimescom20021031businesstalisman-to-sell-its-stake-in-company-in-sudanhtml

182 Africa Business Initiative 2011 Investment climate upate Sudanhttpswwwuschambercomsitesdefaultfileslegacyinternationalafricafiles16920_AfricaNewsletter_Sudanpdf

68

LIVING IN FEAR

Paradoxically South Sudan is considered a fragile StateSitting on oil as has occured to many other countries acrossAfrica and abroad does not guarantee wealth for the majorityof the population A 2013 report concluded that ldquoover thelast decade Sudan has been the largest recipient ofhumanitarian assistance by some distance receiving US$106 billion over the periodrdquo183 90 per cent of the populationearn less than a dollar a day184

Oil money through the State budget is expected to serveto finance all the key governmental activities of the Statesuch as agriculture health infrastructures and educationDespite the fact that the benefits from oil are substantialthere are numerous questions arising about the destiny ofall the oil money For instance how could it be explainedthat one of the sectors more financed is the military andsecurity apparatus Since South Sudanrsquos independence theGovernment has allocated 38 of oil revenue to the militaryand security services with only 10 and 7 ininfrastructures and education respectively185 In 2012 SouthSudan was the among top 8 African countries having militaryexpenditure of almost $1 billion186 For instance TheEconomist reports that South Sudan bought 100 Ukrainian

183 Global humanitarian assistance 2013 Global humanitarian assistancehttpwwwglobalhumanitarianassistanceorgwp-contentuploads201307GHA-Report-2013pdf

184 Kebede 2014 The role of oil in South Sudanhttpswwwruoruottawacabitstream10393315631KEBEDE20Solomon2020145pdf

185 The Guardian 2014 South Suan is divided by the spoils of oil notethnicity httpwwwtheguardiancomcommentisfree2014jan14south-sudan-divided-oil-ethnicity-violence

186 LAVDC 2014 Les quatre puissances militaires regionales dacuteAfriquehttpwwwlavdcnetportailles-quatre-puissances-militaires-regionales-dafrique

69

3 SOUTH SUDAN THE OIL WAY

T-72 tanks187 At the same time agriculture and livestock hasbeen completely neglected despite the fact that more than80 of the population depend on that sector for fulfiliingtheir basic needs

Where the money goes

Daniel Wuor Joak former MP in South Sudan LegislativeAssembly and Minister of Education Science and Technologyin Upper Nile State claims that between 2005 and 2014both the Government of South Sudan (GOSS) and theRepublic of South Sudan (RSS) have been receiving onaverage not less than two billion of USD per year Somehave already manifested the unclarities over the destiny ofall that money as described by Mr Wuor Joak

Since 2005 upwards both the GOSS and RSS havebeen receiving no less than 18 billion USD in oilrevenues without implementing any majordevelopmental projects like roads network linkingdifferent States in South Sudan conducive learningschools from basics to universities level referralmedical facilities clean drinking water in remoteareas throughout the country setting up vibrantand credible institutions which can adhere to rulesof law All these things have not been implementeddue to poor system of governance under leadershipof Salva Kiir Mayardit Most of the counties have

187 The Economist 2014 Arms and the African

70

LIVING IN FEAR

no roads linking them with their State capitals andlack schools health centres clean drinking wateretc South Sudanese population in the rural areasthroughout the country are still living in the sameconditions as they were under Khartoumrsquos rule interms of scarcity of development188

Speaking more directly Kebede made firm remarks aboutthe overall situation in South Sudan

In general poverty corruption bad governance andviolence characterized the resource curse in SouthSudan A relatively small group of elite capturesvast wealth while leaving much of their societywithout access to the minimum resource necessaryfor long term wellbeing As a result South Sudanremains one of the worldacutes least-developedcountries despite its oil (hellip) hellipmuch of the oilrevenue has been squandered189

188 Wuor Joak 2014 Major Causes of the Current Conflict in Sudan SouthSudan News Agency

189 Kebede 2014 The role of oil in South Sudanhttpsw w w r u o r u o t t a w a c a b i t s t r e a m 1 0 3 9 3 3 1 5 6 3 1 KEBEDE20Solomon2020145pdf

71

3 SOUTH SUDAN THE OIL WAY

Even before the current tensions Bentiu saw little benefitfrom oil The streets are unpaved and covered with trashelectricity is scarce reserved for those with privategenerators () Most expect more violence Bentiu hasbecome more militarized with armed soldiers placed atcheck points and at the bridge Troops are constantlymoving to the front Weapons are being flown into theairport

ldquoThe oil is a curse ldquoMohammed Abdurahman Kili 56mumbled from his hospital bed his body covered withburns He was inside his shop in a crowded market onthe edge of town when a Sudanese warplane attackedkilling a 9-year-old child and another person and settinghis shop on fire

Washington Post 2012

President Salva Kiir recognized in 2012 that corrupt officialshad stolen from the people of South Sudan and the amountlost or taken by lead government and military officials mightbe as much as $4 billion190 Kiir sent a letter to 75 SouthSudanese officials or individuals close to the governmentasking them return all the amount lost The letter describedin general terms how the money got ldquolostrdquo

An estimated $4 billion are unaccounted for orsimply put stolen by current and former officialsas well as corrupt individuals with close ties togovernment officials Most of these funds have beentaken out of the country and deposited in foreignaccounts Some have purchased properties oftenpaid in cash191

190 Ibidem191 Paanluel Wel South Sudanese bloggers httppaanluelwelcom2012

0601letter-from-president-kiir-on-corruption-4-billion-dollars-stolen192 Sudan Tribune 2013 South Sudanacutes Kiir accuses army of corruption

72

LIVING IN FEAR

A year later Kiir accused the armed forces of being corruptHe said that despite the big budget allocations made to thearmy there were even no ldquovehicles to transport soldiers onmissionsrdquo192 Two years later the issue remained unclearand the names of the officials referred to in the letter wereyet to be disclosed However Kiir accused Machar of beingresponsible for a lot of corrupted activities in the country193

Machar responded to Kiir by saying that his claims wereunfounded and then also accusing him of such practices194

It seems South Sudan epitomises all the features of theresource curse argued in Chapter 1195 How can the corruptionbe prevented How can the money go to the people It isalso important to note that the oil sector provides littleemployment to the people of South Sudan Most of thehousehold income and employment is generated in theagriculture and farming sector primarily196 Would investingin other sectors like agriculture that provide real wealth tothe people make a difference

193 Sudan Tribune 2014 South Sudan rebel leader should face corruptioncharges Kiir

194 Sudan Tribune 2014 South Sudan Macharacutes Rebentildes dismiss corruptionaccusations no spiritual powers httpallafricacomstories201407221384html

195 Kebede 2014 The role of oil in South Sudan Ibidem196 Tizikara et al 2012 Post-conflict development of Agriculture in South

Sudan perspective on approaches to capacity strenghtening httpwwwerailsnetimagesfarasecretariatkigali-movementfileKigali20MovementPost-Coflict20Agriculture_South20Sudanpdf

73

3 SOUTH SUDAN THE OIL WAY

Environment

As experienced in oilfileds in other parts of the world the oilfields here are also leaving a significant impact on theenvironment and local communities A three year study inThar Jath and Mala fields in Unity State show thatgroundwater is very polluted making the water unsafe forhuman consumption197 The study made by a team of SouthSudanese and German geologists concluded that water usedby 180000 people was too salty to drink and containdangerous amounts of heavy metals198

In many occasions the oil fields that causeenvironmental pollution are even abandoned due to the warSome observers identified that oil pipelines damaged duringthe conflict were leaking199

South Sudan must produce for its needs

In 2015 the Minister of Finance of South Sudan David DengAthorbei made a statement saying that the country shouldbe self-sufficient in agriculture terms and in addition itneeds to increase its non-oil revenue and to achieve peace200

197 Rueskamp et al 2014 Effect of oil exploration and production on thesalinity of a marginally permeable aquifer system in the Thar Jath-Mala- and Unity Oil fields Southern Sudan Zbl Geol Palaont Teil IJ

198 Radio Tamazuj 2015 Study Direct link between oil exploration andwater pollution in Unity httpsradiotamazujorgenarticlestudy-E28098direct-linkE28099-between-oil-exploration-and-water-pollution-unity

199 Star Africa 2014 South Sudan Oil leaks cause pollution fears httpenstarafricacomnewsssudan-oil-leaks-cause-pollution-fearshtml

200 Bloomberg 2015 South Sudan Finance Minister says food output canoffset oil httpwwwbloombergcomnewsarticles2015-01-20south-sudan-finance-minister-says-food-output-can-offset-oil-1-

74

LIVING IN FEAR

He also made a call for a reduction of the countryrsquos relianceon agriculture imports particularly in the context of aneconomy affected by the plunge in global oil prices201

Peter Biar Ajak from the Center for Strategic Analysis andResearch in Juba illustrates the macroeconomic weaknessesof South Sudan today because of its oil dependence

South Sudanrsquos oil-dependent economy is nearingcatastrophe The production of crude oil has droppedby about 35 percent since the conflict began Thatcombined with a drop of roughly 45 percent in globaloil prices since the summer has meant a substantialreduction in the governmentrsquos oil revenues andenormous fiscal and budgetary ressures

Since South Sudan exports almost nothing asidefrom oil and imports almost everything else tradeand monetary policy have also been buffeted byfalling oil revenues Access to foreign currency hasbecome extremely limited The prices of manyimported goods have risen There are shortages ofpetrol which must be imported because SouthSudan has no refinery202

Indeed a dynamic agriculture sector may be key for peaceand development in South Sudan More than 95 of thecountryrsquos population is dependent on farming fishing orherding to meet their daily food needs and income as well203

201 Bloomberg 2015 Ibidem202 Biar Ajak 2015Sanctions for peace in South Sudan The New York Times

January 7th203 FAO in emergencies httpwwwfaoorgemergenciescountries

detailenc147627

75

3 SOUTH SUDAN THE OIL WAY

204 Business Daily 2011 South Sudanrsquos vast agricultural sector potentialuntapped

205 Norwegian Refugee Council 2015 Conflict a cause of hunger in SouthSudan httpreliefwebintreportsouth-sudanconflict-cause-hunger-south-sudan OCHA 2015 South Sudan Crisis Situation reportn 74 httpreliefwebintsitesreliefwebintfilesresourcesSouth_Sudan_Situation_Report_No_74pdf

206 OECD 2014 Fragile States 2014 Domestic revenue mobilisation infragile states httpwwwoecdorgdacgovernance-peaceconflictandfragilitydocsFSR-2014pdf

South Sudan has good soil and climatic conditions and morethan 70 of its land area is suitable for crop productionThere are many that believe that the investment in theagriculture sector has more potential than oil however thisthinking has not received due attention from local andforeign investors204 Efforts towards making agriculture workare vital for peace and stabililty in the country It is urgentlyneeded to work on this area particularly when at presentthere are 25 million in Sudan at risk of starvation205 andaround one third of the population are food insecure plusmore than a million displaced

The dependency on income from natural resourcesleaves fragile states vulnerable It exposes them toshocks in commodity prices ndash as demonstrated bythe sudden fall in commodity prices in 2009following the 2002-2008 boom Neither is it asustainable source of incomeSouth Sudanrsquos oilproduction for instance is projected to decreasesteadily in future years and become negligible by2035

Source OECD206

76

LIVING IN FEAR

207 UN Security Council 2015 Resolution 2206 SRES2006(2015)httpwwwunorggasearchview_docaspsymbol=SRES2206 (2015)

208 Sudan Tribune 2015 South Sudan unhappy with US support for sanctionshttpwwwsudantribunecomspipphparticle54232

209 Washington Post 2014 US appears unable to pull South Sudan backfrom the brink of civil war httpwwwwashingtonpostcomworldus-appears-unable-to-pull-south-sudan-back-from-the-brink-of-civil-w a r 2 0 1 4 0 5 0 3 d 9 2 8 0 b d a - 3 8 6 b - 4 2 4 9 - 9 4 e 0 -b5292610e5bb_storyhtml

210 Ibidem

US fallen dream

In 2015 the UN imposed a travel ban and assets freeze againstindividuals or entities which engaged in or provided supportfor acts that threaten peace security and stability of SouthSudan207 The US was behind the draft and the submission ofthe resolution This resolution prompted an angry reactionfrom the South Sudanese The South Sudanese presidencywas said to be extremely disappointed about the US ledmove208

In the past the relationship between the US and SouthSudan was completely diferent The United States was themain promoter and supporter of the worldrsquos newest nationThe Washington Post for instance asserted that ldquoSouth Sudanowes its existence to the United Statesrdquo209 The expectationscreated were high before its started its independence andsome believed that Sudan would be able to manage thecountry breaking the so-called ldquoAfrican model of pettyrivalries corruption and oppressionrdquo210 Despite all the hopesput on the young nation as of today no solution has beenfound to the ongoing war

77

3 SOUTH SUDAN THE OIL WAY

The US was the largest donor to Sudan in the years priorto independence providing 339 of the total aid to Sudanbetween 2000 to 2009211 The United States (US$472million) was the largest donor of humanitarian assistanceto South Sudan in 2012 followed by the United Kingdom(US$96 million)212 For many years Sudan was the thirdlargest recipient of US aid only after Iraq and Afghanistan213

The inteligence and information systems of theAmericans on the ground in Sudan seemed to have beenrelatively good214hellip however how come they did not foreseethat South Sudan was quickly descending once again on theavenue of a country at civil war For instance the problemsbetween President Salva Kiir and his deputy were not newAlready more than two years before the civil war started inJune 2011 in a speech in Juba the President accused hisDeputy Riek Machar ldquoof running a parallel governmentwithin the governmentrdquo215 Couldnrsquot they have preventedanother conflict Why did they fall into ridiculouscontradictions as the one recently revealed via wikileakssuggesting that the US was funding both armies in

211 Development initiatives (undated) Sudan Aid Factsheet 1995-2009httpwwwglobalhumanitarianassistanceorgwp-contentuploads201102Sudan-Aid-Factsheet-2011pdf

212 See global humanitarian assistamce ebpage httpwwwglobalhumanitarianassistanceorgcountryprofilesouth-sudan

213 The Atlantic 2011 US played key role in Southern Sudanacutes longjourney to Independence

214 The Global Intelligence files 2013 SudanUSMIL ndash SPLA trying toget US to hook it up httpssearchwikileaksorggifilesviewemailid=5047664

215 Sudan Tribune 2011 Salva Kiir exposes his rift with Machar overSouth Sudan transitional constitution httpssearchwikileaksorggifilesviewemailid=3831682

78

LIVING IN FEAR

contention the Government force of Salva Kiir and the rebelsof Riek Machar216 Why are both paid by the UShellip to dowhat As one reporter questioned why are they ldquopaid tokill each otherrdquo217

216 RT 2015 US officials tussle over arms embargo sanctions in oil-flushSouth Sudan httprtcomusa226387-south-sudan-sanctions-war

217 RT 2015 Ibidem

Seven Million

ldquoA peaceful DR Congo could transform Africa almostovernight but is there a way outrdquo218

There is always a way out However peace is not an easything particularly under certain circunstances When youhave lost your father your mother your uncle your sisterwhat else can you lose Can you still believe in peaceTwoof the bloodiest conflicts in recent decades in the world haveoccurred in Africa The Second Civil War in Sudan has leftaproximately two million casualties and the conflict in DRCis estimated to have snuffed life out of no less than fivemillion people

How many more

How does one begin to quantify the dead when they are inthe hundreds of thousands No less than seven million livesof Congolese and South Sudanese were taken away due towars and conflicts fuelled by natural resources How many

218 African Business 2009 DR Congo $24 trillion fortune

4

79

80

LIVING IN FEAR

more How many more before the world wakes up to acteffectively towards ending all those conflictsProbably unless you are one survivor from those experiencesyou would never be truly able to understand what it meansto lose entire families and friends you would never be trulyable as well to understand what it means to feel fear foryour life and the life of your close relatives

When you start counting sometimes you forget thatpeople are not numbers There are names behind thenumbers A family A life As we write this book people aredying needlessly in the DRC and in South Sudan Calculatingdead people due to conflicts in this part of the world is verydifficult due to statistical challenges and so it is conceivablethat probably the number of victims is much larger than sevenmillion (7000000) When would the volume of bloodshedthe number of lives taken be enough for the belligerentofficials to make real peace How many more should fallAthousand more Another one million The pain sadness anddestruction that those conflicts generate should not beaccepted any more

Oil and minerals the main cause of ongoingconflicts and war

Some authors argue that minerals and oil are not a cause ofwar but ldquocompetition for them could amplify and expediteconflictrdquo219 In this book as chapter two and three haveshown oil and minerals are the main motor behind theconflict in recent decades in DRC and South Sudan It would

219 UN Security Council 2013 Natural resource wealth fails to translateinto equivalent benefits for people fuelling conflict to instability DeputySecretary-General tells Security Council httpwwwunorgpressen2013sc11037dochtm

81

4 SEVEN MILLION

be very difficult if not impossible to expect those conflictsif their territories were resource poor Oil and minerals arefull of blood An activist poet wrote We Thought it was Oilbut it was Blood220 Although he was writing about the NigerDelta situation we see a universal application in that phrase

In both countries described there were other elements andfactors to take into consideration however it can be saidthat control over natural resources was the most importantcause on both conflicts in DRC and South Sudan In bothcases oil and minerals fuelled those wars and in manyoccasions these resources have inspired fueled and sustainedarmies operating in the territories of both countries

A Statersquos wealth means nothing if not shared withthe majority of the population

DRC and South Sudan ought to be wealthy countriesUnfortunately having a wealth of natural resources doesnot mean that it belongs to the citizens or that the wealthwould be shared among the population of a given State AState is a nation or territory considered as an organizedpolitical community under one government221 A goodgovernment should be the one that takes care of its citizensand shares the wealth among its citizens and not justdistribute it among an elite Jan Eliasson Deputy Secretary-General of the United Nations stated that ldquoin too manycountries a wealth of resources including timber oil coaldiamonds and precious metals failed to translate into

220 Nnimmo Bassey 1998 We Thought it was Oil but it was Blood IbadanKraft Books

221 See httpwwwoxforddictionariescomdefinitionenglishstate

82

LIVING IN FEAR

equivalent wealth for the people Only a powerful fewbenefitrdquo222

The State is expected to perform an adequateimplementation of human rights granted by several UNdeclarations and conventions including the right to foodright to health right to shelter right to clothing right towork farmersacute rights etc Paradoxically the violations andabuses of human rights have been constant in DRC and SouthSudan Both countries have suffered from acts of war oncivilian population both have as well a large number ofdisplaced people with no access to food without healthcarewithout shelter and without any work Both countries havemore than 90 people living below one dollar per day andthey are considered among least developed countries andfragile states Due to this both are some of the biggestrecipients of humanitarian aid Moreover both have hugesecurity problems shown for instance by the presence ofUN peacekeeping operations Out of the 17th worldwideongoing peacekeeping UN operations three are in DRCSouth Sudan and in Abyeia disputed territory between Sudanand South Sudan

They possess resources that have a huge monetary valueand that in most cases have the involvement of foreigncountries and corporations and other stakeholders of theprivate sector which are ready to pay enormous sums ofmoney to gain control of the natural resources belonging toother countries If no war or significant armed conflict takes

222 UN Security Council 2013 Natural resource wealth fails to translateinto equivalent benefits for people fuelling conflict to instability DeputySecretary-General tells Security Council httpwwwunorgpressen2013sc11037dochtm

83

4 SEVEN MILLION

place common elements among those countries that possesssuch resources in Africa is the existence of massive povertyand corruption and in most cases this is contrasted withmega-rich individuals Letacutes take for instance the case ofoil-rich Angola where the president and his daughter possessmultibillionaire fortunes while at the same time the majorityof the country population is living on less than two dollarsper day223

Greed power and control over natural resources

It must be noted as well that often oil and minerals involvemillions and multibillion profits With such large sums ofmoney greed power and control take the driving seat ofwhatever country government in the world When theprospects for such money flow arrives many leaders andelites start distancing themselves from the majority of thepopulation and stop thinking about the welfare of their ownpeople

At the centre of most of the conflicts in both countriesare struggles for power and control of natural resourcesMinerals and oils are the main cause of the ongoing conflictsand wars Unfortunately most commentators qualify therecent civil war in South Sudan as a ldquopower strugglerdquo withoutfurther qualifications In South Sudan who gets the oil getsthe power Therefore the power struggle is a war overnatural resources for control of the oil in the country Areporter affirmed that ldquowhoever controls South Sudanrsquos oiltherefore could seize the upper hand in the battle for

223 Forbes 2013 Daddyacutes girl how an African ldquoprincessrdquo banked $3 billionin a country living on $2 day httpwwwforbescomsiteskerryadolan20130814how-isabel-dos-santos-took-the-short-route-to-become-africas-richest-woman

84

LIVING IN FEAR

224 France 24 2013 Battle for oil adds new dimension to South SudanConflict httpwwwfrance24comen20131227-battle-oil-adds-new-dimension-south-sudan-conflict

225 OECD 2014 Fragile States 2014 Domestic revenue mobilisation infragile states httpwwwoecdorgdacgovernance-peaceconflictandfragilitydocsFSR-2014pdf

powerrdquo224 In both countriesrsquo non-renewable natural resourcetook a dominant share of the fiscal revenue of DRC andSouth Sudan ndash 82 in the DRC and 98 in South Sudan225

Who controls those resources controls the countryThe case of South Sudan where the president has

recognized the disappearance of $4 billion by corruptindividuals is compelling President Salva Kiir pinpointed thespirit behind the rot ldquoOnce we got to power we forgot whatwe fought for and began to enrich ourselves at the expenseof our peoplerdquo This might also include him as well becauseit is difficult to imagine that such huge amount of money couldbe stolen without the leader noticing anything at all

Greed for minerals and oil is at the heart of the massivedeath toll and impoverishment of the Congolese and SouthSudanese people in recent decades It can be affirmed quitecomfortably that if the Eastern part of the DRC would havenot sat on huge mineral reserves it would be very difficultto imagine all the conflicts that have occurred in that zoneIt can be affirmed as well that without oil ongoing wars inSouth Sudan might most probably never have occured

Peace is the only way forward

Achieving peace is a complex issue To create peace thereare many issues to resolve with all stakeholders such as

85

4 SEVEN MILLION

mutual accusations of support to rebel groups226 goodgovernance transparency demobilisation and disarmamentof local militia etc227

A positive but vital first step is that there are calls at veryhigh levels in both countries and at international fora Thismust be followed with open debate on the core causes of theconflict and ways of achieving reconciliation It does notappear that lasting peace can be achieved otherwise In thatprocess the people need to be put at the centre ofdevelopment policies and actions in both countries in orderto stop the plunder reverse environmental degradation andfight poverty As long as the political military and corporateelite maintain their control of the natural resources of thecountry the devastating plunder will continue to the benefitof only such elite and a handful of corporations

226 UN Security Council 2015 Reports of the Secretary-General on theSudan and South Sudan SPV7392

227 The Guardian 2014 South Sudan is divided by the spoils of oil notethnicity httpwwwtheguardiancomcommentisfree2014jan14south-sudan-divided-oil-ethnicity-violence

INDEX

AAbyei Joint Oversight

Committee (AJOC) 47Abyei Police Service 46 62Abyei 43-home of the Ngok Dinka 43

45Africa 18 20 see minerals

-and wars at the greatlakes 20 25-armed groups in 26-criminal networks in 26-death in 20-exploitation naturalresources in 18-militias in 26-minerals in 20-poverty in 20-wealth in 20

Africarsquos wealth 14-and resource curse 14-blessing or curse 14

African Business 22African Development Bank

(AfDB) 16 17

African Unionrsquos (AU) Peaceand Security Council 48

Algeria 15Allied Democratic Forces

(ADF) 25 28-in North Kivu 25

American Mineral Fields(AMF) 36

AngloAmerican corporation35

AngloGold Ashanti 35Anvil Mining 36Armed Forces of the DRC

(FARDC) 26Athorbei David Deng 73Auty Richard 14

BBBC 18Blom Ulrika 59Blue Nile 45

CCentral African Republic 7China National Petroleum

Corporation 49

86

INDEX

87

Citibank NY 36Clinton Bill 24 36Conflict minerals 30 see

Rwanda-legitimate exports of 30-smuggling of 30

Conflicts 7-and natural resources 7-causes of 10 80-uniqueness of 10

Congolese Government 18

DDemocratic Republic of

Congo (DRC) 7-85-and (MONUC) 29-greed for minerals in 32-UN peacekeeping opera-tion in 29

Diffra oil complex 47DR Congo 79

EEastern Congo 28

-insecurity in 28Eliasson Jan 81

-Deputy Secretary-Generalof the United Nations 81

European Coalition on Oil inSudan (ECOS) 63

Exploration GmbH (OMV)64

Exxon corporate 15

FFirst Sudanese Civil War 42Forces deacutemocratiques de

libeacuteration du Rwanda(FDLR) 28

GGabon 18

-oil in 18Gertler Dan 12 13Ghana 18

-oil in 18Giambrone Antonino 38Glencore Anglo-Swiss 35Government of South Sudan

(GOSS) 69Government of Sudan (GoS)

62Great War of Africa 23Greater Nile Oil Project

Company (GNOPC) 6667

Guinea Equatorial 15

HHague 44Permanent Court of Arbitra-

tion in 44Human Rights Watch 55

IIMF 22International Rescue Commi-

ttee 23

LIVING IN FEAR

88

JJoak Daniel Wuor 69Juba 74

-Center for StrategicAnalysis and Research in74

Katanga Minister of Planning22

KKenya 19Kerry John 24Kiir Salva 43 84

LLibya 7Lumumba Patrice 13 20Lundin Oil Consortium 63

MMachar Riek 43 57 77 78Madagascar 16Mala fields 73Malakal 59Mali 7Mayardit Salva Kiir 69McKinney Cynthia Ann 23

-US Congresswomanfrom the Democratic Party23

McMurrough Mike 36McNamara Robert 37

-as World Bank President37

Minerals 20 see Africa-and death 20

-and poverty 20-and wars at the GreatLakes 20-and wealth 20

Mozambique 18-gas in 18

Muloni Irene 18

NNationalist and Integrationist

Front (FNI) 36Natural resources 8 83 see

conflicts-and conflict 8-and greed 83-and power 83-and wars 8-control over 83

Niger Delta 16-oil is a curse for 16

N o n - g o v e r n m e n t a lorganisations (NGOs) 12

Non-OPEC African oilproducer 48

Norwegian Refugee Council59

OOECD Guidelines for

Multinational Enterprises37

Oil 48-and geopolitics 48

PPeace 84

INDEX

89

-as way forward 84Petronas Carigali Overseas

Sdn Bhd (Petronas) 64Powell Colin 58PR Newswire 30President Kabila 24President Obama 24

RRDC Mining Code 35Republic of South Sudan

(RSS) 69Rio Tintorsquos QMM 16Ruweng County 67Rwanda 24 31

-conflict minerals from 31

SSecond Congo War 24 32

34Second Sudanese Civil War

42Somalia 7South Kordofan 45South Sudan Civil War 57South Sudan 11 18 19 41

-Dinka ethnic group in 4357-Nuer ethnic group in 4357the oil way 41-UN peacekeeping opera-tions 61

South Sudanese Civil War 58Sudan 79

-Second Civil War in 79

Sudan Armed Forces 46Sudan oil police 47Sudan Peoplersquos Liberation

Army (SPLA) 41 46 5462-civil wars and conflict in41

Sudan vs South Sudan 43-and Heglig battles 47-and peace agreement 43-main oil companies in 51-oil-centered conflict 46-Row over oil tariffs 51

Sudanese Civil War 52-and Addis AbabaAgreement 53-and Islamic law 53-causes of 52

Swedish oil company LundinOil AB (Lundin) 64

TTalisman Energy 65Thar Jath 73Transnational Corporations

(Tncs) 34-and the private sector 34

UUganda 19 24UN Interim Security Force for

Abyei (UNISFA)UN Mission in the Republic of

South Sudan (UNMISS)61 62

UN Organization Stabiliza-

LIVING IN FEAR

90

tion Mission in the DRC(MONUSCO) 29

UN peacekeeping operations11

UN Security Council 11UNICEF 59UNISFA 47United Nations Office of the

Special Adviser on Africa(OSAA) 8

United Nations SecurityCouncil 25

United Nations 13University of California

(UCLA) 54 55Upper Nile State 59 69US fallen dream 76

VVirunga National Park 18

WWar and conflict 58

-consequences of 58Wars and minerals 21

-cobalt 22-coltan 22-copper 22-diamond 22-gold 22-manganese 22-peace at last 21-timber 22-tin 22-zinc 22

Wau Shilluk 59We Thought it was Oil but it

was Blood 81Wealth 12 13

-for whom 13-quest for 12

World Heritage site 18Worldwatch 40

Page 5: LIVING IN FEAR - Health of Mother Earth Foundation...Les quatre puissances militaires regionales d´Afrique. 12 LAVDC. 2014. Les quatre puissances militaires regionales d´Afrique

PROLOGUE

Conflicts and natural resources

Sudanrsquos history of oil production has been a historyof violent conflict Soon after the discovery of oil inthe southern region in the late 1970s the secondSudanese civil war broke out1

South Sudan today is going through a civil war and in parallelit is in the middle of ongoing conflicts with Sudan for controlof oil rich areas in the Northern parts of the country

A study made for the African Development Bankconcludes that in the past 40 years there has been moreviolent conflicts in Africa than on the other continentsMoreover the wars in Africa have lasted longer and havebeen deadlier2 Libya Mali Democratic Republic of Congo(DRC) Somalia Central African Republic hellip So many warshellip So many conflicts hellip So much sufferinghellip

1 Bonn International Center for Conversion 2013 lsquoOil investmentand conflict in Upper Nile State South Sudanrsquo Brief 48

2 Hoeffler 2008 lsquoDealing with the consequences of violent conflictsin Africarsquo Background paper for the African Development Bankhttpusersoxacuk~ball0144consequencespdf

7

8

LIVING IN FEAR

Natural resources wars and conflict

Wars and armed conflicts are the major illnesses of thehumankind Since the birth of humankind we have not beenable to stop killing each other Thousands of years after wecontinue creating wars and armed conflicts

Why is that Today natural resources like oil and mineralsare at the heart of many conflicts around the world and so-called ldquohigh-value natural resources have been associatedwith dozens of armed conflicts millions of deaths and thecollapse of several peace processesrdquo3 Numerous reports andstatistical evidence confirm that those resources have beenldquosparking and fueling armed civil conflictsrdquo4 The UnitedNations Office of the Special Adviser on Africa (OSAA) alsoaffirms that ldquonatural resource have been shown to play akey role in the conflicts that have plagued a number ofAfrican countries over the last decade both motivating andfuelling armed conflictsrdquo5Moreover some scholars affirmthat ldquowhen internal conflict occurs in a region that has oilreserves it lasts twice as long as conflicts that occur in areaswithout oil reserves and combatant deaths are twice ashighrdquo6

Corporations working with natural resources have beencomplicit in many conflicts For instance during the Sudanwar oil corporations have allowed their facilities to be used

3 Lujala et al 2011 lsquoHigh-value natural resources a blessing or acurse for peacersquo Sustainable Development Law and Policy Vol 12

4 Lujala et al Ibiacutedem5 United Nations Office of the Special Adviser on Africa 2006 lsquoNatural

resources and conflict in Africa transforming a peace liability intoa peace assetrsquo Conference Report

6 Lujala et al 2011 lsquoHigh-value natural resources a blessing or acurse for peacersquo Sustainable Development Law and Policy Vol 12

9

PROLOGUE

for military purposes that led subsequently to attacks oncivilians One example is the case of the Heglig airstrip withinthe territory of the concession of the Canadian corporateTalisman

the military use of Heglig airstrip has been moreor less constant since May 1999 (hellip) flights clearlylinked to the oil war have been a regular feature oflife at the Heglig airstrip which is adjacent to theoil workersrsquo compound It is operated by theconsortium and Canadian chartered helicoptersand fixed wing aircraft which use the strip haveshared the facilities with helicopter gunships andAntonov bombers of the Government of SudanThese have armed and re-fuelled at Heglig and fromthere attacked civilians7

Natural resources have also been associated with the increaseof military spending on the continent Military expenditurein Africa is on the rise experiencing the highest progressionin the world from 2002-20118Algeria tops the list of militaryspending in Africa with over $10 billion9 They were followedby Angola with $6 billion and then South Africa with a bitmore than $4 billion in 201310 The increase of Africarsquosexpenditure is mainly due to the oil revenues from countries

7 Canadian Ministry of Foreign Affairs 2000 lsquoHuman Security in SudanThe report of Canadian Assessment Missionrsquo httpwwwecosonlineorgreports2000Human20Security20in20Sudanpdf

8 LAVDC 2014 lsquoLes quatre puissances militaires regionales dacuteAfriquersquo httpwwwlavdcnetportailles-quatre-puissances-militaires-regionales-dafrique

9 The Economist 2014 lsquoArms and the Africanrsquo httpwwweconomistcomnewsmiddle-east-and-africa21633901-continents-armies-are-going-spending-spree-arms-and-african

10 The Economist 2014 Ibidem

10

LIVING IN FEAR

like Algeria and Angola Angolarsquos military spending rose byover 36 in just one year Another oil producer that hasmade significant outlays on military spending is Ghanawhich almost tripled its arms budget from $109 to $306million between 2012 and 201311 Not surprisingly DRC alsorecently augmented significantly their spending by 3412

Causes of conflicts

Often there is a trend to simplify one main cause for aparticular conflict such as religious ethnic or tribal oreconomicpolitical power struggles For example very oftenthe conflicts in Sudan have been described as religious warsbetween Northern Muslims and Christiananimists from theSouth Our analysis in Chapter 3 will illuminate a differentperspective In general wars and conflicts tend to besurrounded by multiple factors and causes some with moredominance than others It is precisely in that complexity ofelements and factors that we can find the reasons why acountry has embarked in wars and conflicts However atthe same time there is often one cause that is the prevalentand dominant one in each conflict This will also be examinedin the forthcoming chapters

Every conflict is unique

While conflicts may have similar elements every one of themis unique in its own way13 This book explores the generalrelation between wars conflicts and natural resourcesfocusing in particular on two African countries Democratic

11 LAVDC 2014 Les quatre puissances militaires regionales dacuteAfrique12 LAVDC 2014 Les quatre puissances militaires regionales dacuteAfrique13 Bongani 2012 lsquoNatural resources and conflict unlocking the

economic dimensioacuten of peace-building in Africarsquo Briefing n 74

11

PROLOGUE

Republic of Congo (DRC) and South Sudan Both countrieshave gone through some of the bloodiest wars and conflictsin recent decades in the world Peace efforts have been madeat the UN level to try to minimize the conflict situations In2014 both countries had UN peacekeeping operationsmandated by the UN Security Council to promote protectand monitor human rights in DRC and South Sudan14 Weaim to provide a succinct but comprehensive overview ofboth conflicts and show their relation with natural resources

14 In 2014 there were ongoing 17 peacekeeping operations under theUN There were DRC and South Sudan ndashAbyei- See Office of theHigh Commissioner for Human Rights httpwwwohchrorgENCountriesPagesPeaceMissionsIndexaspx

LIVING IN FEAR

12

The Quest for WealthldquoDan Gertler is essentially looting Congo at the expense of

its peoplerdquo15

If there is wealth in DRC Dan Gertler has found a goodpiece of it The 41-years-old Israeli-born Dan Getler has adeclared fortune estimated at $144 billion While he isformally based in Bnei Brak Israel he has made his billiondollars fortune in the mining sector of DRC He is also verywell known for being a close friend of President JosephKabila16 Gertler is criticized over his way of doing businessand has been accused by non-governmental organisations(NGOs) to have obtained mining assets on the cheap bycavorting with politicians17 Congolese NGOs have said abouthim for example that ldquohe has political connections so statecompanies sell him mines for low prices and he sells themon for huge profitsrdquo The quest for wealth attracts manyGertler-like types to the African continent one of thewealthiest places of the planet

1

15 Affirmation of Jean Pierre Muteba head of a group of NGOs thatmonitor mining in DRC at The Washington Post 2012 Dan Gertlerearns billions as mine deals fail to enrich Congo

16 Forbes profile of Dan Getler httpwwwforbescomprofiledan-gertler

17 Forbes Ibiacutedem

13

1 THE QUEST FOR WEALTH

Wealth for whom

Everybody wants to be wealthier however not everybodyshares the same definition of wealth18One definition ofwealth is that it is a ldquotangible or intangible thing that makesa person family or group better offrdquo19 Under this definitionoil or a mineral would be considered wealth if it makes aperson family or group better off Certainly a person likeMr Getler is obviously doing better off in terms of moneywith his work and therefore he is wealthier under thoseterms Howeverthe resources that make Getler wealthy havenot necessarily benefited Congoacutes people Minerals or oilas said by Patrice Lumumba belongs to the people of DRCit is the responsbility of the State to manage its benefits andto share it among the population The wealth of a country isthe wealth of their people

However the wealth of natural resources revenues doesnot frequently bring benefits to the majority of thepopulation but rather a handful of elites The United Nationsoffice of the Special Adviser on Africa affirmed that the richesderived from the ldquoexploitation of natural resources are notonly used for sustainaing armies but also for personalenrichment and building political supportrdquo20 In additionthe office added that ldquocontrol over natural resources andtheir revenues often stay in the hands of a small elite and isnot used for broader development of the countryrdquo21

18 CNBC 2013 what is wealthy $5 million and plenty of cash19 See the business dictionary httpwwwbusinessdictionarycom

definitionwealthhtml20 United Nations office of the Special Adviser on Africa 2006 Natural

resources and conflicts in Africa transforming a peace liability intoa peace asset Conference Report

21 United Nations office of the Special Adviser on Africa 2006 Ibidem

LIVING IN FEAR

14

Africarsquos wealth blessing or curse

The resource curse

In a sea of wealth there are often oceans of povertyResource-rich countries are often accompanied by slowerthan expected economic growth poor economicdiversification gloomy social welfare indicators devastatingenvironmental impacts rampant corruption high inequalityhuge impoverishment bad governance and as said beforewars and conflicts22 This situation has been termed thetheory of ldquoresource courserdquo which term was used first in1993 by Richard Auty23 In 1995 the theory of the ldquoresourcecurserdquo was popularized thanks to an article of Sachs andWarner24 Both authors showed in their paper that ldquoeconomieswith a high ratio of natural resource exports to GDP in 1971tended to have low growth rates during the subsequentperiod 1971-1989rdquo From there a vast number of literaturehas been written on this matter and is divided between thosethat believe exploitation of natural resources is a curse andthose that believe that it can promote growth and

22 Mildner et al 2011 lsquoScarcity and abundance revisited a literaturereview on natural resources and conflictrsquo International Journal ofConflict and Violence Vol 5 Karl 2005 lsquoCovering oil a guide toEnergy and Developmentrsquo Understanding the resource curse opensociety institute

23 Time 2010 Brief history the resource curse httpcontenttimecomtimemagazinearticle09171199746000html

24 Sachs and Warner 1995 lsquoNatural resources and economic growthrsquoHarvard Institute for International Development

15

1 THE QUEST FOR WEALTH

development in developing countries25 Others for instanceprefer to use different terminology like Exxon corporatewhich has said ldquowe donacutet like to call it the oil curse weprefer governance curse We are private investors and it isnot our role to tell governments how to spend their moneyrdquo26

Africarsquos wealth

Africa is full of natural resources and there are manycountries considered as having a huge wealth Oil gasminerals timber fertile land water are often mentioned asthe riches of the continent However oil and minerals arethe favourites of some of the top leaders of the continentAngola with oil and diamonds Nigeria with oil GuineaEquatorial with oil Algeria with plenty of oil and gasdeposits DRC with minerals and South Sudan with oil justto name some of them

Many would think that all those States with lots of oiland mineral are very wealthy The truth is that although theStates are wealthy the countries are paradoxically full ofpoverty and their populations are not benefiting from thoseresources Moreover in many cases the wealth derived from

25 Pedro (undated) lsquoMainstreaming mineral wealth in growth andpoverty reduction strategiesrsquo Economic Commission for Africa PolicyPaper Ross 1999 lsquoThe political economy of the resource cursersquoWorld Politics n51 Hodler 2004 lsquoThe curse of natural resourcesin fractionalized countriesrsquo Economic department University ofBern SwitzerlandSwilling 2012 lsquoBeyond the resource curse fromresource wars to sustainable resource management in Africarsquo Paperpresented at the Winelands Conference on Integrity and GovernanceStellenbosch Pendergast et al 2008 lsquoCorruption and the curse ofNatural resourcesrsquo Department of Economics University of VictoriaDavis 2012 Replicating Sachs and Warner the 1997 Working PaperColorado School of Mines Neumayer 2004 Does the resource cursehold for growth in genuine income as well World Developmentvol 32

LIVING IN FEAR

16

oil and minerals mostly fuel wars and conflicts While somedie while some are displaced while some are injured orrape Some on the contrary are making money lots andlots of money hellip and while they make money they just puta blind eye on the horrors occurring outside the fence Thisis well described in the Harker report on the Sudanese warand the role of oil corporations ldquoIf the oil companies donrsquotknow whatrsquos going on theyrsquore not looking over the fencesof their compoundsrdquo27

Although some may believe that the importance of theoil and mineral sectors is the creation of jobs for thepopulation this has been denied by several authors

The oil gas and mining sectors are notoriously poorwhen it comes to job creation An offshore platformtapping deep-sea reserves will create few if anypositions for locals Only recently protests werereported outside Rio Tintorsquos QMM mineral sandsoperation in the south of Madagascar due to highlocal unemployment The best way to convertnatural resource wealth into jobs is to take theproceeds and invest in other more labor-intensiveindustries such as agriculture or manufacturing28

Nigeria provides a good example where communities living inthe Niger Delta have not benefited from oil extraction whichon the contrary has created serious conflicts as seen in Box 1

On the question of whether oil is a blesssing or a curse toAfrica the African Development Bank concluded that it is a

26 The Economist 2005 lsquoThe paradox of plentyrsquo27 Canadian Ministry of Foreign Affairs 2000 Human Security in

Sudan The report of Canadian Assessment Mission httpw w w e c o s o n l i n e o r g r e p o r t s 2 0 0 0 Human20Security20in20Sudanpdf

28Africa progress panel 2013 Africaacutes mineral wealth eternally cursedhttpwwwafricaprogresspanelorgafricas-mineral-wealth-eternally-cursed

17

1 THE QUEST FOR WEALTH

ldquohuge blessingrdquo29 It justifies that with the following analysis

We estimate that Africa has 120bn barrels of oilreserves no less than half of Saudi Arabia and 600million hectares of uncultivated arable land halfof the world total We at the African DevelopmentBank (AfDB) estimate that the continentrsquos naturalresources will contribute over $30bn per annumin government revenues over the next 20 years30

Box 1 Oil is a curse for the Niger Delta people

Most people think of oil states as wealthy states ButNigeria proves that sometimes the opposite is true It isAfricarsquos leading oil producer and yet it is one of theworldrsquos 20 poorest countries Whatrsquos more the peopleliving in the Niger Delta the countryrsquos oil-producingregion are among Nigeriarsquos most impoverishedcommunities with a large percentage of the populationhaving to survive on less than one dollar a day For thesepeople lsquoblack goldrsquo has not brought prosperity ordevelopment Instead it has increased corruption socialproblems environmental damage and armed conflictThe many billions of US dollars in oil revenue that havepoured into the country during its oil industryrsquos 50-yearhistory have completely bypassed these communitiesSource Petra Hannen 2011 lsquoBlessing our Coursersquo GIZmagazine akzent

29 African Development Bank 2013 lsquoAfricarsquos mineral wealth a blessingor a cursersquo httpwwwafdborgenblogsafdb-president-this-is-africas-hourpostafricas-mineral-wealth-a-blessing-or-a-curse-12336

30 African Development Bank 2013 Africaacutes mineral wealth a blessingor a curse httpwwwafdborgenblogsafdb-president-this-is-africas-hourpostafricas-mineral-wealth-a-blessing-or-a-curse-12336

LIVING IN FEAR

18

Africa continues the exploitation of its naturalresources

Most of the African Governments that discover naturalresources in their territory eagerly move forward with theexploration of those Therefore natural resources areexplored all over the continent oil in Ghana manganese inGabon gas in Mozambique just to name a few Often thereis little consideration of the destruction or the conflicts theseextractive activities bring For instance according to the BBCin March 2015 the Congolese Government consideredmodifying the boundaries of the Virunga National Park homeof gorilla mountains and World Heritage site to permit oilexploration activities31

DRC and South Sudan as well are exploring a joint projectnow DRC has a frontier with South Sudan in the Northeastpart of the country While historically both ndash referring alsoto Sudan ndash did not often have a common grounds after theIndependence of South Sudan in 2011 it appears possiblethat natural resources may unite them more closely IreneMuloni Minister for Energy and Minerals Development fromUganda announced in an interview in February 2015 thatSouth Sudan and the DRC have expressed interest in theconstruction of an oil pipeline of over 1000 km to the Kenyancoast32 Although yet to be implemented there have beendiscussions and plans to construct a pipeline that would unite

31 BBC 2015 DR Congo seeks Virunga park bounary httpwwwbbccomnewsworld-africa-31876577See also New York Times2014 Oil dispute takes a page from Congoacutes bloody past httpwwwnytimescom20141116worldoil-dispute-takes-a-page-from-congos-bloody-pasthtml_r=1

32 Platts 2015 South Sudan DR Congo interested in Ugandan crudeoil export pipeline minister httpwwwplattscomlatest-newsoilkampalasouth-sudan-dr-congo-interested-in-ugandan-crude-26025080

19

1 THE QUEST FOR WEALTH

oil production and distribution in several African countriesincluding South Sudan Uganda Kenya Democratic Republicof Congo (DRC) and maybe others33

The forthcoming chapters will develop more elementsaround this topic in order to conclude some final remarkswith the particular case studies of DRC and South Sudan

33 The Economist 2013 Pipeline poacuteker httpwwweconomistcomnewsmiddle-east-and-africa21578402-east-africa-danger-throwing-away-part-its-new-found-oil

20

LIVING IN FEAR

Minerals and Wars at the GreatLakes Wealth Death and Massive

Poverty in the Heart of Africa

Our internal difficulties tribal war and the nucleiof political opposition seemed to have beenaccidentally concentrated in the regions with ourrichest mineral and power resources We know howall this was organised and in particular whosupports it today in our house

Our Katanga because of its uranium copper andgold and our Bakwanga in Kasai because of itsdiamonds have become hotbeds of imperialistintrigues The object of these intrigues is torecapture economic control of our country

Patrice Lumumba speech in Leopoldville in August 25th1960 34

34 Speech at the opening of the All-African Conference in Leopoldville in1960 See httpwwwassatashakurorgforumshoulders-our-freedom-fighters42970-collected-speeches-writings-patrice-lumumbahtml

2

21

2 MINERALS AND WARS AT THE GREAT LAKES

Lumumba the first democratically elected Prime Ministerof the Republic of Congo gave a speech in 1960 that wasremarkably prescient of the fate of Democratic Republic ofCongo (DRC) today Conflict minerals and ldquotribal warsrdquo gohand in hand in the DRC historyrsquos past decades Lumumbawas planning to get the DRCrsquos related difficulties undercontrol however he was executed a few months after thespeech by a firing squad in January 1961 The US throughthe CIA the United Kingdom through the M16 and Belgiumwere all blamed for their involvement in his death35

Paradoxically ldquothe assassinations were made by the ordersof those who proclaim themselves to be champions ofdemocracy and respecters of human rightsrdquo36 Externalmeddling and intervention in Congorsquos affairs by foreigncountries is another of the concurrent and repeated situationsthat continue in recent history of the DRC37

Wars and minerals peace at last

hellip The heart of Africa is bleeding hellip

Two wars raged in DRC from 1996-1997 and from 1998-2003 Contrary to what some affirm these were not ethnicconflicts but resource wars38 No coincidence that the

35 BBC 2013 M16 and the death of Patrice Lumumba httpwwwbbccomnewsworld-africa-22006446

36 VVAA 1992 Congo (Zaire) Democratie neo-coloniale ou deuxiemeIndependance Ed LrsquoHarmattan

37 The Guardian 2011 Patrice Lumumba the most importantassassination of the 20th centuryhttpwwwtheguardiancomglobal-developmentpoverty-matters2011jan17patrice-lumumba-50th-anniversary-assassination

38 See Friends of the Congo websitehttpwwwfriendsofthecongoorgresource-centercongo-primerhtml See also Lanotte 2003 RDCguerre sans frontiers Editions Complexe

22

LIVING IN FEAR

country possesses extraordinary mineral wealth with someof the most valuable and strategic minerals on earth suchas coltan diamond cobalt copper gold tin zincmanganese timber and others The highest concentrationof mining activities existin the Eastern part of the countryTo illustrate the predominance of mining here we wouldunderline the affirmation of the Katanga Minister ofPlanning who said that 72 of the territory of Katanga isdevoted to mining No surprise why the IMF has namedDRC one of the worldrsquos mining giants of today39 Themagazine African Business stated in 2009 that ldquothe totalmineral wealth of the DRC was estimated to be some $24trillionrdquo40 As Lumumba indicated back in 1960 the samescenario repeated in recent years ndash minerals and conflictscontinue to go hand by hand

DR Congo possesses some 80 of the worldrsquoscoltan ore reserves(hellip) Additionally the DRCongo produces significant quantities ofdiamonds gold cassiterite copper cobalt (ofwhich it has the worldrsquos largest reservesalthough the trade is largely controlled byZimbabwe) oil tin zinc gold and coffee Thecountry has large reserves of uranium it wasCongolese uranium that was used for theManhattan Project that produced the worldrsquosfirst atomic bombs dropped on Japan The vastcountry also has more than half of sub-SaharanAfricarsquos timber stocks

Source African Business

39 IMF 2013 DRC Poverty reduction strategy paper N 1322640 African Business 2009 DR Congo $24 trillion fortune

23

2 MINERALS AND WARS AT THE GREAT LAKES

The casualties over the years are overwhelming Whileeverybody is familiar with the death toll during the genocidein Rwanda estimated between 500000 and 800000 peoplethere is much less awareness about the conflict situation inCongo The International Rescue Committee has estimatedthat the conflict and humanitarian crisis in the DemocraticRepublic of Congo has taken a death toll of 54 million peoplefrom 1998 to 200741 A CNN correspondent in trying togive an illustration of the heavy toll made the followingcomparative analysis

The wars in that country ndash RD Congo ndash haveclaimed nearly the same number of lives as havinga 911 every single day for 360 days the genocidethat struck Rwanda in 1994 the ethnic cleansingthat overwhelmed Bosnia in the mid-1990s thegenocide that took place in Darfur the number ofpeople killed in the great tsunami that struck Asiain 2004 and the number of people who died inHiroshima and Nagasaki mdash all combined and thendoubled42

Rwanda and Uganda were actively involved in the invasionof Congo in both wars The second war was known as theGreat War of Africa involving nine countries and more than20 armed groups According to Cynthia Ann McKinney aUS Congresswoman from the Democratic Party and an

41 IRC 2007 IRC study shows Congorsquos neglected crisis leaves 54 milliondead httpwwwrescueorgnewsirc-study-shows-congos-neglected-crisis-leaves-54-million-dead-peace-deal-n-kivu-increased-aidmdash4331 Some groups put the death toll much higher See GlobalResearch webpage httpwwwglobalresearchcathe-war-that-did-not-make-the-headlines-over-five-million-dead-in-congo7957

42 CNN 2012 Why the world is ignoring Congo war httpeditioncnncom20121127opinioncongo-war-ignored-vava-tampa

24

LIVING IN FEAR

expert on the Great Lakes issues while invading DRC in theSecond Congo War the US continued providing financialsupport to the governments of Rwanda and Uganda43 Howwas this allowed US President Bill Clinton was personallyin Rwanda in March 1998 only a few months before theRwandese army invaded Congo44 President Clinton was inAfrica at that time addressing its presidents includingPresidents Kagame and Museveni as leaders of the ldquoAfricanRenaissancerdquo and seeing a bright future for Africa45 ThereClinton made an important call to embrace peace How wasit possible to talk about peace while these allies were directlyengaging in war Moreover with the experience of thegenocide in Rwanda how could it be that foreign powersclosely involved in the region particularly the United Stateslet this occur again How did they allow wars and conflictsthat killed millions of people How could they allow whatmany called another genocide in Congo

On a positive note at last in recent months the calls forpeace have been growing from many different stakeholdersIn May 2014 US Secretary of State John Kerry after ameeting with DRC President Kabila stated that ldquoachievinga lasting peace in the DRC is a priority of President ObamardquoHe added ldquoNow I canrsquot emphasize enough how importantthat process is in identifying and resolving the root causesof the conflict in the DRC as well as in the entire GreatLakes regionrdquo46 Not a minor task going to the roots causes

43 Order of Indictment from Juzgao de instruccion numero CuatroAudiencia Nacional Case 320008-D 6-2-2008

44 See CBS News httpwwwcbsnewscomnewstext-of-clintons-rwanda-speech

45 Schaefer 2000 The Keys to an African Economic Renaissance httpwwwheritageorgresearchreports200005the-keys-to-an-african-economic-renaissance

46 See US Dept of State 2014 Press Availability on the DRC and theGreat Lakes Region httpwwwstategovsecretaryremarks201405225587htm

25

2 MINERALS AND WARS AT THE GREAT LAKES

of those problems in the Great Lakes Indeed achieving peaceand reconciliation in the Great Lakes Region in countriesthat had suffered like DRC is a difficult and cumbersometask and making it by finding the ldquorealrdquo root causes can bea very complex and lengthy exercise taking decades orlonger

The situation remains tense We recall that in 2006 theUN Security Council issued a resolution condemning ldquotheactivities of militias and armed groups operating in the GreatLakes regionrdquo47 Almost a decade later those armed groupsare still there and despite the efforts made the situationremains tense and insecure A report of the Group of Expertson the RDC published in 2015 by the United Nations SecurityCouncil concludes that in DRC despite a defeat of one of therebel groups ndash the Movement of 23 March ndash at the end of2013 this ldquofailed to translate into significant gains in securityand security and stability in 2014rdquo48 For example in thebeginning of 2015 a rebel group from Uganda the AlliedDemocratic Forces (ADF) created havoc in North Kivuwhere 17 people were hacked to death with machetes49

47 UN Security Council 2006 Resolution 1653 (2006) SRES165348 UN Security Council 2015 Final report of the Group of Experts on

the DRC S20151949 UN Security Council 2015 March 2015 monthly forecast http

wwwsecuritycouncilreportorgmonthly-forecast2015-03democratic_republic_of_the_congo_7phpVP-BX5Sm4agmailto

26

LIVING IN FEAR

Armed groups militias and criminal networkswithin the military structure making a lucrativebusiness out of minerals

The UN has solidly demonstrated that natural resources areused to finance armed groups and therefore to fuel war inthe region 50 The UN concludes that ldquoarmed groups continueto control many mining sites and to profit from mining andthe minerals traderdquo51 Later on those minerals particularlytin tungsten and tantalum are smuggled to neighbouringcountries For example one of the armed groups theMovement of 23 March (M23) responsible for taking Gomaat the end of 2012 was financing its organisation fromnatural resources in Eastern Congo In relation to thisparticular case the UN asserts that ldquoseveral traders havecontributed to financing M23 rebels using profits resultingfrom the smuggling of Congolese minerals into Rwandardquo52

Besides the rebel groups a criminal network within theArmed Forces of the DRC (FARDC) was involved in the illegalexploitation of natural resources The types of involvementinclude illegal taxation protection rackets and indirectcommercial control to more direct coercive control53

For some top army officials their military work wasconverted into economic businesses Indeed the existing

50 UN Security Council 2014 Final report of the Group of Experts onthe Democratic Republic of the Congo

51 Ibidem52 Ibidem53 UN Security Council 2010 Letter dated 26 October 2010 from the

Group of Experts on the DRC addressed to the Chair of the SecurityCouncil Committee established pursuant resolution 1533 (2004) S2010596

27

2 MINERALS AND WARS AT THE GREAT LAKES

practices made the UN qualify the war as a ldquolucrativebusinessrdquo

illegal exploitation of resources by BurundiRwanda and Uganda took different forms includingconfiscation extraction forced monopoly andprice-fixing The first two forms reachedproportions that made the war in the DRC a verylucrative business There are strong indicationsthat even if security and political reasons werethe professed motivation to move into the easternDRC some top army officials clearly had economicand financial objectives54

The most UN recent reports affirm that ldquomany armed groupsin Eastern Democratic Republic of the Congo have derivedtheir revenue from the production of and trade in naturalresourcesrdquo55

54 UN Security Council 2001 Security Council condemns ilegal exploitationof Democratic Republic of Congoacutes natural resources Press Releasehttpwwwunorgpressen2001sc7057dochtm

55 UN Security Council 2014 Final report of the Group of Experts on theDRC S201442

28

LIVING IN FEAR

Insecurity still booming in Eastern Congo

As already mentioned the momentum created bythe defeat of the Movement of 23 March inNovember 2013 failed to translate into significantgains in security and stability in 2014 in EasternDemocratic Republic of the Congo A militaryoperation against the Allied Democratic Forces(ADF) significantly weakened but did not defeatthe sanctioned armed group An expected militaryoperation against the Forces deacutemocratiques delibeacuteration du Rwanda (FDLR) did not materializeand as of the end of November 2014 efforts tonegotiate the disarmament of this sanctionedarmed group failed to produce meaningful resultsIn addition numerous Congolese and foreignarmed groups contributed to instability inOrientale North Kivu South Kivu and KatangaprovincesADF FDLR Nduma Defence for Congo (led bysanctioned individual Sheka Ntabo Ntaberi) andother armed groups continued to recruit train anduse child soldiers in 2014 Armed groups alsocommitted a variety of other abuses includingtorture enslavement and sexual violence Therewere mass killings in June in Mutarule (South Kivu)and in October and November in Beni territory(North Kivu)

Source United Nations Security Council 201556

29

2 MINERALS AND WARS AT THE GREAT LAKES

One of the problems the existing insecurity and conflicts havecreated is the proliferation of internally displaced peopleestimated in September 2014 at 27 million people57

UN peacekeeping operation in Congo

In July1999 Heads of State of Angola DRC NamibiaRwanda Uganda Zambia and Zimbabwe signed the Lusakaagreement focusing on the establishment of a ceasefire asone of the other components necessary for the deploymentof a UN peacekeeping force

The first UN Peacekeeping operation in DRC wasestablished in November 1999 after the Lusaka Ceasefireagreement It was called the UN Mission in the DRC(MONUC) In 2010 it was renamed the UN OrganizationStabilization Mission in the DRC (MONUSCO)

Ten years later despite the deployment of MONUC thesecurity challenges in DRC ndash particularly in the Eastern Partof the country ndash remain high58 There is still a strong presenceof armed groups chronic humanitarian crisis continuoushuman rights violations and continued illegal exploitationof natural resources In the light of this context the UNcreated an ldquoIntervention brigaderdquo with a key objective ofneutralizing armed groups59 As of today the MONUSCOand the intervention brigade are operational but are theresignificant security changes

56 Ibidem57 See global humanitarian assistance webpage http

wwwglobalhumanitarianassistanceorgcountryprofiledemocratic-republic-of-congo

58 UN Security Council 2010 Resolution 192559 UN Security Council 2013 Resolution 2098

30

LIVING IN FEAR

60 UN Security Council 2014 Final report of the Group of Experts on theDRC S201442

61 PR Newswire 2014 Rwanda has become worldacutes largest coltanexporterhttpwwwprnewswirecomnews-releasesrwanda-has-become-worlds-largest-coltan-exporter-reports-kt-press-300010371html

62 PR Newswire 2014 Rwanda has become worldacutes largest coltanexporter

63 Africa Briefing 2015 Rwanda has abundant deposits of best qualitycoltan Kagame affirms httpafricabriefingorgp=478

Legitimate exports or smuggling conflictminerals

It is well known that many of the minerals in Eastern Congoare smuggled and do not follow legal channels For instancethe UN estimates that 98 of the gold produced in DRC issmuggled out of the DRC making the country lose millionsof dollars in tax revenue60

In December 2014 numerous media covered a story onRwanda and coltan PR Newswire affirmed that ldquoRwandahas become worldacutes largest coltan exporterrdquo61 The dataprovided concluded that in 2013 Rwanda exported around2500000 kg of tantalum which constituted 28 of the total8807232Kg of tantalum produced globally The overallrevenue from the coltan was estimated at around $140 M62

Rwandese President Paul Kagame was quoted as affirmingthat the production was local and dismissed all possibleallegations of plundering the coltan from Congo He affirmedldquoRwanda has not only enough coltan but of a very highquality (hellip) we can even pay for a ticket give them a visaand take them to the minesrdquo63

Contrary to such statements there are many reports thatcoltan is smuggled from Congo to Rwanda and that Rwandadoes not have significant coltan mining on its own For

31

2 MINERALS AND WARS AT THE GREAT LAKES

instance a 2012 report prepared by a European Foundationaffirmed that ldquoRwanda does not house any industrial coltanmines which would suggest legitimate Rwandan coltanproductionrdquo64 A US governmental agency which analyzesthe mining sector in Congo made a table with coltan exportedfrom Rwanda qualifying it as ldquoconflict mineralsrdquo as seen inTable 165 Since there is no known conflict in Rwanda it canonly refer to Rwanda exports of minerals originating froman external conflict zone the DRC

Table 1 Estimates of exports of conflictminerals from Rwanda for Fiscal years2009-2013 in Metric Tons

Year Tantalum

FY 2009 958

FY 2010 827

FY2011 915

FY2012 1139

FY 2013 2466

Source Based on United States Government Accountability Office 2014

64 Van Teeffelen 2012 The EU raw materials policy and mining in RwandaEvert Vermeer Foundation

65 United States Government Accountability Office 2014 Conflictminerals stakeholder options for responsible sourcing are expandingbut more information on smelters is needed

32

LIVING IN FEAR

In this particular situation either somebody is wrong orsomebody is lying Hopefully future events will unveil thetruth around the nature of the coltan exports from Rwandato clarify whether they are a legitimate export or theconsequence of smuggling conflict minerals

Greed for minerals everybody wants a pieceof Congo66

What is at the origin of those wars and instability of theCongo While there could be diverse factors for conflictthere is one that seems to be always recurrent and is recog-nized by most authors and by relevant UN reports the racefor minerals and natural resources The UN recognized thatin the Second Congo War minerals were the coveted trophyand that all actors ldquobuilt up a self-financing war economycentred on mineral exploitationrdquo67 The conflicts that con-tinued after the Second Congo War like those in Kivu andIturi provinces are recognized as well to be fuelled by tradein minerals Along the same lines Palou underlines the causesof the conflict by stating that ldquoalthough from that time un-til the present day the Rwandan regime has expressed itsconcern about the security of its border with the then Zaireobjectively the reality is that control over this strategic areandash Eastern Congo ndash and its valuable mineral resources has

66 See video at Congo Justice httpcongojusticeorg67 UN 2002 Final report of the Panel of Experts on the illegal exploitation

of natural resources and other forms of wealth of the DemocraticRepublic of the Congo S20021146

33

2 MINERALS AND WARS AT THE GREAT LAKES

proved to be at the heart of two wars that have left a hugenumber of victimsrdquo68 In conclusion a 2001 UN report as-serted that ldquothe conflict of DRC has become mainly aboutaccess control and trade of five key mineral resourcescoltan diamond copper cobalt and gold The wealth of thecountry is appealing and hard to resist in the context oflawlessness and the weakness of the central authorityrdquo69

Congolese and regional elite have also profited from thissituation as well and the appalling quantum of the plunderare reflected in the following report from UN

The elite network of Congolese and Zimbabweanpolitical military and commercial interests seeksto maintain its grip on the main mineral resourcesmdash diamonds cobalt copper germanium mdash of theGovernment-controlled area This network hastransferred ownership of at least US$ 5 billion ofassets from the State mining sector to privatecompanies under its control in the past three yearswith no compensation or benefit for the Statetreasury of the Democratic Republic of the Congo70

Funds that could have been used for public services havebeen diverted from the public coffers by fraud or by theexcuse of war effort71 The Congolese population has paid

68 Palou 2010 International Justice plunder in war human rights andmultinationals

69 UN Security Council 2001 Report of the Panel of Experts on theillegal exploitation of natural resources and other forms of wealth ofthe Democratic Republic of the Congo S2001357

70 UN Security Council 2002 Final report of the Panel of Experts on theilegal exploitation of natural resources and other forms of wealth ofthe Democratic Republic of the Congo S20021146

71 Ibidem

34

LIVING IN FEAR

dearly in this situation In terms of human development it isinstructive that the UNDP estimated in 2013 that RDCwas in the low human development category ndash positioningthe country at 186 out of 187 countries and territories72

The Role of Transnational Corporations (Tncs)and the private sector

Other key players involved in the conflict are Transnationalsand the private sector A UN Report published a few yearsafter the Second Congo War started affirmed that ldquothe roleof the private sector in the exploitation of natural resourcesand the continuation of the war has been vitalrdquo73 The reportalso added that ldquoa number of companies have been involvedand have fuelled the war directly trading arms for naturalresourcesrdquo74 Other observers share the view that ldquoWesternMultinationals have been one group responsible for thepillage and illegal exploitation of Congo mineral resourcesrdquo75

There are a large number of big foreign corporationsinvolved in mining in DRC including those from CanadaSouth Africa UK USA and others Despite the opacity ofmost of the activities of the private sector numerousexamples have been reported of how TNCs are responsiblefor human rights abuses and other illegal activites Thereare also many reports of the dangerous connectionsestablished with the political and military elite in order tofacilitate their businesses These are some examples

72 UNDP 2014 Sustaining human progress reducing vulnerabilities andbuilding resilience Congo (Democratic Republic of the) httphdrundporgsitesallthemeshdr_themecountry-notesCODpdf

73 UN 2001 Report of the Panel of Experts on the illegal exploitation ofnatural resources and other forms of wealth of the Democratic Republicof the Congo S2001357

74 UN 2001 Ibidem75 Palou Ibidem

35

2 MINERALS AND WARS AT THE GREAT LAKES

bull Glencore Anglo-Swiss giant in the raw material sectorwith a turnover of US $ 2397 billion in 2013 was beingaccused in 2014 of adopting a military-style response tothe problem of artisanal mining close to its mines ldquoonseveral occasions over the past 18 months mine policehave fired live ammunition in pursuit of artisanal minerson Glencorersquos site resulting in deaths and seriousinjuriesrdquo76 They are as well responsible forcontamination of the water supply with acid content andvery high and concentrations of copper and cobaltFinally the company operates some of its concessionsinside a reserve ndashndash something that in principle is illegalaccording to the RDC Mining Code77

bull An independent investigation unveiled that two miningcompanies Glencore and the Eurasian Natural ResourcesCorporation were involved in underpricing assets incomplex deals featuring offshore companies causinglosses to the DRC of no less than $136 billionIntermediary companies in the deals were linked to DanGerler78 In addition the DRC public prosecutorreportedly told mining companies that they had toreimburse $37 billion in taxes duties and fines79

bull AngloGold Ashanti part of the AngloAmericancorporation was accused of establishing links and

76 Peyer et al 2014 PR or Progress Glencoreacutes corporate responsibility inthe DRC Bread for all RAID Fastenopfer

77 Ibidem78 CRS 2014 Democratic Republic of Congo Background and US Policy79 Reuters 2014 Disputed Congo report says miners owe $37 billion in

tax fines httpwwwreuterscomarticle20140130us-congo-democratic-mining-idUSBREA0T12L20140130

36

LIVING IN FEAR

supporting one armed group the Nationalist andIntegrationist Front (FNI)80

bull In 2004 fighting between soldiers and rebels in Kilwaended in serious human rights violations againstcivilians including summary executions arbitraryarrests rape and torture Anvil Mining operated theDikulushi copper mine near Kilwa and was accused ofproviding vehicles and planes to the Congolese armedforces during this event The legal case ended in theCanadian Supreme Court in 2012 which ruled that itwould not hear the plaintiff rsquos appeal ndash they were led bythe Canadian Association Against Impunity (anassociation representing survivors of the incidents inOctober 2004)81

bull In May 1997 Citibank NY a financial institution hasbeen accused of giving $5 million loan to a Congolesemilitia allied with Rwanda82

bull American Mineral Fields (AMF) cut a $1 billion dealwith Kabila immediately after his forces captured GomaThe negotiations were led by ldquoKabilarsquos US-trainedfinance ministerrdquo who gave ldquoAMF exclusive explorationrights to zinc copper and cobalt mines in the area MikeMcMurrough a friend of US President Bill Clinton wasthen the chair of AMF83

80 Human rights watch 2005 DRC Gold fuels massive human rightsatrocities httpwwwhrworgennews20050601dr-congo-gold-fuels-massive-human-rights-atrocities

81 Business and human rights resource center 2012 Anvil Mining Lawsuit(re DRC) httpbusiness-humanrightsorgenanvil-mining-lawsuit-re-dem-rep-of-congo

82 Global research 2008 Congo Resource wars httpwwwglobalresearchcacongo-resource-wars8310

83 Global research 2008 Ibidem

37

2 MINERALS AND WARS AT THE GREAT LAKES

UN and some other independent reports generally makebroad statements about the role of corporations includingciting some of the companies however they fall short ofproviding details of the modus operandi of those companiesand in establishing or suggesting concrete measures to stopthe conflicts and solve the negative impacts on the DRCpopulation and environment A 2002 UN Report listed 85companies considered by the Panel to be in violation of theOECD Guidelines for Multinational Enterprises84 Very littlehas been done after the UN report was published

A poor country Until when

In 1969 World Bank President Robert McNamara embarkedon a trip to Africa to try to discover ldquowhat are therequirements for developmentrdquo85 At that time the WorldBank in its information document described the country asrich in natural resources but at the same time poor and witha strong mining sector

In spite of its rich natural resources and greatpotential the Congo is still a poor country (hellip)Mining and metallurgy play a leading role in theeconomy86

84 UN 2002 Final Report of the Panel of Experts on the Illegal Exploitationof Natural Resources and other Forms of Wealth of the DemocraticRepublic of the Congo S20021146

85 Records of President Robert S McNamara Travel briefs CongoKinshasa (01021969-03031969) 1772506 Reference Code WBIBRDIDA 03 EXC-10-4540S World Bank Group archives WashingtonDC United States

86 Ibidem

38

LIVING IN FEAR

More than forty years later not much has changed asupdated data shows In DRC seven out of ten householdsare poor87 Most of its nearly 60 million people areldquodesperately poor living on less than $1 a dayrdquo88 DRC is aleast developed country a fragile State that has been in thetop 10 recipients of humanitarian assistance in nine of thelast 10 years Between 2003 and 2012 DRC received US$176billion in official development assistance (ODA) making itthe 10th largest recipient89In 2012 the Democratic Republicof Congo (DRC) received US$286 billion in net officialdevelopment assistance90

With so many natural resources isnrsquot there money to getpeople out of poverty The mining sector is oftenacknowledged as being capable of contributing to povertyreduction However those mineral benefits are oftencreamed off by powerful interests and do not get to thehands of the majority of the population According to DFIDldquofiscal receipts from the minerals sector are siphoned off bypowerful interest groups instead of being used in the publicsectorrdquo91

The analysis of Mr Antonino Giambrone sheds more lightabout the earnings and who profits from mining

While the average Congolese worker earns $10 permonth the average Congolese coltan-miner earnsanywhere from $10 to $50 per week Uganda

87 IMF 2013 DRC Poverty reduction strategy paper N 1322688 DFID 2008 Democratic Republic of Congo Country Plan89 View global humanitarian assistance webpage http

wwwglobalhumanitarianassistanceorgcountryprofiledemocratic-republic-of-congo

90 CRS 2014 Democratic Republic of Congo Background and US Policy91 DFID 2008 Democratic Republic of Congo Country Plan

39

2 MINERALS AND WARS AT THE GREAT LAKES

Rwandan and Congolese rebels have earned manymillions of dollars in sales of coltan which theyhave used to finance their war efforts in the CongoBetweeen 1999 and 2000 the Rwandan army aloneearned at least $20 million a month from coltan92

Food insecurity is often a consequence of poverty One ofthe causes of existing food insecurity is the abandonment ofthe agriculture sector partly due to conflicts The governmentstated that it would like to strengthen the smallholdersldquowhile ensuring at the same time the protection of thecountryrsquos natural resourcesrdquo93

War impacts on the environment

The wars have had devastating impact on the environmentNational parks for instance home of many endangeredspecies are also affected by the exploitation of minerals94

There are numerous reports on the precarious situation ofwildlife in the region For instance between 1995 and 19994000 out of 12000 elephants were killed in the GarambaPark in North-eastern DRC95 The situation was also seriousin other parks For instance in Kahuzi-Biega Park a zonerich in coltan only 2 out of 350 elephant families remained

92 Giambrone 2006 The extraction of natural resources as a source ofconflict Etfo voice

93 IMF 2013 DRC Poverty reduction strategy paper N 1322694 Seeh ttpwww lenntech comenv ironmental -ef fec ts -

warhtmixzz3CuGZqE3M95 UN 2001 Report of the Panel of Experts on the illegal exploitation of

natural resources and other forms of wealth of the Democratic Republicof the Congo S2001357

40

LIVING IN FEAR

in 200096 Mountain gorillas are also under threat due tocontinued civil unrest and the presence of armed militiasmakes survey and conservation work difficult in the DRCrsquosprotected areas97

Deforestation is also one of the common impactsWorldwatch explains the implication of having refugeespopulation inhabiting RDC degraded forest areas

For two years beginning in late 1994 for exampleabout 720000 Rwandans inhabited refugee campson the fringes of Virunga National Park They allneeded wood for cooking fires and for buildingshelters and some also earned extra money bymanufacturing charcoal As a result up to 80000people entered the park and carted away up to1000 tons of wood every day By mid-1996 105square kilometers of forest had been affected toone degree or another by their activities 35 squarekilometers had been stripped bare98

Besides the need for fuelwood by refugees movement ofmilitary hardware through forests and woodlands also causeserious damage to forests and the landscape generally

96 Ibidem97 See WWF webpage httpwwfpandaorgwhat_we_doendangered_species

great_apesgorillasmountain_gorilla98 Worldwatch 2008 War and Environment httpwwwworldwatchorg

node5520

3South Sudan The Oil Way

99 Washington Post 2012 lsquoSouth Sudan civilians are trapped in conflictover oilrsquo httpwwwwashingtonpostcomworldsouth-sudan-civi l i ans-are- trapped-in-conf l ict -over-o i l20120501gIQAUX6buT_storyhtml

100 See UN Mission in South Sudan web page httpwwwunmultimediaorgtvunifeed201404south-sudan-bentiu-massacre

101 Reuters 2014 Bentiu massacre is game-changer in South Sudanconflict says UN official httpwwwtheguardiancomworld2014apr22bentiu-massacre-south-sudan-united-nations

41

ldquoIf we had no oil we would not be attackedrdquo

Nyak a 27-year-old sitting outside herhut in Bentiu South Sudan 201299

In April 2014 Bentiu the capital of the oil producing UnityState was the scenario of one of the worst massacres of thecivil war between South Sudanese forces100 Hundreds ofpeople were killed in the fighting that took place betweenthe Sudan Peoplersquos Liberation Army (SPLA) and anti-government forces in the oil-rich State101

42

LIVING IN FEAR

Civil wars and conflict

Since its independence in 1956 Sudan has been at war andconflict for most of its modern history Specialists in conflictand security have described the history of modern Sudan asldquoan unremitting sequence of wars punctuated by oft-violatedpeace agreementsrdquo102 The First Sudanese Civil War (1955ndash1972) was followed by a Second Sudanese Civil War (1983ndash2005) with barely 11 years breathing space of tenuoussecurity

The Second Civil War ended when both sides signed theComprehensive Peace Agreement in 2005 That agreementgave autonomy to South Sudan within Sudan However areferendum held in January 2011 moved the region towardsecession and then in July 2011 independence was achievedand South Sudan became an autonomous nation103 Theprocess that led to South Sudanrsquos independence was stronglysupported by the US government which backed Juba in itstwo decades struggle against Khartoum104 It should be notedthat even during the 11 years of supposed peace there wereconflicts on a regular basis particularly in the border areasbetween South Sudan and Sudan105 Two years after theindependence the first South Sudanese Civil War started inDecember 2013 The civil war erupted as a result of a power

102 Cox and Snapper 2013 The Strategic Importance of South Sudan TelAviv University

103 National Geographic 2013 South Sudan oil the environment andborder conflicts httpvoicesnationalgeographiccom2013032286550

104 See webpagehttpwwwworkersorgarticles20140101south-sudan-yet-another-oil-war

105 International Crisis Group 2006 Sudan Saving peace in the Easthttpwwwcrisisgrouporgenregionsafricahorn-of-africasudan102-sudan-saving-peace-in-the-eastaspx BBC 2015 South SudanProfile httpwwwbbccomnewsworld-africa-14019202

43

3 SOUTH SUDAN THE OIL WAY

struggle between president Salva Kiir from the Dinka ethnicgroup and his deputy Riek Machar from the Nuer ethnicgroup whom he had sacked As at the time of this writingthe civil war continues

Sudan vs South Sudan

The tensions and conflicts after the independence of SouthSudan from its neighbour Sudan did not stop in 2011 Topleaders from both sides accuse and threaten each other innumerous occasions For instance Sudanese President Bashirpromised to teach South Sudan a ldquofinal lesson by forcerdquo106

South Sudan President firmly swore that ldquowhether Umar al-Bashir likes it or not one day Abyei will rejoin the southrdquo107

Abyei

Abyei is traditionally the home of the Ngok Dinka asubdivision of the Dinka tribe with strong links to the Dinkain South Sudan Besides the Dinka Misseriya herders aremembers of nomadic Arab tribes that seasonally cross Abyeiand other nearby areas with their cattle in search of waterand pasture108

Since the signing of the Peace Agreement in 2005 betweenthe Government of Sudan and the SPLM the dispute over

106 The Washington Post 2012 lsquoSudanese president vows war againstSouth Sudanrsquo httpwwwwashingtonpostcomworldsudanese-president-threatens-force-against-south-sudan-over-oil-field20120419gIQAJ0G8ST_storyhtml

107 The Global Intelligence Files 2013 Sudan- President Kiir says Abyeiwill ldquorejoinrdquo South Sudan httpssearchwikileaksorggifilesviewemailid=674314

108 Enough Project 2013 What is the Abyei Area and why is it disputedhttpwwwenoughprojectorgblogsenough-101-what-abyei-area-and-why-it-disputed

44

LIVING IN FEAR

the future status of the Abyei area has beenone of the bigbarriers to stability in the region109Abyei is an oil-rich areadisputed by Sudan and South Sudan and stands out as thehotspot of bigger tension beetween Sudan and South Sudannowadays

The conflicts over Abyei have a history of more than 50years After the First Civil war the parties signatories to thepeace pact agreed that Abyei would hold a referendum todetermine whether they would be part of Sudan or a newlyregion in the South The second war commenced in 1983and the foreseen referendum was not done

In 2009 the Permanent Court of Arbitration in the Hagueruled on Abyei territory giving concessions to the Governmentof Sudan and the Southern Sudan Heglig and other closeroil-fields remained out of Abyei area while the rest of theAbyei region remained under control of the Ngok Dinka anethnic group close to Southern Sudan and keen on voting tojoin the South in a future referendum110Another referendumwas scheduled to be done in parallel with the South Sudanreferendum in 2011 but once again this never took place

Although a series of temporary security arrangementswere agreed in January and March 2011111 in May SudaneseArmy tanks entered the town of Abyei and by the 22nd ofMay they seized control of the town112The government ofSudan launched numerous military attacks in the disputed

109 UN Security Council 2011 Report of the Secretary-General on thesituation in Abyei S2011451

110 New York Times 2009 lsquoCourt redraws disputed area in Sudanrsquo httpwwwnytimescom20090723worldafrica23sudanhtml_r=1amp

111 UN Security Council 2011 Report of the Secretary-General on thesituation in Abyei S2011451

112 Reuters 2011 North Sudan seizes disputed Abyei thousands fleehttpwwwreuterscomarticle20110522us-sudan-abyei-north-idUSTRE74L14L20110522

45

3 SOUTH SUDAN THE OIL WAY

border of area where much of Sudanacutes remaining oil fieldsare situated113 Two years later the fighting remains intensein parts of South Kordofan and Blue Nile114 More than 2million people have been internally displaced or severelyaffected by the conflict since 2011115

In addition to military attacks other actions contributedto the tension There have been cattle raids by the MissiriyandashArab nomadic cattle herders inhabiting the area ndash on theNgok Dinka ndasha subdivision of the Dinka tribe inhabitingthis area In occasions more than 200 cows were stolenwith a large part of it recovered by the UN Interim SecurityForce for Abyei(UNISFA) These raids increase further thealready tense situation in the region and in particular thevery tense situation among the Missiriya and the NgokDinka116

113 The Conversation 2012 Oil fuels the conflict between Sudan andSouth Sudan ndashand it keeps getting hotter

114 OCHA 2014 South Kordofan and Blue Nile population movementsfact sheet httpreliefwebintsitesreliefwebintfilesresourcesSouth20Kordofan20and20Blue20Nile20Population20Movements20Fact20Sheet20-201920May202014pdfReuters 2013 Khartoum says rebels based in South Sudan caused oilpipeline blast

115 OCHA 2014 Ibidem116 See Human Security baseline assessment for Sudan and South Sudan

webpage httpwwwsmallarmssurveysudanorgdefacts-figuresborderdisputed-areasabyeihtml

46

LIVING IN FEAR

An oil-centered conflict

ldquoThe violence underscores the extent to which oilis at the heart of the dispute Khartoum whichcontrols the pipelines that take oil out of SouthSudan depends heavily on oil transit fees SouthSudan which depends on oil for 98 percent of itsrevenue has refused to pay the fees which it saysare exorbitantKhartoum responded by seizing oil tankers carryingSouth Sudanese oil and imposing economicblockades That prompted South Sudan to shutdown its entire oil production in February Thatmonth Sudan allegedly bombed an oilfield inSouth Sudan that was nine miles from the borderrdquo

Washington Post 2012

Missiriya attacks continue as of today UNISFA reported thatin March 2015 100 armed Missiriya killed several peopleand burnt over 20 houses in a village in the southern part ofAbyei117 Many of those attacks occur despite the presenceof UN peacekeepers in the zone

In this context a UN force was deployed in 2011 withmore than 4000 personnel mostly Ethiopian with theobjective of ensuring the demilitarization of the Abyei areaand particularly checking the Sudan Armed Forces and theSudan Peoplersquos Liberation Army Interestingly the UN forceshad also the task to provide security for oil infrastructure inthe Abyei Area in cooperation with the Abyei PoliceService118 In February 2015 the Security Council extended

117 Sudan Tribune 2015 South Sudan condemns deadly clashes in Abyeihttpwwwsudantribunecomspipphparticle54191

118 UN Security Council 2011 Resolution 1990 (2011) SRES1990(2011)

47

3 SOUTH SUDAN THE OIL WAY

the mandate of the UNISFA again until July 2015119 The AbyeiJoint Oversight Committee (AJOC) decided in May 2013 thatAbyei should adopt a status as weapons-free area and thatonly UNISFA would be authorized to carry weapons in thearea120

The situation in the area is still very fragile121 For instancevarious resolutions have called for the redeployement of allmilitary personnel from Abyei including those protecting itsoil infrastructure However the Sudanese Governmentskeeps at the Diffra oil complex around 150 Sudan oil policein a clear violation of an agreement and Security Councilresolutions adopted in 2011122 The UN Security council ina recent resolution

Condemns the presence of Diffra Oil Police unitsdeployed in the Abyei Area as well as the repeatedentry of armed militias into the territory andreiterates its demands that immediately andwithout preconditions the Government of Sudanredeploy the Oil Police in Diffra from the AbyeiArea ()123

Conflicts escalating over oil Heglig battles

In 2012 despite the Permanent Court of Arbitration ruling124

which placed Heglig oilfields in the Sudanese territories

119 UN News Center 2015 Security Council extends UN peacekeepingforce in Abyei through July 2015

120 UN Security Council 2015 Ibidem121 UN Security Council 2015 Security Council adopting resolution 2205

(2015) extends interim force in Abyei until 15 july voicing concernover delays in Borde Mechanismrsquos operation httpwwwunorgpressen2015sc11800dochtm

122 UN Security Council 2014 Report of the Secretary-General on thesituation in Abyei S2014518

123 UN Security Council 2015 Ibidem124 See Permanent Court of Arbritation webpage httpwwwlocgov

lawwebservletlloc_newsdisp3_l205401463_text

48

LIVING IN FEAR

the South Sudanese army launched an attack over Heglig125

South Sudanrsquos army took control of the oil-producing townof Heglig The South Sudan move did not enjoy sympathyfrom many countries including its allies such as the US andBritain126 The African Unionrsquos (AU) Peace and SecurityCouncil considered Sudanrsquos occupation of Heglig as illegal127

At the end after a few days South Sudan pulled back itstroops from Heglig even though President Salva Kiir stillclaims that Heglig is a part of South Sudan and is expectinginternational arbitration

Oil and geopolitics

The implications of the oil economy are self-telling Prior tothe separation of Sudan from South Sudan in 2011 theunified Sudan was the second-largest non-OPEC oil producerin Africa in 2010 When they separated Sudan and SouthSudanrsquos production diminished and together they rankedas the fourth-largest non-OPEC African oil producer in 2013Particularly the split of the country in oil revenues economicterms was a huge blow to Sudan with its crude oil exportrevenues falling from almost $11 billion in 2010 to around$18 billion in 2012128 It has been estimated that oilcontributes 98 of South Sudan government income morethan for any other government in the world129

125 Wall Street Journal 2012 Sudan escalates fight over oil httpwwwwsjcomarticlesSB10001424052702304444604577339461981143808

126 The Guardian 2012 South Sudan to withdraw from disputed oiltownhttpwwwtheguardiancomworld2012apr20south-sudan-withdraw-oil-town

127 IRIN 2012 Sudan-South Sudan Heglig and the border128 US Energy Information Administration 2014 Country analysis brief

Sudan and South SudanhttpwwweiagovcountriesanalysisbriefsSudansudanpdf

129 Global Witness 2009 Fuelling mistrust

49

3 SOUTH SUDAN THE OIL WAY

Although oil exploration started at the end of the 1950showever no success was achieved with the activities of Italianoil company Agip130 Discoveries were found in the years tofollow The first oil discovery was made in 1979 when theAmerican company Chevron found oil near the Darfur-Kordofan boundary Three years later Chevron made twolarger discoveries the Heglig and Unity oilfields which asof today are the most productive However by 1984 Chevronstopped its operations when some of its workers were killedby an armed group By 1988 the company dismantled all ofits operations in Bentiu and Unity provinces131

As a landlocked country all the oil in South Sudan had tobe extracted and exported via a pipeline The pipeline wasconstructed by China National Petroleum Corporation andit covered a length of around 1600 kilometers132 Ittransports the oil from South Sudan to the Red Sea Thecost of the pipeline was estimated at $1 billion and it wasfinished in 1999133At the time of the construction of thepipeline Sudan provided less than 1 of Chinarsquos oil importsbut a few years later by 2009 the investments of Chinatotalled more than $8 billion134

130 Understanding Sudan 2009 Fact sheet two A history of oil in theSudan httpunderstandingsudanorgOilOilResourcesL2FS2-HistoryofOilinSudanpdf

131 Understanding Sudan Ibidem132 The Conversation 2012 Oil fuels the conflict between Sudan and

South Sudan ndashand it keeps getting hotter133 Sitarek 2001 The human price of oil ICE Case Studies Number 83

httpwww1americanedutedicesudansanctionshtm16134 The Conversation 2012 Ibidem

50

LIVING IN FEAR

Source US Energy Information Administration 2014

South Sudan becameindependenth in July2011 Taking aboutthree-quarters of theproduction A disputeover transit fees ledSouth Sudan to haltproduction for most of2012

Oil production inSudan and South Sudan

thousand barrels per day

51

3 SOUTH SUDAN THE OIL WAY

Main oil companies in Sudan and South Sudan

While initially many companies involved were of Westernorigin most of the companies now involved in the oil sectorare from China and Malaysia

Source US Energy Information Administration 2014 Countryanalysis Brief Sudan and South Sudan

Row over oil tariffs

By 2011 both countries did not agree on how much SouthSudan should pay to export its oil through the pipelines inSudan Sudan requested a fee of 33 dollars a barrel whileSouth Sudan said the highest fee they could afford was 2

Table 2 Main oil companies in Sudan and South Sudan

52

LIVING IN FEAR

dollars a barrel135 Following this lack of agreement SouthSudan halted crude oil production in early 2012

This decision worsened the economic situation in bothcountries as both depend hugely on money from oil exportsfor their revenues However an agreement was reached andin April 2013 South Sudan restarted oil production136

Causes of the Sudanese Civil War

Wars in Sudan have been often portrayed quite simplisticallyas an ArabMuslim north versus and an AfricanCristiansouth While certainly ethnicity and religion played a rolethe conflict has been mainly fought over natural resources137

Today oil is the countryrsquos main natural resource and ithas been estimated that it accounts for 98 of South Sudanrsquosrevenue138 The multibillion potential of their revenuehowever has not translated into wealth and benefits for themajority of the population of South Sudan First of all it hasnot solved the problem of security as since the very inceptionof the State of South Sudan in 2011 there were conflicts inmany areas of the country particularly in the borderline withSudan A 2013 report from the World Bank illustrates thisby asserting that ldquodespite South Sudanrsquos great resourcewealth its population is one of the most deprived due todecades of neglect and war and the distortions of the oil

135 IPS 2011 South Sudan rows over exorbitant fees for pipeline use136 Reuters 2013 South Sudan resumes oil output after ending row with

Sudan over transit fees137 Caas 2007 Natural resources and conflict in Sudan138 See World Bank webpagehttpwwwworldbankorgencountry

southsudanoverview

53

3 SOUTH SUDAN THE OIL WAY

economyrdquo139 Indeed oil reserves sitting on a disputed borderbetween Sudan and South Sudan have not translated yetinto wealth for the majority of citizens of South SudanInstead most of the inhabitants of the country remain deeplypoor and do not enjoy even basic rights to access potablewater and adequate sanitation140

Oil has been a main cause for the war and conflicts inSudan For instance it influenced the end of the peaceagreement obtained after the first civil war This first civilwar ended in 1972 with the Addis Ababa Agreement Theagreement established a system of peaceful co-existence witha single country by guaranteeing aNorthern basedgovernment but granted at the same time autonomy in theSouth This however was not going to last long as thediscovery of oil at the end of the 1970s in Southern Sudanchanged the ldquocoexistencerdquo idea In 1978 Sudanese PresidentNimeiry decided to embark on oil exploration project thatwould lead to the finding of oil in commercial quantities Inorder to control the oil within the hands of the Northernbased Government military force was used and in additionto imposing islamic law which led to the new civil warstarting in 1983141

139 World Bank 2013 Interim Strategy Note (FY 2013-2014) httpwww-wdsworldbankorgexternaldefaultWDSContentServerWDSPIB20130207000333037_20130207110223RenderedPDF747670ISN0P1290Official0Use0Only090pdf

140 National Geographic 2013 South Sudan oil the environment andborder conflicts httpvoicesnationalgeographiccom2013032286550

141 Sitarek 2001 The human price of oil ICE Case Studies Number 83httpwww1americanedutedicesudansanctionshtm16

54

LIVING IN FEAR

Numerous authors have identified natural resources ashaving a direct correlation with wars and conflicts142 Ananalysis by Ross of the University of California (UCLA) ofthirteen wars and conflicts concluded that in the case ofSudan oil was one of the key causes of the second civil warand an incentive for advancing the independence of SouthSudan143 Ross describes his conclusion in the followingmanner

War in Sudan began in 1983 when SudanesePresident Nimeiry took a series of measures thatupset the delicate balance between thepredominantly Muslim north and the heavilyChristian and Animist south among these measureswas his decision to place newly discovered oil inthe countryrsquos south under the jurisdiction of thenorth and to build an oil refinery in the northinstead of the south The Sudan Peoplersquos LiberationArmy (SPLA) subsequently complained that thenorth was stealing the resources of the southincluding oil demanded that work cease on apipeline to take oil from the south to the refineryin the north and in February 1984 attacked an oilexploration base killing three foreign workers andbringing the project to a halt144

142 Varisco 2010 lsquoA study on the inter-relation between armed conflictand natural resources and its implications for conflict resolution andpeace buildingrsquo Journal of Peace Conflict and Development issue 15Ross 2003 How do natural resources influence civil war Evidencefrom 13 cases httpwwwsscnetuclaedupoliscifacultyrossHowDoesNat3pdf

143 Ross Ibidem144 Ross Ibidem

55

3 SOUTH SUDAN THE OIL WAY

Even when the different parties were discussing an agreementon ldquono attacks on civilians or civilian objectsrdquo oil was playinga central role It is instructive to note that the Sudanesegovernment desired language in the text stating that oilinstallations were ldquocivilian objectsrdquo while the SPLA wantedthe contrary145

Human Rights Watch reached the same conclusion thatoil without doubt has been a key fuel for war particularlysince the end of the 90s when crude oil was first exportedfrom Sudan in 1999146

Oil became the main objective and a principal causeof war (hellip) The large-scale exploitation of oil byforeign companies operating in the theatre of warin Southern Sudan has increased human rightsabuses there and has exacerbated the long-runningconflict in Sudan a conflict marked by gross rightsabuses ndashtwo million dead four million displacedsince 1983 ndashand recurring famine and epidemics147

Also the UN makes clear statements on the issue Specialenvoy Leonardo Franco expressed in a report that oilexacerbated the conflict

the economic political and strategic implicationssurrounding oil exploitation in western Upper Nilewhich have seriously exacerbated the conflictthereby causing a deterioration in the overall

145 Ibidem146 Human Rights Watch 2003 Sudan oil and human rights147 Human Rights Watch 2003 Sudan oil and human rights

56

LIVING IN FEAR

situation of human rights and respect forhumanitarian law and narrowing the slim chancesfor peace148

Indeed multiple causes and elements contributed to theconflicts It was recognized that ethnicity and religion wereimportant elements however the key dimension is controlover natural resources particularly oil Added to this are alsotensions over land and resources and the promotion by thegovernment of crops like cotton and sugar which displacedcertain groups of people149 Similar conclusions were reachedyears back by a Canadian Government Mission in Sudanwhich fully recognized some ethnic disputes as well asdisputes over other natural resources however oil was thekey factor which made things really dramatic

148 UN 2000 Interim report of the Special Rapporteur of the Commissionon human rights on the situation of human rights in the Sudan A55374 httpwwwunorgdocumentsgadocs55a55374pdf Seealso UN 1999 Situation of human rights in Sudan UN Doc A54467

149 University of Massachusetts (undated) Modern conflicts conflictprofile SudanhttpwwwperiumassedufileadminpdfSudan1pdf

57

3 SOUTH SUDAN THE OIL WAY

The Harker mission pointed out that while therehave always been pressures on the Dinka in theHeglig- Ruweng area as a result of inter-tribalfighting with Arab nomads for grazing areas anddry-season water the situation had worsened withthe beginning of oilexploration and had continuedto deteriorate over theyears because of the periodicoffensives launched by the Government and itsallies resulting in destructionand mass populationdisplacement150

South Sudan has one of the largest oil reserves inSub Saharan Africa and the commodity is thelifeline of the countryrsquos economy accounting for98 percent of the governmentrsquos financial resources

Whoever controls South Sudanrsquos oil thereforecould seize the upper hand in the battle for power

Source France 24 2013 lsquoBattle for oil adds newdimension to South Sudan conflictrsquo

Whoever controls South Sudanrsquos oil therefore could seizethe upper hand in the battle for power

The same scenario applies to the South Sudan Civil Warwhich initially was also portrayed along ethnic line TheDinka ethnic group of President Salva Kiir has fought rebelsallied with former vice president Riek Machar of the Nuer

150 UN 2000 Interim report of the Special Rapporteur of the Commissionon human rights on the situation of human rights in the Sudan A55374 Ibidem

58

LIVING IN FEAR

ethnic group However increasingly ldquothe focus of the fightingis shifting to the battle to control the countryrsquos mostimportant natural resource ndash oilrdquo151 The oilfields haveliterally become the battlefields

Consequences of war and conflict

The damage inflicted on people as a consequence of war ishuge Back in 2001 US Secretary of State Colin Powellqualified the war in Sudan in the following terms ldquoThere isperhaps no greater tragedy on the face of the earth todaythan the tragedy that is unfolding in the Sudanrdquo152 Firstthere is a large number of deaths due to war and war relatedcauses and also a huge number of displaced people Thedeath toll derived from the Second Civil Sudanese War isestimated at two million The US Commitee for refugeesasserted that ldquothis massive loss of life surpasses the civiliandeath toll in any war since World War IIrdquo153 In the mostrecent civil war the South Sudanese Civil War that startedin December 2013 by April 2014 the death toll wasestimated to be at 10000154

Besides the death toll there are estimated more than fourmillion people of the Southern Sudanese population forced

151 France 24 2013 Battle for oil adds new dimension to South Sudanconflicthttpwwwfrance24comen20131227-battle-oil-adds-new-dimension-south-sudan-conflict

152 Human Rights Watch 2003 Ibidem153 See US Committee for Refugees webpage in 2001 http

webarchiveorgweb20041210024759httpwwwrefugeesorgnewscrisissudanhtm

154 International crisis group 2014 South Sudan a civil war by any othernamehttpwwwcrisisgrouporg~mediaFilesafricahorn-of-africasouth20sudan217-south-sudan-a-civil-war-by-any-other-namepdf

59

3 SOUTH SUDAN THE OIL WAY

to flee their homes at one time or another It has also beenargued that the development of oilfields has led to the forcedremoval of the local population In the words of the lateJohn Garang oil was a ldquokiller itrsquos evicting our civilianpopulationrdquo claiming 100 000 people displaced due to thiscause155

Children are some of the main victims of conflict beingrecruited for instance for war and suffering sexual violenceFrom March 2011 to September 2014 the UN estimatesthat there were 1243 incidents affecting 68776 children156

UN reports indicate that both armed groups have usedchildren ldquoon a large scale and committed other graveviolations including killing maiming and sexual violencerdquo157

For instance in 2015 an incident was reported where closeto 100 children were abducted some as young as 13 Armedsoldiers were advancing house to house looking for boysand taking them by force158 According to UNICEF this occuredin Wau Shilluk close to the city of Malakal in Upper NileState159

Not surprisingly as put by a high UN representativepeople are desperate for peace

155 BBC 2001 Garang Oil firms are targetshttpnewsbbccouk2hiafrica1393481stm

156 UN Security Council 2014 Report of the Secretary-General on childrenand armed conflict in South Sudan S2014884

157 Ibidem158 The Guardian 2015 South Sudan gunmen kidnap at least 89 boys

from village near Malakal httpwwwtheguardiancomworld2015feb22south-sudan-gunmen-kidnap-89-boys-village-malakal-child-soldiers

159 The Guardian 2015 South Sudan gunmen kidnap at least 89 boysfrom village near Malakal

60

LIVING IN FEAR

People are desperate for peace They are tired ofliving in fear Many have had to flee several timesThey are exhausted They lack water they areextremely worried for their children who are notin school and at risk of being recruited into armedgroups Sexual violence is rife All people want isto live in safety security and stability160

Wars have also an impact on food security and nutrition Asof February 2015 there was an alert that the food situationwas critical in South Sudan for more than 25 millionpeople161 This was famine related to war Ulrika BlomCountry Director for Norwegian Refugee Council in 2015succinctly stated ldquoThere is an urgent need for a solution onthe conflict so that people are able to resume their dailylives in dignity and not be dependent on massive foodassistancerdquo162

The harsh consequences of war are inevitable and occurfrom a systematic destruction of infrastructure erosion ofthe human capital and weakening of essential institutions

Besides causing an appalling loss of life Sudanrsquoslong civil war eroded the capital base The wardepleted the labour force while roads irrigationsystems and other key components of rural

160 Under-Secretary-General for Humanitarian Affairs and Emergency ReliefCoordinator Valerie Amos remarks to the press Juba South Sudan 9February 2015 httpreliefwebintreportsouth-sudanunder-secretary-general-humanitarian-affairs-and-emergency-relief-coordinator-1

161 UN Security Council 2015 Reports of the Secretary-General on theSudan and South Sudan SPV7392

162 Norwegian Refugee Council 2015 Conflict a cause of hunger in SouthSudan httpwwwnrcnodid=9192498

61

3 SOUTH SUDAN THE OIL WAY

infrastructure were destroyed damaged orneglected It also weakened institutions divertedfinancial capital from economic development andundermined interpersonal trust which is criticalto productive business dealings163

Some have tried to put a figure on the costs of war A recentreport estimates that the cost of the civil war may be between$223 and $28 billion over the next five years for SouthSudan alone if the factions fail to bring peace to the worldrsquosnewest country164

UN peacekeeping operations

In July 2011 the Security Council determined that thesituation in South Sudan constituted a threat to internationalpeace and security in the region and established the UNMission in the Republic of South Sudan (UNMISS)165 Thekey elements of the mandate is to consolidate peace andsecurity However after the civil war broke in July 2013 inthe light of significant human rights violations the large-scale displacement of persons the UNMISS mandate wasreshaped and a focus was given to the protection of civiliansand creation of the conditions for delivery of humanitarianassistance166

163 IFAD 2013 Enabling poor rural people to overcome poverty in SouthSudan

164 Frontier Economics 2015 South Sudan the cost of war httpwwwfrontier-economicscomdocuments201501south-sudan-cost-warpdf

165 UN Security Council 2011 Resolution 1996166 UN Security Council 2014 Resolution 2155

62

LIVING IN FEAR

In June 2011 a month before the establishement ofUNMISS a second UN peacekeeping operation wasestablished in the disputed border between Sudan and SouthSudan The United Nations Interim Security Force for Abyei(UNISFA) was created in a context of escalating violenceand tensions and population displacement167 One of the topobjectives was to achieve the demilitarization of the Abyeifrom any force other than UNISFA and the Abyei PoliceService facilitate the delivery of humanitarian aidstrenghten the capacity of the Abyei Police Service and incooperation with the police provide security for oilinfrastructure in the Abyei area168

Corporations and conflicts with communities

Since the conclusion of the 2005 Peace Agreement betweenthe Government of Sudan (GoS) and Sudan PeoplersquosLiberation MovementArmy (SPLM) negative impacts ofoil exploration and extraction have continued to ignitemistrust among local communities towards the oilcompanies Many problems from the oil activities wereidentified such as water pollution and uncompensateddispossession of land However oil companies or thegovernment did little to assess correct and reduce suchimpacts169 In this context many communities chose the ldquopath

167 UN Security Council 2011 Resolution 1990168 UN Security Council 2011 Resolution 1990169 ECOS 2014 Scrutiny of South Sudanacutes oil industry http

w w w e c o s o n l i n e o r g r e p o r t s 2 0 1 4 Scrutiny_of_South_Sudans_Oil_Industrypdf

63

3 SOUTH SUDAN THE OIL WAY

of confrontation with oil companiesrdquo170 For instance byblocking and interfering in oil operations by truck blockagesand other stoppages171

Resentment of local communities againstoil companies

The negative consequences of oil developmenthave been causing deep resentment against oilcompanies in many oil-rich parts of SouthernSudan Arriving in any oil area where activeexploitation is ongoing one is often confrontedwith persistent complaints from local people aboutpoor management of ldquoproduced waterrdquo which isblamed for pollution of the environment This isoften linked to unexplained deaths of animals andstrange or new human ailments Moreover the oilinfrastructure such as oil roads wells and pipesare frequently blamed for disrupting the means oflivelihoods of local people as well as destructionof property

Source ECOS

170 ECOS 2014 Ibidem171 ECOS 2014 Ibidem

64

LIVING IN FEAR

Lundin Oil Consortium facing war and violencein their work territory

In 2010 the European Coalition on Oil in Sudan (ECOS)requested an investigation on the activities of the LundinGroup and its connection with the conflict in Sudan and thepossible ldquocomplicity in the commission of war crimes andcrimes against humanityrdquo172 During the Second Civil War in1997 a consortium of oil companies led by the Swedish oilcompany Lundin Oil AB (ldquoLundinrdquo) signed a contract withthe Government for the exploration of oil in the concessionarea called Block 5A that was not at that time under fullGovernment control The other members of the Consortiumwere Petronas Carigali Overseas Sdn Bhd (ldquoPetronasrdquo) fromMalaysia OMV (Sudan) Exploration GmbH (ldquoOMVrdquo) fromAustria and the Sudanese state-owned oil company SudapetLtd

Before the start of explorations the area around Block5A was relatively peaceful When the oil exploration startedthe escalation of violence and war followed suit173 Accordingto the European Coilation on oil in Sudan Block 5A ldquobecamethe scene of intense fighting and gross human rightsviolations as soon as the Lundin Consortium started oilexploration activities on the groundrdquo Right from thebeginning there are reports of significant war and violence

172 ECOS 2010 Unpaid debt The Legacy of Lundin Petronas and OMV inSudan 1997-2003 Press Release httpwwwecosonlineorgreports2010Press_release_UNPAID_DEBT

173 ECOS 2010 Unpaid debt The Legacy of Lundin Petronas and OMV inSudan 1997-2003 httpwwwecosonlineorgreports2010UNPAID_DEBT_textonlywebpdf

65

3 SOUTH SUDAN THE OIL WAY

where villages and towns were burnt and looted Tens ofthousands of people in Block 5A were also moved out fromthe exploration areas

In 1999 the Lundin Group discovered major reserves ofoil This accelerated the Government desire to control allthe areas surrounding the well and the infighting intensifiedLundinrsquos explorations in Block 5A had to be suspended twicedue to insecurity174

The consequences of all the violence towards thepopulation which were in the middle of the power battlefor controlling Block 5A were severe abuse of all humanrights and war crimes More than 10000 people were killedalmost 160000 displaced with thousands of peoplepermanently uprooted from their villages hundreds ofthousands of cattle lost or looted destruction of churchesschools markets medical clinics and many otherincalculable moral damage and inmense loss of income175

Talisman Energy accused of complicity with forceddisplacements

A Canadian company Talisman Energy which at that timewas considered to be the largest independent oil and gascompany in Canada has been accused of indirectly helpingto exacerbate the war and of being complicit in human rightsabuses and crimes against humanity176 Talisman has a 25

174 HRW 2003 Ibidem175 ECOS 2010 Unpaid debt Ibidem See also Medecins sans frontieres

2002 Violence health and access to aid in Unity Statewestern uppernile Sudan httpwwwdoctorswithoutbordersorgsitesusafilessudan_04-2002pdf

176 Africa files 2000 Corporate immunity for oiling repression Talismanin Sudan httpwwwafricafilesorgarticleaspID=621

66

LIVING IN FEAR

stake in the Greater Nile Oil Project Company (GNOPC) aninitiative located in south-central Sudan with threeadditional partners the national petroleum company ofChina (40) the national oil company of Malaysia (30)and the national petroleum company of Sudan (5)177

There were many allegations that people were forcefullydisplaced in the area of the oil field ran by Talisman UNreported that accusations were made on Talisman of ldquobeingaccomplice of human rights abuses in Upper Nile so as toguarantee security for its oil operationsrdquo178

Moreover a report from the Canadian Foreign AffairsMnistry ndashthe Harker Report ndash which undertook a mission toSudan described with concern that fighting was intense inthe areas of oil development in general and that oilextraction may have contributed to relocation of civiliansby force179

Violence and the fear of it impact immediatelyon the peoplersquos use of the land and result in foodinsecurity which in turn propels movement ordisplacement

Contradicting that oil is at stake in the displacement issueTalisman explained that displacement was a result of an inter-tribal issue Once again the Harker report concluded thatthe displacement was because of oil

177 Africa files 2000 Ibidem178 UN Security Council 2000 Interim report of the Special Rapporteur of

the Commission on Human Rights on the situation of human rights inthe Sudan A55374

179 Canadian Ministry of Foreign Affairs 2000 Human Security in SudanThe Report of Canadian Assessment Mission httpwwwecosonlineorgreports2000Human20Security20in20Sudanpdf

67

3 SOUTH SUDAN THE OIL WAY

ldquoFor Talisman so very much seems to be explained as merelyan inter-tribal problem but displacement has gone on andis still going on and in Ruweng County it is hard to denythat displacement is now and has been for some timebecause of oilrdquo180

Talisman Energy decided in 2002 to end its controversialfour-year investment in Sudan by selling its 25 percent stakein the Greater Nile Petroleum Operating Company to anIndian firm Most of the rumours is that the reasons for thiswas the strong pressure from the US particularly to end itswork in Sudan in order to stop indirectly supporting theGovernment in Sudan with its oil revenue181

The oil way developing what

Sharing the wealth with the Sudanese people The resourcecurse again

As said before 98 of the governmentrsquos revenue comesfrom oil production royalties and South Sudan sits on thethird-largest oil reserves in Africa182 It was estimated in 2011that South Sudan controlled 75 of the overall oil productionof Sudan and South Sudan altogether ndasharound 500000barrels per day However South Sudan remains dependenton the North for processing refinement and export to theRed Sea

180 Canadian Ministry of Foreign Affairs 2000 Ibidem181 New York Times 2002 Talisman to sell its stake in company in Sudan

httpwwwnytimescom20021031businesstalisman-to-sell-its-stake-in-company-in-sudanhtml

182 Africa Business Initiative 2011 Investment climate upate Sudanhttpswwwuschambercomsitesdefaultfileslegacyinternationalafricafiles16920_AfricaNewsletter_Sudanpdf

68

LIVING IN FEAR

Paradoxically South Sudan is considered a fragile StateSitting on oil as has occured to many other countries acrossAfrica and abroad does not guarantee wealth for the majorityof the population A 2013 report concluded that ldquoover thelast decade Sudan has been the largest recipient ofhumanitarian assistance by some distance receiving US$106 billion over the periodrdquo183 90 per cent of the populationearn less than a dollar a day184

Oil money through the State budget is expected to serveto finance all the key governmental activities of the Statesuch as agriculture health infrastructures and educationDespite the fact that the benefits from oil are substantialthere are numerous questions arising about the destiny ofall the oil money For instance how could it be explainedthat one of the sectors more financed is the military andsecurity apparatus Since South Sudanrsquos independence theGovernment has allocated 38 of oil revenue to the militaryand security services with only 10 and 7 ininfrastructures and education respectively185 In 2012 SouthSudan was the among top 8 African countries having militaryexpenditure of almost $1 billion186 For instance TheEconomist reports that South Sudan bought 100 Ukrainian

183 Global humanitarian assistance 2013 Global humanitarian assistancehttpwwwglobalhumanitarianassistanceorgwp-contentuploads201307GHA-Report-2013pdf

184 Kebede 2014 The role of oil in South Sudanhttpswwwruoruottawacabitstream10393315631KEBEDE20Solomon2020145pdf

185 The Guardian 2014 South Suan is divided by the spoils of oil notethnicity httpwwwtheguardiancomcommentisfree2014jan14south-sudan-divided-oil-ethnicity-violence

186 LAVDC 2014 Les quatre puissances militaires regionales dacuteAfriquehttpwwwlavdcnetportailles-quatre-puissances-militaires-regionales-dafrique

69

3 SOUTH SUDAN THE OIL WAY

T-72 tanks187 At the same time agriculture and livestock hasbeen completely neglected despite the fact that more than80 of the population depend on that sector for fulfiliingtheir basic needs

Where the money goes

Daniel Wuor Joak former MP in South Sudan LegislativeAssembly and Minister of Education Science and Technologyin Upper Nile State claims that between 2005 and 2014both the Government of South Sudan (GOSS) and theRepublic of South Sudan (RSS) have been receiving onaverage not less than two billion of USD per year Somehave already manifested the unclarities over the destiny ofall that money as described by Mr Wuor Joak

Since 2005 upwards both the GOSS and RSS havebeen receiving no less than 18 billion USD in oilrevenues without implementing any majordevelopmental projects like roads network linkingdifferent States in South Sudan conducive learningschools from basics to universities level referralmedical facilities clean drinking water in remoteareas throughout the country setting up vibrantand credible institutions which can adhere to rulesof law All these things have not been implementeddue to poor system of governance under leadershipof Salva Kiir Mayardit Most of the counties have

187 The Economist 2014 Arms and the African

70

LIVING IN FEAR

no roads linking them with their State capitals andlack schools health centres clean drinking wateretc South Sudanese population in the rural areasthroughout the country are still living in the sameconditions as they were under Khartoumrsquos rule interms of scarcity of development188

Speaking more directly Kebede made firm remarks aboutthe overall situation in South Sudan

In general poverty corruption bad governance andviolence characterized the resource curse in SouthSudan A relatively small group of elite capturesvast wealth while leaving much of their societywithout access to the minimum resource necessaryfor long term wellbeing As a result South Sudanremains one of the worldacutes least-developedcountries despite its oil (hellip) hellipmuch of the oilrevenue has been squandered189

188 Wuor Joak 2014 Major Causes of the Current Conflict in Sudan SouthSudan News Agency

189 Kebede 2014 The role of oil in South Sudanhttpsw w w r u o r u o t t a w a c a b i t s t r e a m 1 0 3 9 3 3 1 5 6 3 1 KEBEDE20Solomon2020145pdf

71

3 SOUTH SUDAN THE OIL WAY

Even before the current tensions Bentiu saw little benefitfrom oil The streets are unpaved and covered with trashelectricity is scarce reserved for those with privategenerators () Most expect more violence Bentiu hasbecome more militarized with armed soldiers placed atcheck points and at the bridge Troops are constantlymoving to the front Weapons are being flown into theairport

ldquoThe oil is a curse ldquoMohammed Abdurahman Kili 56mumbled from his hospital bed his body covered withburns He was inside his shop in a crowded market onthe edge of town when a Sudanese warplane attackedkilling a 9-year-old child and another person and settinghis shop on fire

Washington Post 2012

President Salva Kiir recognized in 2012 that corrupt officialshad stolen from the people of South Sudan and the amountlost or taken by lead government and military officials mightbe as much as $4 billion190 Kiir sent a letter to 75 SouthSudanese officials or individuals close to the governmentasking them return all the amount lost The letter describedin general terms how the money got ldquolostrdquo

An estimated $4 billion are unaccounted for orsimply put stolen by current and former officialsas well as corrupt individuals with close ties togovernment officials Most of these funds have beentaken out of the country and deposited in foreignaccounts Some have purchased properties oftenpaid in cash191

190 Ibidem191 Paanluel Wel South Sudanese bloggers httppaanluelwelcom2012

0601letter-from-president-kiir-on-corruption-4-billion-dollars-stolen192 Sudan Tribune 2013 South Sudanacutes Kiir accuses army of corruption

72

LIVING IN FEAR

A year later Kiir accused the armed forces of being corruptHe said that despite the big budget allocations made to thearmy there were even no ldquovehicles to transport soldiers onmissionsrdquo192 Two years later the issue remained unclearand the names of the officials referred to in the letter wereyet to be disclosed However Kiir accused Machar of beingresponsible for a lot of corrupted activities in the country193

Machar responded to Kiir by saying that his claims wereunfounded and then also accusing him of such practices194

It seems South Sudan epitomises all the features of theresource curse argued in Chapter 1195 How can the corruptionbe prevented How can the money go to the people It isalso important to note that the oil sector provides littleemployment to the people of South Sudan Most of thehousehold income and employment is generated in theagriculture and farming sector primarily196 Would investingin other sectors like agriculture that provide real wealth tothe people make a difference

193 Sudan Tribune 2014 South Sudan rebel leader should face corruptioncharges Kiir

194 Sudan Tribune 2014 South Sudan Macharacutes Rebentildes dismiss corruptionaccusations no spiritual powers httpallafricacomstories201407221384html

195 Kebede 2014 The role of oil in South Sudan Ibidem196 Tizikara et al 2012 Post-conflict development of Agriculture in South

Sudan perspective on approaches to capacity strenghtening httpwwwerailsnetimagesfarasecretariatkigali-movementfileKigali20MovementPost-Coflict20Agriculture_South20Sudanpdf

73

3 SOUTH SUDAN THE OIL WAY

Environment

As experienced in oilfileds in other parts of the world the oilfields here are also leaving a significant impact on theenvironment and local communities A three year study inThar Jath and Mala fields in Unity State show thatgroundwater is very polluted making the water unsafe forhuman consumption197 The study made by a team of SouthSudanese and German geologists concluded that water usedby 180000 people was too salty to drink and containdangerous amounts of heavy metals198

In many occasions the oil fields that causeenvironmental pollution are even abandoned due to the warSome observers identified that oil pipelines damaged duringthe conflict were leaking199

South Sudan must produce for its needs

In 2015 the Minister of Finance of South Sudan David DengAthorbei made a statement saying that the country shouldbe self-sufficient in agriculture terms and in addition itneeds to increase its non-oil revenue and to achieve peace200

197 Rueskamp et al 2014 Effect of oil exploration and production on thesalinity of a marginally permeable aquifer system in the Thar Jath-Mala- and Unity Oil fields Southern Sudan Zbl Geol Palaont Teil IJ

198 Radio Tamazuj 2015 Study Direct link between oil exploration andwater pollution in Unity httpsradiotamazujorgenarticlestudy-E28098direct-linkE28099-between-oil-exploration-and-water-pollution-unity

199 Star Africa 2014 South Sudan Oil leaks cause pollution fears httpenstarafricacomnewsssudan-oil-leaks-cause-pollution-fearshtml

200 Bloomberg 2015 South Sudan Finance Minister says food output canoffset oil httpwwwbloombergcomnewsarticles2015-01-20south-sudan-finance-minister-says-food-output-can-offset-oil-1-

74

LIVING IN FEAR

He also made a call for a reduction of the countryrsquos relianceon agriculture imports particularly in the context of aneconomy affected by the plunge in global oil prices201

Peter Biar Ajak from the Center for Strategic Analysis andResearch in Juba illustrates the macroeconomic weaknessesof South Sudan today because of its oil dependence

South Sudanrsquos oil-dependent economy is nearingcatastrophe The production of crude oil has droppedby about 35 percent since the conflict began Thatcombined with a drop of roughly 45 percent in globaloil prices since the summer has meant a substantialreduction in the governmentrsquos oil revenues andenormous fiscal and budgetary ressures

Since South Sudan exports almost nothing asidefrom oil and imports almost everything else tradeand monetary policy have also been buffeted byfalling oil revenues Access to foreign currency hasbecome extremely limited The prices of manyimported goods have risen There are shortages ofpetrol which must be imported because SouthSudan has no refinery202

Indeed a dynamic agriculture sector may be key for peaceand development in South Sudan More than 95 of thecountryrsquos population is dependent on farming fishing orherding to meet their daily food needs and income as well203

201 Bloomberg 2015 Ibidem202 Biar Ajak 2015Sanctions for peace in South Sudan The New York Times

January 7th203 FAO in emergencies httpwwwfaoorgemergenciescountries

detailenc147627

75

3 SOUTH SUDAN THE OIL WAY

204 Business Daily 2011 South Sudanrsquos vast agricultural sector potentialuntapped

205 Norwegian Refugee Council 2015 Conflict a cause of hunger in SouthSudan httpreliefwebintreportsouth-sudanconflict-cause-hunger-south-sudan OCHA 2015 South Sudan Crisis Situation reportn 74 httpreliefwebintsitesreliefwebintfilesresourcesSouth_Sudan_Situation_Report_No_74pdf

206 OECD 2014 Fragile States 2014 Domestic revenue mobilisation infragile states httpwwwoecdorgdacgovernance-peaceconflictandfragilitydocsFSR-2014pdf

South Sudan has good soil and climatic conditions and morethan 70 of its land area is suitable for crop productionThere are many that believe that the investment in theagriculture sector has more potential than oil however thisthinking has not received due attention from local andforeign investors204 Efforts towards making agriculture workare vital for peace and stabililty in the country It is urgentlyneeded to work on this area particularly when at presentthere are 25 million in Sudan at risk of starvation205 andaround one third of the population are food insecure plusmore than a million displaced

The dependency on income from natural resourcesleaves fragile states vulnerable It exposes them toshocks in commodity prices ndash as demonstrated bythe sudden fall in commodity prices in 2009following the 2002-2008 boom Neither is it asustainable source of incomeSouth Sudanrsquos oilproduction for instance is projected to decreasesteadily in future years and become negligible by2035

Source OECD206

76

LIVING IN FEAR

207 UN Security Council 2015 Resolution 2206 SRES2006(2015)httpwwwunorggasearchview_docaspsymbol=SRES2206 (2015)

208 Sudan Tribune 2015 South Sudan unhappy with US support for sanctionshttpwwwsudantribunecomspipphparticle54232

209 Washington Post 2014 US appears unable to pull South Sudan backfrom the brink of civil war httpwwwwashingtonpostcomworldus-appears-unable-to-pull-south-sudan-back-from-the-brink-of-civil-w a r 2 0 1 4 0 5 0 3 d 9 2 8 0 b d a - 3 8 6 b - 4 2 4 9 - 9 4 e 0 -b5292610e5bb_storyhtml

210 Ibidem

US fallen dream

In 2015 the UN imposed a travel ban and assets freeze againstindividuals or entities which engaged in or provided supportfor acts that threaten peace security and stability of SouthSudan207 The US was behind the draft and the submission ofthe resolution This resolution prompted an angry reactionfrom the South Sudanese The South Sudanese presidencywas said to be extremely disappointed about the US ledmove208

In the past the relationship between the US and SouthSudan was completely diferent The United States was themain promoter and supporter of the worldrsquos newest nationThe Washington Post for instance asserted that ldquoSouth Sudanowes its existence to the United Statesrdquo209 The expectationscreated were high before its started its independence andsome believed that Sudan would be able to manage thecountry breaking the so-called ldquoAfrican model of pettyrivalries corruption and oppressionrdquo210 Despite all the hopesput on the young nation as of today no solution has beenfound to the ongoing war

77

3 SOUTH SUDAN THE OIL WAY

The US was the largest donor to Sudan in the years priorto independence providing 339 of the total aid to Sudanbetween 2000 to 2009211 The United States (US$472million) was the largest donor of humanitarian assistanceto South Sudan in 2012 followed by the United Kingdom(US$96 million)212 For many years Sudan was the thirdlargest recipient of US aid only after Iraq and Afghanistan213

The inteligence and information systems of theAmericans on the ground in Sudan seemed to have beenrelatively good214hellip however how come they did not foreseethat South Sudan was quickly descending once again on theavenue of a country at civil war For instance the problemsbetween President Salva Kiir and his deputy were not newAlready more than two years before the civil war started inJune 2011 in a speech in Juba the President accused hisDeputy Riek Machar ldquoof running a parallel governmentwithin the governmentrdquo215 Couldnrsquot they have preventedanother conflict Why did they fall into ridiculouscontradictions as the one recently revealed via wikileakssuggesting that the US was funding both armies in

211 Development initiatives (undated) Sudan Aid Factsheet 1995-2009httpwwwglobalhumanitarianassistanceorgwp-contentuploads201102Sudan-Aid-Factsheet-2011pdf

212 See global humanitarian assistamce ebpage httpwwwglobalhumanitarianassistanceorgcountryprofilesouth-sudan

213 The Atlantic 2011 US played key role in Southern Sudanacutes longjourney to Independence

214 The Global Intelligence files 2013 SudanUSMIL ndash SPLA trying toget US to hook it up httpssearchwikileaksorggifilesviewemailid=5047664

215 Sudan Tribune 2011 Salva Kiir exposes his rift with Machar overSouth Sudan transitional constitution httpssearchwikileaksorggifilesviewemailid=3831682

78

LIVING IN FEAR

contention the Government force of Salva Kiir and the rebelsof Riek Machar216 Why are both paid by the UShellip to dowhat As one reporter questioned why are they ldquopaid tokill each otherrdquo217

216 RT 2015 US officials tussle over arms embargo sanctions in oil-flushSouth Sudan httprtcomusa226387-south-sudan-sanctions-war

217 RT 2015 Ibidem

Seven Million

ldquoA peaceful DR Congo could transform Africa almostovernight but is there a way outrdquo218

There is always a way out However peace is not an easything particularly under certain circunstances When youhave lost your father your mother your uncle your sisterwhat else can you lose Can you still believe in peaceTwoof the bloodiest conflicts in recent decades in the world haveoccurred in Africa The Second Civil War in Sudan has leftaproximately two million casualties and the conflict in DRCis estimated to have snuffed life out of no less than fivemillion people

How many more

How does one begin to quantify the dead when they are inthe hundreds of thousands No less than seven million livesof Congolese and South Sudanese were taken away due towars and conflicts fuelled by natural resources How many

218 African Business 2009 DR Congo $24 trillion fortune

4

79

80

LIVING IN FEAR

more How many more before the world wakes up to acteffectively towards ending all those conflictsProbably unless you are one survivor from those experiencesyou would never be truly able to understand what it meansto lose entire families and friends you would never be trulyable as well to understand what it means to feel fear foryour life and the life of your close relatives

When you start counting sometimes you forget thatpeople are not numbers There are names behind thenumbers A family A life As we write this book people aredying needlessly in the DRC and in South Sudan Calculatingdead people due to conflicts in this part of the world is verydifficult due to statistical challenges and so it is conceivablethat probably the number of victims is much larger than sevenmillion (7000000) When would the volume of bloodshedthe number of lives taken be enough for the belligerentofficials to make real peace How many more should fallAthousand more Another one million The pain sadness anddestruction that those conflicts generate should not beaccepted any more

Oil and minerals the main cause of ongoingconflicts and war

Some authors argue that minerals and oil are not a cause ofwar but ldquocompetition for them could amplify and expediteconflictrdquo219 In this book as chapter two and three haveshown oil and minerals are the main motor behind theconflict in recent decades in DRC and South Sudan It would

219 UN Security Council 2013 Natural resource wealth fails to translateinto equivalent benefits for people fuelling conflict to instability DeputySecretary-General tells Security Council httpwwwunorgpressen2013sc11037dochtm

81

4 SEVEN MILLION

be very difficult if not impossible to expect those conflictsif their territories were resource poor Oil and minerals arefull of blood An activist poet wrote We Thought it was Oilbut it was Blood220 Although he was writing about the NigerDelta situation we see a universal application in that phrase

In both countries described there were other elements andfactors to take into consideration however it can be saidthat control over natural resources was the most importantcause on both conflicts in DRC and South Sudan In bothcases oil and minerals fuelled those wars and in manyoccasions these resources have inspired fueled and sustainedarmies operating in the territories of both countries

A Statersquos wealth means nothing if not shared withthe majority of the population

DRC and South Sudan ought to be wealthy countriesUnfortunately having a wealth of natural resources doesnot mean that it belongs to the citizens or that the wealthwould be shared among the population of a given State AState is a nation or territory considered as an organizedpolitical community under one government221 A goodgovernment should be the one that takes care of its citizensand shares the wealth among its citizens and not justdistribute it among an elite Jan Eliasson Deputy Secretary-General of the United Nations stated that ldquoin too manycountries a wealth of resources including timber oil coaldiamonds and precious metals failed to translate into

220 Nnimmo Bassey 1998 We Thought it was Oil but it was Blood IbadanKraft Books

221 See httpwwwoxforddictionariescomdefinitionenglishstate

82

LIVING IN FEAR

equivalent wealth for the people Only a powerful fewbenefitrdquo222

The State is expected to perform an adequateimplementation of human rights granted by several UNdeclarations and conventions including the right to foodright to health right to shelter right to clothing right towork farmersacute rights etc Paradoxically the violations andabuses of human rights have been constant in DRC and SouthSudan Both countries have suffered from acts of war oncivilian population both have as well a large number ofdisplaced people with no access to food without healthcarewithout shelter and without any work Both countries havemore than 90 people living below one dollar per day andthey are considered among least developed countries andfragile states Due to this both are some of the biggestrecipients of humanitarian aid Moreover both have hugesecurity problems shown for instance by the presence ofUN peacekeeping operations Out of the 17th worldwideongoing peacekeeping UN operations three are in DRCSouth Sudan and in Abyeia disputed territory between Sudanand South Sudan

They possess resources that have a huge monetary valueand that in most cases have the involvement of foreigncountries and corporations and other stakeholders of theprivate sector which are ready to pay enormous sums ofmoney to gain control of the natural resources belonging toother countries If no war or significant armed conflict takes

222 UN Security Council 2013 Natural resource wealth fails to translateinto equivalent benefits for people fuelling conflict to instability DeputySecretary-General tells Security Council httpwwwunorgpressen2013sc11037dochtm

83

4 SEVEN MILLION

place common elements among those countries that possesssuch resources in Africa is the existence of massive povertyand corruption and in most cases this is contrasted withmega-rich individuals Letacutes take for instance the case ofoil-rich Angola where the president and his daughter possessmultibillionaire fortunes while at the same time the majorityof the country population is living on less than two dollarsper day223

Greed power and control over natural resources

It must be noted as well that often oil and minerals involvemillions and multibillion profits With such large sums ofmoney greed power and control take the driving seat ofwhatever country government in the world When theprospects for such money flow arrives many leaders andelites start distancing themselves from the majority of thepopulation and stop thinking about the welfare of their ownpeople

At the centre of most of the conflicts in both countriesare struggles for power and control of natural resourcesMinerals and oils are the main cause of the ongoing conflictsand wars Unfortunately most commentators qualify therecent civil war in South Sudan as a ldquopower strugglerdquo withoutfurther qualifications In South Sudan who gets the oil getsthe power Therefore the power struggle is a war overnatural resources for control of the oil in the country Areporter affirmed that ldquowhoever controls South Sudanrsquos oiltherefore could seize the upper hand in the battle for

223 Forbes 2013 Daddyacutes girl how an African ldquoprincessrdquo banked $3 billionin a country living on $2 day httpwwwforbescomsiteskerryadolan20130814how-isabel-dos-santos-took-the-short-route-to-become-africas-richest-woman

84

LIVING IN FEAR

224 France 24 2013 Battle for oil adds new dimension to South SudanConflict httpwwwfrance24comen20131227-battle-oil-adds-new-dimension-south-sudan-conflict

225 OECD 2014 Fragile States 2014 Domestic revenue mobilisation infragile states httpwwwoecdorgdacgovernance-peaceconflictandfragilitydocsFSR-2014pdf

powerrdquo224 In both countriesrsquo non-renewable natural resourcetook a dominant share of the fiscal revenue of DRC andSouth Sudan ndash 82 in the DRC and 98 in South Sudan225

Who controls those resources controls the countryThe case of South Sudan where the president has

recognized the disappearance of $4 billion by corruptindividuals is compelling President Salva Kiir pinpointed thespirit behind the rot ldquoOnce we got to power we forgot whatwe fought for and began to enrich ourselves at the expenseof our peoplerdquo This might also include him as well becauseit is difficult to imagine that such huge amount of money couldbe stolen without the leader noticing anything at all

Greed for minerals and oil is at the heart of the massivedeath toll and impoverishment of the Congolese and SouthSudanese people in recent decades It can be affirmed quitecomfortably that if the Eastern part of the DRC would havenot sat on huge mineral reserves it would be very difficultto imagine all the conflicts that have occurred in that zoneIt can be affirmed as well that without oil ongoing wars inSouth Sudan might most probably never have occured

Peace is the only way forward

Achieving peace is a complex issue To create peace thereare many issues to resolve with all stakeholders such as

85

4 SEVEN MILLION

mutual accusations of support to rebel groups226 goodgovernance transparency demobilisation and disarmamentof local militia etc227

A positive but vital first step is that there are calls at veryhigh levels in both countries and at international fora Thismust be followed with open debate on the core causes of theconflict and ways of achieving reconciliation It does notappear that lasting peace can be achieved otherwise In thatprocess the people need to be put at the centre ofdevelopment policies and actions in both countries in orderto stop the plunder reverse environmental degradation andfight poverty As long as the political military and corporateelite maintain their control of the natural resources of thecountry the devastating plunder will continue to the benefitof only such elite and a handful of corporations

226 UN Security Council 2015 Reports of the Secretary-General on theSudan and South Sudan SPV7392

227 The Guardian 2014 South Sudan is divided by the spoils of oil notethnicity httpwwwtheguardiancomcommentisfree2014jan14south-sudan-divided-oil-ethnicity-violence

INDEX

AAbyei Joint Oversight

Committee (AJOC) 47Abyei Police Service 46 62Abyei 43-home of the Ngok Dinka 43

45Africa 18 20 see minerals

-and wars at the greatlakes 20 25-armed groups in 26-criminal networks in 26-death in 20-exploitation naturalresources in 18-militias in 26-minerals in 20-poverty in 20-wealth in 20

Africarsquos wealth 14-and resource curse 14-blessing or curse 14

African Business 22African Development Bank

(AfDB) 16 17

African Unionrsquos (AU) Peaceand Security Council 48

Algeria 15Allied Democratic Forces

(ADF) 25 28-in North Kivu 25

American Mineral Fields(AMF) 36

AngloAmerican corporation35

AngloGold Ashanti 35Anvil Mining 36Armed Forces of the DRC

(FARDC) 26Athorbei David Deng 73Auty Richard 14

BBBC 18Blom Ulrika 59Blue Nile 45

CCentral African Republic 7China National Petroleum

Corporation 49

86

INDEX

87

Citibank NY 36Clinton Bill 24 36Conflict minerals 30 see

Rwanda-legitimate exports of 30-smuggling of 30

Conflicts 7-and natural resources 7-causes of 10 80-uniqueness of 10

Congolese Government 18

DDemocratic Republic of

Congo (DRC) 7-85-and (MONUC) 29-greed for minerals in 32-UN peacekeeping opera-tion in 29

Diffra oil complex 47DR Congo 79

EEastern Congo 28

-insecurity in 28Eliasson Jan 81

-Deputy Secretary-Generalof the United Nations 81

European Coalition on Oil inSudan (ECOS) 63

Exploration GmbH (OMV)64

Exxon corporate 15

FFirst Sudanese Civil War 42Forces deacutemocratiques de

libeacuteration du Rwanda(FDLR) 28

GGabon 18

-oil in 18Gertler Dan 12 13Ghana 18

-oil in 18Giambrone Antonino 38Glencore Anglo-Swiss 35Government of South Sudan

(GOSS) 69Government of Sudan (GoS)

62Great War of Africa 23Greater Nile Oil Project

Company (GNOPC) 6667

Guinea Equatorial 15

HHague 44Permanent Court of Arbitra-

tion in 44Human Rights Watch 55

IIMF 22International Rescue Commi-

ttee 23

LIVING IN FEAR

88

JJoak Daniel Wuor 69Juba 74

-Center for StrategicAnalysis and Research in74

Katanga Minister of Planning22

KKenya 19Kerry John 24Kiir Salva 43 84

LLibya 7Lumumba Patrice 13 20Lundin Oil Consortium 63

MMachar Riek 43 57 77 78Madagascar 16Mala fields 73Malakal 59Mali 7Mayardit Salva Kiir 69McKinney Cynthia Ann 23

-US Congresswomanfrom the Democratic Party23

McMurrough Mike 36McNamara Robert 37

-as World Bank President37

Minerals 20 see Africa-and death 20

-and poverty 20-and wars at the GreatLakes 20-and wealth 20

Mozambique 18-gas in 18

Muloni Irene 18

NNationalist and Integrationist

Front (FNI) 36Natural resources 8 83 see

conflicts-and conflict 8-and greed 83-and power 83-and wars 8-control over 83

Niger Delta 16-oil is a curse for 16

N o n - g o v e r n m e n t a lorganisations (NGOs) 12

Non-OPEC African oilproducer 48

Norwegian Refugee Council59

OOECD Guidelines for

Multinational Enterprises37

Oil 48-and geopolitics 48

PPeace 84

INDEX

89

-as way forward 84Petronas Carigali Overseas

Sdn Bhd (Petronas) 64Powell Colin 58PR Newswire 30President Kabila 24President Obama 24

RRDC Mining Code 35Republic of South Sudan

(RSS) 69Rio Tintorsquos QMM 16Ruweng County 67Rwanda 24 31

-conflict minerals from 31

SSecond Congo War 24 32

34Second Sudanese Civil War

42Somalia 7South Kordofan 45South Sudan Civil War 57South Sudan 11 18 19 41

-Dinka ethnic group in 4357-Nuer ethnic group in 4357the oil way 41-UN peacekeeping opera-tions 61

South Sudanese Civil War 58Sudan 79

-Second Civil War in 79

Sudan Armed Forces 46Sudan oil police 47Sudan Peoplersquos Liberation

Army (SPLA) 41 46 5462-civil wars and conflict in41

Sudan vs South Sudan 43-and Heglig battles 47-and peace agreement 43-main oil companies in 51-oil-centered conflict 46-Row over oil tariffs 51

Sudanese Civil War 52-and Addis AbabaAgreement 53-and Islamic law 53-causes of 52

Swedish oil company LundinOil AB (Lundin) 64

TTalisman Energy 65Thar Jath 73Transnational Corporations

(Tncs) 34-and the private sector 34

UUganda 19 24UN Interim Security Force for

Abyei (UNISFA)UN Mission in the Republic of

South Sudan (UNMISS)61 62

UN Organization Stabiliza-

LIVING IN FEAR

90

tion Mission in the DRC(MONUSCO) 29

UN peacekeeping operations11

UN Security Council 11UNICEF 59UNISFA 47United Nations Office of the

Special Adviser on Africa(OSAA) 8

United Nations SecurityCouncil 25

United Nations 13University of California

(UCLA) 54 55Upper Nile State 59 69US fallen dream 76

VVirunga National Park 18

WWar and conflict 58

-consequences of 58Wars and minerals 21

-cobalt 22-coltan 22-copper 22-diamond 22-gold 22-manganese 22-peace at last 21-timber 22-tin 22-zinc 22

Wau Shilluk 59We Thought it was Oil but it

was Blood 81Wealth 12 13

-for whom 13-quest for 12

World Heritage site 18Worldwatch 40

Page 6: LIVING IN FEAR - Health of Mother Earth Foundation...Les quatre puissances militaires regionales d´Afrique. 12 LAVDC. 2014. Les quatre puissances militaires regionales d´Afrique

8

LIVING IN FEAR

Natural resources wars and conflict

Wars and armed conflicts are the major illnesses of thehumankind Since the birth of humankind we have not beenable to stop killing each other Thousands of years after wecontinue creating wars and armed conflicts

Why is that Today natural resources like oil and mineralsare at the heart of many conflicts around the world and so-called ldquohigh-value natural resources have been associatedwith dozens of armed conflicts millions of deaths and thecollapse of several peace processesrdquo3 Numerous reports andstatistical evidence confirm that those resources have beenldquosparking and fueling armed civil conflictsrdquo4 The UnitedNations Office of the Special Adviser on Africa (OSAA) alsoaffirms that ldquonatural resource have been shown to play akey role in the conflicts that have plagued a number ofAfrican countries over the last decade both motivating andfuelling armed conflictsrdquo5Moreover some scholars affirmthat ldquowhen internal conflict occurs in a region that has oilreserves it lasts twice as long as conflicts that occur in areaswithout oil reserves and combatant deaths are twice ashighrdquo6

Corporations working with natural resources have beencomplicit in many conflicts For instance during the Sudanwar oil corporations have allowed their facilities to be used

3 Lujala et al 2011 lsquoHigh-value natural resources a blessing or acurse for peacersquo Sustainable Development Law and Policy Vol 12

4 Lujala et al Ibiacutedem5 United Nations Office of the Special Adviser on Africa 2006 lsquoNatural

resources and conflict in Africa transforming a peace liability intoa peace assetrsquo Conference Report

6 Lujala et al 2011 lsquoHigh-value natural resources a blessing or acurse for peacersquo Sustainable Development Law and Policy Vol 12

9

PROLOGUE

for military purposes that led subsequently to attacks oncivilians One example is the case of the Heglig airstrip withinthe territory of the concession of the Canadian corporateTalisman

the military use of Heglig airstrip has been moreor less constant since May 1999 (hellip) flights clearlylinked to the oil war have been a regular feature oflife at the Heglig airstrip which is adjacent to theoil workersrsquo compound It is operated by theconsortium and Canadian chartered helicoptersand fixed wing aircraft which use the strip haveshared the facilities with helicopter gunships andAntonov bombers of the Government of SudanThese have armed and re-fuelled at Heglig and fromthere attacked civilians7

Natural resources have also been associated with the increaseof military spending on the continent Military expenditurein Africa is on the rise experiencing the highest progressionin the world from 2002-20118Algeria tops the list of militaryspending in Africa with over $10 billion9 They were followedby Angola with $6 billion and then South Africa with a bitmore than $4 billion in 201310 The increase of Africarsquosexpenditure is mainly due to the oil revenues from countries

7 Canadian Ministry of Foreign Affairs 2000 lsquoHuman Security in SudanThe report of Canadian Assessment Missionrsquo httpwwwecosonlineorgreports2000Human20Security20in20Sudanpdf

8 LAVDC 2014 lsquoLes quatre puissances militaires regionales dacuteAfriquersquo httpwwwlavdcnetportailles-quatre-puissances-militaires-regionales-dafrique

9 The Economist 2014 lsquoArms and the Africanrsquo httpwwweconomistcomnewsmiddle-east-and-africa21633901-continents-armies-are-going-spending-spree-arms-and-african

10 The Economist 2014 Ibidem

10

LIVING IN FEAR

like Algeria and Angola Angolarsquos military spending rose byover 36 in just one year Another oil producer that hasmade significant outlays on military spending is Ghanawhich almost tripled its arms budget from $109 to $306million between 2012 and 201311 Not surprisingly DRC alsorecently augmented significantly their spending by 3412

Causes of conflicts

Often there is a trend to simplify one main cause for aparticular conflict such as religious ethnic or tribal oreconomicpolitical power struggles For example very oftenthe conflicts in Sudan have been described as religious warsbetween Northern Muslims and Christiananimists from theSouth Our analysis in Chapter 3 will illuminate a differentperspective In general wars and conflicts tend to besurrounded by multiple factors and causes some with moredominance than others It is precisely in that complexity ofelements and factors that we can find the reasons why acountry has embarked in wars and conflicts However atthe same time there is often one cause that is the prevalentand dominant one in each conflict This will also be examinedin the forthcoming chapters

Every conflict is unique

While conflicts may have similar elements every one of themis unique in its own way13 This book explores the generalrelation between wars conflicts and natural resourcesfocusing in particular on two African countries Democratic

11 LAVDC 2014 Les quatre puissances militaires regionales dacuteAfrique12 LAVDC 2014 Les quatre puissances militaires regionales dacuteAfrique13 Bongani 2012 lsquoNatural resources and conflict unlocking the

economic dimensioacuten of peace-building in Africarsquo Briefing n 74

11

PROLOGUE

Republic of Congo (DRC) and South Sudan Both countrieshave gone through some of the bloodiest wars and conflictsin recent decades in the world Peace efforts have been madeat the UN level to try to minimize the conflict situations In2014 both countries had UN peacekeeping operationsmandated by the UN Security Council to promote protectand monitor human rights in DRC and South Sudan14 Weaim to provide a succinct but comprehensive overview ofboth conflicts and show their relation with natural resources

14 In 2014 there were ongoing 17 peacekeeping operations under theUN There were DRC and South Sudan ndashAbyei- See Office of theHigh Commissioner for Human Rights httpwwwohchrorgENCountriesPagesPeaceMissionsIndexaspx

LIVING IN FEAR

12

The Quest for WealthldquoDan Gertler is essentially looting Congo at the expense of

its peoplerdquo15

If there is wealth in DRC Dan Gertler has found a goodpiece of it The 41-years-old Israeli-born Dan Getler has adeclared fortune estimated at $144 billion While he isformally based in Bnei Brak Israel he has made his billiondollars fortune in the mining sector of DRC He is also verywell known for being a close friend of President JosephKabila16 Gertler is criticized over his way of doing businessand has been accused by non-governmental organisations(NGOs) to have obtained mining assets on the cheap bycavorting with politicians17 Congolese NGOs have said abouthim for example that ldquohe has political connections so statecompanies sell him mines for low prices and he sells themon for huge profitsrdquo The quest for wealth attracts manyGertler-like types to the African continent one of thewealthiest places of the planet

1

15 Affirmation of Jean Pierre Muteba head of a group of NGOs thatmonitor mining in DRC at The Washington Post 2012 Dan Gertlerearns billions as mine deals fail to enrich Congo

16 Forbes profile of Dan Getler httpwwwforbescomprofiledan-gertler

17 Forbes Ibiacutedem

13

1 THE QUEST FOR WEALTH

Wealth for whom

Everybody wants to be wealthier however not everybodyshares the same definition of wealth18One definition ofwealth is that it is a ldquotangible or intangible thing that makesa person family or group better offrdquo19 Under this definitionoil or a mineral would be considered wealth if it makes aperson family or group better off Certainly a person likeMr Getler is obviously doing better off in terms of moneywith his work and therefore he is wealthier under thoseterms Howeverthe resources that make Getler wealthy havenot necessarily benefited Congoacutes people Minerals or oilas said by Patrice Lumumba belongs to the people of DRCit is the responsbility of the State to manage its benefits andto share it among the population The wealth of a country isthe wealth of their people

However the wealth of natural resources revenues doesnot frequently bring benefits to the majority of thepopulation but rather a handful of elites The United Nationsoffice of the Special Adviser on Africa affirmed that the richesderived from the ldquoexploitation of natural resources are notonly used for sustainaing armies but also for personalenrichment and building political supportrdquo20 In additionthe office added that ldquocontrol over natural resources andtheir revenues often stay in the hands of a small elite and isnot used for broader development of the countryrdquo21

18 CNBC 2013 what is wealthy $5 million and plenty of cash19 See the business dictionary httpwwwbusinessdictionarycom

definitionwealthhtml20 United Nations office of the Special Adviser on Africa 2006 Natural

resources and conflicts in Africa transforming a peace liability intoa peace asset Conference Report

21 United Nations office of the Special Adviser on Africa 2006 Ibidem

LIVING IN FEAR

14

Africarsquos wealth blessing or curse

The resource curse

In a sea of wealth there are often oceans of povertyResource-rich countries are often accompanied by slowerthan expected economic growth poor economicdiversification gloomy social welfare indicators devastatingenvironmental impacts rampant corruption high inequalityhuge impoverishment bad governance and as said beforewars and conflicts22 This situation has been termed thetheory of ldquoresource courserdquo which term was used first in1993 by Richard Auty23 In 1995 the theory of the ldquoresourcecurserdquo was popularized thanks to an article of Sachs andWarner24 Both authors showed in their paper that ldquoeconomieswith a high ratio of natural resource exports to GDP in 1971tended to have low growth rates during the subsequentperiod 1971-1989rdquo From there a vast number of literaturehas been written on this matter and is divided between thosethat believe exploitation of natural resources is a curse andthose that believe that it can promote growth and

22 Mildner et al 2011 lsquoScarcity and abundance revisited a literaturereview on natural resources and conflictrsquo International Journal ofConflict and Violence Vol 5 Karl 2005 lsquoCovering oil a guide toEnergy and Developmentrsquo Understanding the resource curse opensociety institute

23 Time 2010 Brief history the resource curse httpcontenttimecomtimemagazinearticle09171199746000html

24 Sachs and Warner 1995 lsquoNatural resources and economic growthrsquoHarvard Institute for International Development

15

1 THE QUEST FOR WEALTH

development in developing countries25 Others for instanceprefer to use different terminology like Exxon corporatewhich has said ldquowe donacutet like to call it the oil curse weprefer governance curse We are private investors and it isnot our role to tell governments how to spend their moneyrdquo26

Africarsquos wealth

Africa is full of natural resources and there are manycountries considered as having a huge wealth Oil gasminerals timber fertile land water are often mentioned asthe riches of the continent However oil and minerals arethe favourites of some of the top leaders of the continentAngola with oil and diamonds Nigeria with oil GuineaEquatorial with oil Algeria with plenty of oil and gasdeposits DRC with minerals and South Sudan with oil justto name some of them

Many would think that all those States with lots of oiland mineral are very wealthy The truth is that although theStates are wealthy the countries are paradoxically full ofpoverty and their populations are not benefiting from thoseresources Moreover in many cases the wealth derived from

25 Pedro (undated) lsquoMainstreaming mineral wealth in growth andpoverty reduction strategiesrsquo Economic Commission for Africa PolicyPaper Ross 1999 lsquoThe political economy of the resource cursersquoWorld Politics n51 Hodler 2004 lsquoThe curse of natural resourcesin fractionalized countriesrsquo Economic department University ofBern SwitzerlandSwilling 2012 lsquoBeyond the resource curse fromresource wars to sustainable resource management in Africarsquo Paperpresented at the Winelands Conference on Integrity and GovernanceStellenbosch Pendergast et al 2008 lsquoCorruption and the curse ofNatural resourcesrsquo Department of Economics University of VictoriaDavis 2012 Replicating Sachs and Warner the 1997 Working PaperColorado School of Mines Neumayer 2004 Does the resource cursehold for growth in genuine income as well World Developmentvol 32

LIVING IN FEAR

16

oil and minerals mostly fuel wars and conflicts While somedie while some are displaced while some are injured orrape Some on the contrary are making money lots andlots of money hellip and while they make money they just puta blind eye on the horrors occurring outside the fence Thisis well described in the Harker report on the Sudanese warand the role of oil corporations ldquoIf the oil companies donrsquotknow whatrsquos going on theyrsquore not looking over the fencesof their compoundsrdquo27

Although some may believe that the importance of theoil and mineral sectors is the creation of jobs for thepopulation this has been denied by several authors

The oil gas and mining sectors are notoriously poorwhen it comes to job creation An offshore platformtapping deep-sea reserves will create few if anypositions for locals Only recently protests werereported outside Rio Tintorsquos QMM mineral sandsoperation in the south of Madagascar due to highlocal unemployment The best way to convertnatural resource wealth into jobs is to take theproceeds and invest in other more labor-intensiveindustries such as agriculture or manufacturing28

Nigeria provides a good example where communities living inthe Niger Delta have not benefited from oil extraction whichon the contrary has created serious conflicts as seen in Box 1

On the question of whether oil is a blesssing or a curse toAfrica the African Development Bank concluded that it is a

26 The Economist 2005 lsquoThe paradox of plentyrsquo27 Canadian Ministry of Foreign Affairs 2000 Human Security in

Sudan The report of Canadian Assessment Mission httpw w w e c o s o n l i n e o r g r e p o r t s 2 0 0 0 Human20Security20in20Sudanpdf

28Africa progress panel 2013 Africaacutes mineral wealth eternally cursedhttpwwwafricaprogresspanelorgafricas-mineral-wealth-eternally-cursed

17

1 THE QUEST FOR WEALTH

ldquohuge blessingrdquo29 It justifies that with the following analysis

We estimate that Africa has 120bn barrels of oilreserves no less than half of Saudi Arabia and 600million hectares of uncultivated arable land halfof the world total We at the African DevelopmentBank (AfDB) estimate that the continentrsquos naturalresources will contribute over $30bn per annumin government revenues over the next 20 years30

Box 1 Oil is a curse for the Niger Delta people

Most people think of oil states as wealthy states ButNigeria proves that sometimes the opposite is true It isAfricarsquos leading oil producer and yet it is one of theworldrsquos 20 poorest countries Whatrsquos more the peopleliving in the Niger Delta the countryrsquos oil-producingregion are among Nigeriarsquos most impoverishedcommunities with a large percentage of the populationhaving to survive on less than one dollar a day For thesepeople lsquoblack goldrsquo has not brought prosperity ordevelopment Instead it has increased corruption socialproblems environmental damage and armed conflictThe many billions of US dollars in oil revenue that havepoured into the country during its oil industryrsquos 50-yearhistory have completely bypassed these communitiesSource Petra Hannen 2011 lsquoBlessing our Coursersquo GIZmagazine akzent

29 African Development Bank 2013 lsquoAfricarsquos mineral wealth a blessingor a cursersquo httpwwwafdborgenblogsafdb-president-this-is-africas-hourpostafricas-mineral-wealth-a-blessing-or-a-curse-12336

30 African Development Bank 2013 Africaacutes mineral wealth a blessingor a curse httpwwwafdborgenblogsafdb-president-this-is-africas-hourpostafricas-mineral-wealth-a-blessing-or-a-curse-12336

LIVING IN FEAR

18

Africa continues the exploitation of its naturalresources

Most of the African Governments that discover naturalresources in their territory eagerly move forward with theexploration of those Therefore natural resources areexplored all over the continent oil in Ghana manganese inGabon gas in Mozambique just to name a few Often thereis little consideration of the destruction or the conflicts theseextractive activities bring For instance according to the BBCin March 2015 the Congolese Government consideredmodifying the boundaries of the Virunga National Park homeof gorilla mountains and World Heritage site to permit oilexploration activities31

DRC and South Sudan as well are exploring a joint projectnow DRC has a frontier with South Sudan in the Northeastpart of the country While historically both ndash referring alsoto Sudan ndash did not often have a common grounds after theIndependence of South Sudan in 2011 it appears possiblethat natural resources may unite them more closely IreneMuloni Minister for Energy and Minerals Development fromUganda announced in an interview in February 2015 thatSouth Sudan and the DRC have expressed interest in theconstruction of an oil pipeline of over 1000 km to the Kenyancoast32 Although yet to be implemented there have beendiscussions and plans to construct a pipeline that would unite

31 BBC 2015 DR Congo seeks Virunga park bounary httpwwwbbccomnewsworld-africa-31876577See also New York Times2014 Oil dispute takes a page from Congoacutes bloody past httpwwwnytimescom20141116worldoil-dispute-takes-a-page-from-congos-bloody-pasthtml_r=1

32 Platts 2015 South Sudan DR Congo interested in Ugandan crudeoil export pipeline minister httpwwwplattscomlatest-newsoilkampalasouth-sudan-dr-congo-interested-in-ugandan-crude-26025080

19

1 THE QUEST FOR WEALTH

oil production and distribution in several African countriesincluding South Sudan Uganda Kenya Democratic Republicof Congo (DRC) and maybe others33

The forthcoming chapters will develop more elementsaround this topic in order to conclude some final remarkswith the particular case studies of DRC and South Sudan

33 The Economist 2013 Pipeline poacuteker httpwwweconomistcomnewsmiddle-east-and-africa21578402-east-africa-danger-throwing-away-part-its-new-found-oil

20

LIVING IN FEAR

Minerals and Wars at the GreatLakes Wealth Death and Massive

Poverty in the Heart of Africa

Our internal difficulties tribal war and the nucleiof political opposition seemed to have beenaccidentally concentrated in the regions with ourrichest mineral and power resources We know howall this was organised and in particular whosupports it today in our house

Our Katanga because of its uranium copper andgold and our Bakwanga in Kasai because of itsdiamonds have become hotbeds of imperialistintrigues The object of these intrigues is torecapture economic control of our country

Patrice Lumumba speech in Leopoldville in August 25th1960 34

34 Speech at the opening of the All-African Conference in Leopoldville in1960 See httpwwwassatashakurorgforumshoulders-our-freedom-fighters42970-collected-speeches-writings-patrice-lumumbahtml

2

21

2 MINERALS AND WARS AT THE GREAT LAKES

Lumumba the first democratically elected Prime Ministerof the Republic of Congo gave a speech in 1960 that wasremarkably prescient of the fate of Democratic Republic ofCongo (DRC) today Conflict minerals and ldquotribal warsrdquo gohand in hand in the DRC historyrsquos past decades Lumumbawas planning to get the DRCrsquos related difficulties undercontrol however he was executed a few months after thespeech by a firing squad in January 1961 The US throughthe CIA the United Kingdom through the M16 and Belgiumwere all blamed for their involvement in his death35

Paradoxically ldquothe assassinations were made by the ordersof those who proclaim themselves to be champions ofdemocracy and respecters of human rightsrdquo36 Externalmeddling and intervention in Congorsquos affairs by foreigncountries is another of the concurrent and repeated situationsthat continue in recent history of the DRC37

Wars and minerals peace at last

hellip The heart of Africa is bleeding hellip

Two wars raged in DRC from 1996-1997 and from 1998-2003 Contrary to what some affirm these were not ethnicconflicts but resource wars38 No coincidence that the

35 BBC 2013 M16 and the death of Patrice Lumumba httpwwwbbccomnewsworld-africa-22006446

36 VVAA 1992 Congo (Zaire) Democratie neo-coloniale ou deuxiemeIndependance Ed LrsquoHarmattan

37 The Guardian 2011 Patrice Lumumba the most importantassassination of the 20th centuryhttpwwwtheguardiancomglobal-developmentpoverty-matters2011jan17patrice-lumumba-50th-anniversary-assassination

38 See Friends of the Congo websitehttpwwwfriendsofthecongoorgresource-centercongo-primerhtml See also Lanotte 2003 RDCguerre sans frontiers Editions Complexe

22

LIVING IN FEAR

country possesses extraordinary mineral wealth with someof the most valuable and strategic minerals on earth suchas coltan diamond cobalt copper gold tin zincmanganese timber and others The highest concentrationof mining activities existin the Eastern part of the countryTo illustrate the predominance of mining here we wouldunderline the affirmation of the Katanga Minister ofPlanning who said that 72 of the territory of Katanga isdevoted to mining No surprise why the IMF has namedDRC one of the worldrsquos mining giants of today39 Themagazine African Business stated in 2009 that ldquothe totalmineral wealth of the DRC was estimated to be some $24trillionrdquo40 As Lumumba indicated back in 1960 the samescenario repeated in recent years ndash minerals and conflictscontinue to go hand by hand

DR Congo possesses some 80 of the worldrsquoscoltan ore reserves(hellip) Additionally the DRCongo produces significant quantities ofdiamonds gold cassiterite copper cobalt (ofwhich it has the worldrsquos largest reservesalthough the trade is largely controlled byZimbabwe) oil tin zinc gold and coffee Thecountry has large reserves of uranium it wasCongolese uranium that was used for theManhattan Project that produced the worldrsquosfirst atomic bombs dropped on Japan The vastcountry also has more than half of sub-SaharanAfricarsquos timber stocks

Source African Business

39 IMF 2013 DRC Poverty reduction strategy paper N 1322640 African Business 2009 DR Congo $24 trillion fortune

23

2 MINERALS AND WARS AT THE GREAT LAKES

The casualties over the years are overwhelming Whileeverybody is familiar with the death toll during the genocidein Rwanda estimated between 500000 and 800000 peoplethere is much less awareness about the conflict situation inCongo The International Rescue Committee has estimatedthat the conflict and humanitarian crisis in the DemocraticRepublic of Congo has taken a death toll of 54 million peoplefrom 1998 to 200741 A CNN correspondent in trying togive an illustration of the heavy toll made the followingcomparative analysis

The wars in that country ndash RD Congo ndash haveclaimed nearly the same number of lives as havinga 911 every single day for 360 days the genocidethat struck Rwanda in 1994 the ethnic cleansingthat overwhelmed Bosnia in the mid-1990s thegenocide that took place in Darfur the number ofpeople killed in the great tsunami that struck Asiain 2004 and the number of people who died inHiroshima and Nagasaki mdash all combined and thendoubled42

Rwanda and Uganda were actively involved in the invasionof Congo in both wars The second war was known as theGreat War of Africa involving nine countries and more than20 armed groups According to Cynthia Ann McKinney aUS Congresswoman from the Democratic Party and an

41 IRC 2007 IRC study shows Congorsquos neglected crisis leaves 54 milliondead httpwwwrescueorgnewsirc-study-shows-congos-neglected-crisis-leaves-54-million-dead-peace-deal-n-kivu-increased-aidmdash4331 Some groups put the death toll much higher See GlobalResearch webpage httpwwwglobalresearchcathe-war-that-did-not-make-the-headlines-over-five-million-dead-in-congo7957

42 CNN 2012 Why the world is ignoring Congo war httpeditioncnncom20121127opinioncongo-war-ignored-vava-tampa

24

LIVING IN FEAR

expert on the Great Lakes issues while invading DRC in theSecond Congo War the US continued providing financialsupport to the governments of Rwanda and Uganda43 Howwas this allowed US President Bill Clinton was personallyin Rwanda in March 1998 only a few months before theRwandese army invaded Congo44 President Clinton was inAfrica at that time addressing its presidents includingPresidents Kagame and Museveni as leaders of the ldquoAfricanRenaissancerdquo and seeing a bright future for Africa45 ThereClinton made an important call to embrace peace How wasit possible to talk about peace while these allies were directlyengaging in war Moreover with the experience of thegenocide in Rwanda how could it be that foreign powersclosely involved in the region particularly the United Stateslet this occur again How did they allow wars and conflictsthat killed millions of people How could they allow whatmany called another genocide in Congo

On a positive note at last in recent months the calls forpeace have been growing from many different stakeholdersIn May 2014 US Secretary of State John Kerry after ameeting with DRC President Kabila stated that ldquoachievinga lasting peace in the DRC is a priority of President ObamardquoHe added ldquoNow I canrsquot emphasize enough how importantthat process is in identifying and resolving the root causesof the conflict in the DRC as well as in the entire GreatLakes regionrdquo46 Not a minor task going to the roots causes

43 Order of Indictment from Juzgao de instruccion numero CuatroAudiencia Nacional Case 320008-D 6-2-2008

44 See CBS News httpwwwcbsnewscomnewstext-of-clintons-rwanda-speech

45 Schaefer 2000 The Keys to an African Economic Renaissance httpwwwheritageorgresearchreports200005the-keys-to-an-african-economic-renaissance

46 See US Dept of State 2014 Press Availability on the DRC and theGreat Lakes Region httpwwwstategovsecretaryremarks201405225587htm

25

2 MINERALS AND WARS AT THE GREAT LAKES

of those problems in the Great Lakes Indeed achieving peaceand reconciliation in the Great Lakes Region in countriesthat had suffered like DRC is a difficult and cumbersometask and making it by finding the ldquorealrdquo root causes can bea very complex and lengthy exercise taking decades orlonger

The situation remains tense We recall that in 2006 theUN Security Council issued a resolution condemning ldquotheactivities of militias and armed groups operating in the GreatLakes regionrdquo47 Almost a decade later those armed groupsare still there and despite the efforts made the situationremains tense and insecure A report of the Group of Expertson the RDC published in 2015 by the United Nations SecurityCouncil concludes that in DRC despite a defeat of one of therebel groups ndash the Movement of 23 March ndash at the end of2013 this ldquofailed to translate into significant gains in securityand security and stability in 2014rdquo48 For example in thebeginning of 2015 a rebel group from Uganda the AlliedDemocratic Forces (ADF) created havoc in North Kivuwhere 17 people were hacked to death with machetes49

47 UN Security Council 2006 Resolution 1653 (2006) SRES165348 UN Security Council 2015 Final report of the Group of Experts on

the DRC S20151949 UN Security Council 2015 March 2015 monthly forecast http

wwwsecuritycouncilreportorgmonthly-forecast2015-03democratic_republic_of_the_congo_7phpVP-BX5Sm4agmailto

26

LIVING IN FEAR

Armed groups militias and criminal networkswithin the military structure making a lucrativebusiness out of minerals

The UN has solidly demonstrated that natural resources areused to finance armed groups and therefore to fuel war inthe region 50 The UN concludes that ldquoarmed groups continueto control many mining sites and to profit from mining andthe minerals traderdquo51 Later on those minerals particularlytin tungsten and tantalum are smuggled to neighbouringcountries For example one of the armed groups theMovement of 23 March (M23) responsible for taking Gomaat the end of 2012 was financing its organisation fromnatural resources in Eastern Congo In relation to thisparticular case the UN asserts that ldquoseveral traders havecontributed to financing M23 rebels using profits resultingfrom the smuggling of Congolese minerals into Rwandardquo52

Besides the rebel groups a criminal network within theArmed Forces of the DRC (FARDC) was involved in the illegalexploitation of natural resources The types of involvementinclude illegal taxation protection rackets and indirectcommercial control to more direct coercive control53

For some top army officials their military work wasconverted into economic businesses Indeed the existing

50 UN Security Council 2014 Final report of the Group of Experts onthe Democratic Republic of the Congo

51 Ibidem52 Ibidem53 UN Security Council 2010 Letter dated 26 October 2010 from the

Group of Experts on the DRC addressed to the Chair of the SecurityCouncil Committee established pursuant resolution 1533 (2004) S2010596

27

2 MINERALS AND WARS AT THE GREAT LAKES

practices made the UN qualify the war as a ldquolucrativebusinessrdquo

illegal exploitation of resources by BurundiRwanda and Uganda took different forms includingconfiscation extraction forced monopoly andprice-fixing The first two forms reachedproportions that made the war in the DRC a verylucrative business There are strong indicationsthat even if security and political reasons werethe professed motivation to move into the easternDRC some top army officials clearly had economicand financial objectives54

The most UN recent reports affirm that ldquomany armed groupsin Eastern Democratic Republic of the Congo have derivedtheir revenue from the production of and trade in naturalresourcesrdquo55

54 UN Security Council 2001 Security Council condemns ilegal exploitationof Democratic Republic of Congoacutes natural resources Press Releasehttpwwwunorgpressen2001sc7057dochtm

55 UN Security Council 2014 Final report of the Group of Experts on theDRC S201442

28

LIVING IN FEAR

Insecurity still booming in Eastern Congo

As already mentioned the momentum created bythe defeat of the Movement of 23 March inNovember 2013 failed to translate into significantgains in security and stability in 2014 in EasternDemocratic Republic of the Congo A militaryoperation against the Allied Democratic Forces(ADF) significantly weakened but did not defeatthe sanctioned armed group An expected militaryoperation against the Forces deacutemocratiques delibeacuteration du Rwanda (FDLR) did not materializeand as of the end of November 2014 efforts tonegotiate the disarmament of this sanctionedarmed group failed to produce meaningful resultsIn addition numerous Congolese and foreignarmed groups contributed to instability inOrientale North Kivu South Kivu and KatangaprovincesADF FDLR Nduma Defence for Congo (led bysanctioned individual Sheka Ntabo Ntaberi) andother armed groups continued to recruit train anduse child soldiers in 2014 Armed groups alsocommitted a variety of other abuses includingtorture enslavement and sexual violence Therewere mass killings in June in Mutarule (South Kivu)and in October and November in Beni territory(North Kivu)

Source United Nations Security Council 201556

29

2 MINERALS AND WARS AT THE GREAT LAKES

One of the problems the existing insecurity and conflicts havecreated is the proliferation of internally displaced peopleestimated in September 2014 at 27 million people57

UN peacekeeping operation in Congo

In July1999 Heads of State of Angola DRC NamibiaRwanda Uganda Zambia and Zimbabwe signed the Lusakaagreement focusing on the establishment of a ceasefire asone of the other components necessary for the deploymentof a UN peacekeeping force

The first UN Peacekeeping operation in DRC wasestablished in November 1999 after the Lusaka Ceasefireagreement It was called the UN Mission in the DRC(MONUC) In 2010 it was renamed the UN OrganizationStabilization Mission in the DRC (MONUSCO)

Ten years later despite the deployment of MONUC thesecurity challenges in DRC ndash particularly in the Eastern Partof the country ndash remain high58 There is still a strong presenceof armed groups chronic humanitarian crisis continuoushuman rights violations and continued illegal exploitationof natural resources In the light of this context the UNcreated an ldquoIntervention brigaderdquo with a key objective ofneutralizing armed groups59 As of today the MONUSCOand the intervention brigade are operational but are theresignificant security changes

56 Ibidem57 See global humanitarian assistance webpage http

wwwglobalhumanitarianassistanceorgcountryprofiledemocratic-republic-of-congo

58 UN Security Council 2010 Resolution 192559 UN Security Council 2013 Resolution 2098

30

LIVING IN FEAR

60 UN Security Council 2014 Final report of the Group of Experts on theDRC S201442

61 PR Newswire 2014 Rwanda has become worldacutes largest coltanexporterhttpwwwprnewswirecomnews-releasesrwanda-has-become-worlds-largest-coltan-exporter-reports-kt-press-300010371html

62 PR Newswire 2014 Rwanda has become worldacutes largest coltanexporter

63 Africa Briefing 2015 Rwanda has abundant deposits of best qualitycoltan Kagame affirms httpafricabriefingorgp=478

Legitimate exports or smuggling conflictminerals

It is well known that many of the minerals in Eastern Congoare smuggled and do not follow legal channels For instancethe UN estimates that 98 of the gold produced in DRC issmuggled out of the DRC making the country lose millionsof dollars in tax revenue60

In December 2014 numerous media covered a story onRwanda and coltan PR Newswire affirmed that ldquoRwandahas become worldacutes largest coltan exporterrdquo61 The dataprovided concluded that in 2013 Rwanda exported around2500000 kg of tantalum which constituted 28 of the total8807232Kg of tantalum produced globally The overallrevenue from the coltan was estimated at around $140 M62

Rwandese President Paul Kagame was quoted as affirmingthat the production was local and dismissed all possibleallegations of plundering the coltan from Congo He affirmedldquoRwanda has not only enough coltan but of a very highquality (hellip) we can even pay for a ticket give them a visaand take them to the minesrdquo63

Contrary to such statements there are many reports thatcoltan is smuggled from Congo to Rwanda and that Rwandadoes not have significant coltan mining on its own For

31

2 MINERALS AND WARS AT THE GREAT LAKES

instance a 2012 report prepared by a European Foundationaffirmed that ldquoRwanda does not house any industrial coltanmines which would suggest legitimate Rwandan coltanproductionrdquo64 A US governmental agency which analyzesthe mining sector in Congo made a table with coltan exportedfrom Rwanda qualifying it as ldquoconflict mineralsrdquo as seen inTable 165 Since there is no known conflict in Rwanda it canonly refer to Rwanda exports of minerals originating froman external conflict zone the DRC

Table 1 Estimates of exports of conflictminerals from Rwanda for Fiscal years2009-2013 in Metric Tons

Year Tantalum

FY 2009 958

FY 2010 827

FY2011 915

FY2012 1139

FY 2013 2466

Source Based on United States Government Accountability Office 2014

64 Van Teeffelen 2012 The EU raw materials policy and mining in RwandaEvert Vermeer Foundation

65 United States Government Accountability Office 2014 Conflictminerals stakeholder options for responsible sourcing are expandingbut more information on smelters is needed

32

LIVING IN FEAR

In this particular situation either somebody is wrong orsomebody is lying Hopefully future events will unveil thetruth around the nature of the coltan exports from Rwandato clarify whether they are a legitimate export or theconsequence of smuggling conflict minerals

Greed for minerals everybody wants a pieceof Congo66

What is at the origin of those wars and instability of theCongo While there could be diverse factors for conflictthere is one that seems to be always recurrent and is recog-nized by most authors and by relevant UN reports the racefor minerals and natural resources The UN recognized thatin the Second Congo War minerals were the coveted trophyand that all actors ldquobuilt up a self-financing war economycentred on mineral exploitationrdquo67 The conflicts that con-tinued after the Second Congo War like those in Kivu andIturi provinces are recognized as well to be fuelled by tradein minerals Along the same lines Palou underlines the causesof the conflict by stating that ldquoalthough from that time un-til the present day the Rwandan regime has expressed itsconcern about the security of its border with the then Zaireobjectively the reality is that control over this strategic areandash Eastern Congo ndash and its valuable mineral resources has

66 See video at Congo Justice httpcongojusticeorg67 UN 2002 Final report of the Panel of Experts on the illegal exploitation

of natural resources and other forms of wealth of the DemocraticRepublic of the Congo S20021146

33

2 MINERALS AND WARS AT THE GREAT LAKES

proved to be at the heart of two wars that have left a hugenumber of victimsrdquo68 In conclusion a 2001 UN report as-serted that ldquothe conflict of DRC has become mainly aboutaccess control and trade of five key mineral resourcescoltan diamond copper cobalt and gold The wealth of thecountry is appealing and hard to resist in the context oflawlessness and the weakness of the central authorityrdquo69

Congolese and regional elite have also profited from thissituation as well and the appalling quantum of the plunderare reflected in the following report from UN

The elite network of Congolese and Zimbabweanpolitical military and commercial interests seeksto maintain its grip on the main mineral resourcesmdash diamonds cobalt copper germanium mdash of theGovernment-controlled area This network hastransferred ownership of at least US$ 5 billion ofassets from the State mining sector to privatecompanies under its control in the past three yearswith no compensation or benefit for the Statetreasury of the Democratic Republic of the Congo70

Funds that could have been used for public services havebeen diverted from the public coffers by fraud or by theexcuse of war effort71 The Congolese population has paid

68 Palou 2010 International Justice plunder in war human rights andmultinationals

69 UN Security Council 2001 Report of the Panel of Experts on theillegal exploitation of natural resources and other forms of wealth ofthe Democratic Republic of the Congo S2001357

70 UN Security Council 2002 Final report of the Panel of Experts on theilegal exploitation of natural resources and other forms of wealth ofthe Democratic Republic of the Congo S20021146

71 Ibidem

34

LIVING IN FEAR

dearly in this situation In terms of human development it isinstructive that the UNDP estimated in 2013 that RDCwas in the low human development category ndash positioningthe country at 186 out of 187 countries and territories72

The Role of Transnational Corporations (Tncs)and the private sector

Other key players involved in the conflict are Transnationalsand the private sector A UN Report published a few yearsafter the Second Congo War started affirmed that ldquothe roleof the private sector in the exploitation of natural resourcesand the continuation of the war has been vitalrdquo73 The reportalso added that ldquoa number of companies have been involvedand have fuelled the war directly trading arms for naturalresourcesrdquo74 Other observers share the view that ldquoWesternMultinationals have been one group responsible for thepillage and illegal exploitation of Congo mineral resourcesrdquo75

There are a large number of big foreign corporationsinvolved in mining in DRC including those from CanadaSouth Africa UK USA and others Despite the opacity ofmost of the activities of the private sector numerousexamples have been reported of how TNCs are responsiblefor human rights abuses and other illegal activites Thereare also many reports of the dangerous connectionsestablished with the political and military elite in order tofacilitate their businesses These are some examples

72 UNDP 2014 Sustaining human progress reducing vulnerabilities andbuilding resilience Congo (Democratic Republic of the) httphdrundporgsitesallthemeshdr_themecountry-notesCODpdf

73 UN 2001 Report of the Panel of Experts on the illegal exploitation ofnatural resources and other forms of wealth of the Democratic Republicof the Congo S2001357

74 UN 2001 Ibidem75 Palou Ibidem

35

2 MINERALS AND WARS AT THE GREAT LAKES

bull Glencore Anglo-Swiss giant in the raw material sectorwith a turnover of US $ 2397 billion in 2013 was beingaccused in 2014 of adopting a military-style response tothe problem of artisanal mining close to its mines ldquoonseveral occasions over the past 18 months mine policehave fired live ammunition in pursuit of artisanal minerson Glencorersquos site resulting in deaths and seriousinjuriesrdquo76 They are as well responsible forcontamination of the water supply with acid content andvery high and concentrations of copper and cobaltFinally the company operates some of its concessionsinside a reserve ndashndash something that in principle is illegalaccording to the RDC Mining Code77

bull An independent investigation unveiled that two miningcompanies Glencore and the Eurasian Natural ResourcesCorporation were involved in underpricing assets incomplex deals featuring offshore companies causinglosses to the DRC of no less than $136 billionIntermediary companies in the deals were linked to DanGerler78 In addition the DRC public prosecutorreportedly told mining companies that they had toreimburse $37 billion in taxes duties and fines79

bull AngloGold Ashanti part of the AngloAmericancorporation was accused of establishing links and

76 Peyer et al 2014 PR or Progress Glencoreacutes corporate responsibility inthe DRC Bread for all RAID Fastenopfer

77 Ibidem78 CRS 2014 Democratic Republic of Congo Background and US Policy79 Reuters 2014 Disputed Congo report says miners owe $37 billion in

tax fines httpwwwreuterscomarticle20140130us-congo-democratic-mining-idUSBREA0T12L20140130

36

LIVING IN FEAR

supporting one armed group the Nationalist andIntegrationist Front (FNI)80

bull In 2004 fighting between soldiers and rebels in Kilwaended in serious human rights violations againstcivilians including summary executions arbitraryarrests rape and torture Anvil Mining operated theDikulushi copper mine near Kilwa and was accused ofproviding vehicles and planes to the Congolese armedforces during this event The legal case ended in theCanadian Supreme Court in 2012 which ruled that itwould not hear the plaintiff rsquos appeal ndash they were led bythe Canadian Association Against Impunity (anassociation representing survivors of the incidents inOctober 2004)81

bull In May 1997 Citibank NY a financial institution hasbeen accused of giving $5 million loan to a Congolesemilitia allied with Rwanda82

bull American Mineral Fields (AMF) cut a $1 billion dealwith Kabila immediately after his forces captured GomaThe negotiations were led by ldquoKabilarsquos US-trainedfinance ministerrdquo who gave ldquoAMF exclusive explorationrights to zinc copper and cobalt mines in the area MikeMcMurrough a friend of US President Bill Clinton wasthen the chair of AMF83

80 Human rights watch 2005 DRC Gold fuels massive human rightsatrocities httpwwwhrworgennews20050601dr-congo-gold-fuels-massive-human-rights-atrocities

81 Business and human rights resource center 2012 Anvil Mining Lawsuit(re DRC) httpbusiness-humanrightsorgenanvil-mining-lawsuit-re-dem-rep-of-congo

82 Global research 2008 Congo Resource wars httpwwwglobalresearchcacongo-resource-wars8310

83 Global research 2008 Ibidem

37

2 MINERALS AND WARS AT THE GREAT LAKES

UN and some other independent reports generally makebroad statements about the role of corporations includingciting some of the companies however they fall short ofproviding details of the modus operandi of those companiesand in establishing or suggesting concrete measures to stopthe conflicts and solve the negative impacts on the DRCpopulation and environment A 2002 UN Report listed 85companies considered by the Panel to be in violation of theOECD Guidelines for Multinational Enterprises84 Very littlehas been done after the UN report was published

A poor country Until when

In 1969 World Bank President Robert McNamara embarkedon a trip to Africa to try to discover ldquowhat are therequirements for developmentrdquo85 At that time the WorldBank in its information document described the country asrich in natural resources but at the same time poor and witha strong mining sector

In spite of its rich natural resources and greatpotential the Congo is still a poor country (hellip)Mining and metallurgy play a leading role in theeconomy86

84 UN 2002 Final Report of the Panel of Experts on the Illegal Exploitationof Natural Resources and other Forms of Wealth of the DemocraticRepublic of the Congo S20021146

85 Records of President Robert S McNamara Travel briefs CongoKinshasa (01021969-03031969) 1772506 Reference Code WBIBRDIDA 03 EXC-10-4540S World Bank Group archives WashingtonDC United States

86 Ibidem

38

LIVING IN FEAR

More than forty years later not much has changed asupdated data shows In DRC seven out of ten householdsare poor87 Most of its nearly 60 million people areldquodesperately poor living on less than $1 a dayrdquo88 DRC is aleast developed country a fragile State that has been in thetop 10 recipients of humanitarian assistance in nine of thelast 10 years Between 2003 and 2012 DRC received US$176billion in official development assistance (ODA) making itthe 10th largest recipient89In 2012 the Democratic Republicof Congo (DRC) received US$286 billion in net officialdevelopment assistance90

With so many natural resources isnrsquot there money to getpeople out of poverty The mining sector is oftenacknowledged as being capable of contributing to povertyreduction However those mineral benefits are oftencreamed off by powerful interests and do not get to thehands of the majority of the population According to DFIDldquofiscal receipts from the minerals sector are siphoned off bypowerful interest groups instead of being used in the publicsectorrdquo91

The analysis of Mr Antonino Giambrone sheds more lightabout the earnings and who profits from mining

While the average Congolese worker earns $10 permonth the average Congolese coltan-miner earnsanywhere from $10 to $50 per week Uganda

87 IMF 2013 DRC Poverty reduction strategy paper N 1322688 DFID 2008 Democratic Republic of Congo Country Plan89 View global humanitarian assistance webpage http

wwwglobalhumanitarianassistanceorgcountryprofiledemocratic-republic-of-congo

90 CRS 2014 Democratic Republic of Congo Background and US Policy91 DFID 2008 Democratic Republic of Congo Country Plan

39

2 MINERALS AND WARS AT THE GREAT LAKES

Rwandan and Congolese rebels have earned manymillions of dollars in sales of coltan which theyhave used to finance their war efforts in the CongoBetweeen 1999 and 2000 the Rwandan army aloneearned at least $20 million a month from coltan92

Food insecurity is often a consequence of poverty One ofthe causes of existing food insecurity is the abandonment ofthe agriculture sector partly due to conflicts The governmentstated that it would like to strengthen the smallholdersldquowhile ensuring at the same time the protection of thecountryrsquos natural resourcesrdquo93

War impacts on the environment

The wars have had devastating impact on the environmentNational parks for instance home of many endangeredspecies are also affected by the exploitation of minerals94

There are numerous reports on the precarious situation ofwildlife in the region For instance between 1995 and 19994000 out of 12000 elephants were killed in the GarambaPark in North-eastern DRC95 The situation was also seriousin other parks For instance in Kahuzi-Biega Park a zonerich in coltan only 2 out of 350 elephant families remained

92 Giambrone 2006 The extraction of natural resources as a source ofconflict Etfo voice

93 IMF 2013 DRC Poverty reduction strategy paper N 1322694 Seeh ttpwww lenntech comenv ironmental -ef fec ts -

warhtmixzz3CuGZqE3M95 UN 2001 Report of the Panel of Experts on the illegal exploitation of

natural resources and other forms of wealth of the Democratic Republicof the Congo S2001357

40

LIVING IN FEAR

in 200096 Mountain gorillas are also under threat due tocontinued civil unrest and the presence of armed militiasmakes survey and conservation work difficult in the DRCrsquosprotected areas97

Deforestation is also one of the common impactsWorldwatch explains the implication of having refugeespopulation inhabiting RDC degraded forest areas

For two years beginning in late 1994 for exampleabout 720000 Rwandans inhabited refugee campson the fringes of Virunga National Park They allneeded wood for cooking fires and for buildingshelters and some also earned extra money bymanufacturing charcoal As a result up to 80000people entered the park and carted away up to1000 tons of wood every day By mid-1996 105square kilometers of forest had been affected toone degree or another by their activities 35 squarekilometers had been stripped bare98

Besides the need for fuelwood by refugees movement ofmilitary hardware through forests and woodlands also causeserious damage to forests and the landscape generally

96 Ibidem97 See WWF webpage httpwwfpandaorgwhat_we_doendangered_species

great_apesgorillasmountain_gorilla98 Worldwatch 2008 War and Environment httpwwwworldwatchorg

node5520

3South Sudan The Oil Way

99 Washington Post 2012 lsquoSouth Sudan civilians are trapped in conflictover oilrsquo httpwwwwashingtonpostcomworldsouth-sudan-civi l i ans-are- trapped-in-conf l ict -over-o i l20120501gIQAUX6buT_storyhtml

100 See UN Mission in South Sudan web page httpwwwunmultimediaorgtvunifeed201404south-sudan-bentiu-massacre

101 Reuters 2014 Bentiu massacre is game-changer in South Sudanconflict says UN official httpwwwtheguardiancomworld2014apr22bentiu-massacre-south-sudan-united-nations

41

ldquoIf we had no oil we would not be attackedrdquo

Nyak a 27-year-old sitting outside herhut in Bentiu South Sudan 201299

In April 2014 Bentiu the capital of the oil producing UnityState was the scenario of one of the worst massacres of thecivil war between South Sudanese forces100 Hundreds ofpeople were killed in the fighting that took place betweenthe Sudan Peoplersquos Liberation Army (SPLA) and anti-government forces in the oil-rich State101

42

LIVING IN FEAR

Civil wars and conflict

Since its independence in 1956 Sudan has been at war andconflict for most of its modern history Specialists in conflictand security have described the history of modern Sudan asldquoan unremitting sequence of wars punctuated by oft-violatedpeace agreementsrdquo102 The First Sudanese Civil War (1955ndash1972) was followed by a Second Sudanese Civil War (1983ndash2005) with barely 11 years breathing space of tenuoussecurity

The Second Civil War ended when both sides signed theComprehensive Peace Agreement in 2005 That agreementgave autonomy to South Sudan within Sudan However areferendum held in January 2011 moved the region towardsecession and then in July 2011 independence was achievedand South Sudan became an autonomous nation103 Theprocess that led to South Sudanrsquos independence was stronglysupported by the US government which backed Juba in itstwo decades struggle against Khartoum104 It should be notedthat even during the 11 years of supposed peace there wereconflicts on a regular basis particularly in the border areasbetween South Sudan and Sudan105 Two years after theindependence the first South Sudanese Civil War started inDecember 2013 The civil war erupted as a result of a power

102 Cox and Snapper 2013 The Strategic Importance of South Sudan TelAviv University

103 National Geographic 2013 South Sudan oil the environment andborder conflicts httpvoicesnationalgeographiccom2013032286550

104 See webpagehttpwwwworkersorgarticles20140101south-sudan-yet-another-oil-war

105 International Crisis Group 2006 Sudan Saving peace in the Easthttpwwwcrisisgrouporgenregionsafricahorn-of-africasudan102-sudan-saving-peace-in-the-eastaspx BBC 2015 South SudanProfile httpwwwbbccomnewsworld-africa-14019202

43

3 SOUTH SUDAN THE OIL WAY

struggle between president Salva Kiir from the Dinka ethnicgroup and his deputy Riek Machar from the Nuer ethnicgroup whom he had sacked As at the time of this writingthe civil war continues

Sudan vs South Sudan

The tensions and conflicts after the independence of SouthSudan from its neighbour Sudan did not stop in 2011 Topleaders from both sides accuse and threaten each other innumerous occasions For instance Sudanese President Bashirpromised to teach South Sudan a ldquofinal lesson by forcerdquo106

South Sudan President firmly swore that ldquowhether Umar al-Bashir likes it or not one day Abyei will rejoin the southrdquo107

Abyei

Abyei is traditionally the home of the Ngok Dinka asubdivision of the Dinka tribe with strong links to the Dinkain South Sudan Besides the Dinka Misseriya herders aremembers of nomadic Arab tribes that seasonally cross Abyeiand other nearby areas with their cattle in search of waterand pasture108

Since the signing of the Peace Agreement in 2005 betweenthe Government of Sudan and the SPLM the dispute over

106 The Washington Post 2012 lsquoSudanese president vows war againstSouth Sudanrsquo httpwwwwashingtonpostcomworldsudanese-president-threatens-force-against-south-sudan-over-oil-field20120419gIQAJ0G8ST_storyhtml

107 The Global Intelligence Files 2013 Sudan- President Kiir says Abyeiwill ldquorejoinrdquo South Sudan httpssearchwikileaksorggifilesviewemailid=674314

108 Enough Project 2013 What is the Abyei Area and why is it disputedhttpwwwenoughprojectorgblogsenough-101-what-abyei-area-and-why-it-disputed

44

LIVING IN FEAR

the future status of the Abyei area has beenone of the bigbarriers to stability in the region109Abyei is an oil-rich areadisputed by Sudan and South Sudan and stands out as thehotspot of bigger tension beetween Sudan and South Sudannowadays

The conflicts over Abyei have a history of more than 50years After the First Civil war the parties signatories to thepeace pact agreed that Abyei would hold a referendum todetermine whether they would be part of Sudan or a newlyregion in the South The second war commenced in 1983and the foreseen referendum was not done

In 2009 the Permanent Court of Arbitration in the Hagueruled on Abyei territory giving concessions to the Governmentof Sudan and the Southern Sudan Heglig and other closeroil-fields remained out of Abyei area while the rest of theAbyei region remained under control of the Ngok Dinka anethnic group close to Southern Sudan and keen on voting tojoin the South in a future referendum110Another referendumwas scheduled to be done in parallel with the South Sudanreferendum in 2011 but once again this never took place

Although a series of temporary security arrangementswere agreed in January and March 2011111 in May SudaneseArmy tanks entered the town of Abyei and by the 22nd ofMay they seized control of the town112The government ofSudan launched numerous military attacks in the disputed

109 UN Security Council 2011 Report of the Secretary-General on thesituation in Abyei S2011451

110 New York Times 2009 lsquoCourt redraws disputed area in Sudanrsquo httpwwwnytimescom20090723worldafrica23sudanhtml_r=1amp

111 UN Security Council 2011 Report of the Secretary-General on thesituation in Abyei S2011451

112 Reuters 2011 North Sudan seizes disputed Abyei thousands fleehttpwwwreuterscomarticle20110522us-sudan-abyei-north-idUSTRE74L14L20110522

45

3 SOUTH SUDAN THE OIL WAY

border of area where much of Sudanacutes remaining oil fieldsare situated113 Two years later the fighting remains intensein parts of South Kordofan and Blue Nile114 More than 2million people have been internally displaced or severelyaffected by the conflict since 2011115

In addition to military attacks other actions contributedto the tension There have been cattle raids by the MissiriyandashArab nomadic cattle herders inhabiting the area ndash on theNgok Dinka ndasha subdivision of the Dinka tribe inhabitingthis area In occasions more than 200 cows were stolenwith a large part of it recovered by the UN Interim SecurityForce for Abyei(UNISFA) These raids increase further thealready tense situation in the region and in particular thevery tense situation among the Missiriya and the NgokDinka116

113 The Conversation 2012 Oil fuels the conflict between Sudan andSouth Sudan ndashand it keeps getting hotter

114 OCHA 2014 South Kordofan and Blue Nile population movementsfact sheet httpreliefwebintsitesreliefwebintfilesresourcesSouth20Kordofan20and20Blue20Nile20Population20Movements20Fact20Sheet20-201920May202014pdfReuters 2013 Khartoum says rebels based in South Sudan caused oilpipeline blast

115 OCHA 2014 Ibidem116 See Human Security baseline assessment for Sudan and South Sudan

webpage httpwwwsmallarmssurveysudanorgdefacts-figuresborderdisputed-areasabyeihtml

46

LIVING IN FEAR

An oil-centered conflict

ldquoThe violence underscores the extent to which oilis at the heart of the dispute Khartoum whichcontrols the pipelines that take oil out of SouthSudan depends heavily on oil transit fees SouthSudan which depends on oil for 98 percent of itsrevenue has refused to pay the fees which it saysare exorbitantKhartoum responded by seizing oil tankers carryingSouth Sudanese oil and imposing economicblockades That prompted South Sudan to shutdown its entire oil production in February Thatmonth Sudan allegedly bombed an oilfield inSouth Sudan that was nine miles from the borderrdquo

Washington Post 2012

Missiriya attacks continue as of today UNISFA reported thatin March 2015 100 armed Missiriya killed several peopleand burnt over 20 houses in a village in the southern part ofAbyei117 Many of those attacks occur despite the presenceof UN peacekeepers in the zone

In this context a UN force was deployed in 2011 withmore than 4000 personnel mostly Ethiopian with theobjective of ensuring the demilitarization of the Abyei areaand particularly checking the Sudan Armed Forces and theSudan Peoplersquos Liberation Army Interestingly the UN forceshad also the task to provide security for oil infrastructure inthe Abyei Area in cooperation with the Abyei PoliceService118 In February 2015 the Security Council extended

117 Sudan Tribune 2015 South Sudan condemns deadly clashes in Abyeihttpwwwsudantribunecomspipphparticle54191

118 UN Security Council 2011 Resolution 1990 (2011) SRES1990(2011)

47

3 SOUTH SUDAN THE OIL WAY

the mandate of the UNISFA again until July 2015119 The AbyeiJoint Oversight Committee (AJOC) decided in May 2013 thatAbyei should adopt a status as weapons-free area and thatonly UNISFA would be authorized to carry weapons in thearea120

The situation in the area is still very fragile121 For instancevarious resolutions have called for the redeployement of allmilitary personnel from Abyei including those protecting itsoil infrastructure However the Sudanese Governmentskeeps at the Diffra oil complex around 150 Sudan oil policein a clear violation of an agreement and Security Councilresolutions adopted in 2011122 The UN Security council ina recent resolution

Condemns the presence of Diffra Oil Police unitsdeployed in the Abyei Area as well as the repeatedentry of armed militias into the territory andreiterates its demands that immediately andwithout preconditions the Government of Sudanredeploy the Oil Police in Diffra from the AbyeiArea ()123

Conflicts escalating over oil Heglig battles

In 2012 despite the Permanent Court of Arbitration ruling124

which placed Heglig oilfields in the Sudanese territories

119 UN News Center 2015 Security Council extends UN peacekeepingforce in Abyei through July 2015

120 UN Security Council 2015 Ibidem121 UN Security Council 2015 Security Council adopting resolution 2205

(2015) extends interim force in Abyei until 15 july voicing concernover delays in Borde Mechanismrsquos operation httpwwwunorgpressen2015sc11800dochtm

122 UN Security Council 2014 Report of the Secretary-General on thesituation in Abyei S2014518

123 UN Security Council 2015 Ibidem124 See Permanent Court of Arbritation webpage httpwwwlocgov

lawwebservletlloc_newsdisp3_l205401463_text

48

LIVING IN FEAR

the South Sudanese army launched an attack over Heglig125

South Sudanrsquos army took control of the oil-producing townof Heglig The South Sudan move did not enjoy sympathyfrom many countries including its allies such as the US andBritain126 The African Unionrsquos (AU) Peace and SecurityCouncil considered Sudanrsquos occupation of Heglig as illegal127

At the end after a few days South Sudan pulled back itstroops from Heglig even though President Salva Kiir stillclaims that Heglig is a part of South Sudan and is expectinginternational arbitration

Oil and geopolitics

The implications of the oil economy are self-telling Prior tothe separation of Sudan from South Sudan in 2011 theunified Sudan was the second-largest non-OPEC oil producerin Africa in 2010 When they separated Sudan and SouthSudanrsquos production diminished and together they rankedas the fourth-largest non-OPEC African oil producer in 2013Particularly the split of the country in oil revenues economicterms was a huge blow to Sudan with its crude oil exportrevenues falling from almost $11 billion in 2010 to around$18 billion in 2012128 It has been estimated that oilcontributes 98 of South Sudan government income morethan for any other government in the world129

125 Wall Street Journal 2012 Sudan escalates fight over oil httpwwwwsjcomarticlesSB10001424052702304444604577339461981143808

126 The Guardian 2012 South Sudan to withdraw from disputed oiltownhttpwwwtheguardiancomworld2012apr20south-sudan-withdraw-oil-town

127 IRIN 2012 Sudan-South Sudan Heglig and the border128 US Energy Information Administration 2014 Country analysis brief

Sudan and South SudanhttpwwweiagovcountriesanalysisbriefsSudansudanpdf

129 Global Witness 2009 Fuelling mistrust

49

3 SOUTH SUDAN THE OIL WAY

Although oil exploration started at the end of the 1950showever no success was achieved with the activities of Italianoil company Agip130 Discoveries were found in the years tofollow The first oil discovery was made in 1979 when theAmerican company Chevron found oil near the Darfur-Kordofan boundary Three years later Chevron made twolarger discoveries the Heglig and Unity oilfields which asof today are the most productive However by 1984 Chevronstopped its operations when some of its workers were killedby an armed group By 1988 the company dismantled all ofits operations in Bentiu and Unity provinces131

As a landlocked country all the oil in South Sudan had tobe extracted and exported via a pipeline The pipeline wasconstructed by China National Petroleum Corporation andit covered a length of around 1600 kilometers132 Ittransports the oil from South Sudan to the Red Sea Thecost of the pipeline was estimated at $1 billion and it wasfinished in 1999133At the time of the construction of thepipeline Sudan provided less than 1 of Chinarsquos oil importsbut a few years later by 2009 the investments of Chinatotalled more than $8 billion134

130 Understanding Sudan 2009 Fact sheet two A history of oil in theSudan httpunderstandingsudanorgOilOilResourcesL2FS2-HistoryofOilinSudanpdf

131 Understanding Sudan Ibidem132 The Conversation 2012 Oil fuels the conflict between Sudan and

South Sudan ndashand it keeps getting hotter133 Sitarek 2001 The human price of oil ICE Case Studies Number 83

httpwww1americanedutedicesudansanctionshtm16134 The Conversation 2012 Ibidem

50

LIVING IN FEAR

Source US Energy Information Administration 2014

South Sudan becameindependenth in July2011 Taking aboutthree-quarters of theproduction A disputeover transit fees ledSouth Sudan to haltproduction for most of2012

Oil production inSudan and South Sudan

thousand barrels per day

51

3 SOUTH SUDAN THE OIL WAY

Main oil companies in Sudan and South Sudan

While initially many companies involved were of Westernorigin most of the companies now involved in the oil sectorare from China and Malaysia

Source US Energy Information Administration 2014 Countryanalysis Brief Sudan and South Sudan

Row over oil tariffs

By 2011 both countries did not agree on how much SouthSudan should pay to export its oil through the pipelines inSudan Sudan requested a fee of 33 dollars a barrel whileSouth Sudan said the highest fee they could afford was 2

Table 2 Main oil companies in Sudan and South Sudan

52

LIVING IN FEAR

dollars a barrel135 Following this lack of agreement SouthSudan halted crude oil production in early 2012

This decision worsened the economic situation in bothcountries as both depend hugely on money from oil exportsfor their revenues However an agreement was reached andin April 2013 South Sudan restarted oil production136

Causes of the Sudanese Civil War

Wars in Sudan have been often portrayed quite simplisticallyas an ArabMuslim north versus and an AfricanCristiansouth While certainly ethnicity and religion played a rolethe conflict has been mainly fought over natural resources137

Today oil is the countryrsquos main natural resource and ithas been estimated that it accounts for 98 of South Sudanrsquosrevenue138 The multibillion potential of their revenuehowever has not translated into wealth and benefits for themajority of the population of South Sudan First of all it hasnot solved the problem of security as since the very inceptionof the State of South Sudan in 2011 there were conflicts inmany areas of the country particularly in the borderline withSudan A 2013 report from the World Bank illustrates thisby asserting that ldquodespite South Sudanrsquos great resourcewealth its population is one of the most deprived due todecades of neglect and war and the distortions of the oil

135 IPS 2011 South Sudan rows over exorbitant fees for pipeline use136 Reuters 2013 South Sudan resumes oil output after ending row with

Sudan over transit fees137 Caas 2007 Natural resources and conflict in Sudan138 See World Bank webpagehttpwwwworldbankorgencountry

southsudanoverview

53

3 SOUTH SUDAN THE OIL WAY

economyrdquo139 Indeed oil reserves sitting on a disputed borderbetween Sudan and South Sudan have not translated yetinto wealth for the majority of citizens of South SudanInstead most of the inhabitants of the country remain deeplypoor and do not enjoy even basic rights to access potablewater and adequate sanitation140

Oil has been a main cause for the war and conflicts inSudan For instance it influenced the end of the peaceagreement obtained after the first civil war This first civilwar ended in 1972 with the Addis Ababa Agreement Theagreement established a system of peaceful co-existence witha single country by guaranteeing aNorthern basedgovernment but granted at the same time autonomy in theSouth This however was not going to last long as thediscovery of oil at the end of the 1970s in Southern Sudanchanged the ldquocoexistencerdquo idea In 1978 Sudanese PresidentNimeiry decided to embark on oil exploration project thatwould lead to the finding of oil in commercial quantities Inorder to control the oil within the hands of the Northernbased Government military force was used and in additionto imposing islamic law which led to the new civil warstarting in 1983141

139 World Bank 2013 Interim Strategy Note (FY 2013-2014) httpwww-wdsworldbankorgexternaldefaultWDSContentServerWDSPIB20130207000333037_20130207110223RenderedPDF747670ISN0P1290Official0Use0Only090pdf

140 National Geographic 2013 South Sudan oil the environment andborder conflicts httpvoicesnationalgeographiccom2013032286550

141 Sitarek 2001 The human price of oil ICE Case Studies Number 83httpwww1americanedutedicesudansanctionshtm16

54

LIVING IN FEAR

Numerous authors have identified natural resources ashaving a direct correlation with wars and conflicts142 Ananalysis by Ross of the University of California (UCLA) ofthirteen wars and conflicts concluded that in the case ofSudan oil was one of the key causes of the second civil warand an incentive for advancing the independence of SouthSudan143 Ross describes his conclusion in the followingmanner

War in Sudan began in 1983 when SudanesePresident Nimeiry took a series of measures thatupset the delicate balance between thepredominantly Muslim north and the heavilyChristian and Animist south among these measureswas his decision to place newly discovered oil inthe countryrsquos south under the jurisdiction of thenorth and to build an oil refinery in the northinstead of the south The Sudan Peoplersquos LiberationArmy (SPLA) subsequently complained that thenorth was stealing the resources of the southincluding oil demanded that work cease on apipeline to take oil from the south to the refineryin the north and in February 1984 attacked an oilexploration base killing three foreign workers andbringing the project to a halt144

142 Varisco 2010 lsquoA study on the inter-relation between armed conflictand natural resources and its implications for conflict resolution andpeace buildingrsquo Journal of Peace Conflict and Development issue 15Ross 2003 How do natural resources influence civil war Evidencefrom 13 cases httpwwwsscnetuclaedupoliscifacultyrossHowDoesNat3pdf

143 Ross Ibidem144 Ross Ibidem

55

3 SOUTH SUDAN THE OIL WAY

Even when the different parties were discussing an agreementon ldquono attacks on civilians or civilian objectsrdquo oil was playinga central role It is instructive to note that the Sudanesegovernment desired language in the text stating that oilinstallations were ldquocivilian objectsrdquo while the SPLA wantedthe contrary145

Human Rights Watch reached the same conclusion thatoil without doubt has been a key fuel for war particularlysince the end of the 90s when crude oil was first exportedfrom Sudan in 1999146

Oil became the main objective and a principal causeof war (hellip) The large-scale exploitation of oil byforeign companies operating in the theatre of warin Southern Sudan has increased human rightsabuses there and has exacerbated the long-runningconflict in Sudan a conflict marked by gross rightsabuses ndashtwo million dead four million displacedsince 1983 ndashand recurring famine and epidemics147

Also the UN makes clear statements on the issue Specialenvoy Leonardo Franco expressed in a report that oilexacerbated the conflict

the economic political and strategic implicationssurrounding oil exploitation in western Upper Nilewhich have seriously exacerbated the conflictthereby causing a deterioration in the overall

145 Ibidem146 Human Rights Watch 2003 Sudan oil and human rights147 Human Rights Watch 2003 Sudan oil and human rights

56

LIVING IN FEAR

situation of human rights and respect forhumanitarian law and narrowing the slim chancesfor peace148

Indeed multiple causes and elements contributed to theconflicts It was recognized that ethnicity and religion wereimportant elements however the key dimension is controlover natural resources particularly oil Added to this are alsotensions over land and resources and the promotion by thegovernment of crops like cotton and sugar which displacedcertain groups of people149 Similar conclusions were reachedyears back by a Canadian Government Mission in Sudanwhich fully recognized some ethnic disputes as well asdisputes over other natural resources however oil was thekey factor which made things really dramatic

148 UN 2000 Interim report of the Special Rapporteur of the Commissionon human rights on the situation of human rights in the Sudan A55374 httpwwwunorgdocumentsgadocs55a55374pdf Seealso UN 1999 Situation of human rights in Sudan UN Doc A54467

149 University of Massachusetts (undated) Modern conflicts conflictprofile SudanhttpwwwperiumassedufileadminpdfSudan1pdf

57

3 SOUTH SUDAN THE OIL WAY

The Harker mission pointed out that while therehave always been pressures on the Dinka in theHeglig- Ruweng area as a result of inter-tribalfighting with Arab nomads for grazing areas anddry-season water the situation had worsened withthe beginning of oilexploration and had continuedto deteriorate over theyears because of the periodicoffensives launched by the Government and itsallies resulting in destructionand mass populationdisplacement150

South Sudan has one of the largest oil reserves inSub Saharan Africa and the commodity is thelifeline of the countryrsquos economy accounting for98 percent of the governmentrsquos financial resources

Whoever controls South Sudanrsquos oil thereforecould seize the upper hand in the battle for power

Source France 24 2013 lsquoBattle for oil adds newdimension to South Sudan conflictrsquo

Whoever controls South Sudanrsquos oil therefore could seizethe upper hand in the battle for power

The same scenario applies to the South Sudan Civil Warwhich initially was also portrayed along ethnic line TheDinka ethnic group of President Salva Kiir has fought rebelsallied with former vice president Riek Machar of the Nuer

150 UN 2000 Interim report of the Special Rapporteur of the Commissionon human rights on the situation of human rights in the Sudan A55374 Ibidem

58

LIVING IN FEAR

ethnic group However increasingly ldquothe focus of the fightingis shifting to the battle to control the countryrsquos mostimportant natural resource ndash oilrdquo151 The oilfields haveliterally become the battlefields

Consequences of war and conflict

The damage inflicted on people as a consequence of war ishuge Back in 2001 US Secretary of State Colin Powellqualified the war in Sudan in the following terms ldquoThere isperhaps no greater tragedy on the face of the earth todaythan the tragedy that is unfolding in the Sudanrdquo152 Firstthere is a large number of deaths due to war and war relatedcauses and also a huge number of displaced people Thedeath toll derived from the Second Civil Sudanese War isestimated at two million The US Commitee for refugeesasserted that ldquothis massive loss of life surpasses the civiliandeath toll in any war since World War IIrdquo153 In the mostrecent civil war the South Sudanese Civil War that startedin December 2013 by April 2014 the death toll wasestimated to be at 10000154

Besides the death toll there are estimated more than fourmillion people of the Southern Sudanese population forced

151 France 24 2013 Battle for oil adds new dimension to South Sudanconflicthttpwwwfrance24comen20131227-battle-oil-adds-new-dimension-south-sudan-conflict

152 Human Rights Watch 2003 Ibidem153 See US Committee for Refugees webpage in 2001 http

webarchiveorgweb20041210024759httpwwwrefugeesorgnewscrisissudanhtm

154 International crisis group 2014 South Sudan a civil war by any othernamehttpwwwcrisisgrouporg~mediaFilesafricahorn-of-africasouth20sudan217-south-sudan-a-civil-war-by-any-other-namepdf

59

3 SOUTH SUDAN THE OIL WAY

to flee their homes at one time or another It has also beenargued that the development of oilfields has led to the forcedremoval of the local population In the words of the lateJohn Garang oil was a ldquokiller itrsquos evicting our civilianpopulationrdquo claiming 100 000 people displaced due to thiscause155

Children are some of the main victims of conflict beingrecruited for instance for war and suffering sexual violenceFrom March 2011 to September 2014 the UN estimatesthat there were 1243 incidents affecting 68776 children156

UN reports indicate that both armed groups have usedchildren ldquoon a large scale and committed other graveviolations including killing maiming and sexual violencerdquo157

For instance in 2015 an incident was reported where closeto 100 children were abducted some as young as 13 Armedsoldiers were advancing house to house looking for boysand taking them by force158 According to UNICEF this occuredin Wau Shilluk close to the city of Malakal in Upper NileState159

Not surprisingly as put by a high UN representativepeople are desperate for peace

155 BBC 2001 Garang Oil firms are targetshttpnewsbbccouk2hiafrica1393481stm

156 UN Security Council 2014 Report of the Secretary-General on childrenand armed conflict in South Sudan S2014884

157 Ibidem158 The Guardian 2015 South Sudan gunmen kidnap at least 89 boys

from village near Malakal httpwwwtheguardiancomworld2015feb22south-sudan-gunmen-kidnap-89-boys-village-malakal-child-soldiers

159 The Guardian 2015 South Sudan gunmen kidnap at least 89 boysfrom village near Malakal

60

LIVING IN FEAR

People are desperate for peace They are tired ofliving in fear Many have had to flee several timesThey are exhausted They lack water they areextremely worried for their children who are notin school and at risk of being recruited into armedgroups Sexual violence is rife All people want isto live in safety security and stability160

Wars have also an impact on food security and nutrition Asof February 2015 there was an alert that the food situationwas critical in South Sudan for more than 25 millionpeople161 This was famine related to war Ulrika BlomCountry Director for Norwegian Refugee Council in 2015succinctly stated ldquoThere is an urgent need for a solution onthe conflict so that people are able to resume their dailylives in dignity and not be dependent on massive foodassistancerdquo162

The harsh consequences of war are inevitable and occurfrom a systematic destruction of infrastructure erosion ofthe human capital and weakening of essential institutions

Besides causing an appalling loss of life Sudanrsquoslong civil war eroded the capital base The wardepleted the labour force while roads irrigationsystems and other key components of rural

160 Under-Secretary-General for Humanitarian Affairs and Emergency ReliefCoordinator Valerie Amos remarks to the press Juba South Sudan 9February 2015 httpreliefwebintreportsouth-sudanunder-secretary-general-humanitarian-affairs-and-emergency-relief-coordinator-1

161 UN Security Council 2015 Reports of the Secretary-General on theSudan and South Sudan SPV7392

162 Norwegian Refugee Council 2015 Conflict a cause of hunger in SouthSudan httpwwwnrcnodid=9192498

61

3 SOUTH SUDAN THE OIL WAY

infrastructure were destroyed damaged orneglected It also weakened institutions divertedfinancial capital from economic development andundermined interpersonal trust which is criticalto productive business dealings163

Some have tried to put a figure on the costs of war A recentreport estimates that the cost of the civil war may be between$223 and $28 billion over the next five years for SouthSudan alone if the factions fail to bring peace to the worldrsquosnewest country164

UN peacekeeping operations

In July 2011 the Security Council determined that thesituation in South Sudan constituted a threat to internationalpeace and security in the region and established the UNMission in the Republic of South Sudan (UNMISS)165 Thekey elements of the mandate is to consolidate peace andsecurity However after the civil war broke in July 2013 inthe light of significant human rights violations the large-scale displacement of persons the UNMISS mandate wasreshaped and a focus was given to the protection of civiliansand creation of the conditions for delivery of humanitarianassistance166

163 IFAD 2013 Enabling poor rural people to overcome poverty in SouthSudan

164 Frontier Economics 2015 South Sudan the cost of war httpwwwfrontier-economicscomdocuments201501south-sudan-cost-warpdf

165 UN Security Council 2011 Resolution 1996166 UN Security Council 2014 Resolution 2155

62

LIVING IN FEAR

In June 2011 a month before the establishement ofUNMISS a second UN peacekeeping operation wasestablished in the disputed border between Sudan and SouthSudan The United Nations Interim Security Force for Abyei(UNISFA) was created in a context of escalating violenceand tensions and population displacement167 One of the topobjectives was to achieve the demilitarization of the Abyeifrom any force other than UNISFA and the Abyei PoliceService facilitate the delivery of humanitarian aidstrenghten the capacity of the Abyei Police Service and incooperation with the police provide security for oilinfrastructure in the Abyei area168

Corporations and conflicts with communities

Since the conclusion of the 2005 Peace Agreement betweenthe Government of Sudan (GoS) and Sudan PeoplersquosLiberation MovementArmy (SPLM) negative impacts ofoil exploration and extraction have continued to ignitemistrust among local communities towards the oilcompanies Many problems from the oil activities wereidentified such as water pollution and uncompensateddispossession of land However oil companies or thegovernment did little to assess correct and reduce suchimpacts169 In this context many communities chose the ldquopath

167 UN Security Council 2011 Resolution 1990168 UN Security Council 2011 Resolution 1990169 ECOS 2014 Scrutiny of South Sudanacutes oil industry http

w w w e c o s o n l i n e o r g r e p o r t s 2 0 1 4 Scrutiny_of_South_Sudans_Oil_Industrypdf

63

3 SOUTH SUDAN THE OIL WAY

of confrontation with oil companiesrdquo170 For instance byblocking and interfering in oil operations by truck blockagesand other stoppages171

Resentment of local communities againstoil companies

The negative consequences of oil developmenthave been causing deep resentment against oilcompanies in many oil-rich parts of SouthernSudan Arriving in any oil area where activeexploitation is ongoing one is often confrontedwith persistent complaints from local people aboutpoor management of ldquoproduced waterrdquo which isblamed for pollution of the environment This isoften linked to unexplained deaths of animals andstrange or new human ailments Moreover the oilinfrastructure such as oil roads wells and pipesare frequently blamed for disrupting the means oflivelihoods of local people as well as destructionof property

Source ECOS

170 ECOS 2014 Ibidem171 ECOS 2014 Ibidem

64

LIVING IN FEAR

Lundin Oil Consortium facing war and violencein their work territory

In 2010 the European Coalition on Oil in Sudan (ECOS)requested an investigation on the activities of the LundinGroup and its connection with the conflict in Sudan and thepossible ldquocomplicity in the commission of war crimes andcrimes against humanityrdquo172 During the Second Civil War in1997 a consortium of oil companies led by the Swedish oilcompany Lundin Oil AB (ldquoLundinrdquo) signed a contract withthe Government for the exploration of oil in the concessionarea called Block 5A that was not at that time under fullGovernment control The other members of the Consortiumwere Petronas Carigali Overseas Sdn Bhd (ldquoPetronasrdquo) fromMalaysia OMV (Sudan) Exploration GmbH (ldquoOMVrdquo) fromAustria and the Sudanese state-owned oil company SudapetLtd

Before the start of explorations the area around Block5A was relatively peaceful When the oil exploration startedthe escalation of violence and war followed suit173 Accordingto the European Coilation on oil in Sudan Block 5A ldquobecamethe scene of intense fighting and gross human rightsviolations as soon as the Lundin Consortium started oilexploration activities on the groundrdquo Right from thebeginning there are reports of significant war and violence

172 ECOS 2010 Unpaid debt The Legacy of Lundin Petronas and OMV inSudan 1997-2003 Press Release httpwwwecosonlineorgreports2010Press_release_UNPAID_DEBT

173 ECOS 2010 Unpaid debt The Legacy of Lundin Petronas and OMV inSudan 1997-2003 httpwwwecosonlineorgreports2010UNPAID_DEBT_textonlywebpdf

65

3 SOUTH SUDAN THE OIL WAY

where villages and towns were burnt and looted Tens ofthousands of people in Block 5A were also moved out fromthe exploration areas

In 1999 the Lundin Group discovered major reserves ofoil This accelerated the Government desire to control allthe areas surrounding the well and the infighting intensifiedLundinrsquos explorations in Block 5A had to be suspended twicedue to insecurity174

The consequences of all the violence towards thepopulation which were in the middle of the power battlefor controlling Block 5A were severe abuse of all humanrights and war crimes More than 10000 people were killedalmost 160000 displaced with thousands of peoplepermanently uprooted from their villages hundreds ofthousands of cattle lost or looted destruction of churchesschools markets medical clinics and many otherincalculable moral damage and inmense loss of income175

Talisman Energy accused of complicity with forceddisplacements

A Canadian company Talisman Energy which at that timewas considered to be the largest independent oil and gascompany in Canada has been accused of indirectly helpingto exacerbate the war and of being complicit in human rightsabuses and crimes against humanity176 Talisman has a 25

174 HRW 2003 Ibidem175 ECOS 2010 Unpaid debt Ibidem See also Medecins sans frontieres

2002 Violence health and access to aid in Unity Statewestern uppernile Sudan httpwwwdoctorswithoutbordersorgsitesusafilessudan_04-2002pdf

176 Africa files 2000 Corporate immunity for oiling repression Talismanin Sudan httpwwwafricafilesorgarticleaspID=621

66

LIVING IN FEAR

stake in the Greater Nile Oil Project Company (GNOPC) aninitiative located in south-central Sudan with threeadditional partners the national petroleum company ofChina (40) the national oil company of Malaysia (30)and the national petroleum company of Sudan (5)177

There were many allegations that people were forcefullydisplaced in the area of the oil field ran by Talisman UNreported that accusations were made on Talisman of ldquobeingaccomplice of human rights abuses in Upper Nile so as toguarantee security for its oil operationsrdquo178

Moreover a report from the Canadian Foreign AffairsMnistry ndashthe Harker Report ndash which undertook a mission toSudan described with concern that fighting was intense inthe areas of oil development in general and that oilextraction may have contributed to relocation of civiliansby force179

Violence and the fear of it impact immediatelyon the peoplersquos use of the land and result in foodinsecurity which in turn propels movement ordisplacement

Contradicting that oil is at stake in the displacement issueTalisman explained that displacement was a result of an inter-tribal issue Once again the Harker report concluded thatthe displacement was because of oil

177 Africa files 2000 Ibidem178 UN Security Council 2000 Interim report of the Special Rapporteur of

the Commission on Human Rights on the situation of human rights inthe Sudan A55374

179 Canadian Ministry of Foreign Affairs 2000 Human Security in SudanThe Report of Canadian Assessment Mission httpwwwecosonlineorgreports2000Human20Security20in20Sudanpdf

67

3 SOUTH SUDAN THE OIL WAY

ldquoFor Talisman so very much seems to be explained as merelyan inter-tribal problem but displacement has gone on andis still going on and in Ruweng County it is hard to denythat displacement is now and has been for some timebecause of oilrdquo180

Talisman Energy decided in 2002 to end its controversialfour-year investment in Sudan by selling its 25 percent stakein the Greater Nile Petroleum Operating Company to anIndian firm Most of the rumours is that the reasons for thiswas the strong pressure from the US particularly to end itswork in Sudan in order to stop indirectly supporting theGovernment in Sudan with its oil revenue181

The oil way developing what

Sharing the wealth with the Sudanese people The resourcecurse again

As said before 98 of the governmentrsquos revenue comesfrom oil production royalties and South Sudan sits on thethird-largest oil reserves in Africa182 It was estimated in 2011that South Sudan controlled 75 of the overall oil productionof Sudan and South Sudan altogether ndasharound 500000barrels per day However South Sudan remains dependenton the North for processing refinement and export to theRed Sea

180 Canadian Ministry of Foreign Affairs 2000 Ibidem181 New York Times 2002 Talisman to sell its stake in company in Sudan

httpwwwnytimescom20021031businesstalisman-to-sell-its-stake-in-company-in-sudanhtml

182 Africa Business Initiative 2011 Investment climate upate Sudanhttpswwwuschambercomsitesdefaultfileslegacyinternationalafricafiles16920_AfricaNewsletter_Sudanpdf

68

LIVING IN FEAR

Paradoxically South Sudan is considered a fragile StateSitting on oil as has occured to many other countries acrossAfrica and abroad does not guarantee wealth for the majorityof the population A 2013 report concluded that ldquoover thelast decade Sudan has been the largest recipient ofhumanitarian assistance by some distance receiving US$106 billion over the periodrdquo183 90 per cent of the populationearn less than a dollar a day184

Oil money through the State budget is expected to serveto finance all the key governmental activities of the Statesuch as agriculture health infrastructures and educationDespite the fact that the benefits from oil are substantialthere are numerous questions arising about the destiny ofall the oil money For instance how could it be explainedthat one of the sectors more financed is the military andsecurity apparatus Since South Sudanrsquos independence theGovernment has allocated 38 of oil revenue to the militaryand security services with only 10 and 7 ininfrastructures and education respectively185 In 2012 SouthSudan was the among top 8 African countries having militaryexpenditure of almost $1 billion186 For instance TheEconomist reports that South Sudan bought 100 Ukrainian

183 Global humanitarian assistance 2013 Global humanitarian assistancehttpwwwglobalhumanitarianassistanceorgwp-contentuploads201307GHA-Report-2013pdf

184 Kebede 2014 The role of oil in South Sudanhttpswwwruoruottawacabitstream10393315631KEBEDE20Solomon2020145pdf

185 The Guardian 2014 South Suan is divided by the spoils of oil notethnicity httpwwwtheguardiancomcommentisfree2014jan14south-sudan-divided-oil-ethnicity-violence

186 LAVDC 2014 Les quatre puissances militaires regionales dacuteAfriquehttpwwwlavdcnetportailles-quatre-puissances-militaires-regionales-dafrique

69

3 SOUTH SUDAN THE OIL WAY

T-72 tanks187 At the same time agriculture and livestock hasbeen completely neglected despite the fact that more than80 of the population depend on that sector for fulfiliingtheir basic needs

Where the money goes

Daniel Wuor Joak former MP in South Sudan LegislativeAssembly and Minister of Education Science and Technologyin Upper Nile State claims that between 2005 and 2014both the Government of South Sudan (GOSS) and theRepublic of South Sudan (RSS) have been receiving onaverage not less than two billion of USD per year Somehave already manifested the unclarities over the destiny ofall that money as described by Mr Wuor Joak

Since 2005 upwards both the GOSS and RSS havebeen receiving no less than 18 billion USD in oilrevenues without implementing any majordevelopmental projects like roads network linkingdifferent States in South Sudan conducive learningschools from basics to universities level referralmedical facilities clean drinking water in remoteareas throughout the country setting up vibrantand credible institutions which can adhere to rulesof law All these things have not been implementeddue to poor system of governance under leadershipof Salva Kiir Mayardit Most of the counties have

187 The Economist 2014 Arms and the African

70

LIVING IN FEAR

no roads linking them with their State capitals andlack schools health centres clean drinking wateretc South Sudanese population in the rural areasthroughout the country are still living in the sameconditions as they were under Khartoumrsquos rule interms of scarcity of development188

Speaking more directly Kebede made firm remarks aboutthe overall situation in South Sudan

In general poverty corruption bad governance andviolence characterized the resource curse in SouthSudan A relatively small group of elite capturesvast wealth while leaving much of their societywithout access to the minimum resource necessaryfor long term wellbeing As a result South Sudanremains one of the worldacutes least-developedcountries despite its oil (hellip) hellipmuch of the oilrevenue has been squandered189

188 Wuor Joak 2014 Major Causes of the Current Conflict in Sudan SouthSudan News Agency

189 Kebede 2014 The role of oil in South Sudanhttpsw w w r u o r u o t t a w a c a b i t s t r e a m 1 0 3 9 3 3 1 5 6 3 1 KEBEDE20Solomon2020145pdf

71

3 SOUTH SUDAN THE OIL WAY

Even before the current tensions Bentiu saw little benefitfrom oil The streets are unpaved and covered with trashelectricity is scarce reserved for those with privategenerators () Most expect more violence Bentiu hasbecome more militarized with armed soldiers placed atcheck points and at the bridge Troops are constantlymoving to the front Weapons are being flown into theairport

ldquoThe oil is a curse ldquoMohammed Abdurahman Kili 56mumbled from his hospital bed his body covered withburns He was inside his shop in a crowded market onthe edge of town when a Sudanese warplane attackedkilling a 9-year-old child and another person and settinghis shop on fire

Washington Post 2012

President Salva Kiir recognized in 2012 that corrupt officialshad stolen from the people of South Sudan and the amountlost or taken by lead government and military officials mightbe as much as $4 billion190 Kiir sent a letter to 75 SouthSudanese officials or individuals close to the governmentasking them return all the amount lost The letter describedin general terms how the money got ldquolostrdquo

An estimated $4 billion are unaccounted for orsimply put stolen by current and former officialsas well as corrupt individuals with close ties togovernment officials Most of these funds have beentaken out of the country and deposited in foreignaccounts Some have purchased properties oftenpaid in cash191

190 Ibidem191 Paanluel Wel South Sudanese bloggers httppaanluelwelcom2012

0601letter-from-president-kiir-on-corruption-4-billion-dollars-stolen192 Sudan Tribune 2013 South Sudanacutes Kiir accuses army of corruption

72

LIVING IN FEAR

A year later Kiir accused the armed forces of being corruptHe said that despite the big budget allocations made to thearmy there were even no ldquovehicles to transport soldiers onmissionsrdquo192 Two years later the issue remained unclearand the names of the officials referred to in the letter wereyet to be disclosed However Kiir accused Machar of beingresponsible for a lot of corrupted activities in the country193

Machar responded to Kiir by saying that his claims wereunfounded and then also accusing him of such practices194

It seems South Sudan epitomises all the features of theresource curse argued in Chapter 1195 How can the corruptionbe prevented How can the money go to the people It isalso important to note that the oil sector provides littleemployment to the people of South Sudan Most of thehousehold income and employment is generated in theagriculture and farming sector primarily196 Would investingin other sectors like agriculture that provide real wealth tothe people make a difference

193 Sudan Tribune 2014 South Sudan rebel leader should face corruptioncharges Kiir

194 Sudan Tribune 2014 South Sudan Macharacutes Rebentildes dismiss corruptionaccusations no spiritual powers httpallafricacomstories201407221384html

195 Kebede 2014 The role of oil in South Sudan Ibidem196 Tizikara et al 2012 Post-conflict development of Agriculture in South

Sudan perspective on approaches to capacity strenghtening httpwwwerailsnetimagesfarasecretariatkigali-movementfileKigali20MovementPost-Coflict20Agriculture_South20Sudanpdf

73

3 SOUTH SUDAN THE OIL WAY

Environment

As experienced in oilfileds in other parts of the world the oilfields here are also leaving a significant impact on theenvironment and local communities A three year study inThar Jath and Mala fields in Unity State show thatgroundwater is very polluted making the water unsafe forhuman consumption197 The study made by a team of SouthSudanese and German geologists concluded that water usedby 180000 people was too salty to drink and containdangerous amounts of heavy metals198

In many occasions the oil fields that causeenvironmental pollution are even abandoned due to the warSome observers identified that oil pipelines damaged duringthe conflict were leaking199

South Sudan must produce for its needs

In 2015 the Minister of Finance of South Sudan David DengAthorbei made a statement saying that the country shouldbe self-sufficient in agriculture terms and in addition itneeds to increase its non-oil revenue and to achieve peace200

197 Rueskamp et al 2014 Effect of oil exploration and production on thesalinity of a marginally permeable aquifer system in the Thar Jath-Mala- and Unity Oil fields Southern Sudan Zbl Geol Palaont Teil IJ

198 Radio Tamazuj 2015 Study Direct link between oil exploration andwater pollution in Unity httpsradiotamazujorgenarticlestudy-E28098direct-linkE28099-between-oil-exploration-and-water-pollution-unity

199 Star Africa 2014 South Sudan Oil leaks cause pollution fears httpenstarafricacomnewsssudan-oil-leaks-cause-pollution-fearshtml

200 Bloomberg 2015 South Sudan Finance Minister says food output canoffset oil httpwwwbloombergcomnewsarticles2015-01-20south-sudan-finance-minister-says-food-output-can-offset-oil-1-

74

LIVING IN FEAR

He also made a call for a reduction of the countryrsquos relianceon agriculture imports particularly in the context of aneconomy affected by the plunge in global oil prices201

Peter Biar Ajak from the Center for Strategic Analysis andResearch in Juba illustrates the macroeconomic weaknessesof South Sudan today because of its oil dependence

South Sudanrsquos oil-dependent economy is nearingcatastrophe The production of crude oil has droppedby about 35 percent since the conflict began Thatcombined with a drop of roughly 45 percent in globaloil prices since the summer has meant a substantialreduction in the governmentrsquos oil revenues andenormous fiscal and budgetary ressures

Since South Sudan exports almost nothing asidefrom oil and imports almost everything else tradeand monetary policy have also been buffeted byfalling oil revenues Access to foreign currency hasbecome extremely limited The prices of manyimported goods have risen There are shortages ofpetrol which must be imported because SouthSudan has no refinery202

Indeed a dynamic agriculture sector may be key for peaceand development in South Sudan More than 95 of thecountryrsquos population is dependent on farming fishing orherding to meet their daily food needs and income as well203

201 Bloomberg 2015 Ibidem202 Biar Ajak 2015Sanctions for peace in South Sudan The New York Times

January 7th203 FAO in emergencies httpwwwfaoorgemergenciescountries

detailenc147627

75

3 SOUTH SUDAN THE OIL WAY

204 Business Daily 2011 South Sudanrsquos vast agricultural sector potentialuntapped

205 Norwegian Refugee Council 2015 Conflict a cause of hunger in SouthSudan httpreliefwebintreportsouth-sudanconflict-cause-hunger-south-sudan OCHA 2015 South Sudan Crisis Situation reportn 74 httpreliefwebintsitesreliefwebintfilesresourcesSouth_Sudan_Situation_Report_No_74pdf

206 OECD 2014 Fragile States 2014 Domestic revenue mobilisation infragile states httpwwwoecdorgdacgovernance-peaceconflictandfragilitydocsFSR-2014pdf

South Sudan has good soil and climatic conditions and morethan 70 of its land area is suitable for crop productionThere are many that believe that the investment in theagriculture sector has more potential than oil however thisthinking has not received due attention from local andforeign investors204 Efforts towards making agriculture workare vital for peace and stabililty in the country It is urgentlyneeded to work on this area particularly when at presentthere are 25 million in Sudan at risk of starvation205 andaround one third of the population are food insecure plusmore than a million displaced

The dependency on income from natural resourcesleaves fragile states vulnerable It exposes them toshocks in commodity prices ndash as demonstrated bythe sudden fall in commodity prices in 2009following the 2002-2008 boom Neither is it asustainable source of incomeSouth Sudanrsquos oilproduction for instance is projected to decreasesteadily in future years and become negligible by2035

Source OECD206

76

LIVING IN FEAR

207 UN Security Council 2015 Resolution 2206 SRES2006(2015)httpwwwunorggasearchview_docaspsymbol=SRES2206 (2015)

208 Sudan Tribune 2015 South Sudan unhappy with US support for sanctionshttpwwwsudantribunecomspipphparticle54232

209 Washington Post 2014 US appears unable to pull South Sudan backfrom the brink of civil war httpwwwwashingtonpostcomworldus-appears-unable-to-pull-south-sudan-back-from-the-brink-of-civil-w a r 2 0 1 4 0 5 0 3 d 9 2 8 0 b d a - 3 8 6 b - 4 2 4 9 - 9 4 e 0 -b5292610e5bb_storyhtml

210 Ibidem

US fallen dream

In 2015 the UN imposed a travel ban and assets freeze againstindividuals or entities which engaged in or provided supportfor acts that threaten peace security and stability of SouthSudan207 The US was behind the draft and the submission ofthe resolution This resolution prompted an angry reactionfrom the South Sudanese The South Sudanese presidencywas said to be extremely disappointed about the US ledmove208

In the past the relationship between the US and SouthSudan was completely diferent The United States was themain promoter and supporter of the worldrsquos newest nationThe Washington Post for instance asserted that ldquoSouth Sudanowes its existence to the United Statesrdquo209 The expectationscreated were high before its started its independence andsome believed that Sudan would be able to manage thecountry breaking the so-called ldquoAfrican model of pettyrivalries corruption and oppressionrdquo210 Despite all the hopesput on the young nation as of today no solution has beenfound to the ongoing war

77

3 SOUTH SUDAN THE OIL WAY

The US was the largest donor to Sudan in the years priorto independence providing 339 of the total aid to Sudanbetween 2000 to 2009211 The United States (US$472million) was the largest donor of humanitarian assistanceto South Sudan in 2012 followed by the United Kingdom(US$96 million)212 For many years Sudan was the thirdlargest recipient of US aid only after Iraq and Afghanistan213

The inteligence and information systems of theAmericans on the ground in Sudan seemed to have beenrelatively good214hellip however how come they did not foreseethat South Sudan was quickly descending once again on theavenue of a country at civil war For instance the problemsbetween President Salva Kiir and his deputy were not newAlready more than two years before the civil war started inJune 2011 in a speech in Juba the President accused hisDeputy Riek Machar ldquoof running a parallel governmentwithin the governmentrdquo215 Couldnrsquot they have preventedanother conflict Why did they fall into ridiculouscontradictions as the one recently revealed via wikileakssuggesting that the US was funding both armies in

211 Development initiatives (undated) Sudan Aid Factsheet 1995-2009httpwwwglobalhumanitarianassistanceorgwp-contentuploads201102Sudan-Aid-Factsheet-2011pdf

212 See global humanitarian assistamce ebpage httpwwwglobalhumanitarianassistanceorgcountryprofilesouth-sudan

213 The Atlantic 2011 US played key role in Southern Sudanacutes longjourney to Independence

214 The Global Intelligence files 2013 SudanUSMIL ndash SPLA trying toget US to hook it up httpssearchwikileaksorggifilesviewemailid=5047664

215 Sudan Tribune 2011 Salva Kiir exposes his rift with Machar overSouth Sudan transitional constitution httpssearchwikileaksorggifilesviewemailid=3831682

78

LIVING IN FEAR

contention the Government force of Salva Kiir and the rebelsof Riek Machar216 Why are both paid by the UShellip to dowhat As one reporter questioned why are they ldquopaid tokill each otherrdquo217

216 RT 2015 US officials tussle over arms embargo sanctions in oil-flushSouth Sudan httprtcomusa226387-south-sudan-sanctions-war

217 RT 2015 Ibidem

Seven Million

ldquoA peaceful DR Congo could transform Africa almostovernight but is there a way outrdquo218

There is always a way out However peace is not an easything particularly under certain circunstances When youhave lost your father your mother your uncle your sisterwhat else can you lose Can you still believe in peaceTwoof the bloodiest conflicts in recent decades in the world haveoccurred in Africa The Second Civil War in Sudan has leftaproximately two million casualties and the conflict in DRCis estimated to have snuffed life out of no less than fivemillion people

How many more

How does one begin to quantify the dead when they are inthe hundreds of thousands No less than seven million livesof Congolese and South Sudanese were taken away due towars and conflicts fuelled by natural resources How many

218 African Business 2009 DR Congo $24 trillion fortune

4

79

80

LIVING IN FEAR

more How many more before the world wakes up to acteffectively towards ending all those conflictsProbably unless you are one survivor from those experiencesyou would never be truly able to understand what it meansto lose entire families and friends you would never be trulyable as well to understand what it means to feel fear foryour life and the life of your close relatives

When you start counting sometimes you forget thatpeople are not numbers There are names behind thenumbers A family A life As we write this book people aredying needlessly in the DRC and in South Sudan Calculatingdead people due to conflicts in this part of the world is verydifficult due to statistical challenges and so it is conceivablethat probably the number of victims is much larger than sevenmillion (7000000) When would the volume of bloodshedthe number of lives taken be enough for the belligerentofficials to make real peace How many more should fallAthousand more Another one million The pain sadness anddestruction that those conflicts generate should not beaccepted any more

Oil and minerals the main cause of ongoingconflicts and war

Some authors argue that minerals and oil are not a cause ofwar but ldquocompetition for them could amplify and expediteconflictrdquo219 In this book as chapter two and three haveshown oil and minerals are the main motor behind theconflict in recent decades in DRC and South Sudan It would

219 UN Security Council 2013 Natural resource wealth fails to translateinto equivalent benefits for people fuelling conflict to instability DeputySecretary-General tells Security Council httpwwwunorgpressen2013sc11037dochtm

81

4 SEVEN MILLION

be very difficult if not impossible to expect those conflictsif their territories were resource poor Oil and minerals arefull of blood An activist poet wrote We Thought it was Oilbut it was Blood220 Although he was writing about the NigerDelta situation we see a universal application in that phrase

In both countries described there were other elements andfactors to take into consideration however it can be saidthat control over natural resources was the most importantcause on both conflicts in DRC and South Sudan In bothcases oil and minerals fuelled those wars and in manyoccasions these resources have inspired fueled and sustainedarmies operating in the territories of both countries

A Statersquos wealth means nothing if not shared withthe majority of the population

DRC and South Sudan ought to be wealthy countriesUnfortunately having a wealth of natural resources doesnot mean that it belongs to the citizens or that the wealthwould be shared among the population of a given State AState is a nation or territory considered as an organizedpolitical community under one government221 A goodgovernment should be the one that takes care of its citizensand shares the wealth among its citizens and not justdistribute it among an elite Jan Eliasson Deputy Secretary-General of the United Nations stated that ldquoin too manycountries a wealth of resources including timber oil coaldiamonds and precious metals failed to translate into

220 Nnimmo Bassey 1998 We Thought it was Oil but it was Blood IbadanKraft Books

221 See httpwwwoxforddictionariescomdefinitionenglishstate

82

LIVING IN FEAR

equivalent wealth for the people Only a powerful fewbenefitrdquo222

The State is expected to perform an adequateimplementation of human rights granted by several UNdeclarations and conventions including the right to foodright to health right to shelter right to clothing right towork farmersacute rights etc Paradoxically the violations andabuses of human rights have been constant in DRC and SouthSudan Both countries have suffered from acts of war oncivilian population both have as well a large number ofdisplaced people with no access to food without healthcarewithout shelter and without any work Both countries havemore than 90 people living below one dollar per day andthey are considered among least developed countries andfragile states Due to this both are some of the biggestrecipients of humanitarian aid Moreover both have hugesecurity problems shown for instance by the presence ofUN peacekeeping operations Out of the 17th worldwideongoing peacekeeping UN operations three are in DRCSouth Sudan and in Abyeia disputed territory between Sudanand South Sudan

They possess resources that have a huge monetary valueand that in most cases have the involvement of foreigncountries and corporations and other stakeholders of theprivate sector which are ready to pay enormous sums ofmoney to gain control of the natural resources belonging toother countries If no war or significant armed conflict takes

222 UN Security Council 2013 Natural resource wealth fails to translateinto equivalent benefits for people fuelling conflict to instability DeputySecretary-General tells Security Council httpwwwunorgpressen2013sc11037dochtm

83

4 SEVEN MILLION

place common elements among those countries that possesssuch resources in Africa is the existence of massive povertyand corruption and in most cases this is contrasted withmega-rich individuals Letacutes take for instance the case ofoil-rich Angola where the president and his daughter possessmultibillionaire fortunes while at the same time the majorityof the country population is living on less than two dollarsper day223

Greed power and control over natural resources

It must be noted as well that often oil and minerals involvemillions and multibillion profits With such large sums ofmoney greed power and control take the driving seat ofwhatever country government in the world When theprospects for such money flow arrives many leaders andelites start distancing themselves from the majority of thepopulation and stop thinking about the welfare of their ownpeople

At the centre of most of the conflicts in both countriesare struggles for power and control of natural resourcesMinerals and oils are the main cause of the ongoing conflictsand wars Unfortunately most commentators qualify therecent civil war in South Sudan as a ldquopower strugglerdquo withoutfurther qualifications In South Sudan who gets the oil getsthe power Therefore the power struggle is a war overnatural resources for control of the oil in the country Areporter affirmed that ldquowhoever controls South Sudanrsquos oiltherefore could seize the upper hand in the battle for

223 Forbes 2013 Daddyacutes girl how an African ldquoprincessrdquo banked $3 billionin a country living on $2 day httpwwwforbescomsiteskerryadolan20130814how-isabel-dos-santos-took-the-short-route-to-become-africas-richest-woman

84

LIVING IN FEAR

224 France 24 2013 Battle for oil adds new dimension to South SudanConflict httpwwwfrance24comen20131227-battle-oil-adds-new-dimension-south-sudan-conflict

225 OECD 2014 Fragile States 2014 Domestic revenue mobilisation infragile states httpwwwoecdorgdacgovernance-peaceconflictandfragilitydocsFSR-2014pdf

powerrdquo224 In both countriesrsquo non-renewable natural resourcetook a dominant share of the fiscal revenue of DRC andSouth Sudan ndash 82 in the DRC and 98 in South Sudan225

Who controls those resources controls the countryThe case of South Sudan where the president has

recognized the disappearance of $4 billion by corruptindividuals is compelling President Salva Kiir pinpointed thespirit behind the rot ldquoOnce we got to power we forgot whatwe fought for and began to enrich ourselves at the expenseof our peoplerdquo This might also include him as well becauseit is difficult to imagine that such huge amount of money couldbe stolen without the leader noticing anything at all

Greed for minerals and oil is at the heart of the massivedeath toll and impoverishment of the Congolese and SouthSudanese people in recent decades It can be affirmed quitecomfortably that if the Eastern part of the DRC would havenot sat on huge mineral reserves it would be very difficultto imagine all the conflicts that have occurred in that zoneIt can be affirmed as well that without oil ongoing wars inSouth Sudan might most probably never have occured

Peace is the only way forward

Achieving peace is a complex issue To create peace thereare many issues to resolve with all stakeholders such as

85

4 SEVEN MILLION

mutual accusations of support to rebel groups226 goodgovernance transparency demobilisation and disarmamentof local militia etc227

A positive but vital first step is that there are calls at veryhigh levels in both countries and at international fora Thismust be followed with open debate on the core causes of theconflict and ways of achieving reconciliation It does notappear that lasting peace can be achieved otherwise In thatprocess the people need to be put at the centre ofdevelopment policies and actions in both countries in orderto stop the plunder reverse environmental degradation andfight poverty As long as the political military and corporateelite maintain their control of the natural resources of thecountry the devastating plunder will continue to the benefitof only such elite and a handful of corporations

226 UN Security Council 2015 Reports of the Secretary-General on theSudan and South Sudan SPV7392

227 The Guardian 2014 South Sudan is divided by the spoils of oil notethnicity httpwwwtheguardiancomcommentisfree2014jan14south-sudan-divided-oil-ethnicity-violence

INDEX

AAbyei Joint Oversight

Committee (AJOC) 47Abyei Police Service 46 62Abyei 43-home of the Ngok Dinka 43

45Africa 18 20 see minerals

-and wars at the greatlakes 20 25-armed groups in 26-criminal networks in 26-death in 20-exploitation naturalresources in 18-militias in 26-minerals in 20-poverty in 20-wealth in 20

Africarsquos wealth 14-and resource curse 14-blessing or curse 14

African Business 22African Development Bank

(AfDB) 16 17

African Unionrsquos (AU) Peaceand Security Council 48

Algeria 15Allied Democratic Forces

(ADF) 25 28-in North Kivu 25

American Mineral Fields(AMF) 36

AngloAmerican corporation35

AngloGold Ashanti 35Anvil Mining 36Armed Forces of the DRC

(FARDC) 26Athorbei David Deng 73Auty Richard 14

BBBC 18Blom Ulrika 59Blue Nile 45

CCentral African Republic 7China National Petroleum

Corporation 49

86

INDEX

87

Citibank NY 36Clinton Bill 24 36Conflict minerals 30 see

Rwanda-legitimate exports of 30-smuggling of 30

Conflicts 7-and natural resources 7-causes of 10 80-uniqueness of 10

Congolese Government 18

DDemocratic Republic of

Congo (DRC) 7-85-and (MONUC) 29-greed for minerals in 32-UN peacekeeping opera-tion in 29

Diffra oil complex 47DR Congo 79

EEastern Congo 28

-insecurity in 28Eliasson Jan 81

-Deputy Secretary-Generalof the United Nations 81

European Coalition on Oil inSudan (ECOS) 63

Exploration GmbH (OMV)64

Exxon corporate 15

FFirst Sudanese Civil War 42Forces deacutemocratiques de

libeacuteration du Rwanda(FDLR) 28

GGabon 18

-oil in 18Gertler Dan 12 13Ghana 18

-oil in 18Giambrone Antonino 38Glencore Anglo-Swiss 35Government of South Sudan

(GOSS) 69Government of Sudan (GoS)

62Great War of Africa 23Greater Nile Oil Project

Company (GNOPC) 6667

Guinea Equatorial 15

HHague 44Permanent Court of Arbitra-

tion in 44Human Rights Watch 55

IIMF 22International Rescue Commi-

ttee 23

LIVING IN FEAR

88

JJoak Daniel Wuor 69Juba 74

-Center for StrategicAnalysis and Research in74

Katanga Minister of Planning22

KKenya 19Kerry John 24Kiir Salva 43 84

LLibya 7Lumumba Patrice 13 20Lundin Oil Consortium 63

MMachar Riek 43 57 77 78Madagascar 16Mala fields 73Malakal 59Mali 7Mayardit Salva Kiir 69McKinney Cynthia Ann 23

-US Congresswomanfrom the Democratic Party23

McMurrough Mike 36McNamara Robert 37

-as World Bank President37

Minerals 20 see Africa-and death 20

-and poverty 20-and wars at the GreatLakes 20-and wealth 20

Mozambique 18-gas in 18

Muloni Irene 18

NNationalist and Integrationist

Front (FNI) 36Natural resources 8 83 see

conflicts-and conflict 8-and greed 83-and power 83-and wars 8-control over 83

Niger Delta 16-oil is a curse for 16

N o n - g o v e r n m e n t a lorganisations (NGOs) 12

Non-OPEC African oilproducer 48

Norwegian Refugee Council59

OOECD Guidelines for

Multinational Enterprises37

Oil 48-and geopolitics 48

PPeace 84

INDEX

89

-as way forward 84Petronas Carigali Overseas

Sdn Bhd (Petronas) 64Powell Colin 58PR Newswire 30President Kabila 24President Obama 24

RRDC Mining Code 35Republic of South Sudan

(RSS) 69Rio Tintorsquos QMM 16Ruweng County 67Rwanda 24 31

-conflict minerals from 31

SSecond Congo War 24 32

34Second Sudanese Civil War

42Somalia 7South Kordofan 45South Sudan Civil War 57South Sudan 11 18 19 41

-Dinka ethnic group in 4357-Nuer ethnic group in 4357the oil way 41-UN peacekeeping opera-tions 61

South Sudanese Civil War 58Sudan 79

-Second Civil War in 79

Sudan Armed Forces 46Sudan oil police 47Sudan Peoplersquos Liberation

Army (SPLA) 41 46 5462-civil wars and conflict in41

Sudan vs South Sudan 43-and Heglig battles 47-and peace agreement 43-main oil companies in 51-oil-centered conflict 46-Row over oil tariffs 51

Sudanese Civil War 52-and Addis AbabaAgreement 53-and Islamic law 53-causes of 52

Swedish oil company LundinOil AB (Lundin) 64

TTalisman Energy 65Thar Jath 73Transnational Corporations

(Tncs) 34-and the private sector 34

UUganda 19 24UN Interim Security Force for

Abyei (UNISFA)UN Mission in the Republic of

South Sudan (UNMISS)61 62

UN Organization Stabiliza-

LIVING IN FEAR

90

tion Mission in the DRC(MONUSCO) 29

UN peacekeeping operations11

UN Security Council 11UNICEF 59UNISFA 47United Nations Office of the

Special Adviser on Africa(OSAA) 8

United Nations SecurityCouncil 25

United Nations 13University of California

(UCLA) 54 55Upper Nile State 59 69US fallen dream 76

VVirunga National Park 18

WWar and conflict 58

-consequences of 58Wars and minerals 21

-cobalt 22-coltan 22-copper 22-diamond 22-gold 22-manganese 22-peace at last 21-timber 22-tin 22-zinc 22

Wau Shilluk 59We Thought it was Oil but it

was Blood 81Wealth 12 13

-for whom 13-quest for 12

World Heritage site 18Worldwatch 40

Page 7: LIVING IN FEAR - Health of Mother Earth Foundation...Les quatre puissances militaires regionales d´Afrique. 12 LAVDC. 2014. Les quatre puissances militaires regionales d´Afrique

9

PROLOGUE

for military purposes that led subsequently to attacks oncivilians One example is the case of the Heglig airstrip withinthe territory of the concession of the Canadian corporateTalisman

the military use of Heglig airstrip has been moreor less constant since May 1999 (hellip) flights clearlylinked to the oil war have been a regular feature oflife at the Heglig airstrip which is adjacent to theoil workersrsquo compound It is operated by theconsortium and Canadian chartered helicoptersand fixed wing aircraft which use the strip haveshared the facilities with helicopter gunships andAntonov bombers of the Government of SudanThese have armed and re-fuelled at Heglig and fromthere attacked civilians7

Natural resources have also been associated with the increaseof military spending on the continent Military expenditurein Africa is on the rise experiencing the highest progressionin the world from 2002-20118Algeria tops the list of militaryspending in Africa with over $10 billion9 They were followedby Angola with $6 billion and then South Africa with a bitmore than $4 billion in 201310 The increase of Africarsquosexpenditure is mainly due to the oil revenues from countries

7 Canadian Ministry of Foreign Affairs 2000 lsquoHuman Security in SudanThe report of Canadian Assessment Missionrsquo httpwwwecosonlineorgreports2000Human20Security20in20Sudanpdf

8 LAVDC 2014 lsquoLes quatre puissances militaires regionales dacuteAfriquersquo httpwwwlavdcnetportailles-quatre-puissances-militaires-regionales-dafrique

9 The Economist 2014 lsquoArms and the Africanrsquo httpwwweconomistcomnewsmiddle-east-and-africa21633901-continents-armies-are-going-spending-spree-arms-and-african

10 The Economist 2014 Ibidem

10

LIVING IN FEAR

like Algeria and Angola Angolarsquos military spending rose byover 36 in just one year Another oil producer that hasmade significant outlays on military spending is Ghanawhich almost tripled its arms budget from $109 to $306million between 2012 and 201311 Not surprisingly DRC alsorecently augmented significantly their spending by 3412

Causes of conflicts

Often there is a trend to simplify one main cause for aparticular conflict such as religious ethnic or tribal oreconomicpolitical power struggles For example very oftenthe conflicts in Sudan have been described as religious warsbetween Northern Muslims and Christiananimists from theSouth Our analysis in Chapter 3 will illuminate a differentperspective In general wars and conflicts tend to besurrounded by multiple factors and causes some with moredominance than others It is precisely in that complexity ofelements and factors that we can find the reasons why acountry has embarked in wars and conflicts However atthe same time there is often one cause that is the prevalentand dominant one in each conflict This will also be examinedin the forthcoming chapters

Every conflict is unique

While conflicts may have similar elements every one of themis unique in its own way13 This book explores the generalrelation between wars conflicts and natural resourcesfocusing in particular on two African countries Democratic

11 LAVDC 2014 Les quatre puissances militaires regionales dacuteAfrique12 LAVDC 2014 Les quatre puissances militaires regionales dacuteAfrique13 Bongani 2012 lsquoNatural resources and conflict unlocking the

economic dimensioacuten of peace-building in Africarsquo Briefing n 74

11

PROLOGUE

Republic of Congo (DRC) and South Sudan Both countrieshave gone through some of the bloodiest wars and conflictsin recent decades in the world Peace efforts have been madeat the UN level to try to minimize the conflict situations In2014 both countries had UN peacekeeping operationsmandated by the UN Security Council to promote protectand monitor human rights in DRC and South Sudan14 Weaim to provide a succinct but comprehensive overview ofboth conflicts and show their relation with natural resources

14 In 2014 there were ongoing 17 peacekeeping operations under theUN There were DRC and South Sudan ndashAbyei- See Office of theHigh Commissioner for Human Rights httpwwwohchrorgENCountriesPagesPeaceMissionsIndexaspx

LIVING IN FEAR

12

The Quest for WealthldquoDan Gertler is essentially looting Congo at the expense of

its peoplerdquo15

If there is wealth in DRC Dan Gertler has found a goodpiece of it The 41-years-old Israeli-born Dan Getler has adeclared fortune estimated at $144 billion While he isformally based in Bnei Brak Israel he has made his billiondollars fortune in the mining sector of DRC He is also verywell known for being a close friend of President JosephKabila16 Gertler is criticized over his way of doing businessand has been accused by non-governmental organisations(NGOs) to have obtained mining assets on the cheap bycavorting with politicians17 Congolese NGOs have said abouthim for example that ldquohe has political connections so statecompanies sell him mines for low prices and he sells themon for huge profitsrdquo The quest for wealth attracts manyGertler-like types to the African continent one of thewealthiest places of the planet

1

15 Affirmation of Jean Pierre Muteba head of a group of NGOs thatmonitor mining in DRC at The Washington Post 2012 Dan Gertlerearns billions as mine deals fail to enrich Congo

16 Forbes profile of Dan Getler httpwwwforbescomprofiledan-gertler

17 Forbes Ibiacutedem

13

1 THE QUEST FOR WEALTH

Wealth for whom

Everybody wants to be wealthier however not everybodyshares the same definition of wealth18One definition ofwealth is that it is a ldquotangible or intangible thing that makesa person family or group better offrdquo19 Under this definitionoil or a mineral would be considered wealth if it makes aperson family or group better off Certainly a person likeMr Getler is obviously doing better off in terms of moneywith his work and therefore he is wealthier under thoseterms Howeverthe resources that make Getler wealthy havenot necessarily benefited Congoacutes people Minerals or oilas said by Patrice Lumumba belongs to the people of DRCit is the responsbility of the State to manage its benefits andto share it among the population The wealth of a country isthe wealth of their people

However the wealth of natural resources revenues doesnot frequently bring benefits to the majority of thepopulation but rather a handful of elites The United Nationsoffice of the Special Adviser on Africa affirmed that the richesderived from the ldquoexploitation of natural resources are notonly used for sustainaing armies but also for personalenrichment and building political supportrdquo20 In additionthe office added that ldquocontrol over natural resources andtheir revenues often stay in the hands of a small elite and isnot used for broader development of the countryrdquo21

18 CNBC 2013 what is wealthy $5 million and plenty of cash19 See the business dictionary httpwwwbusinessdictionarycom

definitionwealthhtml20 United Nations office of the Special Adviser on Africa 2006 Natural

resources and conflicts in Africa transforming a peace liability intoa peace asset Conference Report

21 United Nations office of the Special Adviser on Africa 2006 Ibidem

LIVING IN FEAR

14

Africarsquos wealth blessing or curse

The resource curse

In a sea of wealth there are often oceans of povertyResource-rich countries are often accompanied by slowerthan expected economic growth poor economicdiversification gloomy social welfare indicators devastatingenvironmental impacts rampant corruption high inequalityhuge impoverishment bad governance and as said beforewars and conflicts22 This situation has been termed thetheory of ldquoresource courserdquo which term was used first in1993 by Richard Auty23 In 1995 the theory of the ldquoresourcecurserdquo was popularized thanks to an article of Sachs andWarner24 Both authors showed in their paper that ldquoeconomieswith a high ratio of natural resource exports to GDP in 1971tended to have low growth rates during the subsequentperiod 1971-1989rdquo From there a vast number of literaturehas been written on this matter and is divided between thosethat believe exploitation of natural resources is a curse andthose that believe that it can promote growth and

22 Mildner et al 2011 lsquoScarcity and abundance revisited a literaturereview on natural resources and conflictrsquo International Journal ofConflict and Violence Vol 5 Karl 2005 lsquoCovering oil a guide toEnergy and Developmentrsquo Understanding the resource curse opensociety institute

23 Time 2010 Brief history the resource curse httpcontenttimecomtimemagazinearticle09171199746000html

24 Sachs and Warner 1995 lsquoNatural resources and economic growthrsquoHarvard Institute for International Development

15

1 THE QUEST FOR WEALTH

development in developing countries25 Others for instanceprefer to use different terminology like Exxon corporatewhich has said ldquowe donacutet like to call it the oil curse weprefer governance curse We are private investors and it isnot our role to tell governments how to spend their moneyrdquo26

Africarsquos wealth

Africa is full of natural resources and there are manycountries considered as having a huge wealth Oil gasminerals timber fertile land water are often mentioned asthe riches of the continent However oil and minerals arethe favourites of some of the top leaders of the continentAngola with oil and diamonds Nigeria with oil GuineaEquatorial with oil Algeria with plenty of oil and gasdeposits DRC with minerals and South Sudan with oil justto name some of them

Many would think that all those States with lots of oiland mineral are very wealthy The truth is that although theStates are wealthy the countries are paradoxically full ofpoverty and their populations are not benefiting from thoseresources Moreover in many cases the wealth derived from

25 Pedro (undated) lsquoMainstreaming mineral wealth in growth andpoverty reduction strategiesrsquo Economic Commission for Africa PolicyPaper Ross 1999 lsquoThe political economy of the resource cursersquoWorld Politics n51 Hodler 2004 lsquoThe curse of natural resourcesin fractionalized countriesrsquo Economic department University ofBern SwitzerlandSwilling 2012 lsquoBeyond the resource curse fromresource wars to sustainable resource management in Africarsquo Paperpresented at the Winelands Conference on Integrity and GovernanceStellenbosch Pendergast et al 2008 lsquoCorruption and the curse ofNatural resourcesrsquo Department of Economics University of VictoriaDavis 2012 Replicating Sachs and Warner the 1997 Working PaperColorado School of Mines Neumayer 2004 Does the resource cursehold for growth in genuine income as well World Developmentvol 32

LIVING IN FEAR

16

oil and minerals mostly fuel wars and conflicts While somedie while some are displaced while some are injured orrape Some on the contrary are making money lots andlots of money hellip and while they make money they just puta blind eye on the horrors occurring outside the fence Thisis well described in the Harker report on the Sudanese warand the role of oil corporations ldquoIf the oil companies donrsquotknow whatrsquos going on theyrsquore not looking over the fencesof their compoundsrdquo27

Although some may believe that the importance of theoil and mineral sectors is the creation of jobs for thepopulation this has been denied by several authors

The oil gas and mining sectors are notoriously poorwhen it comes to job creation An offshore platformtapping deep-sea reserves will create few if anypositions for locals Only recently protests werereported outside Rio Tintorsquos QMM mineral sandsoperation in the south of Madagascar due to highlocal unemployment The best way to convertnatural resource wealth into jobs is to take theproceeds and invest in other more labor-intensiveindustries such as agriculture or manufacturing28

Nigeria provides a good example where communities living inthe Niger Delta have not benefited from oil extraction whichon the contrary has created serious conflicts as seen in Box 1

On the question of whether oil is a blesssing or a curse toAfrica the African Development Bank concluded that it is a

26 The Economist 2005 lsquoThe paradox of plentyrsquo27 Canadian Ministry of Foreign Affairs 2000 Human Security in

Sudan The report of Canadian Assessment Mission httpw w w e c o s o n l i n e o r g r e p o r t s 2 0 0 0 Human20Security20in20Sudanpdf

28Africa progress panel 2013 Africaacutes mineral wealth eternally cursedhttpwwwafricaprogresspanelorgafricas-mineral-wealth-eternally-cursed

17

1 THE QUEST FOR WEALTH

ldquohuge blessingrdquo29 It justifies that with the following analysis

We estimate that Africa has 120bn barrels of oilreserves no less than half of Saudi Arabia and 600million hectares of uncultivated arable land halfof the world total We at the African DevelopmentBank (AfDB) estimate that the continentrsquos naturalresources will contribute over $30bn per annumin government revenues over the next 20 years30

Box 1 Oil is a curse for the Niger Delta people

Most people think of oil states as wealthy states ButNigeria proves that sometimes the opposite is true It isAfricarsquos leading oil producer and yet it is one of theworldrsquos 20 poorest countries Whatrsquos more the peopleliving in the Niger Delta the countryrsquos oil-producingregion are among Nigeriarsquos most impoverishedcommunities with a large percentage of the populationhaving to survive on less than one dollar a day For thesepeople lsquoblack goldrsquo has not brought prosperity ordevelopment Instead it has increased corruption socialproblems environmental damage and armed conflictThe many billions of US dollars in oil revenue that havepoured into the country during its oil industryrsquos 50-yearhistory have completely bypassed these communitiesSource Petra Hannen 2011 lsquoBlessing our Coursersquo GIZmagazine akzent

29 African Development Bank 2013 lsquoAfricarsquos mineral wealth a blessingor a cursersquo httpwwwafdborgenblogsafdb-president-this-is-africas-hourpostafricas-mineral-wealth-a-blessing-or-a-curse-12336

30 African Development Bank 2013 Africaacutes mineral wealth a blessingor a curse httpwwwafdborgenblogsafdb-president-this-is-africas-hourpostafricas-mineral-wealth-a-blessing-or-a-curse-12336

LIVING IN FEAR

18

Africa continues the exploitation of its naturalresources

Most of the African Governments that discover naturalresources in their territory eagerly move forward with theexploration of those Therefore natural resources areexplored all over the continent oil in Ghana manganese inGabon gas in Mozambique just to name a few Often thereis little consideration of the destruction or the conflicts theseextractive activities bring For instance according to the BBCin March 2015 the Congolese Government consideredmodifying the boundaries of the Virunga National Park homeof gorilla mountains and World Heritage site to permit oilexploration activities31

DRC and South Sudan as well are exploring a joint projectnow DRC has a frontier with South Sudan in the Northeastpart of the country While historically both ndash referring alsoto Sudan ndash did not often have a common grounds after theIndependence of South Sudan in 2011 it appears possiblethat natural resources may unite them more closely IreneMuloni Minister for Energy and Minerals Development fromUganda announced in an interview in February 2015 thatSouth Sudan and the DRC have expressed interest in theconstruction of an oil pipeline of over 1000 km to the Kenyancoast32 Although yet to be implemented there have beendiscussions and plans to construct a pipeline that would unite

31 BBC 2015 DR Congo seeks Virunga park bounary httpwwwbbccomnewsworld-africa-31876577See also New York Times2014 Oil dispute takes a page from Congoacutes bloody past httpwwwnytimescom20141116worldoil-dispute-takes-a-page-from-congos-bloody-pasthtml_r=1

32 Platts 2015 South Sudan DR Congo interested in Ugandan crudeoil export pipeline minister httpwwwplattscomlatest-newsoilkampalasouth-sudan-dr-congo-interested-in-ugandan-crude-26025080

19

1 THE QUEST FOR WEALTH

oil production and distribution in several African countriesincluding South Sudan Uganda Kenya Democratic Republicof Congo (DRC) and maybe others33

The forthcoming chapters will develop more elementsaround this topic in order to conclude some final remarkswith the particular case studies of DRC and South Sudan

33 The Economist 2013 Pipeline poacuteker httpwwweconomistcomnewsmiddle-east-and-africa21578402-east-africa-danger-throwing-away-part-its-new-found-oil

20

LIVING IN FEAR

Minerals and Wars at the GreatLakes Wealth Death and Massive

Poverty in the Heart of Africa

Our internal difficulties tribal war and the nucleiof political opposition seemed to have beenaccidentally concentrated in the regions with ourrichest mineral and power resources We know howall this was organised and in particular whosupports it today in our house

Our Katanga because of its uranium copper andgold and our Bakwanga in Kasai because of itsdiamonds have become hotbeds of imperialistintrigues The object of these intrigues is torecapture economic control of our country

Patrice Lumumba speech in Leopoldville in August 25th1960 34

34 Speech at the opening of the All-African Conference in Leopoldville in1960 See httpwwwassatashakurorgforumshoulders-our-freedom-fighters42970-collected-speeches-writings-patrice-lumumbahtml

2

21

2 MINERALS AND WARS AT THE GREAT LAKES

Lumumba the first democratically elected Prime Ministerof the Republic of Congo gave a speech in 1960 that wasremarkably prescient of the fate of Democratic Republic ofCongo (DRC) today Conflict minerals and ldquotribal warsrdquo gohand in hand in the DRC historyrsquos past decades Lumumbawas planning to get the DRCrsquos related difficulties undercontrol however he was executed a few months after thespeech by a firing squad in January 1961 The US throughthe CIA the United Kingdom through the M16 and Belgiumwere all blamed for their involvement in his death35

Paradoxically ldquothe assassinations were made by the ordersof those who proclaim themselves to be champions ofdemocracy and respecters of human rightsrdquo36 Externalmeddling and intervention in Congorsquos affairs by foreigncountries is another of the concurrent and repeated situationsthat continue in recent history of the DRC37

Wars and minerals peace at last

hellip The heart of Africa is bleeding hellip

Two wars raged in DRC from 1996-1997 and from 1998-2003 Contrary to what some affirm these were not ethnicconflicts but resource wars38 No coincidence that the

35 BBC 2013 M16 and the death of Patrice Lumumba httpwwwbbccomnewsworld-africa-22006446

36 VVAA 1992 Congo (Zaire) Democratie neo-coloniale ou deuxiemeIndependance Ed LrsquoHarmattan

37 The Guardian 2011 Patrice Lumumba the most importantassassination of the 20th centuryhttpwwwtheguardiancomglobal-developmentpoverty-matters2011jan17patrice-lumumba-50th-anniversary-assassination

38 See Friends of the Congo websitehttpwwwfriendsofthecongoorgresource-centercongo-primerhtml See also Lanotte 2003 RDCguerre sans frontiers Editions Complexe

22

LIVING IN FEAR

country possesses extraordinary mineral wealth with someof the most valuable and strategic minerals on earth suchas coltan diamond cobalt copper gold tin zincmanganese timber and others The highest concentrationof mining activities existin the Eastern part of the countryTo illustrate the predominance of mining here we wouldunderline the affirmation of the Katanga Minister ofPlanning who said that 72 of the territory of Katanga isdevoted to mining No surprise why the IMF has namedDRC one of the worldrsquos mining giants of today39 Themagazine African Business stated in 2009 that ldquothe totalmineral wealth of the DRC was estimated to be some $24trillionrdquo40 As Lumumba indicated back in 1960 the samescenario repeated in recent years ndash minerals and conflictscontinue to go hand by hand

DR Congo possesses some 80 of the worldrsquoscoltan ore reserves(hellip) Additionally the DRCongo produces significant quantities ofdiamonds gold cassiterite copper cobalt (ofwhich it has the worldrsquos largest reservesalthough the trade is largely controlled byZimbabwe) oil tin zinc gold and coffee Thecountry has large reserves of uranium it wasCongolese uranium that was used for theManhattan Project that produced the worldrsquosfirst atomic bombs dropped on Japan The vastcountry also has more than half of sub-SaharanAfricarsquos timber stocks

Source African Business

39 IMF 2013 DRC Poverty reduction strategy paper N 1322640 African Business 2009 DR Congo $24 trillion fortune

23

2 MINERALS AND WARS AT THE GREAT LAKES

The casualties over the years are overwhelming Whileeverybody is familiar with the death toll during the genocidein Rwanda estimated between 500000 and 800000 peoplethere is much less awareness about the conflict situation inCongo The International Rescue Committee has estimatedthat the conflict and humanitarian crisis in the DemocraticRepublic of Congo has taken a death toll of 54 million peoplefrom 1998 to 200741 A CNN correspondent in trying togive an illustration of the heavy toll made the followingcomparative analysis

The wars in that country ndash RD Congo ndash haveclaimed nearly the same number of lives as havinga 911 every single day for 360 days the genocidethat struck Rwanda in 1994 the ethnic cleansingthat overwhelmed Bosnia in the mid-1990s thegenocide that took place in Darfur the number ofpeople killed in the great tsunami that struck Asiain 2004 and the number of people who died inHiroshima and Nagasaki mdash all combined and thendoubled42

Rwanda and Uganda were actively involved in the invasionof Congo in both wars The second war was known as theGreat War of Africa involving nine countries and more than20 armed groups According to Cynthia Ann McKinney aUS Congresswoman from the Democratic Party and an

41 IRC 2007 IRC study shows Congorsquos neglected crisis leaves 54 milliondead httpwwwrescueorgnewsirc-study-shows-congos-neglected-crisis-leaves-54-million-dead-peace-deal-n-kivu-increased-aidmdash4331 Some groups put the death toll much higher See GlobalResearch webpage httpwwwglobalresearchcathe-war-that-did-not-make-the-headlines-over-five-million-dead-in-congo7957

42 CNN 2012 Why the world is ignoring Congo war httpeditioncnncom20121127opinioncongo-war-ignored-vava-tampa

24

LIVING IN FEAR

expert on the Great Lakes issues while invading DRC in theSecond Congo War the US continued providing financialsupport to the governments of Rwanda and Uganda43 Howwas this allowed US President Bill Clinton was personallyin Rwanda in March 1998 only a few months before theRwandese army invaded Congo44 President Clinton was inAfrica at that time addressing its presidents includingPresidents Kagame and Museveni as leaders of the ldquoAfricanRenaissancerdquo and seeing a bright future for Africa45 ThereClinton made an important call to embrace peace How wasit possible to talk about peace while these allies were directlyengaging in war Moreover with the experience of thegenocide in Rwanda how could it be that foreign powersclosely involved in the region particularly the United Stateslet this occur again How did they allow wars and conflictsthat killed millions of people How could they allow whatmany called another genocide in Congo

On a positive note at last in recent months the calls forpeace have been growing from many different stakeholdersIn May 2014 US Secretary of State John Kerry after ameeting with DRC President Kabila stated that ldquoachievinga lasting peace in the DRC is a priority of President ObamardquoHe added ldquoNow I canrsquot emphasize enough how importantthat process is in identifying and resolving the root causesof the conflict in the DRC as well as in the entire GreatLakes regionrdquo46 Not a minor task going to the roots causes

43 Order of Indictment from Juzgao de instruccion numero CuatroAudiencia Nacional Case 320008-D 6-2-2008

44 See CBS News httpwwwcbsnewscomnewstext-of-clintons-rwanda-speech

45 Schaefer 2000 The Keys to an African Economic Renaissance httpwwwheritageorgresearchreports200005the-keys-to-an-african-economic-renaissance

46 See US Dept of State 2014 Press Availability on the DRC and theGreat Lakes Region httpwwwstategovsecretaryremarks201405225587htm

25

2 MINERALS AND WARS AT THE GREAT LAKES

of those problems in the Great Lakes Indeed achieving peaceand reconciliation in the Great Lakes Region in countriesthat had suffered like DRC is a difficult and cumbersometask and making it by finding the ldquorealrdquo root causes can bea very complex and lengthy exercise taking decades orlonger

The situation remains tense We recall that in 2006 theUN Security Council issued a resolution condemning ldquotheactivities of militias and armed groups operating in the GreatLakes regionrdquo47 Almost a decade later those armed groupsare still there and despite the efforts made the situationremains tense and insecure A report of the Group of Expertson the RDC published in 2015 by the United Nations SecurityCouncil concludes that in DRC despite a defeat of one of therebel groups ndash the Movement of 23 March ndash at the end of2013 this ldquofailed to translate into significant gains in securityand security and stability in 2014rdquo48 For example in thebeginning of 2015 a rebel group from Uganda the AlliedDemocratic Forces (ADF) created havoc in North Kivuwhere 17 people were hacked to death with machetes49

47 UN Security Council 2006 Resolution 1653 (2006) SRES165348 UN Security Council 2015 Final report of the Group of Experts on

the DRC S20151949 UN Security Council 2015 March 2015 monthly forecast http

wwwsecuritycouncilreportorgmonthly-forecast2015-03democratic_republic_of_the_congo_7phpVP-BX5Sm4agmailto

26

LIVING IN FEAR

Armed groups militias and criminal networkswithin the military structure making a lucrativebusiness out of minerals

The UN has solidly demonstrated that natural resources areused to finance armed groups and therefore to fuel war inthe region 50 The UN concludes that ldquoarmed groups continueto control many mining sites and to profit from mining andthe minerals traderdquo51 Later on those minerals particularlytin tungsten and tantalum are smuggled to neighbouringcountries For example one of the armed groups theMovement of 23 March (M23) responsible for taking Gomaat the end of 2012 was financing its organisation fromnatural resources in Eastern Congo In relation to thisparticular case the UN asserts that ldquoseveral traders havecontributed to financing M23 rebels using profits resultingfrom the smuggling of Congolese minerals into Rwandardquo52

Besides the rebel groups a criminal network within theArmed Forces of the DRC (FARDC) was involved in the illegalexploitation of natural resources The types of involvementinclude illegal taxation protection rackets and indirectcommercial control to more direct coercive control53

For some top army officials their military work wasconverted into economic businesses Indeed the existing

50 UN Security Council 2014 Final report of the Group of Experts onthe Democratic Republic of the Congo

51 Ibidem52 Ibidem53 UN Security Council 2010 Letter dated 26 October 2010 from the

Group of Experts on the DRC addressed to the Chair of the SecurityCouncil Committee established pursuant resolution 1533 (2004) S2010596

27

2 MINERALS AND WARS AT THE GREAT LAKES

practices made the UN qualify the war as a ldquolucrativebusinessrdquo

illegal exploitation of resources by BurundiRwanda and Uganda took different forms includingconfiscation extraction forced monopoly andprice-fixing The first two forms reachedproportions that made the war in the DRC a verylucrative business There are strong indicationsthat even if security and political reasons werethe professed motivation to move into the easternDRC some top army officials clearly had economicand financial objectives54

The most UN recent reports affirm that ldquomany armed groupsin Eastern Democratic Republic of the Congo have derivedtheir revenue from the production of and trade in naturalresourcesrdquo55

54 UN Security Council 2001 Security Council condemns ilegal exploitationof Democratic Republic of Congoacutes natural resources Press Releasehttpwwwunorgpressen2001sc7057dochtm

55 UN Security Council 2014 Final report of the Group of Experts on theDRC S201442

28

LIVING IN FEAR

Insecurity still booming in Eastern Congo

As already mentioned the momentum created bythe defeat of the Movement of 23 March inNovember 2013 failed to translate into significantgains in security and stability in 2014 in EasternDemocratic Republic of the Congo A militaryoperation against the Allied Democratic Forces(ADF) significantly weakened but did not defeatthe sanctioned armed group An expected militaryoperation against the Forces deacutemocratiques delibeacuteration du Rwanda (FDLR) did not materializeand as of the end of November 2014 efforts tonegotiate the disarmament of this sanctionedarmed group failed to produce meaningful resultsIn addition numerous Congolese and foreignarmed groups contributed to instability inOrientale North Kivu South Kivu and KatangaprovincesADF FDLR Nduma Defence for Congo (led bysanctioned individual Sheka Ntabo Ntaberi) andother armed groups continued to recruit train anduse child soldiers in 2014 Armed groups alsocommitted a variety of other abuses includingtorture enslavement and sexual violence Therewere mass killings in June in Mutarule (South Kivu)and in October and November in Beni territory(North Kivu)

Source United Nations Security Council 201556

29

2 MINERALS AND WARS AT THE GREAT LAKES

One of the problems the existing insecurity and conflicts havecreated is the proliferation of internally displaced peopleestimated in September 2014 at 27 million people57

UN peacekeeping operation in Congo

In July1999 Heads of State of Angola DRC NamibiaRwanda Uganda Zambia and Zimbabwe signed the Lusakaagreement focusing on the establishment of a ceasefire asone of the other components necessary for the deploymentof a UN peacekeeping force

The first UN Peacekeeping operation in DRC wasestablished in November 1999 after the Lusaka Ceasefireagreement It was called the UN Mission in the DRC(MONUC) In 2010 it was renamed the UN OrganizationStabilization Mission in the DRC (MONUSCO)

Ten years later despite the deployment of MONUC thesecurity challenges in DRC ndash particularly in the Eastern Partof the country ndash remain high58 There is still a strong presenceof armed groups chronic humanitarian crisis continuoushuman rights violations and continued illegal exploitationof natural resources In the light of this context the UNcreated an ldquoIntervention brigaderdquo with a key objective ofneutralizing armed groups59 As of today the MONUSCOand the intervention brigade are operational but are theresignificant security changes

56 Ibidem57 See global humanitarian assistance webpage http

wwwglobalhumanitarianassistanceorgcountryprofiledemocratic-republic-of-congo

58 UN Security Council 2010 Resolution 192559 UN Security Council 2013 Resolution 2098

30

LIVING IN FEAR

60 UN Security Council 2014 Final report of the Group of Experts on theDRC S201442

61 PR Newswire 2014 Rwanda has become worldacutes largest coltanexporterhttpwwwprnewswirecomnews-releasesrwanda-has-become-worlds-largest-coltan-exporter-reports-kt-press-300010371html

62 PR Newswire 2014 Rwanda has become worldacutes largest coltanexporter

63 Africa Briefing 2015 Rwanda has abundant deposits of best qualitycoltan Kagame affirms httpafricabriefingorgp=478

Legitimate exports or smuggling conflictminerals

It is well known that many of the minerals in Eastern Congoare smuggled and do not follow legal channels For instancethe UN estimates that 98 of the gold produced in DRC issmuggled out of the DRC making the country lose millionsof dollars in tax revenue60

In December 2014 numerous media covered a story onRwanda and coltan PR Newswire affirmed that ldquoRwandahas become worldacutes largest coltan exporterrdquo61 The dataprovided concluded that in 2013 Rwanda exported around2500000 kg of tantalum which constituted 28 of the total8807232Kg of tantalum produced globally The overallrevenue from the coltan was estimated at around $140 M62

Rwandese President Paul Kagame was quoted as affirmingthat the production was local and dismissed all possibleallegations of plundering the coltan from Congo He affirmedldquoRwanda has not only enough coltan but of a very highquality (hellip) we can even pay for a ticket give them a visaand take them to the minesrdquo63

Contrary to such statements there are many reports thatcoltan is smuggled from Congo to Rwanda and that Rwandadoes not have significant coltan mining on its own For

31

2 MINERALS AND WARS AT THE GREAT LAKES

instance a 2012 report prepared by a European Foundationaffirmed that ldquoRwanda does not house any industrial coltanmines which would suggest legitimate Rwandan coltanproductionrdquo64 A US governmental agency which analyzesthe mining sector in Congo made a table with coltan exportedfrom Rwanda qualifying it as ldquoconflict mineralsrdquo as seen inTable 165 Since there is no known conflict in Rwanda it canonly refer to Rwanda exports of minerals originating froman external conflict zone the DRC

Table 1 Estimates of exports of conflictminerals from Rwanda for Fiscal years2009-2013 in Metric Tons

Year Tantalum

FY 2009 958

FY 2010 827

FY2011 915

FY2012 1139

FY 2013 2466

Source Based on United States Government Accountability Office 2014

64 Van Teeffelen 2012 The EU raw materials policy and mining in RwandaEvert Vermeer Foundation

65 United States Government Accountability Office 2014 Conflictminerals stakeholder options for responsible sourcing are expandingbut more information on smelters is needed

32

LIVING IN FEAR

In this particular situation either somebody is wrong orsomebody is lying Hopefully future events will unveil thetruth around the nature of the coltan exports from Rwandato clarify whether they are a legitimate export or theconsequence of smuggling conflict minerals

Greed for minerals everybody wants a pieceof Congo66

What is at the origin of those wars and instability of theCongo While there could be diverse factors for conflictthere is one that seems to be always recurrent and is recog-nized by most authors and by relevant UN reports the racefor minerals and natural resources The UN recognized thatin the Second Congo War minerals were the coveted trophyand that all actors ldquobuilt up a self-financing war economycentred on mineral exploitationrdquo67 The conflicts that con-tinued after the Second Congo War like those in Kivu andIturi provinces are recognized as well to be fuelled by tradein minerals Along the same lines Palou underlines the causesof the conflict by stating that ldquoalthough from that time un-til the present day the Rwandan regime has expressed itsconcern about the security of its border with the then Zaireobjectively the reality is that control over this strategic areandash Eastern Congo ndash and its valuable mineral resources has

66 See video at Congo Justice httpcongojusticeorg67 UN 2002 Final report of the Panel of Experts on the illegal exploitation

of natural resources and other forms of wealth of the DemocraticRepublic of the Congo S20021146

33

2 MINERALS AND WARS AT THE GREAT LAKES

proved to be at the heart of two wars that have left a hugenumber of victimsrdquo68 In conclusion a 2001 UN report as-serted that ldquothe conflict of DRC has become mainly aboutaccess control and trade of five key mineral resourcescoltan diamond copper cobalt and gold The wealth of thecountry is appealing and hard to resist in the context oflawlessness and the weakness of the central authorityrdquo69

Congolese and regional elite have also profited from thissituation as well and the appalling quantum of the plunderare reflected in the following report from UN

The elite network of Congolese and Zimbabweanpolitical military and commercial interests seeksto maintain its grip on the main mineral resourcesmdash diamonds cobalt copper germanium mdash of theGovernment-controlled area This network hastransferred ownership of at least US$ 5 billion ofassets from the State mining sector to privatecompanies under its control in the past three yearswith no compensation or benefit for the Statetreasury of the Democratic Republic of the Congo70

Funds that could have been used for public services havebeen diverted from the public coffers by fraud or by theexcuse of war effort71 The Congolese population has paid

68 Palou 2010 International Justice plunder in war human rights andmultinationals

69 UN Security Council 2001 Report of the Panel of Experts on theillegal exploitation of natural resources and other forms of wealth ofthe Democratic Republic of the Congo S2001357

70 UN Security Council 2002 Final report of the Panel of Experts on theilegal exploitation of natural resources and other forms of wealth ofthe Democratic Republic of the Congo S20021146

71 Ibidem

34

LIVING IN FEAR

dearly in this situation In terms of human development it isinstructive that the UNDP estimated in 2013 that RDCwas in the low human development category ndash positioningthe country at 186 out of 187 countries and territories72

The Role of Transnational Corporations (Tncs)and the private sector

Other key players involved in the conflict are Transnationalsand the private sector A UN Report published a few yearsafter the Second Congo War started affirmed that ldquothe roleof the private sector in the exploitation of natural resourcesand the continuation of the war has been vitalrdquo73 The reportalso added that ldquoa number of companies have been involvedand have fuelled the war directly trading arms for naturalresourcesrdquo74 Other observers share the view that ldquoWesternMultinationals have been one group responsible for thepillage and illegal exploitation of Congo mineral resourcesrdquo75

There are a large number of big foreign corporationsinvolved in mining in DRC including those from CanadaSouth Africa UK USA and others Despite the opacity ofmost of the activities of the private sector numerousexamples have been reported of how TNCs are responsiblefor human rights abuses and other illegal activites Thereare also many reports of the dangerous connectionsestablished with the political and military elite in order tofacilitate their businesses These are some examples

72 UNDP 2014 Sustaining human progress reducing vulnerabilities andbuilding resilience Congo (Democratic Republic of the) httphdrundporgsitesallthemeshdr_themecountry-notesCODpdf

73 UN 2001 Report of the Panel of Experts on the illegal exploitation ofnatural resources and other forms of wealth of the Democratic Republicof the Congo S2001357

74 UN 2001 Ibidem75 Palou Ibidem

35

2 MINERALS AND WARS AT THE GREAT LAKES

bull Glencore Anglo-Swiss giant in the raw material sectorwith a turnover of US $ 2397 billion in 2013 was beingaccused in 2014 of adopting a military-style response tothe problem of artisanal mining close to its mines ldquoonseveral occasions over the past 18 months mine policehave fired live ammunition in pursuit of artisanal minerson Glencorersquos site resulting in deaths and seriousinjuriesrdquo76 They are as well responsible forcontamination of the water supply with acid content andvery high and concentrations of copper and cobaltFinally the company operates some of its concessionsinside a reserve ndashndash something that in principle is illegalaccording to the RDC Mining Code77

bull An independent investigation unveiled that two miningcompanies Glencore and the Eurasian Natural ResourcesCorporation were involved in underpricing assets incomplex deals featuring offshore companies causinglosses to the DRC of no less than $136 billionIntermediary companies in the deals were linked to DanGerler78 In addition the DRC public prosecutorreportedly told mining companies that they had toreimburse $37 billion in taxes duties and fines79

bull AngloGold Ashanti part of the AngloAmericancorporation was accused of establishing links and

76 Peyer et al 2014 PR or Progress Glencoreacutes corporate responsibility inthe DRC Bread for all RAID Fastenopfer

77 Ibidem78 CRS 2014 Democratic Republic of Congo Background and US Policy79 Reuters 2014 Disputed Congo report says miners owe $37 billion in

tax fines httpwwwreuterscomarticle20140130us-congo-democratic-mining-idUSBREA0T12L20140130

36

LIVING IN FEAR

supporting one armed group the Nationalist andIntegrationist Front (FNI)80

bull In 2004 fighting between soldiers and rebels in Kilwaended in serious human rights violations againstcivilians including summary executions arbitraryarrests rape and torture Anvil Mining operated theDikulushi copper mine near Kilwa and was accused ofproviding vehicles and planes to the Congolese armedforces during this event The legal case ended in theCanadian Supreme Court in 2012 which ruled that itwould not hear the plaintiff rsquos appeal ndash they were led bythe Canadian Association Against Impunity (anassociation representing survivors of the incidents inOctober 2004)81

bull In May 1997 Citibank NY a financial institution hasbeen accused of giving $5 million loan to a Congolesemilitia allied with Rwanda82

bull American Mineral Fields (AMF) cut a $1 billion dealwith Kabila immediately after his forces captured GomaThe negotiations were led by ldquoKabilarsquos US-trainedfinance ministerrdquo who gave ldquoAMF exclusive explorationrights to zinc copper and cobalt mines in the area MikeMcMurrough a friend of US President Bill Clinton wasthen the chair of AMF83

80 Human rights watch 2005 DRC Gold fuels massive human rightsatrocities httpwwwhrworgennews20050601dr-congo-gold-fuels-massive-human-rights-atrocities

81 Business and human rights resource center 2012 Anvil Mining Lawsuit(re DRC) httpbusiness-humanrightsorgenanvil-mining-lawsuit-re-dem-rep-of-congo

82 Global research 2008 Congo Resource wars httpwwwglobalresearchcacongo-resource-wars8310

83 Global research 2008 Ibidem

37

2 MINERALS AND WARS AT THE GREAT LAKES

UN and some other independent reports generally makebroad statements about the role of corporations includingciting some of the companies however they fall short ofproviding details of the modus operandi of those companiesand in establishing or suggesting concrete measures to stopthe conflicts and solve the negative impacts on the DRCpopulation and environment A 2002 UN Report listed 85companies considered by the Panel to be in violation of theOECD Guidelines for Multinational Enterprises84 Very littlehas been done after the UN report was published

A poor country Until when

In 1969 World Bank President Robert McNamara embarkedon a trip to Africa to try to discover ldquowhat are therequirements for developmentrdquo85 At that time the WorldBank in its information document described the country asrich in natural resources but at the same time poor and witha strong mining sector

In spite of its rich natural resources and greatpotential the Congo is still a poor country (hellip)Mining and metallurgy play a leading role in theeconomy86

84 UN 2002 Final Report of the Panel of Experts on the Illegal Exploitationof Natural Resources and other Forms of Wealth of the DemocraticRepublic of the Congo S20021146

85 Records of President Robert S McNamara Travel briefs CongoKinshasa (01021969-03031969) 1772506 Reference Code WBIBRDIDA 03 EXC-10-4540S World Bank Group archives WashingtonDC United States

86 Ibidem

38

LIVING IN FEAR

More than forty years later not much has changed asupdated data shows In DRC seven out of ten householdsare poor87 Most of its nearly 60 million people areldquodesperately poor living on less than $1 a dayrdquo88 DRC is aleast developed country a fragile State that has been in thetop 10 recipients of humanitarian assistance in nine of thelast 10 years Between 2003 and 2012 DRC received US$176billion in official development assistance (ODA) making itthe 10th largest recipient89In 2012 the Democratic Republicof Congo (DRC) received US$286 billion in net officialdevelopment assistance90

With so many natural resources isnrsquot there money to getpeople out of poverty The mining sector is oftenacknowledged as being capable of contributing to povertyreduction However those mineral benefits are oftencreamed off by powerful interests and do not get to thehands of the majority of the population According to DFIDldquofiscal receipts from the minerals sector are siphoned off bypowerful interest groups instead of being used in the publicsectorrdquo91

The analysis of Mr Antonino Giambrone sheds more lightabout the earnings and who profits from mining

While the average Congolese worker earns $10 permonth the average Congolese coltan-miner earnsanywhere from $10 to $50 per week Uganda

87 IMF 2013 DRC Poverty reduction strategy paper N 1322688 DFID 2008 Democratic Republic of Congo Country Plan89 View global humanitarian assistance webpage http

wwwglobalhumanitarianassistanceorgcountryprofiledemocratic-republic-of-congo

90 CRS 2014 Democratic Republic of Congo Background and US Policy91 DFID 2008 Democratic Republic of Congo Country Plan

39

2 MINERALS AND WARS AT THE GREAT LAKES

Rwandan and Congolese rebels have earned manymillions of dollars in sales of coltan which theyhave used to finance their war efforts in the CongoBetweeen 1999 and 2000 the Rwandan army aloneearned at least $20 million a month from coltan92

Food insecurity is often a consequence of poverty One ofthe causes of existing food insecurity is the abandonment ofthe agriculture sector partly due to conflicts The governmentstated that it would like to strengthen the smallholdersldquowhile ensuring at the same time the protection of thecountryrsquos natural resourcesrdquo93

War impacts on the environment

The wars have had devastating impact on the environmentNational parks for instance home of many endangeredspecies are also affected by the exploitation of minerals94

There are numerous reports on the precarious situation ofwildlife in the region For instance between 1995 and 19994000 out of 12000 elephants were killed in the GarambaPark in North-eastern DRC95 The situation was also seriousin other parks For instance in Kahuzi-Biega Park a zonerich in coltan only 2 out of 350 elephant families remained

92 Giambrone 2006 The extraction of natural resources as a source ofconflict Etfo voice

93 IMF 2013 DRC Poverty reduction strategy paper N 1322694 Seeh ttpwww lenntech comenv ironmental -ef fec ts -

warhtmixzz3CuGZqE3M95 UN 2001 Report of the Panel of Experts on the illegal exploitation of

natural resources and other forms of wealth of the Democratic Republicof the Congo S2001357

40

LIVING IN FEAR

in 200096 Mountain gorillas are also under threat due tocontinued civil unrest and the presence of armed militiasmakes survey and conservation work difficult in the DRCrsquosprotected areas97

Deforestation is also one of the common impactsWorldwatch explains the implication of having refugeespopulation inhabiting RDC degraded forest areas

For two years beginning in late 1994 for exampleabout 720000 Rwandans inhabited refugee campson the fringes of Virunga National Park They allneeded wood for cooking fires and for buildingshelters and some also earned extra money bymanufacturing charcoal As a result up to 80000people entered the park and carted away up to1000 tons of wood every day By mid-1996 105square kilometers of forest had been affected toone degree or another by their activities 35 squarekilometers had been stripped bare98

Besides the need for fuelwood by refugees movement ofmilitary hardware through forests and woodlands also causeserious damage to forests and the landscape generally

96 Ibidem97 See WWF webpage httpwwfpandaorgwhat_we_doendangered_species

great_apesgorillasmountain_gorilla98 Worldwatch 2008 War and Environment httpwwwworldwatchorg

node5520

3South Sudan The Oil Way

99 Washington Post 2012 lsquoSouth Sudan civilians are trapped in conflictover oilrsquo httpwwwwashingtonpostcomworldsouth-sudan-civi l i ans-are- trapped-in-conf l ict -over-o i l20120501gIQAUX6buT_storyhtml

100 See UN Mission in South Sudan web page httpwwwunmultimediaorgtvunifeed201404south-sudan-bentiu-massacre

101 Reuters 2014 Bentiu massacre is game-changer in South Sudanconflict says UN official httpwwwtheguardiancomworld2014apr22bentiu-massacre-south-sudan-united-nations

41

ldquoIf we had no oil we would not be attackedrdquo

Nyak a 27-year-old sitting outside herhut in Bentiu South Sudan 201299

In April 2014 Bentiu the capital of the oil producing UnityState was the scenario of one of the worst massacres of thecivil war between South Sudanese forces100 Hundreds ofpeople were killed in the fighting that took place betweenthe Sudan Peoplersquos Liberation Army (SPLA) and anti-government forces in the oil-rich State101

42

LIVING IN FEAR

Civil wars and conflict

Since its independence in 1956 Sudan has been at war andconflict for most of its modern history Specialists in conflictand security have described the history of modern Sudan asldquoan unremitting sequence of wars punctuated by oft-violatedpeace agreementsrdquo102 The First Sudanese Civil War (1955ndash1972) was followed by a Second Sudanese Civil War (1983ndash2005) with barely 11 years breathing space of tenuoussecurity

The Second Civil War ended when both sides signed theComprehensive Peace Agreement in 2005 That agreementgave autonomy to South Sudan within Sudan However areferendum held in January 2011 moved the region towardsecession and then in July 2011 independence was achievedand South Sudan became an autonomous nation103 Theprocess that led to South Sudanrsquos independence was stronglysupported by the US government which backed Juba in itstwo decades struggle against Khartoum104 It should be notedthat even during the 11 years of supposed peace there wereconflicts on a regular basis particularly in the border areasbetween South Sudan and Sudan105 Two years after theindependence the first South Sudanese Civil War started inDecember 2013 The civil war erupted as a result of a power

102 Cox and Snapper 2013 The Strategic Importance of South Sudan TelAviv University

103 National Geographic 2013 South Sudan oil the environment andborder conflicts httpvoicesnationalgeographiccom2013032286550

104 See webpagehttpwwwworkersorgarticles20140101south-sudan-yet-another-oil-war

105 International Crisis Group 2006 Sudan Saving peace in the Easthttpwwwcrisisgrouporgenregionsafricahorn-of-africasudan102-sudan-saving-peace-in-the-eastaspx BBC 2015 South SudanProfile httpwwwbbccomnewsworld-africa-14019202

43

3 SOUTH SUDAN THE OIL WAY

struggle between president Salva Kiir from the Dinka ethnicgroup and his deputy Riek Machar from the Nuer ethnicgroup whom he had sacked As at the time of this writingthe civil war continues

Sudan vs South Sudan

The tensions and conflicts after the independence of SouthSudan from its neighbour Sudan did not stop in 2011 Topleaders from both sides accuse and threaten each other innumerous occasions For instance Sudanese President Bashirpromised to teach South Sudan a ldquofinal lesson by forcerdquo106

South Sudan President firmly swore that ldquowhether Umar al-Bashir likes it or not one day Abyei will rejoin the southrdquo107

Abyei

Abyei is traditionally the home of the Ngok Dinka asubdivision of the Dinka tribe with strong links to the Dinkain South Sudan Besides the Dinka Misseriya herders aremembers of nomadic Arab tribes that seasonally cross Abyeiand other nearby areas with their cattle in search of waterand pasture108

Since the signing of the Peace Agreement in 2005 betweenthe Government of Sudan and the SPLM the dispute over

106 The Washington Post 2012 lsquoSudanese president vows war againstSouth Sudanrsquo httpwwwwashingtonpostcomworldsudanese-president-threatens-force-against-south-sudan-over-oil-field20120419gIQAJ0G8ST_storyhtml

107 The Global Intelligence Files 2013 Sudan- President Kiir says Abyeiwill ldquorejoinrdquo South Sudan httpssearchwikileaksorggifilesviewemailid=674314

108 Enough Project 2013 What is the Abyei Area and why is it disputedhttpwwwenoughprojectorgblogsenough-101-what-abyei-area-and-why-it-disputed

44

LIVING IN FEAR

the future status of the Abyei area has beenone of the bigbarriers to stability in the region109Abyei is an oil-rich areadisputed by Sudan and South Sudan and stands out as thehotspot of bigger tension beetween Sudan and South Sudannowadays

The conflicts over Abyei have a history of more than 50years After the First Civil war the parties signatories to thepeace pact agreed that Abyei would hold a referendum todetermine whether they would be part of Sudan or a newlyregion in the South The second war commenced in 1983and the foreseen referendum was not done

In 2009 the Permanent Court of Arbitration in the Hagueruled on Abyei territory giving concessions to the Governmentof Sudan and the Southern Sudan Heglig and other closeroil-fields remained out of Abyei area while the rest of theAbyei region remained under control of the Ngok Dinka anethnic group close to Southern Sudan and keen on voting tojoin the South in a future referendum110Another referendumwas scheduled to be done in parallel with the South Sudanreferendum in 2011 but once again this never took place

Although a series of temporary security arrangementswere agreed in January and March 2011111 in May SudaneseArmy tanks entered the town of Abyei and by the 22nd ofMay they seized control of the town112The government ofSudan launched numerous military attacks in the disputed

109 UN Security Council 2011 Report of the Secretary-General on thesituation in Abyei S2011451

110 New York Times 2009 lsquoCourt redraws disputed area in Sudanrsquo httpwwwnytimescom20090723worldafrica23sudanhtml_r=1amp

111 UN Security Council 2011 Report of the Secretary-General on thesituation in Abyei S2011451

112 Reuters 2011 North Sudan seizes disputed Abyei thousands fleehttpwwwreuterscomarticle20110522us-sudan-abyei-north-idUSTRE74L14L20110522

45

3 SOUTH SUDAN THE OIL WAY

border of area where much of Sudanacutes remaining oil fieldsare situated113 Two years later the fighting remains intensein parts of South Kordofan and Blue Nile114 More than 2million people have been internally displaced or severelyaffected by the conflict since 2011115

In addition to military attacks other actions contributedto the tension There have been cattle raids by the MissiriyandashArab nomadic cattle herders inhabiting the area ndash on theNgok Dinka ndasha subdivision of the Dinka tribe inhabitingthis area In occasions more than 200 cows were stolenwith a large part of it recovered by the UN Interim SecurityForce for Abyei(UNISFA) These raids increase further thealready tense situation in the region and in particular thevery tense situation among the Missiriya and the NgokDinka116

113 The Conversation 2012 Oil fuels the conflict between Sudan andSouth Sudan ndashand it keeps getting hotter

114 OCHA 2014 South Kordofan and Blue Nile population movementsfact sheet httpreliefwebintsitesreliefwebintfilesresourcesSouth20Kordofan20and20Blue20Nile20Population20Movements20Fact20Sheet20-201920May202014pdfReuters 2013 Khartoum says rebels based in South Sudan caused oilpipeline blast

115 OCHA 2014 Ibidem116 See Human Security baseline assessment for Sudan and South Sudan

webpage httpwwwsmallarmssurveysudanorgdefacts-figuresborderdisputed-areasabyeihtml

46

LIVING IN FEAR

An oil-centered conflict

ldquoThe violence underscores the extent to which oilis at the heart of the dispute Khartoum whichcontrols the pipelines that take oil out of SouthSudan depends heavily on oil transit fees SouthSudan which depends on oil for 98 percent of itsrevenue has refused to pay the fees which it saysare exorbitantKhartoum responded by seizing oil tankers carryingSouth Sudanese oil and imposing economicblockades That prompted South Sudan to shutdown its entire oil production in February Thatmonth Sudan allegedly bombed an oilfield inSouth Sudan that was nine miles from the borderrdquo

Washington Post 2012

Missiriya attacks continue as of today UNISFA reported thatin March 2015 100 armed Missiriya killed several peopleand burnt over 20 houses in a village in the southern part ofAbyei117 Many of those attacks occur despite the presenceof UN peacekeepers in the zone

In this context a UN force was deployed in 2011 withmore than 4000 personnel mostly Ethiopian with theobjective of ensuring the demilitarization of the Abyei areaand particularly checking the Sudan Armed Forces and theSudan Peoplersquos Liberation Army Interestingly the UN forceshad also the task to provide security for oil infrastructure inthe Abyei Area in cooperation with the Abyei PoliceService118 In February 2015 the Security Council extended

117 Sudan Tribune 2015 South Sudan condemns deadly clashes in Abyeihttpwwwsudantribunecomspipphparticle54191

118 UN Security Council 2011 Resolution 1990 (2011) SRES1990(2011)

47

3 SOUTH SUDAN THE OIL WAY

the mandate of the UNISFA again until July 2015119 The AbyeiJoint Oversight Committee (AJOC) decided in May 2013 thatAbyei should adopt a status as weapons-free area and thatonly UNISFA would be authorized to carry weapons in thearea120

The situation in the area is still very fragile121 For instancevarious resolutions have called for the redeployement of allmilitary personnel from Abyei including those protecting itsoil infrastructure However the Sudanese Governmentskeeps at the Diffra oil complex around 150 Sudan oil policein a clear violation of an agreement and Security Councilresolutions adopted in 2011122 The UN Security council ina recent resolution

Condemns the presence of Diffra Oil Police unitsdeployed in the Abyei Area as well as the repeatedentry of armed militias into the territory andreiterates its demands that immediately andwithout preconditions the Government of Sudanredeploy the Oil Police in Diffra from the AbyeiArea ()123

Conflicts escalating over oil Heglig battles

In 2012 despite the Permanent Court of Arbitration ruling124

which placed Heglig oilfields in the Sudanese territories

119 UN News Center 2015 Security Council extends UN peacekeepingforce in Abyei through July 2015

120 UN Security Council 2015 Ibidem121 UN Security Council 2015 Security Council adopting resolution 2205

(2015) extends interim force in Abyei until 15 july voicing concernover delays in Borde Mechanismrsquos operation httpwwwunorgpressen2015sc11800dochtm

122 UN Security Council 2014 Report of the Secretary-General on thesituation in Abyei S2014518

123 UN Security Council 2015 Ibidem124 See Permanent Court of Arbritation webpage httpwwwlocgov

lawwebservletlloc_newsdisp3_l205401463_text

48

LIVING IN FEAR

the South Sudanese army launched an attack over Heglig125

South Sudanrsquos army took control of the oil-producing townof Heglig The South Sudan move did not enjoy sympathyfrom many countries including its allies such as the US andBritain126 The African Unionrsquos (AU) Peace and SecurityCouncil considered Sudanrsquos occupation of Heglig as illegal127

At the end after a few days South Sudan pulled back itstroops from Heglig even though President Salva Kiir stillclaims that Heglig is a part of South Sudan and is expectinginternational arbitration

Oil and geopolitics

The implications of the oil economy are self-telling Prior tothe separation of Sudan from South Sudan in 2011 theunified Sudan was the second-largest non-OPEC oil producerin Africa in 2010 When they separated Sudan and SouthSudanrsquos production diminished and together they rankedas the fourth-largest non-OPEC African oil producer in 2013Particularly the split of the country in oil revenues economicterms was a huge blow to Sudan with its crude oil exportrevenues falling from almost $11 billion in 2010 to around$18 billion in 2012128 It has been estimated that oilcontributes 98 of South Sudan government income morethan for any other government in the world129

125 Wall Street Journal 2012 Sudan escalates fight over oil httpwwwwsjcomarticlesSB10001424052702304444604577339461981143808

126 The Guardian 2012 South Sudan to withdraw from disputed oiltownhttpwwwtheguardiancomworld2012apr20south-sudan-withdraw-oil-town

127 IRIN 2012 Sudan-South Sudan Heglig and the border128 US Energy Information Administration 2014 Country analysis brief

Sudan and South SudanhttpwwweiagovcountriesanalysisbriefsSudansudanpdf

129 Global Witness 2009 Fuelling mistrust

49

3 SOUTH SUDAN THE OIL WAY

Although oil exploration started at the end of the 1950showever no success was achieved with the activities of Italianoil company Agip130 Discoveries were found in the years tofollow The first oil discovery was made in 1979 when theAmerican company Chevron found oil near the Darfur-Kordofan boundary Three years later Chevron made twolarger discoveries the Heglig and Unity oilfields which asof today are the most productive However by 1984 Chevronstopped its operations when some of its workers were killedby an armed group By 1988 the company dismantled all ofits operations in Bentiu and Unity provinces131

As a landlocked country all the oil in South Sudan had tobe extracted and exported via a pipeline The pipeline wasconstructed by China National Petroleum Corporation andit covered a length of around 1600 kilometers132 Ittransports the oil from South Sudan to the Red Sea Thecost of the pipeline was estimated at $1 billion and it wasfinished in 1999133At the time of the construction of thepipeline Sudan provided less than 1 of Chinarsquos oil importsbut a few years later by 2009 the investments of Chinatotalled more than $8 billion134

130 Understanding Sudan 2009 Fact sheet two A history of oil in theSudan httpunderstandingsudanorgOilOilResourcesL2FS2-HistoryofOilinSudanpdf

131 Understanding Sudan Ibidem132 The Conversation 2012 Oil fuels the conflict between Sudan and

South Sudan ndashand it keeps getting hotter133 Sitarek 2001 The human price of oil ICE Case Studies Number 83

httpwww1americanedutedicesudansanctionshtm16134 The Conversation 2012 Ibidem

50

LIVING IN FEAR

Source US Energy Information Administration 2014

South Sudan becameindependenth in July2011 Taking aboutthree-quarters of theproduction A disputeover transit fees ledSouth Sudan to haltproduction for most of2012

Oil production inSudan and South Sudan

thousand barrels per day

51

3 SOUTH SUDAN THE OIL WAY

Main oil companies in Sudan and South Sudan

While initially many companies involved were of Westernorigin most of the companies now involved in the oil sectorare from China and Malaysia

Source US Energy Information Administration 2014 Countryanalysis Brief Sudan and South Sudan

Row over oil tariffs

By 2011 both countries did not agree on how much SouthSudan should pay to export its oil through the pipelines inSudan Sudan requested a fee of 33 dollars a barrel whileSouth Sudan said the highest fee they could afford was 2

Table 2 Main oil companies in Sudan and South Sudan

52

LIVING IN FEAR

dollars a barrel135 Following this lack of agreement SouthSudan halted crude oil production in early 2012

This decision worsened the economic situation in bothcountries as both depend hugely on money from oil exportsfor their revenues However an agreement was reached andin April 2013 South Sudan restarted oil production136

Causes of the Sudanese Civil War

Wars in Sudan have been often portrayed quite simplisticallyas an ArabMuslim north versus and an AfricanCristiansouth While certainly ethnicity and religion played a rolethe conflict has been mainly fought over natural resources137

Today oil is the countryrsquos main natural resource and ithas been estimated that it accounts for 98 of South Sudanrsquosrevenue138 The multibillion potential of their revenuehowever has not translated into wealth and benefits for themajority of the population of South Sudan First of all it hasnot solved the problem of security as since the very inceptionof the State of South Sudan in 2011 there were conflicts inmany areas of the country particularly in the borderline withSudan A 2013 report from the World Bank illustrates thisby asserting that ldquodespite South Sudanrsquos great resourcewealth its population is one of the most deprived due todecades of neglect and war and the distortions of the oil

135 IPS 2011 South Sudan rows over exorbitant fees for pipeline use136 Reuters 2013 South Sudan resumes oil output after ending row with

Sudan over transit fees137 Caas 2007 Natural resources and conflict in Sudan138 See World Bank webpagehttpwwwworldbankorgencountry

southsudanoverview

53

3 SOUTH SUDAN THE OIL WAY

economyrdquo139 Indeed oil reserves sitting on a disputed borderbetween Sudan and South Sudan have not translated yetinto wealth for the majority of citizens of South SudanInstead most of the inhabitants of the country remain deeplypoor and do not enjoy even basic rights to access potablewater and adequate sanitation140

Oil has been a main cause for the war and conflicts inSudan For instance it influenced the end of the peaceagreement obtained after the first civil war This first civilwar ended in 1972 with the Addis Ababa Agreement Theagreement established a system of peaceful co-existence witha single country by guaranteeing aNorthern basedgovernment but granted at the same time autonomy in theSouth This however was not going to last long as thediscovery of oil at the end of the 1970s in Southern Sudanchanged the ldquocoexistencerdquo idea In 1978 Sudanese PresidentNimeiry decided to embark on oil exploration project thatwould lead to the finding of oil in commercial quantities Inorder to control the oil within the hands of the Northernbased Government military force was used and in additionto imposing islamic law which led to the new civil warstarting in 1983141

139 World Bank 2013 Interim Strategy Note (FY 2013-2014) httpwww-wdsworldbankorgexternaldefaultWDSContentServerWDSPIB20130207000333037_20130207110223RenderedPDF747670ISN0P1290Official0Use0Only090pdf

140 National Geographic 2013 South Sudan oil the environment andborder conflicts httpvoicesnationalgeographiccom2013032286550

141 Sitarek 2001 The human price of oil ICE Case Studies Number 83httpwww1americanedutedicesudansanctionshtm16

54

LIVING IN FEAR

Numerous authors have identified natural resources ashaving a direct correlation with wars and conflicts142 Ananalysis by Ross of the University of California (UCLA) ofthirteen wars and conflicts concluded that in the case ofSudan oil was one of the key causes of the second civil warand an incentive for advancing the independence of SouthSudan143 Ross describes his conclusion in the followingmanner

War in Sudan began in 1983 when SudanesePresident Nimeiry took a series of measures thatupset the delicate balance between thepredominantly Muslim north and the heavilyChristian and Animist south among these measureswas his decision to place newly discovered oil inthe countryrsquos south under the jurisdiction of thenorth and to build an oil refinery in the northinstead of the south The Sudan Peoplersquos LiberationArmy (SPLA) subsequently complained that thenorth was stealing the resources of the southincluding oil demanded that work cease on apipeline to take oil from the south to the refineryin the north and in February 1984 attacked an oilexploration base killing three foreign workers andbringing the project to a halt144

142 Varisco 2010 lsquoA study on the inter-relation between armed conflictand natural resources and its implications for conflict resolution andpeace buildingrsquo Journal of Peace Conflict and Development issue 15Ross 2003 How do natural resources influence civil war Evidencefrom 13 cases httpwwwsscnetuclaedupoliscifacultyrossHowDoesNat3pdf

143 Ross Ibidem144 Ross Ibidem

55

3 SOUTH SUDAN THE OIL WAY

Even when the different parties were discussing an agreementon ldquono attacks on civilians or civilian objectsrdquo oil was playinga central role It is instructive to note that the Sudanesegovernment desired language in the text stating that oilinstallations were ldquocivilian objectsrdquo while the SPLA wantedthe contrary145

Human Rights Watch reached the same conclusion thatoil without doubt has been a key fuel for war particularlysince the end of the 90s when crude oil was first exportedfrom Sudan in 1999146

Oil became the main objective and a principal causeof war (hellip) The large-scale exploitation of oil byforeign companies operating in the theatre of warin Southern Sudan has increased human rightsabuses there and has exacerbated the long-runningconflict in Sudan a conflict marked by gross rightsabuses ndashtwo million dead four million displacedsince 1983 ndashand recurring famine and epidemics147

Also the UN makes clear statements on the issue Specialenvoy Leonardo Franco expressed in a report that oilexacerbated the conflict

the economic political and strategic implicationssurrounding oil exploitation in western Upper Nilewhich have seriously exacerbated the conflictthereby causing a deterioration in the overall

145 Ibidem146 Human Rights Watch 2003 Sudan oil and human rights147 Human Rights Watch 2003 Sudan oil and human rights

56

LIVING IN FEAR

situation of human rights and respect forhumanitarian law and narrowing the slim chancesfor peace148

Indeed multiple causes and elements contributed to theconflicts It was recognized that ethnicity and religion wereimportant elements however the key dimension is controlover natural resources particularly oil Added to this are alsotensions over land and resources and the promotion by thegovernment of crops like cotton and sugar which displacedcertain groups of people149 Similar conclusions were reachedyears back by a Canadian Government Mission in Sudanwhich fully recognized some ethnic disputes as well asdisputes over other natural resources however oil was thekey factor which made things really dramatic

148 UN 2000 Interim report of the Special Rapporteur of the Commissionon human rights on the situation of human rights in the Sudan A55374 httpwwwunorgdocumentsgadocs55a55374pdf Seealso UN 1999 Situation of human rights in Sudan UN Doc A54467

149 University of Massachusetts (undated) Modern conflicts conflictprofile SudanhttpwwwperiumassedufileadminpdfSudan1pdf

57

3 SOUTH SUDAN THE OIL WAY

The Harker mission pointed out that while therehave always been pressures on the Dinka in theHeglig- Ruweng area as a result of inter-tribalfighting with Arab nomads for grazing areas anddry-season water the situation had worsened withthe beginning of oilexploration and had continuedto deteriorate over theyears because of the periodicoffensives launched by the Government and itsallies resulting in destructionand mass populationdisplacement150

South Sudan has one of the largest oil reserves inSub Saharan Africa and the commodity is thelifeline of the countryrsquos economy accounting for98 percent of the governmentrsquos financial resources

Whoever controls South Sudanrsquos oil thereforecould seize the upper hand in the battle for power

Source France 24 2013 lsquoBattle for oil adds newdimension to South Sudan conflictrsquo

Whoever controls South Sudanrsquos oil therefore could seizethe upper hand in the battle for power

The same scenario applies to the South Sudan Civil Warwhich initially was also portrayed along ethnic line TheDinka ethnic group of President Salva Kiir has fought rebelsallied with former vice president Riek Machar of the Nuer

150 UN 2000 Interim report of the Special Rapporteur of the Commissionon human rights on the situation of human rights in the Sudan A55374 Ibidem

58

LIVING IN FEAR

ethnic group However increasingly ldquothe focus of the fightingis shifting to the battle to control the countryrsquos mostimportant natural resource ndash oilrdquo151 The oilfields haveliterally become the battlefields

Consequences of war and conflict

The damage inflicted on people as a consequence of war ishuge Back in 2001 US Secretary of State Colin Powellqualified the war in Sudan in the following terms ldquoThere isperhaps no greater tragedy on the face of the earth todaythan the tragedy that is unfolding in the Sudanrdquo152 Firstthere is a large number of deaths due to war and war relatedcauses and also a huge number of displaced people Thedeath toll derived from the Second Civil Sudanese War isestimated at two million The US Commitee for refugeesasserted that ldquothis massive loss of life surpasses the civiliandeath toll in any war since World War IIrdquo153 In the mostrecent civil war the South Sudanese Civil War that startedin December 2013 by April 2014 the death toll wasestimated to be at 10000154

Besides the death toll there are estimated more than fourmillion people of the Southern Sudanese population forced

151 France 24 2013 Battle for oil adds new dimension to South Sudanconflicthttpwwwfrance24comen20131227-battle-oil-adds-new-dimension-south-sudan-conflict

152 Human Rights Watch 2003 Ibidem153 See US Committee for Refugees webpage in 2001 http

webarchiveorgweb20041210024759httpwwwrefugeesorgnewscrisissudanhtm

154 International crisis group 2014 South Sudan a civil war by any othernamehttpwwwcrisisgrouporg~mediaFilesafricahorn-of-africasouth20sudan217-south-sudan-a-civil-war-by-any-other-namepdf

59

3 SOUTH SUDAN THE OIL WAY

to flee their homes at one time or another It has also beenargued that the development of oilfields has led to the forcedremoval of the local population In the words of the lateJohn Garang oil was a ldquokiller itrsquos evicting our civilianpopulationrdquo claiming 100 000 people displaced due to thiscause155

Children are some of the main victims of conflict beingrecruited for instance for war and suffering sexual violenceFrom March 2011 to September 2014 the UN estimatesthat there were 1243 incidents affecting 68776 children156

UN reports indicate that both armed groups have usedchildren ldquoon a large scale and committed other graveviolations including killing maiming and sexual violencerdquo157

For instance in 2015 an incident was reported where closeto 100 children were abducted some as young as 13 Armedsoldiers were advancing house to house looking for boysand taking them by force158 According to UNICEF this occuredin Wau Shilluk close to the city of Malakal in Upper NileState159

Not surprisingly as put by a high UN representativepeople are desperate for peace

155 BBC 2001 Garang Oil firms are targetshttpnewsbbccouk2hiafrica1393481stm

156 UN Security Council 2014 Report of the Secretary-General on childrenand armed conflict in South Sudan S2014884

157 Ibidem158 The Guardian 2015 South Sudan gunmen kidnap at least 89 boys

from village near Malakal httpwwwtheguardiancomworld2015feb22south-sudan-gunmen-kidnap-89-boys-village-malakal-child-soldiers

159 The Guardian 2015 South Sudan gunmen kidnap at least 89 boysfrom village near Malakal

60

LIVING IN FEAR

People are desperate for peace They are tired ofliving in fear Many have had to flee several timesThey are exhausted They lack water they areextremely worried for their children who are notin school and at risk of being recruited into armedgroups Sexual violence is rife All people want isto live in safety security and stability160

Wars have also an impact on food security and nutrition Asof February 2015 there was an alert that the food situationwas critical in South Sudan for more than 25 millionpeople161 This was famine related to war Ulrika BlomCountry Director for Norwegian Refugee Council in 2015succinctly stated ldquoThere is an urgent need for a solution onthe conflict so that people are able to resume their dailylives in dignity and not be dependent on massive foodassistancerdquo162

The harsh consequences of war are inevitable and occurfrom a systematic destruction of infrastructure erosion ofthe human capital and weakening of essential institutions

Besides causing an appalling loss of life Sudanrsquoslong civil war eroded the capital base The wardepleted the labour force while roads irrigationsystems and other key components of rural

160 Under-Secretary-General for Humanitarian Affairs and Emergency ReliefCoordinator Valerie Amos remarks to the press Juba South Sudan 9February 2015 httpreliefwebintreportsouth-sudanunder-secretary-general-humanitarian-affairs-and-emergency-relief-coordinator-1

161 UN Security Council 2015 Reports of the Secretary-General on theSudan and South Sudan SPV7392

162 Norwegian Refugee Council 2015 Conflict a cause of hunger in SouthSudan httpwwwnrcnodid=9192498

61

3 SOUTH SUDAN THE OIL WAY

infrastructure were destroyed damaged orneglected It also weakened institutions divertedfinancial capital from economic development andundermined interpersonal trust which is criticalto productive business dealings163

Some have tried to put a figure on the costs of war A recentreport estimates that the cost of the civil war may be between$223 and $28 billion over the next five years for SouthSudan alone if the factions fail to bring peace to the worldrsquosnewest country164

UN peacekeeping operations

In July 2011 the Security Council determined that thesituation in South Sudan constituted a threat to internationalpeace and security in the region and established the UNMission in the Republic of South Sudan (UNMISS)165 Thekey elements of the mandate is to consolidate peace andsecurity However after the civil war broke in July 2013 inthe light of significant human rights violations the large-scale displacement of persons the UNMISS mandate wasreshaped and a focus was given to the protection of civiliansand creation of the conditions for delivery of humanitarianassistance166

163 IFAD 2013 Enabling poor rural people to overcome poverty in SouthSudan

164 Frontier Economics 2015 South Sudan the cost of war httpwwwfrontier-economicscomdocuments201501south-sudan-cost-warpdf

165 UN Security Council 2011 Resolution 1996166 UN Security Council 2014 Resolution 2155

62

LIVING IN FEAR

In June 2011 a month before the establishement ofUNMISS a second UN peacekeeping operation wasestablished in the disputed border between Sudan and SouthSudan The United Nations Interim Security Force for Abyei(UNISFA) was created in a context of escalating violenceand tensions and population displacement167 One of the topobjectives was to achieve the demilitarization of the Abyeifrom any force other than UNISFA and the Abyei PoliceService facilitate the delivery of humanitarian aidstrenghten the capacity of the Abyei Police Service and incooperation with the police provide security for oilinfrastructure in the Abyei area168

Corporations and conflicts with communities

Since the conclusion of the 2005 Peace Agreement betweenthe Government of Sudan (GoS) and Sudan PeoplersquosLiberation MovementArmy (SPLM) negative impacts ofoil exploration and extraction have continued to ignitemistrust among local communities towards the oilcompanies Many problems from the oil activities wereidentified such as water pollution and uncompensateddispossession of land However oil companies or thegovernment did little to assess correct and reduce suchimpacts169 In this context many communities chose the ldquopath

167 UN Security Council 2011 Resolution 1990168 UN Security Council 2011 Resolution 1990169 ECOS 2014 Scrutiny of South Sudanacutes oil industry http

w w w e c o s o n l i n e o r g r e p o r t s 2 0 1 4 Scrutiny_of_South_Sudans_Oil_Industrypdf

63

3 SOUTH SUDAN THE OIL WAY

of confrontation with oil companiesrdquo170 For instance byblocking and interfering in oil operations by truck blockagesand other stoppages171

Resentment of local communities againstoil companies

The negative consequences of oil developmenthave been causing deep resentment against oilcompanies in many oil-rich parts of SouthernSudan Arriving in any oil area where activeexploitation is ongoing one is often confrontedwith persistent complaints from local people aboutpoor management of ldquoproduced waterrdquo which isblamed for pollution of the environment This isoften linked to unexplained deaths of animals andstrange or new human ailments Moreover the oilinfrastructure such as oil roads wells and pipesare frequently blamed for disrupting the means oflivelihoods of local people as well as destructionof property

Source ECOS

170 ECOS 2014 Ibidem171 ECOS 2014 Ibidem

64

LIVING IN FEAR

Lundin Oil Consortium facing war and violencein their work territory

In 2010 the European Coalition on Oil in Sudan (ECOS)requested an investigation on the activities of the LundinGroup and its connection with the conflict in Sudan and thepossible ldquocomplicity in the commission of war crimes andcrimes against humanityrdquo172 During the Second Civil War in1997 a consortium of oil companies led by the Swedish oilcompany Lundin Oil AB (ldquoLundinrdquo) signed a contract withthe Government for the exploration of oil in the concessionarea called Block 5A that was not at that time under fullGovernment control The other members of the Consortiumwere Petronas Carigali Overseas Sdn Bhd (ldquoPetronasrdquo) fromMalaysia OMV (Sudan) Exploration GmbH (ldquoOMVrdquo) fromAustria and the Sudanese state-owned oil company SudapetLtd

Before the start of explorations the area around Block5A was relatively peaceful When the oil exploration startedthe escalation of violence and war followed suit173 Accordingto the European Coilation on oil in Sudan Block 5A ldquobecamethe scene of intense fighting and gross human rightsviolations as soon as the Lundin Consortium started oilexploration activities on the groundrdquo Right from thebeginning there are reports of significant war and violence

172 ECOS 2010 Unpaid debt The Legacy of Lundin Petronas and OMV inSudan 1997-2003 Press Release httpwwwecosonlineorgreports2010Press_release_UNPAID_DEBT

173 ECOS 2010 Unpaid debt The Legacy of Lundin Petronas and OMV inSudan 1997-2003 httpwwwecosonlineorgreports2010UNPAID_DEBT_textonlywebpdf

65

3 SOUTH SUDAN THE OIL WAY

where villages and towns were burnt and looted Tens ofthousands of people in Block 5A were also moved out fromthe exploration areas

In 1999 the Lundin Group discovered major reserves ofoil This accelerated the Government desire to control allthe areas surrounding the well and the infighting intensifiedLundinrsquos explorations in Block 5A had to be suspended twicedue to insecurity174

The consequences of all the violence towards thepopulation which were in the middle of the power battlefor controlling Block 5A were severe abuse of all humanrights and war crimes More than 10000 people were killedalmost 160000 displaced with thousands of peoplepermanently uprooted from their villages hundreds ofthousands of cattle lost or looted destruction of churchesschools markets medical clinics and many otherincalculable moral damage and inmense loss of income175

Talisman Energy accused of complicity with forceddisplacements

A Canadian company Talisman Energy which at that timewas considered to be the largest independent oil and gascompany in Canada has been accused of indirectly helpingto exacerbate the war and of being complicit in human rightsabuses and crimes against humanity176 Talisman has a 25

174 HRW 2003 Ibidem175 ECOS 2010 Unpaid debt Ibidem See also Medecins sans frontieres

2002 Violence health and access to aid in Unity Statewestern uppernile Sudan httpwwwdoctorswithoutbordersorgsitesusafilessudan_04-2002pdf

176 Africa files 2000 Corporate immunity for oiling repression Talismanin Sudan httpwwwafricafilesorgarticleaspID=621

66

LIVING IN FEAR

stake in the Greater Nile Oil Project Company (GNOPC) aninitiative located in south-central Sudan with threeadditional partners the national petroleum company ofChina (40) the national oil company of Malaysia (30)and the national petroleum company of Sudan (5)177

There were many allegations that people were forcefullydisplaced in the area of the oil field ran by Talisman UNreported that accusations were made on Talisman of ldquobeingaccomplice of human rights abuses in Upper Nile so as toguarantee security for its oil operationsrdquo178

Moreover a report from the Canadian Foreign AffairsMnistry ndashthe Harker Report ndash which undertook a mission toSudan described with concern that fighting was intense inthe areas of oil development in general and that oilextraction may have contributed to relocation of civiliansby force179

Violence and the fear of it impact immediatelyon the peoplersquos use of the land and result in foodinsecurity which in turn propels movement ordisplacement

Contradicting that oil is at stake in the displacement issueTalisman explained that displacement was a result of an inter-tribal issue Once again the Harker report concluded thatthe displacement was because of oil

177 Africa files 2000 Ibidem178 UN Security Council 2000 Interim report of the Special Rapporteur of

the Commission on Human Rights on the situation of human rights inthe Sudan A55374

179 Canadian Ministry of Foreign Affairs 2000 Human Security in SudanThe Report of Canadian Assessment Mission httpwwwecosonlineorgreports2000Human20Security20in20Sudanpdf

67

3 SOUTH SUDAN THE OIL WAY

ldquoFor Talisman so very much seems to be explained as merelyan inter-tribal problem but displacement has gone on andis still going on and in Ruweng County it is hard to denythat displacement is now and has been for some timebecause of oilrdquo180

Talisman Energy decided in 2002 to end its controversialfour-year investment in Sudan by selling its 25 percent stakein the Greater Nile Petroleum Operating Company to anIndian firm Most of the rumours is that the reasons for thiswas the strong pressure from the US particularly to end itswork in Sudan in order to stop indirectly supporting theGovernment in Sudan with its oil revenue181

The oil way developing what

Sharing the wealth with the Sudanese people The resourcecurse again

As said before 98 of the governmentrsquos revenue comesfrom oil production royalties and South Sudan sits on thethird-largest oil reserves in Africa182 It was estimated in 2011that South Sudan controlled 75 of the overall oil productionof Sudan and South Sudan altogether ndasharound 500000barrels per day However South Sudan remains dependenton the North for processing refinement and export to theRed Sea

180 Canadian Ministry of Foreign Affairs 2000 Ibidem181 New York Times 2002 Talisman to sell its stake in company in Sudan

httpwwwnytimescom20021031businesstalisman-to-sell-its-stake-in-company-in-sudanhtml

182 Africa Business Initiative 2011 Investment climate upate Sudanhttpswwwuschambercomsitesdefaultfileslegacyinternationalafricafiles16920_AfricaNewsletter_Sudanpdf

68

LIVING IN FEAR

Paradoxically South Sudan is considered a fragile StateSitting on oil as has occured to many other countries acrossAfrica and abroad does not guarantee wealth for the majorityof the population A 2013 report concluded that ldquoover thelast decade Sudan has been the largest recipient ofhumanitarian assistance by some distance receiving US$106 billion over the periodrdquo183 90 per cent of the populationearn less than a dollar a day184

Oil money through the State budget is expected to serveto finance all the key governmental activities of the Statesuch as agriculture health infrastructures and educationDespite the fact that the benefits from oil are substantialthere are numerous questions arising about the destiny ofall the oil money For instance how could it be explainedthat one of the sectors more financed is the military andsecurity apparatus Since South Sudanrsquos independence theGovernment has allocated 38 of oil revenue to the militaryand security services with only 10 and 7 ininfrastructures and education respectively185 In 2012 SouthSudan was the among top 8 African countries having militaryexpenditure of almost $1 billion186 For instance TheEconomist reports that South Sudan bought 100 Ukrainian

183 Global humanitarian assistance 2013 Global humanitarian assistancehttpwwwglobalhumanitarianassistanceorgwp-contentuploads201307GHA-Report-2013pdf

184 Kebede 2014 The role of oil in South Sudanhttpswwwruoruottawacabitstream10393315631KEBEDE20Solomon2020145pdf

185 The Guardian 2014 South Suan is divided by the spoils of oil notethnicity httpwwwtheguardiancomcommentisfree2014jan14south-sudan-divided-oil-ethnicity-violence

186 LAVDC 2014 Les quatre puissances militaires regionales dacuteAfriquehttpwwwlavdcnetportailles-quatre-puissances-militaires-regionales-dafrique

69

3 SOUTH SUDAN THE OIL WAY

T-72 tanks187 At the same time agriculture and livestock hasbeen completely neglected despite the fact that more than80 of the population depend on that sector for fulfiliingtheir basic needs

Where the money goes

Daniel Wuor Joak former MP in South Sudan LegislativeAssembly and Minister of Education Science and Technologyin Upper Nile State claims that between 2005 and 2014both the Government of South Sudan (GOSS) and theRepublic of South Sudan (RSS) have been receiving onaverage not less than two billion of USD per year Somehave already manifested the unclarities over the destiny ofall that money as described by Mr Wuor Joak

Since 2005 upwards both the GOSS and RSS havebeen receiving no less than 18 billion USD in oilrevenues without implementing any majordevelopmental projects like roads network linkingdifferent States in South Sudan conducive learningschools from basics to universities level referralmedical facilities clean drinking water in remoteareas throughout the country setting up vibrantand credible institutions which can adhere to rulesof law All these things have not been implementeddue to poor system of governance under leadershipof Salva Kiir Mayardit Most of the counties have

187 The Economist 2014 Arms and the African

70

LIVING IN FEAR

no roads linking them with their State capitals andlack schools health centres clean drinking wateretc South Sudanese population in the rural areasthroughout the country are still living in the sameconditions as they were under Khartoumrsquos rule interms of scarcity of development188

Speaking more directly Kebede made firm remarks aboutthe overall situation in South Sudan

In general poverty corruption bad governance andviolence characterized the resource curse in SouthSudan A relatively small group of elite capturesvast wealth while leaving much of their societywithout access to the minimum resource necessaryfor long term wellbeing As a result South Sudanremains one of the worldacutes least-developedcountries despite its oil (hellip) hellipmuch of the oilrevenue has been squandered189

188 Wuor Joak 2014 Major Causes of the Current Conflict in Sudan SouthSudan News Agency

189 Kebede 2014 The role of oil in South Sudanhttpsw w w r u o r u o t t a w a c a b i t s t r e a m 1 0 3 9 3 3 1 5 6 3 1 KEBEDE20Solomon2020145pdf

71

3 SOUTH SUDAN THE OIL WAY

Even before the current tensions Bentiu saw little benefitfrom oil The streets are unpaved and covered with trashelectricity is scarce reserved for those with privategenerators () Most expect more violence Bentiu hasbecome more militarized with armed soldiers placed atcheck points and at the bridge Troops are constantlymoving to the front Weapons are being flown into theairport

ldquoThe oil is a curse ldquoMohammed Abdurahman Kili 56mumbled from his hospital bed his body covered withburns He was inside his shop in a crowded market onthe edge of town when a Sudanese warplane attackedkilling a 9-year-old child and another person and settinghis shop on fire

Washington Post 2012

President Salva Kiir recognized in 2012 that corrupt officialshad stolen from the people of South Sudan and the amountlost or taken by lead government and military officials mightbe as much as $4 billion190 Kiir sent a letter to 75 SouthSudanese officials or individuals close to the governmentasking them return all the amount lost The letter describedin general terms how the money got ldquolostrdquo

An estimated $4 billion are unaccounted for orsimply put stolen by current and former officialsas well as corrupt individuals with close ties togovernment officials Most of these funds have beentaken out of the country and deposited in foreignaccounts Some have purchased properties oftenpaid in cash191

190 Ibidem191 Paanluel Wel South Sudanese bloggers httppaanluelwelcom2012

0601letter-from-president-kiir-on-corruption-4-billion-dollars-stolen192 Sudan Tribune 2013 South Sudanacutes Kiir accuses army of corruption

72

LIVING IN FEAR

A year later Kiir accused the armed forces of being corruptHe said that despite the big budget allocations made to thearmy there were even no ldquovehicles to transport soldiers onmissionsrdquo192 Two years later the issue remained unclearand the names of the officials referred to in the letter wereyet to be disclosed However Kiir accused Machar of beingresponsible for a lot of corrupted activities in the country193

Machar responded to Kiir by saying that his claims wereunfounded and then also accusing him of such practices194

It seems South Sudan epitomises all the features of theresource curse argued in Chapter 1195 How can the corruptionbe prevented How can the money go to the people It isalso important to note that the oil sector provides littleemployment to the people of South Sudan Most of thehousehold income and employment is generated in theagriculture and farming sector primarily196 Would investingin other sectors like agriculture that provide real wealth tothe people make a difference

193 Sudan Tribune 2014 South Sudan rebel leader should face corruptioncharges Kiir

194 Sudan Tribune 2014 South Sudan Macharacutes Rebentildes dismiss corruptionaccusations no spiritual powers httpallafricacomstories201407221384html

195 Kebede 2014 The role of oil in South Sudan Ibidem196 Tizikara et al 2012 Post-conflict development of Agriculture in South

Sudan perspective on approaches to capacity strenghtening httpwwwerailsnetimagesfarasecretariatkigali-movementfileKigali20MovementPost-Coflict20Agriculture_South20Sudanpdf

73

3 SOUTH SUDAN THE OIL WAY

Environment

As experienced in oilfileds in other parts of the world the oilfields here are also leaving a significant impact on theenvironment and local communities A three year study inThar Jath and Mala fields in Unity State show thatgroundwater is very polluted making the water unsafe forhuman consumption197 The study made by a team of SouthSudanese and German geologists concluded that water usedby 180000 people was too salty to drink and containdangerous amounts of heavy metals198

In many occasions the oil fields that causeenvironmental pollution are even abandoned due to the warSome observers identified that oil pipelines damaged duringthe conflict were leaking199

South Sudan must produce for its needs

In 2015 the Minister of Finance of South Sudan David DengAthorbei made a statement saying that the country shouldbe self-sufficient in agriculture terms and in addition itneeds to increase its non-oil revenue and to achieve peace200

197 Rueskamp et al 2014 Effect of oil exploration and production on thesalinity of a marginally permeable aquifer system in the Thar Jath-Mala- and Unity Oil fields Southern Sudan Zbl Geol Palaont Teil IJ

198 Radio Tamazuj 2015 Study Direct link between oil exploration andwater pollution in Unity httpsradiotamazujorgenarticlestudy-E28098direct-linkE28099-between-oil-exploration-and-water-pollution-unity

199 Star Africa 2014 South Sudan Oil leaks cause pollution fears httpenstarafricacomnewsssudan-oil-leaks-cause-pollution-fearshtml

200 Bloomberg 2015 South Sudan Finance Minister says food output canoffset oil httpwwwbloombergcomnewsarticles2015-01-20south-sudan-finance-minister-says-food-output-can-offset-oil-1-

74

LIVING IN FEAR

He also made a call for a reduction of the countryrsquos relianceon agriculture imports particularly in the context of aneconomy affected by the plunge in global oil prices201

Peter Biar Ajak from the Center for Strategic Analysis andResearch in Juba illustrates the macroeconomic weaknessesof South Sudan today because of its oil dependence

South Sudanrsquos oil-dependent economy is nearingcatastrophe The production of crude oil has droppedby about 35 percent since the conflict began Thatcombined with a drop of roughly 45 percent in globaloil prices since the summer has meant a substantialreduction in the governmentrsquos oil revenues andenormous fiscal and budgetary ressures

Since South Sudan exports almost nothing asidefrom oil and imports almost everything else tradeand monetary policy have also been buffeted byfalling oil revenues Access to foreign currency hasbecome extremely limited The prices of manyimported goods have risen There are shortages ofpetrol which must be imported because SouthSudan has no refinery202

Indeed a dynamic agriculture sector may be key for peaceand development in South Sudan More than 95 of thecountryrsquos population is dependent on farming fishing orherding to meet their daily food needs and income as well203

201 Bloomberg 2015 Ibidem202 Biar Ajak 2015Sanctions for peace in South Sudan The New York Times

January 7th203 FAO in emergencies httpwwwfaoorgemergenciescountries

detailenc147627

75

3 SOUTH SUDAN THE OIL WAY

204 Business Daily 2011 South Sudanrsquos vast agricultural sector potentialuntapped

205 Norwegian Refugee Council 2015 Conflict a cause of hunger in SouthSudan httpreliefwebintreportsouth-sudanconflict-cause-hunger-south-sudan OCHA 2015 South Sudan Crisis Situation reportn 74 httpreliefwebintsitesreliefwebintfilesresourcesSouth_Sudan_Situation_Report_No_74pdf

206 OECD 2014 Fragile States 2014 Domestic revenue mobilisation infragile states httpwwwoecdorgdacgovernance-peaceconflictandfragilitydocsFSR-2014pdf

South Sudan has good soil and climatic conditions and morethan 70 of its land area is suitable for crop productionThere are many that believe that the investment in theagriculture sector has more potential than oil however thisthinking has not received due attention from local andforeign investors204 Efforts towards making agriculture workare vital for peace and stabililty in the country It is urgentlyneeded to work on this area particularly when at presentthere are 25 million in Sudan at risk of starvation205 andaround one third of the population are food insecure plusmore than a million displaced

The dependency on income from natural resourcesleaves fragile states vulnerable It exposes them toshocks in commodity prices ndash as demonstrated bythe sudden fall in commodity prices in 2009following the 2002-2008 boom Neither is it asustainable source of incomeSouth Sudanrsquos oilproduction for instance is projected to decreasesteadily in future years and become negligible by2035

Source OECD206

76

LIVING IN FEAR

207 UN Security Council 2015 Resolution 2206 SRES2006(2015)httpwwwunorggasearchview_docaspsymbol=SRES2206 (2015)

208 Sudan Tribune 2015 South Sudan unhappy with US support for sanctionshttpwwwsudantribunecomspipphparticle54232

209 Washington Post 2014 US appears unable to pull South Sudan backfrom the brink of civil war httpwwwwashingtonpostcomworldus-appears-unable-to-pull-south-sudan-back-from-the-brink-of-civil-w a r 2 0 1 4 0 5 0 3 d 9 2 8 0 b d a - 3 8 6 b - 4 2 4 9 - 9 4 e 0 -b5292610e5bb_storyhtml

210 Ibidem

US fallen dream

In 2015 the UN imposed a travel ban and assets freeze againstindividuals or entities which engaged in or provided supportfor acts that threaten peace security and stability of SouthSudan207 The US was behind the draft and the submission ofthe resolution This resolution prompted an angry reactionfrom the South Sudanese The South Sudanese presidencywas said to be extremely disappointed about the US ledmove208

In the past the relationship between the US and SouthSudan was completely diferent The United States was themain promoter and supporter of the worldrsquos newest nationThe Washington Post for instance asserted that ldquoSouth Sudanowes its existence to the United Statesrdquo209 The expectationscreated were high before its started its independence andsome believed that Sudan would be able to manage thecountry breaking the so-called ldquoAfrican model of pettyrivalries corruption and oppressionrdquo210 Despite all the hopesput on the young nation as of today no solution has beenfound to the ongoing war

77

3 SOUTH SUDAN THE OIL WAY

The US was the largest donor to Sudan in the years priorto independence providing 339 of the total aid to Sudanbetween 2000 to 2009211 The United States (US$472million) was the largest donor of humanitarian assistanceto South Sudan in 2012 followed by the United Kingdom(US$96 million)212 For many years Sudan was the thirdlargest recipient of US aid only after Iraq and Afghanistan213

The inteligence and information systems of theAmericans on the ground in Sudan seemed to have beenrelatively good214hellip however how come they did not foreseethat South Sudan was quickly descending once again on theavenue of a country at civil war For instance the problemsbetween President Salva Kiir and his deputy were not newAlready more than two years before the civil war started inJune 2011 in a speech in Juba the President accused hisDeputy Riek Machar ldquoof running a parallel governmentwithin the governmentrdquo215 Couldnrsquot they have preventedanother conflict Why did they fall into ridiculouscontradictions as the one recently revealed via wikileakssuggesting that the US was funding both armies in

211 Development initiatives (undated) Sudan Aid Factsheet 1995-2009httpwwwglobalhumanitarianassistanceorgwp-contentuploads201102Sudan-Aid-Factsheet-2011pdf

212 See global humanitarian assistamce ebpage httpwwwglobalhumanitarianassistanceorgcountryprofilesouth-sudan

213 The Atlantic 2011 US played key role in Southern Sudanacutes longjourney to Independence

214 The Global Intelligence files 2013 SudanUSMIL ndash SPLA trying toget US to hook it up httpssearchwikileaksorggifilesviewemailid=5047664

215 Sudan Tribune 2011 Salva Kiir exposes his rift with Machar overSouth Sudan transitional constitution httpssearchwikileaksorggifilesviewemailid=3831682

78

LIVING IN FEAR

contention the Government force of Salva Kiir and the rebelsof Riek Machar216 Why are both paid by the UShellip to dowhat As one reporter questioned why are they ldquopaid tokill each otherrdquo217

216 RT 2015 US officials tussle over arms embargo sanctions in oil-flushSouth Sudan httprtcomusa226387-south-sudan-sanctions-war

217 RT 2015 Ibidem

Seven Million

ldquoA peaceful DR Congo could transform Africa almostovernight but is there a way outrdquo218

There is always a way out However peace is not an easything particularly under certain circunstances When youhave lost your father your mother your uncle your sisterwhat else can you lose Can you still believe in peaceTwoof the bloodiest conflicts in recent decades in the world haveoccurred in Africa The Second Civil War in Sudan has leftaproximately two million casualties and the conflict in DRCis estimated to have snuffed life out of no less than fivemillion people

How many more

How does one begin to quantify the dead when they are inthe hundreds of thousands No less than seven million livesof Congolese and South Sudanese were taken away due towars and conflicts fuelled by natural resources How many

218 African Business 2009 DR Congo $24 trillion fortune

4

79

80

LIVING IN FEAR

more How many more before the world wakes up to acteffectively towards ending all those conflictsProbably unless you are one survivor from those experiencesyou would never be truly able to understand what it meansto lose entire families and friends you would never be trulyable as well to understand what it means to feel fear foryour life and the life of your close relatives

When you start counting sometimes you forget thatpeople are not numbers There are names behind thenumbers A family A life As we write this book people aredying needlessly in the DRC and in South Sudan Calculatingdead people due to conflicts in this part of the world is verydifficult due to statistical challenges and so it is conceivablethat probably the number of victims is much larger than sevenmillion (7000000) When would the volume of bloodshedthe number of lives taken be enough for the belligerentofficials to make real peace How many more should fallAthousand more Another one million The pain sadness anddestruction that those conflicts generate should not beaccepted any more

Oil and minerals the main cause of ongoingconflicts and war

Some authors argue that minerals and oil are not a cause ofwar but ldquocompetition for them could amplify and expediteconflictrdquo219 In this book as chapter two and three haveshown oil and minerals are the main motor behind theconflict in recent decades in DRC and South Sudan It would

219 UN Security Council 2013 Natural resource wealth fails to translateinto equivalent benefits for people fuelling conflict to instability DeputySecretary-General tells Security Council httpwwwunorgpressen2013sc11037dochtm

81

4 SEVEN MILLION

be very difficult if not impossible to expect those conflictsif their territories were resource poor Oil and minerals arefull of blood An activist poet wrote We Thought it was Oilbut it was Blood220 Although he was writing about the NigerDelta situation we see a universal application in that phrase

In both countries described there were other elements andfactors to take into consideration however it can be saidthat control over natural resources was the most importantcause on both conflicts in DRC and South Sudan In bothcases oil and minerals fuelled those wars and in manyoccasions these resources have inspired fueled and sustainedarmies operating in the territories of both countries

A Statersquos wealth means nothing if not shared withthe majority of the population

DRC and South Sudan ought to be wealthy countriesUnfortunately having a wealth of natural resources doesnot mean that it belongs to the citizens or that the wealthwould be shared among the population of a given State AState is a nation or territory considered as an organizedpolitical community under one government221 A goodgovernment should be the one that takes care of its citizensand shares the wealth among its citizens and not justdistribute it among an elite Jan Eliasson Deputy Secretary-General of the United Nations stated that ldquoin too manycountries a wealth of resources including timber oil coaldiamonds and precious metals failed to translate into

220 Nnimmo Bassey 1998 We Thought it was Oil but it was Blood IbadanKraft Books

221 See httpwwwoxforddictionariescomdefinitionenglishstate

82

LIVING IN FEAR

equivalent wealth for the people Only a powerful fewbenefitrdquo222

The State is expected to perform an adequateimplementation of human rights granted by several UNdeclarations and conventions including the right to foodright to health right to shelter right to clothing right towork farmersacute rights etc Paradoxically the violations andabuses of human rights have been constant in DRC and SouthSudan Both countries have suffered from acts of war oncivilian population both have as well a large number ofdisplaced people with no access to food without healthcarewithout shelter and without any work Both countries havemore than 90 people living below one dollar per day andthey are considered among least developed countries andfragile states Due to this both are some of the biggestrecipients of humanitarian aid Moreover both have hugesecurity problems shown for instance by the presence ofUN peacekeeping operations Out of the 17th worldwideongoing peacekeeping UN operations three are in DRCSouth Sudan and in Abyeia disputed territory between Sudanand South Sudan

They possess resources that have a huge monetary valueand that in most cases have the involvement of foreigncountries and corporations and other stakeholders of theprivate sector which are ready to pay enormous sums ofmoney to gain control of the natural resources belonging toother countries If no war or significant armed conflict takes

222 UN Security Council 2013 Natural resource wealth fails to translateinto equivalent benefits for people fuelling conflict to instability DeputySecretary-General tells Security Council httpwwwunorgpressen2013sc11037dochtm

83

4 SEVEN MILLION

place common elements among those countries that possesssuch resources in Africa is the existence of massive povertyand corruption and in most cases this is contrasted withmega-rich individuals Letacutes take for instance the case ofoil-rich Angola where the president and his daughter possessmultibillionaire fortunes while at the same time the majorityof the country population is living on less than two dollarsper day223

Greed power and control over natural resources

It must be noted as well that often oil and minerals involvemillions and multibillion profits With such large sums ofmoney greed power and control take the driving seat ofwhatever country government in the world When theprospects for such money flow arrives many leaders andelites start distancing themselves from the majority of thepopulation and stop thinking about the welfare of their ownpeople

At the centre of most of the conflicts in both countriesare struggles for power and control of natural resourcesMinerals and oils are the main cause of the ongoing conflictsand wars Unfortunately most commentators qualify therecent civil war in South Sudan as a ldquopower strugglerdquo withoutfurther qualifications In South Sudan who gets the oil getsthe power Therefore the power struggle is a war overnatural resources for control of the oil in the country Areporter affirmed that ldquowhoever controls South Sudanrsquos oiltherefore could seize the upper hand in the battle for

223 Forbes 2013 Daddyacutes girl how an African ldquoprincessrdquo banked $3 billionin a country living on $2 day httpwwwforbescomsiteskerryadolan20130814how-isabel-dos-santos-took-the-short-route-to-become-africas-richest-woman

84

LIVING IN FEAR

224 France 24 2013 Battle for oil adds new dimension to South SudanConflict httpwwwfrance24comen20131227-battle-oil-adds-new-dimension-south-sudan-conflict

225 OECD 2014 Fragile States 2014 Domestic revenue mobilisation infragile states httpwwwoecdorgdacgovernance-peaceconflictandfragilitydocsFSR-2014pdf

powerrdquo224 In both countriesrsquo non-renewable natural resourcetook a dominant share of the fiscal revenue of DRC andSouth Sudan ndash 82 in the DRC and 98 in South Sudan225

Who controls those resources controls the countryThe case of South Sudan where the president has

recognized the disappearance of $4 billion by corruptindividuals is compelling President Salva Kiir pinpointed thespirit behind the rot ldquoOnce we got to power we forgot whatwe fought for and began to enrich ourselves at the expenseof our peoplerdquo This might also include him as well becauseit is difficult to imagine that such huge amount of money couldbe stolen without the leader noticing anything at all

Greed for minerals and oil is at the heart of the massivedeath toll and impoverishment of the Congolese and SouthSudanese people in recent decades It can be affirmed quitecomfortably that if the Eastern part of the DRC would havenot sat on huge mineral reserves it would be very difficultto imagine all the conflicts that have occurred in that zoneIt can be affirmed as well that without oil ongoing wars inSouth Sudan might most probably never have occured

Peace is the only way forward

Achieving peace is a complex issue To create peace thereare many issues to resolve with all stakeholders such as

85

4 SEVEN MILLION

mutual accusations of support to rebel groups226 goodgovernance transparency demobilisation and disarmamentof local militia etc227

A positive but vital first step is that there are calls at veryhigh levels in both countries and at international fora Thismust be followed with open debate on the core causes of theconflict and ways of achieving reconciliation It does notappear that lasting peace can be achieved otherwise In thatprocess the people need to be put at the centre ofdevelopment policies and actions in both countries in orderto stop the plunder reverse environmental degradation andfight poverty As long as the political military and corporateelite maintain their control of the natural resources of thecountry the devastating plunder will continue to the benefitof only such elite and a handful of corporations

226 UN Security Council 2015 Reports of the Secretary-General on theSudan and South Sudan SPV7392

227 The Guardian 2014 South Sudan is divided by the spoils of oil notethnicity httpwwwtheguardiancomcommentisfree2014jan14south-sudan-divided-oil-ethnicity-violence

INDEX

AAbyei Joint Oversight

Committee (AJOC) 47Abyei Police Service 46 62Abyei 43-home of the Ngok Dinka 43

45Africa 18 20 see minerals

-and wars at the greatlakes 20 25-armed groups in 26-criminal networks in 26-death in 20-exploitation naturalresources in 18-militias in 26-minerals in 20-poverty in 20-wealth in 20

Africarsquos wealth 14-and resource curse 14-blessing or curse 14

African Business 22African Development Bank

(AfDB) 16 17

African Unionrsquos (AU) Peaceand Security Council 48

Algeria 15Allied Democratic Forces

(ADF) 25 28-in North Kivu 25

American Mineral Fields(AMF) 36

AngloAmerican corporation35

AngloGold Ashanti 35Anvil Mining 36Armed Forces of the DRC

(FARDC) 26Athorbei David Deng 73Auty Richard 14

BBBC 18Blom Ulrika 59Blue Nile 45

CCentral African Republic 7China National Petroleum

Corporation 49

86

INDEX

87

Citibank NY 36Clinton Bill 24 36Conflict minerals 30 see

Rwanda-legitimate exports of 30-smuggling of 30

Conflicts 7-and natural resources 7-causes of 10 80-uniqueness of 10

Congolese Government 18

DDemocratic Republic of

Congo (DRC) 7-85-and (MONUC) 29-greed for minerals in 32-UN peacekeeping opera-tion in 29

Diffra oil complex 47DR Congo 79

EEastern Congo 28

-insecurity in 28Eliasson Jan 81

-Deputy Secretary-Generalof the United Nations 81

European Coalition on Oil inSudan (ECOS) 63

Exploration GmbH (OMV)64

Exxon corporate 15

FFirst Sudanese Civil War 42Forces deacutemocratiques de

libeacuteration du Rwanda(FDLR) 28

GGabon 18

-oil in 18Gertler Dan 12 13Ghana 18

-oil in 18Giambrone Antonino 38Glencore Anglo-Swiss 35Government of South Sudan

(GOSS) 69Government of Sudan (GoS)

62Great War of Africa 23Greater Nile Oil Project

Company (GNOPC) 6667

Guinea Equatorial 15

HHague 44Permanent Court of Arbitra-

tion in 44Human Rights Watch 55

IIMF 22International Rescue Commi-

ttee 23

LIVING IN FEAR

88

JJoak Daniel Wuor 69Juba 74

-Center for StrategicAnalysis and Research in74

Katanga Minister of Planning22

KKenya 19Kerry John 24Kiir Salva 43 84

LLibya 7Lumumba Patrice 13 20Lundin Oil Consortium 63

MMachar Riek 43 57 77 78Madagascar 16Mala fields 73Malakal 59Mali 7Mayardit Salva Kiir 69McKinney Cynthia Ann 23

-US Congresswomanfrom the Democratic Party23

McMurrough Mike 36McNamara Robert 37

-as World Bank President37

Minerals 20 see Africa-and death 20

-and poverty 20-and wars at the GreatLakes 20-and wealth 20

Mozambique 18-gas in 18

Muloni Irene 18

NNationalist and Integrationist

Front (FNI) 36Natural resources 8 83 see

conflicts-and conflict 8-and greed 83-and power 83-and wars 8-control over 83

Niger Delta 16-oil is a curse for 16

N o n - g o v e r n m e n t a lorganisations (NGOs) 12

Non-OPEC African oilproducer 48

Norwegian Refugee Council59

OOECD Guidelines for

Multinational Enterprises37

Oil 48-and geopolitics 48

PPeace 84

INDEX

89

-as way forward 84Petronas Carigali Overseas

Sdn Bhd (Petronas) 64Powell Colin 58PR Newswire 30President Kabila 24President Obama 24

RRDC Mining Code 35Republic of South Sudan

(RSS) 69Rio Tintorsquos QMM 16Ruweng County 67Rwanda 24 31

-conflict minerals from 31

SSecond Congo War 24 32

34Second Sudanese Civil War

42Somalia 7South Kordofan 45South Sudan Civil War 57South Sudan 11 18 19 41

-Dinka ethnic group in 4357-Nuer ethnic group in 4357the oil way 41-UN peacekeeping opera-tions 61

South Sudanese Civil War 58Sudan 79

-Second Civil War in 79

Sudan Armed Forces 46Sudan oil police 47Sudan Peoplersquos Liberation

Army (SPLA) 41 46 5462-civil wars and conflict in41

Sudan vs South Sudan 43-and Heglig battles 47-and peace agreement 43-main oil companies in 51-oil-centered conflict 46-Row over oil tariffs 51

Sudanese Civil War 52-and Addis AbabaAgreement 53-and Islamic law 53-causes of 52

Swedish oil company LundinOil AB (Lundin) 64

TTalisman Energy 65Thar Jath 73Transnational Corporations

(Tncs) 34-and the private sector 34

UUganda 19 24UN Interim Security Force for

Abyei (UNISFA)UN Mission in the Republic of

South Sudan (UNMISS)61 62

UN Organization Stabiliza-

LIVING IN FEAR

90

tion Mission in the DRC(MONUSCO) 29

UN peacekeeping operations11

UN Security Council 11UNICEF 59UNISFA 47United Nations Office of the

Special Adviser on Africa(OSAA) 8

United Nations SecurityCouncil 25

United Nations 13University of California

(UCLA) 54 55Upper Nile State 59 69US fallen dream 76

VVirunga National Park 18

WWar and conflict 58

-consequences of 58Wars and minerals 21

-cobalt 22-coltan 22-copper 22-diamond 22-gold 22-manganese 22-peace at last 21-timber 22-tin 22-zinc 22

Wau Shilluk 59We Thought it was Oil but it

was Blood 81Wealth 12 13

-for whom 13-quest for 12

World Heritage site 18Worldwatch 40

Page 8: LIVING IN FEAR - Health of Mother Earth Foundation...Les quatre puissances militaires regionales d´Afrique. 12 LAVDC. 2014. Les quatre puissances militaires regionales d´Afrique

10

LIVING IN FEAR

like Algeria and Angola Angolarsquos military spending rose byover 36 in just one year Another oil producer that hasmade significant outlays on military spending is Ghanawhich almost tripled its arms budget from $109 to $306million between 2012 and 201311 Not surprisingly DRC alsorecently augmented significantly their spending by 3412

Causes of conflicts

Often there is a trend to simplify one main cause for aparticular conflict such as religious ethnic or tribal oreconomicpolitical power struggles For example very oftenthe conflicts in Sudan have been described as religious warsbetween Northern Muslims and Christiananimists from theSouth Our analysis in Chapter 3 will illuminate a differentperspective In general wars and conflicts tend to besurrounded by multiple factors and causes some with moredominance than others It is precisely in that complexity ofelements and factors that we can find the reasons why acountry has embarked in wars and conflicts However atthe same time there is often one cause that is the prevalentand dominant one in each conflict This will also be examinedin the forthcoming chapters

Every conflict is unique

While conflicts may have similar elements every one of themis unique in its own way13 This book explores the generalrelation between wars conflicts and natural resourcesfocusing in particular on two African countries Democratic

11 LAVDC 2014 Les quatre puissances militaires regionales dacuteAfrique12 LAVDC 2014 Les quatre puissances militaires regionales dacuteAfrique13 Bongani 2012 lsquoNatural resources and conflict unlocking the

economic dimensioacuten of peace-building in Africarsquo Briefing n 74

11

PROLOGUE

Republic of Congo (DRC) and South Sudan Both countrieshave gone through some of the bloodiest wars and conflictsin recent decades in the world Peace efforts have been madeat the UN level to try to minimize the conflict situations In2014 both countries had UN peacekeeping operationsmandated by the UN Security Council to promote protectand monitor human rights in DRC and South Sudan14 Weaim to provide a succinct but comprehensive overview ofboth conflicts and show their relation with natural resources

14 In 2014 there were ongoing 17 peacekeeping operations under theUN There were DRC and South Sudan ndashAbyei- See Office of theHigh Commissioner for Human Rights httpwwwohchrorgENCountriesPagesPeaceMissionsIndexaspx

LIVING IN FEAR

12

The Quest for WealthldquoDan Gertler is essentially looting Congo at the expense of

its peoplerdquo15

If there is wealth in DRC Dan Gertler has found a goodpiece of it The 41-years-old Israeli-born Dan Getler has adeclared fortune estimated at $144 billion While he isformally based in Bnei Brak Israel he has made his billiondollars fortune in the mining sector of DRC He is also verywell known for being a close friend of President JosephKabila16 Gertler is criticized over his way of doing businessand has been accused by non-governmental organisations(NGOs) to have obtained mining assets on the cheap bycavorting with politicians17 Congolese NGOs have said abouthim for example that ldquohe has political connections so statecompanies sell him mines for low prices and he sells themon for huge profitsrdquo The quest for wealth attracts manyGertler-like types to the African continent one of thewealthiest places of the planet

1

15 Affirmation of Jean Pierre Muteba head of a group of NGOs thatmonitor mining in DRC at The Washington Post 2012 Dan Gertlerearns billions as mine deals fail to enrich Congo

16 Forbes profile of Dan Getler httpwwwforbescomprofiledan-gertler

17 Forbes Ibiacutedem

13

1 THE QUEST FOR WEALTH

Wealth for whom

Everybody wants to be wealthier however not everybodyshares the same definition of wealth18One definition ofwealth is that it is a ldquotangible or intangible thing that makesa person family or group better offrdquo19 Under this definitionoil or a mineral would be considered wealth if it makes aperson family or group better off Certainly a person likeMr Getler is obviously doing better off in terms of moneywith his work and therefore he is wealthier under thoseterms Howeverthe resources that make Getler wealthy havenot necessarily benefited Congoacutes people Minerals or oilas said by Patrice Lumumba belongs to the people of DRCit is the responsbility of the State to manage its benefits andto share it among the population The wealth of a country isthe wealth of their people

However the wealth of natural resources revenues doesnot frequently bring benefits to the majority of thepopulation but rather a handful of elites The United Nationsoffice of the Special Adviser on Africa affirmed that the richesderived from the ldquoexploitation of natural resources are notonly used for sustainaing armies but also for personalenrichment and building political supportrdquo20 In additionthe office added that ldquocontrol over natural resources andtheir revenues often stay in the hands of a small elite and isnot used for broader development of the countryrdquo21

18 CNBC 2013 what is wealthy $5 million and plenty of cash19 See the business dictionary httpwwwbusinessdictionarycom

definitionwealthhtml20 United Nations office of the Special Adviser on Africa 2006 Natural

resources and conflicts in Africa transforming a peace liability intoa peace asset Conference Report

21 United Nations office of the Special Adviser on Africa 2006 Ibidem

LIVING IN FEAR

14

Africarsquos wealth blessing or curse

The resource curse

In a sea of wealth there are often oceans of povertyResource-rich countries are often accompanied by slowerthan expected economic growth poor economicdiversification gloomy social welfare indicators devastatingenvironmental impacts rampant corruption high inequalityhuge impoverishment bad governance and as said beforewars and conflicts22 This situation has been termed thetheory of ldquoresource courserdquo which term was used first in1993 by Richard Auty23 In 1995 the theory of the ldquoresourcecurserdquo was popularized thanks to an article of Sachs andWarner24 Both authors showed in their paper that ldquoeconomieswith a high ratio of natural resource exports to GDP in 1971tended to have low growth rates during the subsequentperiod 1971-1989rdquo From there a vast number of literaturehas been written on this matter and is divided between thosethat believe exploitation of natural resources is a curse andthose that believe that it can promote growth and

22 Mildner et al 2011 lsquoScarcity and abundance revisited a literaturereview on natural resources and conflictrsquo International Journal ofConflict and Violence Vol 5 Karl 2005 lsquoCovering oil a guide toEnergy and Developmentrsquo Understanding the resource curse opensociety institute

23 Time 2010 Brief history the resource curse httpcontenttimecomtimemagazinearticle09171199746000html

24 Sachs and Warner 1995 lsquoNatural resources and economic growthrsquoHarvard Institute for International Development

15

1 THE QUEST FOR WEALTH

development in developing countries25 Others for instanceprefer to use different terminology like Exxon corporatewhich has said ldquowe donacutet like to call it the oil curse weprefer governance curse We are private investors and it isnot our role to tell governments how to spend their moneyrdquo26

Africarsquos wealth

Africa is full of natural resources and there are manycountries considered as having a huge wealth Oil gasminerals timber fertile land water are often mentioned asthe riches of the continent However oil and minerals arethe favourites of some of the top leaders of the continentAngola with oil and diamonds Nigeria with oil GuineaEquatorial with oil Algeria with plenty of oil and gasdeposits DRC with minerals and South Sudan with oil justto name some of them

Many would think that all those States with lots of oiland mineral are very wealthy The truth is that although theStates are wealthy the countries are paradoxically full ofpoverty and their populations are not benefiting from thoseresources Moreover in many cases the wealth derived from

25 Pedro (undated) lsquoMainstreaming mineral wealth in growth andpoverty reduction strategiesrsquo Economic Commission for Africa PolicyPaper Ross 1999 lsquoThe political economy of the resource cursersquoWorld Politics n51 Hodler 2004 lsquoThe curse of natural resourcesin fractionalized countriesrsquo Economic department University ofBern SwitzerlandSwilling 2012 lsquoBeyond the resource curse fromresource wars to sustainable resource management in Africarsquo Paperpresented at the Winelands Conference on Integrity and GovernanceStellenbosch Pendergast et al 2008 lsquoCorruption and the curse ofNatural resourcesrsquo Department of Economics University of VictoriaDavis 2012 Replicating Sachs and Warner the 1997 Working PaperColorado School of Mines Neumayer 2004 Does the resource cursehold for growth in genuine income as well World Developmentvol 32

LIVING IN FEAR

16

oil and minerals mostly fuel wars and conflicts While somedie while some are displaced while some are injured orrape Some on the contrary are making money lots andlots of money hellip and while they make money they just puta blind eye on the horrors occurring outside the fence Thisis well described in the Harker report on the Sudanese warand the role of oil corporations ldquoIf the oil companies donrsquotknow whatrsquos going on theyrsquore not looking over the fencesof their compoundsrdquo27

Although some may believe that the importance of theoil and mineral sectors is the creation of jobs for thepopulation this has been denied by several authors

The oil gas and mining sectors are notoriously poorwhen it comes to job creation An offshore platformtapping deep-sea reserves will create few if anypositions for locals Only recently protests werereported outside Rio Tintorsquos QMM mineral sandsoperation in the south of Madagascar due to highlocal unemployment The best way to convertnatural resource wealth into jobs is to take theproceeds and invest in other more labor-intensiveindustries such as agriculture or manufacturing28

Nigeria provides a good example where communities living inthe Niger Delta have not benefited from oil extraction whichon the contrary has created serious conflicts as seen in Box 1

On the question of whether oil is a blesssing or a curse toAfrica the African Development Bank concluded that it is a

26 The Economist 2005 lsquoThe paradox of plentyrsquo27 Canadian Ministry of Foreign Affairs 2000 Human Security in

Sudan The report of Canadian Assessment Mission httpw w w e c o s o n l i n e o r g r e p o r t s 2 0 0 0 Human20Security20in20Sudanpdf

28Africa progress panel 2013 Africaacutes mineral wealth eternally cursedhttpwwwafricaprogresspanelorgafricas-mineral-wealth-eternally-cursed

17

1 THE QUEST FOR WEALTH

ldquohuge blessingrdquo29 It justifies that with the following analysis

We estimate that Africa has 120bn barrels of oilreserves no less than half of Saudi Arabia and 600million hectares of uncultivated arable land halfof the world total We at the African DevelopmentBank (AfDB) estimate that the continentrsquos naturalresources will contribute over $30bn per annumin government revenues over the next 20 years30

Box 1 Oil is a curse for the Niger Delta people

Most people think of oil states as wealthy states ButNigeria proves that sometimes the opposite is true It isAfricarsquos leading oil producer and yet it is one of theworldrsquos 20 poorest countries Whatrsquos more the peopleliving in the Niger Delta the countryrsquos oil-producingregion are among Nigeriarsquos most impoverishedcommunities with a large percentage of the populationhaving to survive on less than one dollar a day For thesepeople lsquoblack goldrsquo has not brought prosperity ordevelopment Instead it has increased corruption socialproblems environmental damage and armed conflictThe many billions of US dollars in oil revenue that havepoured into the country during its oil industryrsquos 50-yearhistory have completely bypassed these communitiesSource Petra Hannen 2011 lsquoBlessing our Coursersquo GIZmagazine akzent

29 African Development Bank 2013 lsquoAfricarsquos mineral wealth a blessingor a cursersquo httpwwwafdborgenblogsafdb-president-this-is-africas-hourpostafricas-mineral-wealth-a-blessing-or-a-curse-12336

30 African Development Bank 2013 Africaacutes mineral wealth a blessingor a curse httpwwwafdborgenblogsafdb-president-this-is-africas-hourpostafricas-mineral-wealth-a-blessing-or-a-curse-12336

LIVING IN FEAR

18

Africa continues the exploitation of its naturalresources

Most of the African Governments that discover naturalresources in their territory eagerly move forward with theexploration of those Therefore natural resources areexplored all over the continent oil in Ghana manganese inGabon gas in Mozambique just to name a few Often thereis little consideration of the destruction or the conflicts theseextractive activities bring For instance according to the BBCin March 2015 the Congolese Government consideredmodifying the boundaries of the Virunga National Park homeof gorilla mountains and World Heritage site to permit oilexploration activities31

DRC and South Sudan as well are exploring a joint projectnow DRC has a frontier with South Sudan in the Northeastpart of the country While historically both ndash referring alsoto Sudan ndash did not often have a common grounds after theIndependence of South Sudan in 2011 it appears possiblethat natural resources may unite them more closely IreneMuloni Minister for Energy and Minerals Development fromUganda announced in an interview in February 2015 thatSouth Sudan and the DRC have expressed interest in theconstruction of an oil pipeline of over 1000 km to the Kenyancoast32 Although yet to be implemented there have beendiscussions and plans to construct a pipeline that would unite

31 BBC 2015 DR Congo seeks Virunga park bounary httpwwwbbccomnewsworld-africa-31876577See also New York Times2014 Oil dispute takes a page from Congoacutes bloody past httpwwwnytimescom20141116worldoil-dispute-takes-a-page-from-congos-bloody-pasthtml_r=1

32 Platts 2015 South Sudan DR Congo interested in Ugandan crudeoil export pipeline minister httpwwwplattscomlatest-newsoilkampalasouth-sudan-dr-congo-interested-in-ugandan-crude-26025080

19

1 THE QUEST FOR WEALTH

oil production and distribution in several African countriesincluding South Sudan Uganda Kenya Democratic Republicof Congo (DRC) and maybe others33

The forthcoming chapters will develop more elementsaround this topic in order to conclude some final remarkswith the particular case studies of DRC and South Sudan

33 The Economist 2013 Pipeline poacuteker httpwwweconomistcomnewsmiddle-east-and-africa21578402-east-africa-danger-throwing-away-part-its-new-found-oil

20

LIVING IN FEAR

Minerals and Wars at the GreatLakes Wealth Death and Massive

Poverty in the Heart of Africa

Our internal difficulties tribal war and the nucleiof political opposition seemed to have beenaccidentally concentrated in the regions with ourrichest mineral and power resources We know howall this was organised and in particular whosupports it today in our house

Our Katanga because of its uranium copper andgold and our Bakwanga in Kasai because of itsdiamonds have become hotbeds of imperialistintrigues The object of these intrigues is torecapture economic control of our country

Patrice Lumumba speech in Leopoldville in August 25th1960 34

34 Speech at the opening of the All-African Conference in Leopoldville in1960 See httpwwwassatashakurorgforumshoulders-our-freedom-fighters42970-collected-speeches-writings-patrice-lumumbahtml

2

21

2 MINERALS AND WARS AT THE GREAT LAKES

Lumumba the first democratically elected Prime Ministerof the Republic of Congo gave a speech in 1960 that wasremarkably prescient of the fate of Democratic Republic ofCongo (DRC) today Conflict minerals and ldquotribal warsrdquo gohand in hand in the DRC historyrsquos past decades Lumumbawas planning to get the DRCrsquos related difficulties undercontrol however he was executed a few months after thespeech by a firing squad in January 1961 The US throughthe CIA the United Kingdom through the M16 and Belgiumwere all blamed for their involvement in his death35

Paradoxically ldquothe assassinations were made by the ordersof those who proclaim themselves to be champions ofdemocracy and respecters of human rightsrdquo36 Externalmeddling and intervention in Congorsquos affairs by foreigncountries is another of the concurrent and repeated situationsthat continue in recent history of the DRC37

Wars and minerals peace at last

hellip The heart of Africa is bleeding hellip

Two wars raged in DRC from 1996-1997 and from 1998-2003 Contrary to what some affirm these were not ethnicconflicts but resource wars38 No coincidence that the

35 BBC 2013 M16 and the death of Patrice Lumumba httpwwwbbccomnewsworld-africa-22006446

36 VVAA 1992 Congo (Zaire) Democratie neo-coloniale ou deuxiemeIndependance Ed LrsquoHarmattan

37 The Guardian 2011 Patrice Lumumba the most importantassassination of the 20th centuryhttpwwwtheguardiancomglobal-developmentpoverty-matters2011jan17patrice-lumumba-50th-anniversary-assassination

38 See Friends of the Congo websitehttpwwwfriendsofthecongoorgresource-centercongo-primerhtml See also Lanotte 2003 RDCguerre sans frontiers Editions Complexe

22

LIVING IN FEAR

country possesses extraordinary mineral wealth with someof the most valuable and strategic minerals on earth suchas coltan diamond cobalt copper gold tin zincmanganese timber and others The highest concentrationof mining activities existin the Eastern part of the countryTo illustrate the predominance of mining here we wouldunderline the affirmation of the Katanga Minister ofPlanning who said that 72 of the territory of Katanga isdevoted to mining No surprise why the IMF has namedDRC one of the worldrsquos mining giants of today39 Themagazine African Business stated in 2009 that ldquothe totalmineral wealth of the DRC was estimated to be some $24trillionrdquo40 As Lumumba indicated back in 1960 the samescenario repeated in recent years ndash minerals and conflictscontinue to go hand by hand

DR Congo possesses some 80 of the worldrsquoscoltan ore reserves(hellip) Additionally the DRCongo produces significant quantities ofdiamonds gold cassiterite copper cobalt (ofwhich it has the worldrsquos largest reservesalthough the trade is largely controlled byZimbabwe) oil tin zinc gold and coffee Thecountry has large reserves of uranium it wasCongolese uranium that was used for theManhattan Project that produced the worldrsquosfirst atomic bombs dropped on Japan The vastcountry also has more than half of sub-SaharanAfricarsquos timber stocks

Source African Business

39 IMF 2013 DRC Poverty reduction strategy paper N 1322640 African Business 2009 DR Congo $24 trillion fortune

23

2 MINERALS AND WARS AT THE GREAT LAKES

The casualties over the years are overwhelming Whileeverybody is familiar with the death toll during the genocidein Rwanda estimated between 500000 and 800000 peoplethere is much less awareness about the conflict situation inCongo The International Rescue Committee has estimatedthat the conflict and humanitarian crisis in the DemocraticRepublic of Congo has taken a death toll of 54 million peoplefrom 1998 to 200741 A CNN correspondent in trying togive an illustration of the heavy toll made the followingcomparative analysis

The wars in that country ndash RD Congo ndash haveclaimed nearly the same number of lives as havinga 911 every single day for 360 days the genocidethat struck Rwanda in 1994 the ethnic cleansingthat overwhelmed Bosnia in the mid-1990s thegenocide that took place in Darfur the number ofpeople killed in the great tsunami that struck Asiain 2004 and the number of people who died inHiroshima and Nagasaki mdash all combined and thendoubled42

Rwanda and Uganda were actively involved in the invasionof Congo in both wars The second war was known as theGreat War of Africa involving nine countries and more than20 armed groups According to Cynthia Ann McKinney aUS Congresswoman from the Democratic Party and an

41 IRC 2007 IRC study shows Congorsquos neglected crisis leaves 54 milliondead httpwwwrescueorgnewsirc-study-shows-congos-neglected-crisis-leaves-54-million-dead-peace-deal-n-kivu-increased-aidmdash4331 Some groups put the death toll much higher See GlobalResearch webpage httpwwwglobalresearchcathe-war-that-did-not-make-the-headlines-over-five-million-dead-in-congo7957

42 CNN 2012 Why the world is ignoring Congo war httpeditioncnncom20121127opinioncongo-war-ignored-vava-tampa

24

LIVING IN FEAR

expert on the Great Lakes issues while invading DRC in theSecond Congo War the US continued providing financialsupport to the governments of Rwanda and Uganda43 Howwas this allowed US President Bill Clinton was personallyin Rwanda in March 1998 only a few months before theRwandese army invaded Congo44 President Clinton was inAfrica at that time addressing its presidents includingPresidents Kagame and Museveni as leaders of the ldquoAfricanRenaissancerdquo and seeing a bright future for Africa45 ThereClinton made an important call to embrace peace How wasit possible to talk about peace while these allies were directlyengaging in war Moreover with the experience of thegenocide in Rwanda how could it be that foreign powersclosely involved in the region particularly the United Stateslet this occur again How did they allow wars and conflictsthat killed millions of people How could they allow whatmany called another genocide in Congo

On a positive note at last in recent months the calls forpeace have been growing from many different stakeholdersIn May 2014 US Secretary of State John Kerry after ameeting with DRC President Kabila stated that ldquoachievinga lasting peace in the DRC is a priority of President ObamardquoHe added ldquoNow I canrsquot emphasize enough how importantthat process is in identifying and resolving the root causesof the conflict in the DRC as well as in the entire GreatLakes regionrdquo46 Not a minor task going to the roots causes

43 Order of Indictment from Juzgao de instruccion numero CuatroAudiencia Nacional Case 320008-D 6-2-2008

44 See CBS News httpwwwcbsnewscomnewstext-of-clintons-rwanda-speech

45 Schaefer 2000 The Keys to an African Economic Renaissance httpwwwheritageorgresearchreports200005the-keys-to-an-african-economic-renaissance

46 See US Dept of State 2014 Press Availability on the DRC and theGreat Lakes Region httpwwwstategovsecretaryremarks201405225587htm

25

2 MINERALS AND WARS AT THE GREAT LAKES

of those problems in the Great Lakes Indeed achieving peaceand reconciliation in the Great Lakes Region in countriesthat had suffered like DRC is a difficult and cumbersometask and making it by finding the ldquorealrdquo root causes can bea very complex and lengthy exercise taking decades orlonger

The situation remains tense We recall that in 2006 theUN Security Council issued a resolution condemning ldquotheactivities of militias and armed groups operating in the GreatLakes regionrdquo47 Almost a decade later those armed groupsare still there and despite the efforts made the situationremains tense and insecure A report of the Group of Expertson the RDC published in 2015 by the United Nations SecurityCouncil concludes that in DRC despite a defeat of one of therebel groups ndash the Movement of 23 March ndash at the end of2013 this ldquofailed to translate into significant gains in securityand security and stability in 2014rdquo48 For example in thebeginning of 2015 a rebel group from Uganda the AlliedDemocratic Forces (ADF) created havoc in North Kivuwhere 17 people were hacked to death with machetes49

47 UN Security Council 2006 Resolution 1653 (2006) SRES165348 UN Security Council 2015 Final report of the Group of Experts on

the DRC S20151949 UN Security Council 2015 March 2015 monthly forecast http

wwwsecuritycouncilreportorgmonthly-forecast2015-03democratic_republic_of_the_congo_7phpVP-BX5Sm4agmailto

26

LIVING IN FEAR

Armed groups militias and criminal networkswithin the military structure making a lucrativebusiness out of minerals

The UN has solidly demonstrated that natural resources areused to finance armed groups and therefore to fuel war inthe region 50 The UN concludes that ldquoarmed groups continueto control many mining sites and to profit from mining andthe minerals traderdquo51 Later on those minerals particularlytin tungsten and tantalum are smuggled to neighbouringcountries For example one of the armed groups theMovement of 23 March (M23) responsible for taking Gomaat the end of 2012 was financing its organisation fromnatural resources in Eastern Congo In relation to thisparticular case the UN asserts that ldquoseveral traders havecontributed to financing M23 rebels using profits resultingfrom the smuggling of Congolese minerals into Rwandardquo52

Besides the rebel groups a criminal network within theArmed Forces of the DRC (FARDC) was involved in the illegalexploitation of natural resources The types of involvementinclude illegal taxation protection rackets and indirectcommercial control to more direct coercive control53

For some top army officials their military work wasconverted into economic businesses Indeed the existing

50 UN Security Council 2014 Final report of the Group of Experts onthe Democratic Republic of the Congo

51 Ibidem52 Ibidem53 UN Security Council 2010 Letter dated 26 October 2010 from the

Group of Experts on the DRC addressed to the Chair of the SecurityCouncil Committee established pursuant resolution 1533 (2004) S2010596

27

2 MINERALS AND WARS AT THE GREAT LAKES

practices made the UN qualify the war as a ldquolucrativebusinessrdquo

illegal exploitation of resources by BurundiRwanda and Uganda took different forms includingconfiscation extraction forced monopoly andprice-fixing The first two forms reachedproportions that made the war in the DRC a verylucrative business There are strong indicationsthat even if security and political reasons werethe professed motivation to move into the easternDRC some top army officials clearly had economicand financial objectives54

The most UN recent reports affirm that ldquomany armed groupsin Eastern Democratic Republic of the Congo have derivedtheir revenue from the production of and trade in naturalresourcesrdquo55

54 UN Security Council 2001 Security Council condemns ilegal exploitationof Democratic Republic of Congoacutes natural resources Press Releasehttpwwwunorgpressen2001sc7057dochtm

55 UN Security Council 2014 Final report of the Group of Experts on theDRC S201442

28

LIVING IN FEAR

Insecurity still booming in Eastern Congo

As already mentioned the momentum created bythe defeat of the Movement of 23 March inNovember 2013 failed to translate into significantgains in security and stability in 2014 in EasternDemocratic Republic of the Congo A militaryoperation against the Allied Democratic Forces(ADF) significantly weakened but did not defeatthe sanctioned armed group An expected militaryoperation against the Forces deacutemocratiques delibeacuteration du Rwanda (FDLR) did not materializeand as of the end of November 2014 efforts tonegotiate the disarmament of this sanctionedarmed group failed to produce meaningful resultsIn addition numerous Congolese and foreignarmed groups contributed to instability inOrientale North Kivu South Kivu and KatangaprovincesADF FDLR Nduma Defence for Congo (led bysanctioned individual Sheka Ntabo Ntaberi) andother armed groups continued to recruit train anduse child soldiers in 2014 Armed groups alsocommitted a variety of other abuses includingtorture enslavement and sexual violence Therewere mass killings in June in Mutarule (South Kivu)and in October and November in Beni territory(North Kivu)

Source United Nations Security Council 201556

29

2 MINERALS AND WARS AT THE GREAT LAKES

One of the problems the existing insecurity and conflicts havecreated is the proliferation of internally displaced peopleestimated in September 2014 at 27 million people57

UN peacekeeping operation in Congo

In July1999 Heads of State of Angola DRC NamibiaRwanda Uganda Zambia and Zimbabwe signed the Lusakaagreement focusing on the establishment of a ceasefire asone of the other components necessary for the deploymentof a UN peacekeeping force

The first UN Peacekeeping operation in DRC wasestablished in November 1999 after the Lusaka Ceasefireagreement It was called the UN Mission in the DRC(MONUC) In 2010 it was renamed the UN OrganizationStabilization Mission in the DRC (MONUSCO)

Ten years later despite the deployment of MONUC thesecurity challenges in DRC ndash particularly in the Eastern Partof the country ndash remain high58 There is still a strong presenceof armed groups chronic humanitarian crisis continuoushuman rights violations and continued illegal exploitationof natural resources In the light of this context the UNcreated an ldquoIntervention brigaderdquo with a key objective ofneutralizing armed groups59 As of today the MONUSCOand the intervention brigade are operational but are theresignificant security changes

56 Ibidem57 See global humanitarian assistance webpage http

wwwglobalhumanitarianassistanceorgcountryprofiledemocratic-republic-of-congo

58 UN Security Council 2010 Resolution 192559 UN Security Council 2013 Resolution 2098

30

LIVING IN FEAR

60 UN Security Council 2014 Final report of the Group of Experts on theDRC S201442

61 PR Newswire 2014 Rwanda has become worldacutes largest coltanexporterhttpwwwprnewswirecomnews-releasesrwanda-has-become-worlds-largest-coltan-exporter-reports-kt-press-300010371html

62 PR Newswire 2014 Rwanda has become worldacutes largest coltanexporter

63 Africa Briefing 2015 Rwanda has abundant deposits of best qualitycoltan Kagame affirms httpafricabriefingorgp=478

Legitimate exports or smuggling conflictminerals

It is well known that many of the minerals in Eastern Congoare smuggled and do not follow legal channels For instancethe UN estimates that 98 of the gold produced in DRC issmuggled out of the DRC making the country lose millionsof dollars in tax revenue60

In December 2014 numerous media covered a story onRwanda and coltan PR Newswire affirmed that ldquoRwandahas become worldacutes largest coltan exporterrdquo61 The dataprovided concluded that in 2013 Rwanda exported around2500000 kg of tantalum which constituted 28 of the total8807232Kg of tantalum produced globally The overallrevenue from the coltan was estimated at around $140 M62

Rwandese President Paul Kagame was quoted as affirmingthat the production was local and dismissed all possibleallegations of plundering the coltan from Congo He affirmedldquoRwanda has not only enough coltan but of a very highquality (hellip) we can even pay for a ticket give them a visaand take them to the minesrdquo63

Contrary to such statements there are many reports thatcoltan is smuggled from Congo to Rwanda and that Rwandadoes not have significant coltan mining on its own For

31

2 MINERALS AND WARS AT THE GREAT LAKES

instance a 2012 report prepared by a European Foundationaffirmed that ldquoRwanda does not house any industrial coltanmines which would suggest legitimate Rwandan coltanproductionrdquo64 A US governmental agency which analyzesthe mining sector in Congo made a table with coltan exportedfrom Rwanda qualifying it as ldquoconflict mineralsrdquo as seen inTable 165 Since there is no known conflict in Rwanda it canonly refer to Rwanda exports of minerals originating froman external conflict zone the DRC

Table 1 Estimates of exports of conflictminerals from Rwanda for Fiscal years2009-2013 in Metric Tons

Year Tantalum

FY 2009 958

FY 2010 827

FY2011 915

FY2012 1139

FY 2013 2466

Source Based on United States Government Accountability Office 2014

64 Van Teeffelen 2012 The EU raw materials policy and mining in RwandaEvert Vermeer Foundation

65 United States Government Accountability Office 2014 Conflictminerals stakeholder options for responsible sourcing are expandingbut more information on smelters is needed

32

LIVING IN FEAR

In this particular situation either somebody is wrong orsomebody is lying Hopefully future events will unveil thetruth around the nature of the coltan exports from Rwandato clarify whether they are a legitimate export or theconsequence of smuggling conflict minerals

Greed for minerals everybody wants a pieceof Congo66

What is at the origin of those wars and instability of theCongo While there could be diverse factors for conflictthere is one that seems to be always recurrent and is recog-nized by most authors and by relevant UN reports the racefor minerals and natural resources The UN recognized thatin the Second Congo War minerals were the coveted trophyand that all actors ldquobuilt up a self-financing war economycentred on mineral exploitationrdquo67 The conflicts that con-tinued after the Second Congo War like those in Kivu andIturi provinces are recognized as well to be fuelled by tradein minerals Along the same lines Palou underlines the causesof the conflict by stating that ldquoalthough from that time un-til the present day the Rwandan regime has expressed itsconcern about the security of its border with the then Zaireobjectively the reality is that control over this strategic areandash Eastern Congo ndash and its valuable mineral resources has

66 See video at Congo Justice httpcongojusticeorg67 UN 2002 Final report of the Panel of Experts on the illegal exploitation

of natural resources and other forms of wealth of the DemocraticRepublic of the Congo S20021146

33

2 MINERALS AND WARS AT THE GREAT LAKES

proved to be at the heart of two wars that have left a hugenumber of victimsrdquo68 In conclusion a 2001 UN report as-serted that ldquothe conflict of DRC has become mainly aboutaccess control and trade of five key mineral resourcescoltan diamond copper cobalt and gold The wealth of thecountry is appealing and hard to resist in the context oflawlessness and the weakness of the central authorityrdquo69

Congolese and regional elite have also profited from thissituation as well and the appalling quantum of the plunderare reflected in the following report from UN

The elite network of Congolese and Zimbabweanpolitical military and commercial interests seeksto maintain its grip on the main mineral resourcesmdash diamonds cobalt copper germanium mdash of theGovernment-controlled area This network hastransferred ownership of at least US$ 5 billion ofassets from the State mining sector to privatecompanies under its control in the past three yearswith no compensation or benefit for the Statetreasury of the Democratic Republic of the Congo70

Funds that could have been used for public services havebeen diverted from the public coffers by fraud or by theexcuse of war effort71 The Congolese population has paid

68 Palou 2010 International Justice plunder in war human rights andmultinationals

69 UN Security Council 2001 Report of the Panel of Experts on theillegal exploitation of natural resources and other forms of wealth ofthe Democratic Republic of the Congo S2001357

70 UN Security Council 2002 Final report of the Panel of Experts on theilegal exploitation of natural resources and other forms of wealth ofthe Democratic Republic of the Congo S20021146

71 Ibidem

34

LIVING IN FEAR

dearly in this situation In terms of human development it isinstructive that the UNDP estimated in 2013 that RDCwas in the low human development category ndash positioningthe country at 186 out of 187 countries and territories72

The Role of Transnational Corporations (Tncs)and the private sector

Other key players involved in the conflict are Transnationalsand the private sector A UN Report published a few yearsafter the Second Congo War started affirmed that ldquothe roleof the private sector in the exploitation of natural resourcesand the continuation of the war has been vitalrdquo73 The reportalso added that ldquoa number of companies have been involvedand have fuelled the war directly trading arms for naturalresourcesrdquo74 Other observers share the view that ldquoWesternMultinationals have been one group responsible for thepillage and illegal exploitation of Congo mineral resourcesrdquo75

There are a large number of big foreign corporationsinvolved in mining in DRC including those from CanadaSouth Africa UK USA and others Despite the opacity ofmost of the activities of the private sector numerousexamples have been reported of how TNCs are responsiblefor human rights abuses and other illegal activites Thereare also many reports of the dangerous connectionsestablished with the political and military elite in order tofacilitate their businesses These are some examples

72 UNDP 2014 Sustaining human progress reducing vulnerabilities andbuilding resilience Congo (Democratic Republic of the) httphdrundporgsitesallthemeshdr_themecountry-notesCODpdf

73 UN 2001 Report of the Panel of Experts on the illegal exploitation ofnatural resources and other forms of wealth of the Democratic Republicof the Congo S2001357

74 UN 2001 Ibidem75 Palou Ibidem

35

2 MINERALS AND WARS AT THE GREAT LAKES

bull Glencore Anglo-Swiss giant in the raw material sectorwith a turnover of US $ 2397 billion in 2013 was beingaccused in 2014 of adopting a military-style response tothe problem of artisanal mining close to its mines ldquoonseveral occasions over the past 18 months mine policehave fired live ammunition in pursuit of artisanal minerson Glencorersquos site resulting in deaths and seriousinjuriesrdquo76 They are as well responsible forcontamination of the water supply with acid content andvery high and concentrations of copper and cobaltFinally the company operates some of its concessionsinside a reserve ndashndash something that in principle is illegalaccording to the RDC Mining Code77

bull An independent investigation unveiled that two miningcompanies Glencore and the Eurasian Natural ResourcesCorporation were involved in underpricing assets incomplex deals featuring offshore companies causinglosses to the DRC of no less than $136 billionIntermediary companies in the deals were linked to DanGerler78 In addition the DRC public prosecutorreportedly told mining companies that they had toreimburse $37 billion in taxes duties and fines79

bull AngloGold Ashanti part of the AngloAmericancorporation was accused of establishing links and

76 Peyer et al 2014 PR or Progress Glencoreacutes corporate responsibility inthe DRC Bread for all RAID Fastenopfer

77 Ibidem78 CRS 2014 Democratic Republic of Congo Background and US Policy79 Reuters 2014 Disputed Congo report says miners owe $37 billion in

tax fines httpwwwreuterscomarticle20140130us-congo-democratic-mining-idUSBREA0T12L20140130

36

LIVING IN FEAR

supporting one armed group the Nationalist andIntegrationist Front (FNI)80

bull In 2004 fighting between soldiers and rebels in Kilwaended in serious human rights violations againstcivilians including summary executions arbitraryarrests rape and torture Anvil Mining operated theDikulushi copper mine near Kilwa and was accused ofproviding vehicles and planes to the Congolese armedforces during this event The legal case ended in theCanadian Supreme Court in 2012 which ruled that itwould not hear the plaintiff rsquos appeal ndash they were led bythe Canadian Association Against Impunity (anassociation representing survivors of the incidents inOctober 2004)81

bull In May 1997 Citibank NY a financial institution hasbeen accused of giving $5 million loan to a Congolesemilitia allied with Rwanda82

bull American Mineral Fields (AMF) cut a $1 billion dealwith Kabila immediately after his forces captured GomaThe negotiations were led by ldquoKabilarsquos US-trainedfinance ministerrdquo who gave ldquoAMF exclusive explorationrights to zinc copper and cobalt mines in the area MikeMcMurrough a friend of US President Bill Clinton wasthen the chair of AMF83

80 Human rights watch 2005 DRC Gold fuels massive human rightsatrocities httpwwwhrworgennews20050601dr-congo-gold-fuels-massive-human-rights-atrocities

81 Business and human rights resource center 2012 Anvil Mining Lawsuit(re DRC) httpbusiness-humanrightsorgenanvil-mining-lawsuit-re-dem-rep-of-congo

82 Global research 2008 Congo Resource wars httpwwwglobalresearchcacongo-resource-wars8310

83 Global research 2008 Ibidem

37

2 MINERALS AND WARS AT THE GREAT LAKES

UN and some other independent reports generally makebroad statements about the role of corporations includingciting some of the companies however they fall short ofproviding details of the modus operandi of those companiesand in establishing or suggesting concrete measures to stopthe conflicts and solve the negative impacts on the DRCpopulation and environment A 2002 UN Report listed 85companies considered by the Panel to be in violation of theOECD Guidelines for Multinational Enterprises84 Very littlehas been done after the UN report was published

A poor country Until when

In 1969 World Bank President Robert McNamara embarkedon a trip to Africa to try to discover ldquowhat are therequirements for developmentrdquo85 At that time the WorldBank in its information document described the country asrich in natural resources but at the same time poor and witha strong mining sector

In spite of its rich natural resources and greatpotential the Congo is still a poor country (hellip)Mining and metallurgy play a leading role in theeconomy86

84 UN 2002 Final Report of the Panel of Experts on the Illegal Exploitationof Natural Resources and other Forms of Wealth of the DemocraticRepublic of the Congo S20021146

85 Records of President Robert S McNamara Travel briefs CongoKinshasa (01021969-03031969) 1772506 Reference Code WBIBRDIDA 03 EXC-10-4540S World Bank Group archives WashingtonDC United States

86 Ibidem

38

LIVING IN FEAR

More than forty years later not much has changed asupdated data shows In DRC seven out of ten householdsare poor87 Most of its nearly 60 million people areldquodesperately poor living on less than $1 a dayrdquo88 DRC is aleast developed country a fragile State that has been in thetop 10 recipients of humanitarian assistance in nine of thelast 10 years Between 2003 and 2012 DRC received US$176billion in official development assistance (ODA) making itthe 10th largest recipient89In 2012 the Democratic Republicof Congo (DRC) received US$286 billion in net officialdevelopment assistance90

With so many natural resources isnrsquot there money to getpeople out of poverty The mining sector is oftenacknowledged as being capable of contributing to povertyreduction However those mineral benefits are oftencreamed off by powerful interests and do not get to thehands of the majority of the population According to DFIDldquofiscal receipts from the minerals sector are siphoned off bypowerful interest groups instead of being used in the publicsectorrdquo91

The analysis of Mr Antonino Giambrone sheds more lightabout the earnings and who profits from mining

While the average Congolese worker earns $10 permonth the average Congolese coltan-miner earnsanywhere from $10 to $50 per week Uganda

87 IMF 2013 DRC Poverty reduction strategy paper N 1322688 DFID 2008 Democratic Republic of Congo Country Plan89 View global humanitarian assistance webpage http

wwwglobalhumanitarianassistanceorgcountryprofiledemocratic-republic-of-congo

90 CRS 2014 Democratic Republic of Congo Background and US Policy91 DFID 2008 Democratic Republic of Congo Country Plan

39

2 MINERALS AND WARS AT THE GREAT LAKES

Rwandan and Congolese rebels have earned manymillions of dollars in sales of coltan which theyhave used to finance their war efforts in the CongoBetweeen 1999 and 2000 the Rwandan army aloneearned at least $20 million a month from coltan92

Food insecurity is often a consequence of poverty One ofthe causes of existing food insecurity is the abandonment ofthe agriculture sector partly due to conflicts The governmentstated that it would like to strengthen the smallholdersldquowhile ensuring at the same time the protection of thecountryrsquos natural resourcesrdquo93

War impacts on the environment

The wars have had devastating impact on the environmentNational parks for instance home of many endangeredspecies are also affected by the exploitation of minerals94

There are numerous reports on the precarious situation ofwildlife in the region For instance between 1995 and 19994000 out of 12000 elephants were killed in the GarambaPark in North-eastern DRC95 The situation was also seriousin other parks For instance in Kahuzi-Biega Park a zonerich in coltan only 2 out of 350 elephant families remained

92 Giambrone 2006 The extraction of natural resources as a source ofconflict Etfo voice

93 IMF 2013 DRC Poverty reduction strategy paper N 1322694 Seeh ttpwww lenntech comenv ironmental -ef fec ts -

warhtmixzz3CuGZqE3M95 UN 2001 Report of the Panel of Experts on the illegal exploitation of

natural resources and other forms of wealth of the Democratic Republicof the Congo S2001357

40

LIVING IN FEAR

in 200096 Mountain gorillas are also under threat due tocontinued civil unrest and the presence of armed militiasmakes survey and conservation work difficult in the DRCrsquosprotected areas97

Deforestation is also one of the common impactsWorldwatch explains the implication of having refugeespopulation inhabiting RDC degraded forest areas

For two years beginning in late 1994 for exampleabout 720000 Rwandans inhabited refugee campson the fringes of Virunga National Park They allneeded wood for cooking fires and for buildingshelters and some also earned extra money bymanufacturing charcoal As a result up to 80000people entered the park and carted away up to1000 tons of wood every day By mid-1996 105square kilometers of forest had been affected toone degree or another by their activities 35 squarekilometers had been stripped bare98

Besides the need for fuelwood by refugees movement ofmilitary hardware through forests and woodlands also causeserious damage to forests and the landscape generally

96 Ibidem97 See WWF webpage httpwwfpandaorgwhat_we_doendangered_species

great_apesgorillasmountain_gorilla98 Worldwatch 2008 War and Environment httpwwwworldwatchorg

node5520

3South Sudan The Oil Way

99 Washington Post 2012 lsquoSouth Sudan civilians are trapped in conflictover oilrsquo httpwwwwashingtonpostcomworldsouth-sudan-civi l i ans-are- trapped-in-conf l ict -over-o i l20120501gIQAUX6buT_storyhtml

100 See UN Mission in South Sudan web page httpwwwunmultimediaorgtvunifeed201404south-sudan-bentiu-massacre

101 Reuters 2014 Bentiu massacre is game-changer in South Sudanconflict says UN official httpwwwtheguardiancomworld2014apr22bentiu-massacre-south-sudan-united-nations

41

ldquoIf we had no oil we would not be attackedrdquo

Nyak a 27-year-old sitting outside herhut in Bentiu South Sudan 201299

In April 2014 Bentiu the capital of the oil producing UnityState was the scenario of one of the worst massacres of thecivil war between South Sudanese forces100 Hundreds ofpeople were killed in the fighting that took place betweenthe Sudan Peoplersquos Liberation Army (SPLA) and anti-government forces in the oil-rich State101

42

LIVING IN FEAR

Civil wars and conflict

Since its independence in 1956 Sudan has been at war andconflict for most of its modern history Specialists in conflictand security have described the history of modern Sudan asldquoan unremitting sequence of wars punctuated by oft-violatedpeace agreementsrdquo102 The First Sudanese Civil War (1955ndash1972) was followed by a Second Sudanese Civil War (1983ndash2005) with barely 11 years breathing space of tenuoussecurity

The Second Civil War ended when both sides signed theComprehensive Peace Agreement in 2005 That agreementgave autonomy to South Sudan within Sudan However areferendum held in January 2011 moved the region towardsecession and then in July 2011 independence was achievedand South Sudan became an autonomous nation103 Theprocess that led to South Sudanrsquos independence was stronglysupported by the US government which backed Juba in itstwo decades struggle against Khartoum104 It should be notedthat even during the 11 years of supposed peace there wereconflicts on a regular basis particularly in the border areasbetween South Sudan and Sudan105 Two years after theindependence the first South Sudanese Civil War started inDecember 2013 The civil war erupted as a result of a power

102 Cox and Snapper 2013 The Strategic Importance of South Sudan TelAviv University

103 National Geographic 2013 South Sudan oil the environment andborder conflicts httpvoicesnationalgeographiccom2013032286550

104 See webpagehttpwwwworkersorgarticles20140101south-sudan-yet-another-oil-war

105 International Crisis Group 2006 Sudan Saving peace in the Easthttpwwwcrisisgrouporgenregionsafricahorn-of-africasudan102-sudan-saving-peace-in-the-eastaspx BBC 2015 South SudanProfile httpwwwbbccomnewsworld-africa-14019202

43

3 SOUTH SUDAN THE OIL WAY

struggle between president Salva Kiir from the Dinka ethnicgroup and his deputy Riek Machar from the Nuer ethnicgroup whom he had sacked As at the time of this writingthe civil war continues

Sudan vs South Sudan

The tensions and conflicts after the independence of SouthSudan from its neighbour Sudan did not stop in 2011 Topleaders from both sides accuse and threaten each other innumerous occasions For instance Sudanese President Bashirpromised to teach South Sudan a ldquofinal lesson by forcerdquo106

South Sudan President firmly swore that ldquowhether Umar al-Bashir likes it or not one day Abyei will rejoin the southrdquo107

Abyei

Abyei is traditionally the home of the Ngok Dinka asubdivision of the Dinka tribe with strong links to the Dinkain South Sudan Besides the Dinka Misseriya herders aremembers of nomadic Arab tribes that seasonally cross Abyeiand other nearby areas with their cattle in search of waterand pasture108

Since the signing of the Peace Agreement in 2005 betweenthe Government of Sudan and the SPLM the dispute over

106 The Washington Post 2012 lsquoSudanese president vows war againstSouth Sudanrsquo httpwwwwashingtonpostcomworldsudanese-president-threatens-force-against-south-sudan-over-oil-field20120419gIQAJ0G8ST_storyhtml

107 The Global Intelligence Files 2013 Sudan- President Kiir says Abyeiwill ldquorejoinrdquo South Sudan httpssearchwikileaksorggifilesviewemailid=674314

108 Enough Project 2013 What is the Abyei Area and why is it disputedhttpwwwenoughprojectorgblogsenough-101-what-abyei-area-and-why-it-disputed

44

LIVING IN FEAR

the future status of the Abyei area has beenone of the bigbarriers to stability in the region109Abyei is an oil-rich areadisputed by Sudan and South Sudan and stands out as thehotspot of bigger tension beetween Sudan and South Sudannowadays

The conflicts over Abyei have a history of more than 50years After the First Civil war the parties signatories to thepeace pact agreed that Abyei would hold a referendum todetermine whether they would be part of Sudan or a newlyregion in the South The second war commenced in 1983and the foreseen referendum was not done

In 2009 the Permanent Court of Arbitration in the Hagueruled on Abyei territory giving concessions to the Governmentof Sudan and the Southern Sudan Heglig and other closeroil-fields remained out of Abyei area while the rest of theAbyei region remained under control of the Ngok Dinka anethnic group close to Southern Sudan and keen on voting tojoin the South in a future referendum110Another referendumwas scheduled to be done in parallel with the South Sudanreferendum in 2011 but once again this never took place

Although a series of temporary security arrangementswere agreed in January and March 2011111 in May SudaneseArmy tanks entered the town of Abyei and by the 22nd ofMay they seized control of the town112The government ofSudan launched numerous military attacks in the disputed

109 UN Security Council 2011 Report of the Secretary-General on thesituation in Abyei S2011451

110 New York Times 2009 lsquoCourt redraws disputed area in Sudanrsquo httpwwwnytimescom20090723worldafrica23sudanhtml_r=1amp

111 UN Security Council 2011 Report of the Secretary-General on thesituation in Abyei S2011451

112 Reuters 2011 North Sudan seizes disputed Abyei thousands fleehttpwwwreuterscomarticle20110522us-sudan-abyei-north-idUSTRE74L14L20110522

45

3 SOUTH SUDAN THE OIL WAY

border of area where much of Sudanacutes remaining oil fieldsare situated113 Two years later the fighting remains intensein parts of South Kordofan and Blue Nile114 More than 2million people have been internally displaced or severelyaffected by the conflict since 2011115

In addition to military attacks other actions contributedto the tension There have been cattle raids by the MissiriyandashArab nomadic cattle herders inhabiting the area ndash on theNgok Dinka ndasha subdivision of the Dinka tribe inhabitingthis area In occasions more than 200 cows were stolenwith a large part of it recovered by the UN Interim SecurityForce for Abyei(UNISFA) These raids increase further thealready tense situation in the region and in particular thevery tense situation among the Missiriya and the NgokDinka116

113 The Conversation 2012 Oil fuels the conflict between Sudan andSouth Sudan ndashand it keeps getting hotter

114 OCHA 2014 South Kordofan and Blue Nile population movementsfact sheet httpreliefwebintsitesreliefwebintfilesresourcesSouth20Kordofan20and20Blue20Nile20Population20Movements20Fact20Sheet20-201920May202014pdfReuters 2013 Khartoum says rebels based in South Sudan caused oilpipeline blast

115 OCHA 2014 Ibidem116 See Human Security baseline assessment for Sudan and South Sudan

webpage httpwwwsmallarmssurveysudanorgdefacts-figuresborderdisputed-areasabyeihtml

46

LIVING IN FEAR

An oil-centered conflict

ldquoThe violence underscores the extent to which oilis at the heart of the dispute Khartoum whichcontrols the pipelines that take oil out of SouthSudan depends heavily on oil transit fees SouthSudan which depends on oil for 98 percent of itsrevenue has refused to pay the fees which it saysare exorbitantKhartoum responded by seizing oil tankers carryingSouth Sudanese oil and imposing economicblockades That prompted South Sudan to shutdown its entire oil production in February Thatmonth Sudan allegedly bombed an oilfield inSouth Sudan that was nine miles from the borderrdquo

Washington Post 2012

Missiriya attacks continue as of today UNISFA reported thatin March 2015 100 armed Missiriya killed several peopleand burnt over 20 houses in a village in the southern part ofAbyei117 Many of those attacks occur despite the presenceof UN peacekeepers in the zone

In this context a UN force was deployed in 2011 withmore than 4000 personnel mostly Ethiopian with theobjective of ensuring the demilitarization of the Abyei areaand particularly checking the Sudan Armed Forces and theSudan Peoplersquos Liberation Army Interestingly the UN forceshad also the task to provide security for oil infrastructure inthe Abyei Area in cooperation with the Abyei PoliceService118 In February 2015 the Security Council extended

117 Sudan Tribune 2015 South Sudan condemns deadly clashes in Abyeihttpwwwsudantribunecomspipphparticle54191

118 UN Security Council 2011 Resolution 1990 (2011) SRES1990(2011)

47

3 SOUTH SUDAN THE OIL WAY

the mandate of the UNISFA again until July 2015119 The AbyeiJoint Oversight Committee (AJOC) decided in May 2013 thatAbyei should adopt a status as weapons-free area and thatonly UNISFA would be authorized to carry weapons in thearea120

The situation in the area is still very fragile121 For instancevarious resolutions have called for the redeployement of allmilitary personnel from Abyei including those protecting itsoil infrastructure However the Sudanese Governmentskeeps at the Diffra oil complex around 150 Sudan oil policein a clear violation of an agreement and Security Councilresolutions adopted in 2011122 The UN Security council ina recent resolution

Condemns the presence of Diffra Oil Police unitsdeployed in the Abyei Area as well as the repeatedentry of armed militias into the territory andreiterates its demands that immediately andwithout preconditions the Government of Sudanredeploy the Oil Police in Diffra from the AbyeiArea ()123

Conflicts escalating over oil Heglig battles

In 2012 despite the Permanent Court of Arbitration ruling124

which placed Heglig oilfields in the Sudanese territories

119 UN News Center 2015 Security Council extends UN peacekeepingforce in Abyei through July 2015

120 UN Security Council 2015 Ibidem121 UN Security Council 2015 Security Council adopting resolution 2205

(2015) extends interim force in Abyei until 15 july voicing concernover delays in Borde Mechanismrsquos operation httpwwwunorgpressen2015sc11800dochtm

122 UN Security Council 2014 Report of the Secretary-General on thesituation in Abyei S2014518

123 UN Security Council 2015 Ibidem124 See Permanent Court of Arbritation webpage httpwwwlocgov

lawwebservletlloc_newsdisp3_l205401463_text

48

LIVING IN FEAR

the South Sudanese army launched an attack over Heglig125

South Sudanrsquos army took control of the oil-producing townof Heglig The South Sudan move did not enjoy sympathyfrom many countries including its allies such as the US andBritain126 The African Unionrsquos (AU) Peace and SecurityCouncil considered Sudanrsquos occupation of Heglig as illegal127

At the end after a few days South Sudan pulled back itstroops from Heglig even though President Salva Kiir stillclaims that Heglig is a part of South Sudan and is expectinginternational arbitration

Oil and geopolitics

The implications of the oil economy are self-telling Prior tothe separation of Sudan from South Sudan in 2011 theunified Sudan was the second-largest non-OPEC oil producerin Africa in 2010 When they separated Sudan and SouthSudanrsquos production diminished and together they rankedas the fourth-largest non-OPEC African oil producer in 2013Particularly the split of the country in oil revenues economicterms was a huge blow to Sudan with its crude oil exportrevenues falling from almost $11 billion in 2010 to around$18 billion in 2012128 It has been estimated that oilcontributes 98 of South Sudan government income morethan for any other government in the world129

125 Wall Street Journal 2012 Sudan escalates fight over oil httpwwwwsjcomarticlesSB10001424052702304444604577339461981143808

126 The Guardian 2012 South Sudan to withdraw from disputed oiltownhttpwwwtheguardiancomworld2012apr20south-sudan-withdraw-oil-town

127 IRIN 2012 Sudan-South Sudan Heglig and the border128 US Energy Information Administration 2014 Country analysis brief

Sudan and South SudanhttpwwweiagovcountriesanalysisbriefsSudansudanpdf

129 Global Witness 2009 Fuelling mistrust

49

3 SOUTH SUDAN THE OIL WAY

Although oil exploration started at the end of the 1950showever no success was achieved with the activities of Italianoil company Agip130 Discoveries were found in the years tofollow The first oil discovery was made in 1979 when theAmerican company Chevron found oil near the Darfur-Kordofan boundary Three years later Chevron made twolarger discoveries the Heglig and Unity oilfields which asof today are the most productive However by 1984 Chevronstopped its operations when some of its workers were killedby an armed group By 1988 the company dismantled all ofits operations in Bentiu and Unity provinces131

As a landlocked country all the oil in South Sudan had tobe extracted and exported via a pipeline The pipeline wasconstructed by China National Petroleum Corporation andit covered a length of around 1600 kilometers132 Ittransports the oil from South Sudan to the Red Sea Thecost of the pipeline was estimated at $1 billion and it wasfinished in 1999133At the time of the construction of thepipeline Sudan provided less than 1 of Chinarsquos oil importsbut a few years later by 2009 the investments of Chinatotalled more than $8 billion134

130 Understanding Sudan 2009 Fact sheet two A history of oil in theSudan httpunderstandingsudanorgOilOilResourcesL2FS2-HistoryofOilinSudanpdf

131 Understanding Sudan Ibidem132 The Conversation 2012 Oil fuels the conflict between Sudan and

South Sudan ndashand it keeps getting hotter133 Sitarek 2001 The human price of oil ICE Case Studies Number 83

httpwww1americanedutedicesudansanctionshtm16134 The Conversation 2012 Ibidem

50

LIVING IN FEAR

Source US Energy Information Administration 2014

South Sudan becameindependenth in July2011 Taking aboutthree-quarters of theproduction A disputeover transit fees ledSouth Sudan to haltproduction for most of2012

Oil production inSudan and South Sudan

thousand barrels per day

51

3 SOUTH SUDAN THE OIL WAY

Main oil companies in Sudan and South Sudan

While initially many companies involved were of Westernorigin most of the companies now involved in the oil sectorare from China and Malaysia

Source US Energy Information Administration 2014 Countryanalysis Brief Sudan and South Sudan

Row over oil tariffs

By 2011 both countries did not agree on how much SouthSudan should pay to export its oil through the pipelines inSudan Sudan requested a fee of 33 dollars a barrel whileSouth Sudan said the highest fee they could afford was 2

Table 2 Main oil companies in Sudan and South Sudan

52

LIVING IN FEAR

dollars a barrel135 Following this lack of agreement SouthSudan halted crude oil production in early 2012

This decision worsened the economic situation in bothcountries as both depend hugely on money from oil exportsfor their revenues However an agreement was reached andin April 2013 South Sudan restarted oil production136

Causes of the Sudanese Civil War

Wars in Sudan have been often portrayed quite simplisticallyas an ArabMuslim north versus and an AfricanCristiansouth While certainly ethnicity and religion played a rolethe conflict has been mainly fought over natural resources137

Today oil is the countryrsquos main natural resource and ithas been estimated that it accounts for 98 of South Sudanrsquosrevenue138 The multibillion potential of their revenuehowever has not translated into wealth and benefits for themajority of the population of South Sudan First of all it hasnot solved the problem of security as since the very inceptionof the State of South Sudan in 2011 there were conflicts inmany areas of the country particularly in the borderline withSudan A 2013 report from the World Bank illustrates thisby asserting that ldquodespite South Sudanrsquos great resourcewealth its population is one of the most deprived due todecades of neglect and war and the distortions of the oil

135 IPS 2011 South Sudan rows over exorbitant fees for pipeline use136 Reuters 2013 South Sudan resumes oil output after ending row with

Sudan over transit fees137 Caas 2007 Natural resources and conflict in Sudan138 See World Bank webpagehttpwwwworldbankorgencountry

southsudanoverview

53

3 SOUTH SUDAN THE OIL WAY

economyrdquo139 Indeed oil reserves sitting on a disputed borderbetween Sudan and South Sudan have not translated yetinto wealth for the majority of citizens of South SudanInstead most of the inhabitants of the country remain deeplypoor and do not enjoy even basic rights to access potablewater and adequate sanitation140

Oil has been a main cause for the war and conflicts inSudan For instance it influenced the end of the peaceagreement obtained after the first civil war This first civilwar ended in 1972 with the Addis Ababa Agreement Theagreement established a system of peaceful co-existence witha single country by guaranteeing aNorthern basedgovernment but granted at the same time autonomy in theSouth This however was not going to last long as thediscovery of oil at the end of the 1970s in Southern Sudanchanged the ldquocoexistencerdquo idea In 1978 Sudanese PresidentNimeiry decided to embark on oil exploration project thatwould lead to the finding of oil in commercial quantities Inorder to control the oil within the hands of the Northernbased Government military force was used and in additionto imposing islamic law which led to the new civil warstarting in 1983141

139 World Bank 2013 Interim Strategy Note (FY 2013-2014) httpwww-wdsworldbankorgexternaldefaultWDSContentServerWDSPIB20130207000333037_20130207110223RenderedPDF747670ISN0P1290Official0Use0Only090pdf

140 National Geographic 2013 South Sudan oil the environment andborder conflicts httpvoicesnationalgeographiccom2013032286550

141 Sitarek 2001 The human price of oil ICE Case Studies Number 83httpwww1americanedutedicesudansanctionshtm16

54

LIVING IN FEAR

Numerous authors have identified natural resources ashaving a direct correlation with wars and conflicts142 Ananalysis by Ross of the University of California (UCLA) ofthirteen wars and conflicts concluded that in the case ofSudan oil was one of the key causes of the second civil warand an incentive for advancing the independence of SouthSudan143 Ross describes his conclusion in the followingmanner

War in Sudan began in 1983 when SudanesePresident Nimeiry took a series of measures thatupset the delicate balance between thepredominantly Muslim north and the heavilyChristian and Animist south among these measureswas his decision to place newly discovered oil inthe countryrsquos south under the jurisdiction of thenorth and to build an oil refinery in the northinstead of the south The Sudan Peoplersquos LiberationArmy (SPLA) subsequently complained that thenorth was stealing the resources of the southincluding oil demanded that work cease on apipeline to take oil from the south to the refineryin the north and in February 1984 attacked an oilexploration base killing three foreign workers andbringing the project to a halt144

142 Varisco 2010 lsquoA study on the inter-relation between armed conflictand natural resources and its implications for conflict resolution andpeace buildingrsquo Journal of Peace Conflict and Development issue 15Ross 2003 How do natural resources influence civil war Evidencefrom 13 cases httpwwwsscnetuclaedupoliscifacultyrossHowDoesNat3pdf

143 Ross Ibidem144 Ross Ibidem

55

3 SOUTH SUDAN THE OIL WAY

Even when the different parties were discussing an agreementon ldquono attacks on civilians or civilian objectsrdquo oil was playinga central role It is instructive to note that the Sudanesegovernment desired language in the text stating that oilinstallations were ldquocivilian objectsrdquo while the SPLA wantedthe contrary145

Human Rights Watch reached the same conclusion thatoil without doubt has been a key fuel for war particularlysince the end of the 90s when crude oil was first exportedfrom Sudan in 1999146

Oil became the main objective and a principal causeof war (hellip) The large-scale exploitation of oil byforeign companies operating in the theatre of warin Southern Sudan has increased human rightsabuses there and has exacerbated the long-runningconflict in Sudan a conflict marked by gross rightsabuses ndashtwo million dead four million displacedsince 1983 ndashand recurring famine and epidemics147

Also the UN makes clear statements on the issue Specialenvoy Leonardo Franco expressed in a report that oilexacerbated the conflict

the economic political and strategic implicationssurrounding oil exploitation in western Upper Nilewhich have seriously exacerbated the conflictthereby causing a deterioration in the overall

145 Ibidem146 Human Rights Watch 2003 Sudan oil and human rights147 Human Rights Watch 2003 Sudan oil and human rights

56

LIVING IN FEAR

situation of human rights and respect forhumanitarian law and narrowing the slim chancesfor peace148

Indeed multiple causes and elements contributed to theconflicts It was recognized that ethnicity and religion wereimportant elements however the key dimension is controlover natural resources particularly oil Added to this are alsotensions over land and resources and the promotion by thegovernment of crops like cotton and sugar which displacedcertain groups of people149 Similar conclusions were reachedyears back by a Canadian Government Mission in Sudanwhich fully recognized some ethnic disputes as well asdisputes over other natural resources however oil was thekey factor which made things really dramatic

148 UN 2000 Interim report of the Special Rapporteur of the Commissionon human rights on the situation of human rights in the Sudan A55374 httpwwwunorgdocumentsgadocs55a55374pdf Seealso UN 1999 Situation of human rights in Sudan UN Doc A54467

149 University of Massachusetts (undated) Modern conflicts conflictprofile SudanhttpwwwperiumassedufileadminpdfSudan1pdf

57

3 SOUTH SUDAN THE OIL WAY

The Harker mission pointed out that while therehave always been pressures on the Dinka in theHeglig- Ruweng area as a result of inter-tribalfighting with Arab nomads for grazing areas anddry-season water the situation had worsened withthe beginning of oilexploration and had continuedto deteriorate over theyears because of the periodicoffensives launched by the Government and itsallies resulting in destructionand mass populationdisplacement150

South Sudan has one of the largest oil reserves inSub Saharan Africa and the commodity is thelifeline of the countryrsquos economy accounting for98 percent of the governmentrsquos financial resources

Whoever controls South Sudanrsquos oil thereforecould seize the upper hand in the battle for power

Source France 24 2013 lsquoBattle for oil adds newdimension to South Sudan conflictrsquo

Whoever controls South Sudanrsquos oil therefore could seizethe upper hand in the battle for power

The same scenario applies to the South Sudan Civil Warwhich initially was also portrayed along ethnic line TheDinka ethnic group of President Salva Kiir has fought rebelsallied with former vice president Riek Machar of the Nuer

150 UN 2000 Interim report of the Special Rapporteur of the Commissionon human rights on the situation of human rights in the Sudan A55374 Ibidem

58

LIVING IN FEAR

ethnic group However increasingly ldquothe focus of the fightingis shifting to the battle to control the countryrsquos mostimportant natural resource ndash oilrdquo151 The oilfields haveliterally become the battlefields

Consequences of war and conflict

The damage inflicted on people as a consequence of war ishuge Back in 2001 US Secretary of State Colin Powellqualified the war in Sudan in the following terms ldquoThere isperhaps no greater tragedy on the face of the earth todaythan the tragedy that is unfolding in the Sudanrdquo152 Firstthere is a large number of deaths due to war and war relatedcauses and also a huge number of displaced people Thedeath toll derived from the Second Civil Sudanese War isestimated at two million The US Commitee for refugeesasserted that ldquothis massive loss of life surpasses the civiliandeath toll in any war since World War IIrdquo153 In the mostrecent civil war the South Sudanese Civil War that startedin December 2013 by April 2014 the death toll wasestimated to be at 10000154

Besides the death toll there are estimated more than fourmillion people of the Southern Sudanese population forced

151 France 24 2013 Battle for oil adds new dimension to South Sudanconflicthttpwwwfrance24comen20131227-battle-oil-adds-new-dimension-south-sudan-conflict

152 Human Rights Watch 2003 Ibidem153 See US Committee for Refugees webpage in 2001 http

webarchiveorgweb20041210024759httpwwwrefugeesorgnewscrisissudanhtm

154 International crisis group 2014 South Sudan a civil war by any othernamehttpwwwcrisisgrouporg~mediaFilesafricahorn-of-africasouth20sudan217-south-sudan-a-civil-war-by-any-other-namepdf

59

3 SOUTH SUDAN THE OIL WAY

to flee their homes at one time or another It has also beenargued that the development of oilfields has led to the forcedremoval of the local population In the words of the lateJohn Garang oil was a ldquokiller itrsquos evicting our civilianpopulationrdquo claiming 100 000 people displaced due to thiscause155

Children are some of the main victims of conflict beingrecruited for instance for war and suffering sexual violenceFrom March 2011 to September 2014 the UN estimatesthat there were 1243 incidents affecting 68776 children156

UN reports indicate that both armed groups have usedchildren ldquoon a large scale and committed other graveviolations including killing maiming and sexual violencerdquo157

For instance in 2015 an incident was reported where closeto 100 children were abducted some as young as 13 Armedsoldiers were advancing house to house looking for boysand taking them by force158 According to UNICEF this occuredin Wau Shilluk close to the city of Malakal in Upper NileState159

Not surprisingly as put by a high UN representativepeople are desperate for peace

155 BBC 2001 Garang Oil firms are targetshttpnewsbbccouk2hiafrica1393481stm

156 UN Security Council 2014 Report of the Secretary-General on childrenand armed conflict in South Sudan S2014884

157 Ibidem158 The Guardian 2015 South Sudan gunmen kidnap at least 89 boys

from village near Malakal httpwwwtheguardiancomworld2015feb22south-sudan-gunmen-kidnap-89-boys-village-malakal-child-soldiers

159 The Guardian 2015 South Sudan gunmen kidnap at least 89 boysfrom village near Malakal

60

LIVING IN FEAR

People are desperate for peace They are tired ofliving in fear Many have had to flee several timesThey are exhausted They lack water they areextremely worried for their children who are notin school and at risk of being recruited into armedgroups Sexual violence is rife All people want isto live in safety security and stability160

Wars have also an impact on food security and nutrition Asof February 2015 there was an alert that the food situationwas critical in South Sudan for more than 25 millionpeople161 This was famine related to war Ulrika BlomCountry Director for Norwegian Refugee Council in 2015succinctly stated ldquoThere is an urgent need for a solution onthe conflict so that people are able to resume their dailylives in dignity and not be dependent on massive foodassistancerdquo162

The harsh consequences of war are inevitable and occurfrom a systematic destruction of infrastructure erosion ofthe human capital and weakening of essential institutions

Besides causing an appalling loss of life Sudanrsquoslong civil war eroded the capital base The wardepleted the labour force while roads irrigationsystems and other key components of rural

160 Under-Secretary-General for Humanitarian Affairs and Emergency ReliefCoordinator Valerie Amos remarks to the press Juba South Sudan 9February 2015 httpreliefwebintreportsouth-sudanunder-secretary-general-humanitarian-affairs-and-emergency-relief-coordinator-1

161 UN Security Council 2015 Reports of the Secretary-General on theSudan and South Sudan SPV7392

162 Norwegian Refugee Council 2015 Conflict a cause of hunger in SouthSudan httpwwwnrcnodid=9192498

61

3 SOUTH SUDAN THE OIL WAY

infrastructure were destroyed damaged orneglected It also weakened institutions divertedfinancial capital from economic development andundermined interpersonal trust which is criticalto productive business dealings163

Some have tried to put a figure on the costs of war A recentreport estimates that the cost of the civil war may be between$223 and $28 billion over the next five years for SouthSudan alone if the factions fail to bring peace to the worldrsquosnewest country164

UN peacekeeping operations

In July 2011 the Security Council determined that thesituation in South Sudan constituted a threat to internationalpeace and security in the region and established the UNMission in the Republic of South Sudan (UNMISS)165 Thekey elements of the mandate is to consolidate peace andsecurity However after the civil war broke in July 2013 inthe light of significant human rights violations the large-scale displacement of persons the UNMISS mandate wasreshaped and a focus was given to the protection of civiliansand creation of the conditions for delivery of humanitarianassistance166

163 IFAD 2013 Enabling poor rural people to overcome poverty in SouthSudan

164 Frontier Economics 2015 South Sudan the cost of war httpwwwfrontier-economicscomdocuments201501south-sudan-cost-warpdf

165 UN Security Council 2011 Resolution 1996166 UN Security Council 2014 Resolution 2155

62

LIVING IN FEAR

In June 2011 a month before the establishement ofUNMISS a second UN peacekeeping operation wasestablished in the disputed border between Sudan and SouthSudan The United Nations Interim Security Force for Abyei(UNISFA) was created in a context of escalating violenceand tensions and population displacement167 One of the topobjectives was to achieve the demilitarization of the Abyeifrom any force other than UNISFA and the Abyei PoliceService facilitate the delivery of humanitarian aidstrenghten the capacity of the Abyei Police Service and incooperation with the police provide security for oilinfrastructure in the Abyei area168

Corporations and conflicts with communities

Since the conclusion of the 2005 Peace Agreement betweenthe Government of Sudan (GoS) and Sudan PeoplersquosLiberation MovementArmy (SPLM) negative impacts ofoil exploration and extraction have continued to ignitemistrust among local communities towards the oilcompanies Many problems from the oil activities wereidentified such as water pollution and uncompensateddispossession of land However oil companies or thegovernment did little to assess correct and reduce suchimpacts169 In this context many communities chose the ldquopath

167 UN Security Council 2011 Resolution 1990168 UN Security Council 2011 Resolution 1990169 ECOS 2014 Scrutiny of South Sudanacutes oil industry http

w w w e c o s o n l i n e o r g r e p o r t s 2 0 1 4 Scrutiny_of_South_Sudans_Oil_Industrypdf

63

3 SOUTH SUDAN THE OIL WAY

of confrontation with oil companiesrdquo170 For instance byblocking and interfering in oil operations by truck blockagesand other stoppages171

Resentment of local communities againstoil companies

The negative consequences of oil developmenthave been causing deep resentment against oilcompanies in many oil-rich parts of SouthernSudan Arriving in any oil area where activeexploitation is ongoing one is often confrontedwith persistent complaints from local people aboutpoor management of ldquoproduced waterrdquo which isblamed for pollution of the environment This isoften linked to unexplained deaths of animals andstrange or new human ailments Moreover the oilinfrastructure such as oil roads wells and pipesare frequently blamed for disrupting the means oflivelihoods of local people as well as destructionof property

Source ECOS

170 ECOS 2014 Ibidem171 ECOS 2014 Ibidem

64

LIVING IN FEAR

Lundin Oil Consortium facing war and violencein their work territory

In 2010 the European Coalition on Oil in Sudan (ECOS)requested an investigation on the activities of the LundinGroup and its connection with the conflict in Sudan and thepossible ldquocomplicity in the commission of war crimes andcrimes against humanityrdquo172 During the Second Civil War in1997 a consortium of oil companies led by the Swedish oilcompany Lundin Oil AB (ldquoLundinrdquo) signed a contract withthe Government for the exploration of oil in the concessionarea called Block 5A that was not at that time under fullGovernment control The other members of the Consortiumwere Petronas Carigali Overseas Sdn Bhd (ldquoPetronasrdquo) fromMalaysia OMV (Sudan) Exploration GmbH (ldquoOMVrdquo) fromAustria and the Sudanese state-owned oil company SudapetLtd

Before the start of explorations the area around Block5A was relatively peaceful When the oil exploration startedthe escalation of violence and war followed suit173 Accordingto the European Coilation on oil in Sudan Block 5A ldquobecamethe scene of intense fighting and gross human rightsviolations as soon as the Lundin Consortium started oilexploration activities on the groundrdquo Right from thebeginning there are reports of significant war and violence

172 ECOS 2010 Unpaid debt The Legacy of Lundin Petronas and OMV inSudan 1997-2003 Press Release httpwwwecosonlineorgreports2010Press_release_UNPAID_DEBT

173 ECOS 2010 Unpaid debt The Legacy of Lundin Petronas and OMV inSudan 1997-2003 httpwwwecosonlineorgreports2010UNPAID_DEBT_textonlywebpdf

65

3 SOUTH SUDAN THE OIL WAY

where villages and towns were burnt and looted Tens ofthousands of people in Block 5A were also moved out fromthe exploration areas

In 1999 the Lundin Group discovered major reserves ofoil This accelerated the Government desire to control allthe areas surrounding the well and the infighting intensifiedLundinrsquos explorations in Block 5A had to be suspended twicedue to insecurity174

The consequences of all the violence towards thepopulation which were in the middle of the power battlefor controlling Block 5A were severe abuse of all humanrights and war crimes More than 10000 people were killedalmost 160000 displaced with thousands of peoplepermanently uprooted from their villages hundreds ofthousands of cattle lost or looted destruction of churchesschools markets medical clinics and many otherincalculable moral damage and inmense loss of income175

Talisman Energy accused of complicity with forceddisplacements

A Canadian company Talisman Energy which at that timewas considered to be the largest independent oil and gascompany in Canada has been accused of indirectly helpingto exacerbate the war and of being complicit in human rightsabuses and crimes against humanity176 Talisman has a 25

174 HRW 2003 Ibidem175 ECOS 2010 Unpaid debt Ibidem See also Medecins sans frontieres

2002 Violence health and access to aid in Unity Statewestern uppernile Sudan httpwwwdoctorswithoutbordersorgsitesusafilessudan_04-2002pdf

176 Africa files 2000 Corporate immunity for oiling repression Talismanin Sudan httpwwwafricafilesorgarticleaspID=621

66

LIVING IN FEAR

stake in the Greater Nile Oil Project Company (GNOPC) aninitiative located in south-central Sudan with threeadditional partners the national petroleum company ofChina (40) the national oil company of Malaysia (30)and the national petroleum company of Sudan (5)177

There were many allegations that people were forcefullydisplaced in the area of the oil field ran by Talisman UNreported that accusations were made on Talisman of ldquobeingaccomplice of human rights abuses in Upper Nile so as toguarantee security for its oil operationsrdquo178

Moreover a report from the Canadian Foreign AffairsMnistry ndashthe Harker Report ndash which undertook a mission toSudan described with concern that fighting was intense inthe areas of oil development in general and that oilextraction may have contributed to relocation of civiliansby force179

Violence and the fear of it impact immediatelyon the peoplersquos use of the land and result in foodinsecurity which in turn propels movement ordisplacement

Contradicting that oil is at stake in the displacement issueTalisman explained that displacement was a result of an inter-tribal issue Once again the Harker report concluded thatthe displacement was because of oil

177 Africa files 2000 Ibidem178 UN Security Council 2000 Interim report of the Special Rapporteur of

the Commission on Human Rights on the situation of human rights inthe Sudan A55374

179 Canadian Ministry of Foreign Affairs 2000 Human Security in SudanThe Report of Canadian Assessment Mission httpwwwecosonlineorgreports2000Human20Security20in20Sudanpdf

67

3 SOUTH SUDAN THE OIL WAY

ldquoFor Talisman so very much seems to be explained as merelyan inter-tribal problem but displacement has gone on andis still going on and in Ruweng County it is hard to denythat displacement is now and has been for some timebecause of oilrdquo180

Talisman Energy decided in 2002 to end its controversialfour-year investment in Sudan by selling its 25 percent stakein the Greater Nile Petroleum Operating Company to anIndian firm Most of the rumours is that the reasons for thiswas the strong pressure from the US particularly to end itswork in Sudan in order to stop indirectly supporting theGovernment in Sudan with its oil revenue181

The oil way developing what

Sharing the wealth with the Sudanese people The resourcecurse again

As said before 98 of the governmentrsquos revenue comesfrom oil production royalties and South Sudan sits on thethird-largest oil reserves in Africa182 It was estimated in 2011that South Sudan controlled 75 of the overall oil productionof Sudan and South Sudan altogether ndasharound 500000barrels per day However South Sudan remains dependenton the North for processing refinement and export to theRed Sea

180 Canadian Ministry of Foreign Affairs 2000 Ibidem181 New York Times 2002 Talisman to sell its stake in company in Sudan

httpwwwnytimescom20021031businesstalisman-to-sell-its-stake-in-company-in-sudanhtml

182 Africa Business Initiative 2011 Investment climate upate Sudanhttpswwwuschambercomsitesdefaultfileslegacyinternationalafricafiles16920_AfricaNewsletter_Sudanpdf

68

LIVING IN FEAR

Paradoxically South Sudan is considered a fragile StateSitting on oil as has occured to many other countries acrossAfrica and abroad does not guarantee wealth for the majorityof the population A 2013 report concluded that ldquoover thelast decade Sudan has been the largest recipient ofhumanitarian assistance by some distance receiving US$106 billion over the periodrdquo183 90 per cent of the populationearn less than a dollar a day184

Oil money through the State budget is expected to serveto finance all the key governmental activities of the Statesuch as agriculture health infrastructures and educationDespite the fact that the benefits from oil are substantialthere are numerous questions arising about the destiny ofall the oil money For instance how could it be explainedthat one of the sectors more financed is the military andsecurity apparatus Since South Sudanrsquos independence theGovernment has allocated 38 of oil revenue to the militaryand security services with only 10 and 7 ininfrastructures and education respectively185 In 2012 SouthSudan was the among top 8 African countries having militaryexpenditure of almost $1 billion186 For instance TheEconomist reports that South Sudan bought 100 Ukrainian

183 Global humanitarian assistance 2013 Global humanitarian assistancehttpwwwglobalhumanitarianassistanceorgwp-contentuploads201307GHA-Report-2013pdf

184 Kebede 2014 The role of oil in South Sudanhttpswwwruoruottawacabitstream10393315631KEBEDE20Solomon2020145pdf

185 The Guardian 2014 South Suan is divided by the spoils of oil notethnicity httpwwwtheguardiancomcommentisfree2014jan14south-sudan-divided-oil-ethnicity-violence

186 LAVDC 2014 Les quatre puissances militaires regionales dacuteAfriquehttpwwwlavdcnetportailles-quatre-puissances-militaires-regionales-dafrique

69

3 SOUTH SUDAN THE OIL WAY

T-72 tanks187 At the same time agriculture and livestock hasbeen completely neglected despite the fact that more than80 of the population depend on that sector for fulfiliingtheir basic needs

Where the money goes

Daniel Wuor Joak former MP in South Sudan LegislativeAssembly and Minister of Education Science and Technologyin Upper Nile State claims that between 2005 and 2014both the Government of South Sudan (GOSS) and theRepublic of South Sudan (RSS) have been receiving onaverage not less than two billion of USD per year Somehave already manifested the unclarities over the destiny ofall that money as described by Mr Wuor Joak

Since 2005 upwards both the GOSS and RSS havebeen receiving no less than 18 billion USD in oilrevenues without implementing any majordevelopmental projects like roads network linkingdifferent States in South Sudan conducive learningschools from basics to universities level referralmedical facilities clean drinking water in remoteareas throughout the country setting up vibrantand credible institutions which can adhere to rulesof law All these things have not been implementeddue to poor system of governance under leadershipof Salva Kiir Mayardit Most of the counties have

187 The Economist 2014 Arms and the African

70

LIVING IN FEAR

no roads linking them with their State capitals andlack schools health centres clean drinking wateretc South Sudanese population in the rural areasthroughout the country are still living in the sameconditions as they were under Khartoumrsquos rule interms of scarcity of development188

Speaking more directly Kebede made firm remarks aboutthe overall situation in South Sudan

In general poverty corruption bad governance andviolence characterized the resource curse in SouthSudan A relatively small group of elite capturesvast wealth while leaving much of their societywithout access to the minimum resource necessaryfor long term wellbeing As a result South Sudanremains one of the worldacutes least-developedcountries despite its oil (hellip) hellipmuch of the oilrevenue has been squandered189

188 Wuor Joak 2014 Major Causes of the Current Conflict in Sudan SouthSudan News Agency

189 Kebede 2014 The role of oil in South Sudanhttpsw w w r u o r u o t t a w a c a b i t s t r e a m 1 0 3 9 3 3 1 5 6 3 1 KEBEDE20Solomon2020145pdf

71

3 SOUTH SUDAN THE OIL WAY

Even before the current tensions Bentiu saw little benefitfrom oil The streets are unpaved and covered with trashelectricity is scarce reserved for those with privategenerators () Most expect more violence Bentiu hasbecome more militarized with armed soldiers placed atcheck points and at the bridge Troops are constantlymoving to the front Weapons are being flown into theairport

ldquoThe oil is a curse ldquoMohammed Abdurahman Kili 56mumbled from his hospital bed his body covered withburns He was inside his shop in a crowded market onthe edge of town when a Sudanese warplane attackedkilling a 9-year-old child and another person and settinghis shop on fire

Washington Post 2012

President Salva Kiir recognized in 2012 that corrupt officialshad stolen from the people of South Sudan and the amountlost or taken by lead government and military officials mightbe as much as $4 billion190 Kiir sent a letter to 75 SouthSudanese officials or individuals close to the governmentasking them return all the amount lost The letter describedin general terms how the money got ldquolostrdquo

An estimated $4 billion are unaccounted for orsimply put stolen by current and former officialsas well as corrupt individuals with close ties togovernment officials Most of these funds have beentaken out of the country and deposited in foreignaccounts Some have purchased properties oftenpaid in cash191

190 Ibidem191 Paanluel Wel South Sudanese bloggers httppaanluelwelcom2012

0601letter-from-president-kiir-on-corruption-4-billion-dollars-stolen192 Sudan Tribune 2013 South Sudanacutes Kiir accuses army of corruption

72

LIVING IN FEAR

A year later Kiir accused the armed forces of being corruptHe said that despite the big budget allocations made to thearmy there were even no ldquovehicles to transport soldiers onmissionsrdquo192 Two years later the issue remained unclearand the names of the officials referred to in the letter wereyet to be disclosed However Kiir accused Machar of beingresponsible for a lot of corrupted activities in the country193

Machar responded to Kiir by saying that his claims wereunfounded and then also accusing him of such practices194

It seems South Sudan epitomises all the features of theresource curse argued in Chapter 1195 How can the corruptionbe prevented How can the money go to the people It isalso important to note that the oil sector provides littleemployment to the people of South Sudan Most of thehousehold income and employment is generated in theagriculture and farming sector primarily196 Would investingin other sectors like agriculture that provide real wealth tothe people make a difference

193 Sudan Tribune 2014 South Sudan rebel leader should face corruptioncharges Kiir

194 Sudan Tribune 2014 South Sudan Macharacutes Rebentildes dismiss corruptionaccusations no spiritual powers httpallafricacomstories201407221384html

195 Kebede 2014 The role of oil in South Sudan Ibidem196 Tizikara et al 2012 Post-conflict development of Agriculture in South

Sudan perspective on approaches to capacity strenghtening httpwwwerailsnetimagesfarasecretariatkigali-movementfileKigali20MovementPost-Coflict20Agriculture_South20Sudanpdf

73

3 SOUTH SUDAN THE OIL WAY

Environment

As experienced in oilfileds in other parts of the world the oilfields here are also leaving a significant impact on theenvironment and local communities A three year study inThar Jath and Mala fields in Unity State show thatgroundwater is very polluted making the water unsafe forhuman consumption197 The study made by a team of SouthSudanese and German geologists concluded that water usedby 180000 people was too salty to drink and containdangerous amounts of heavy metals198

In many occasions the oil fields that causeenvironmental pollution are even abandoned due to the warSome observers identified that oil pipelines damaged duringthe conflict were leaking199

South Sudan must produce for its needs

In 2015 the Minister of Finance of South Sudan David DengAthorbei made a statement saying that the country shouldbe self-sufficient in agriculture terms and in addition itneeds to increase its non-oil revenue and to achieve peace200

197 Rueskamp et al 2014 Effect of oil exploration and production on thesalinity of a marginally permeable aquifer system in the Thar Jath-Mala- and Unity Oil fields Southern Sudan Zbl Geol Palaont Teil IJ

198 Radio Tamazuj 2015 Study Direct link between oil exploration andwater pollution in Unity httpsradiotamazujorgenarticlestudy-E28098direct-linkE28099-between-oil-exploration-and-water-pollution-unity

199 Star Africa 2014 South Sudan Oil leaks cause pollution fears httpenstarafricacomnewsssudan-oil-leaks-cause-pollution-fearshtml

200 Bloomberg 2015 South Sudan Finance Minister says food output canoffset oil httpwwwbloombergcomnewsarticles2015-01-20south-sudan-finance-minister-says-food-output-can-offset-oil-1-

74

LIVING IN FEAR

He also made a call for a reduction of the countryrsquos relianceon agriculture imports particularly in the context of aneconomy affected by the plunge in global oil prices201

Peter Biar Ajak from the Center for Strategic Analysis andResearch in Juba illustrates the macroeconomic weaknessesof South Sudan today because of its oil dependence

South Sudanrsquos oil-dependent economy is nearingcatastrophe The production of crude oil has droppedby about 35 percent since the conflict began Thatcombined with a drop of roughly 45 percent in globaloil prices since the summer has meant a substantialreduction in the governmentrsquos oil revenues andenormous fiscal and budgetary ressures

Since South Sudan exports almost nothing asidefrom oil and imports almost everything else tradeand monetary policy have also been buffeted byfalling oil revenues Access to foreign currency hasbecome extremely limited The prices of manyimported goods have risen There are shortages ofpetrol which must be imported because SouthSudan has no refinery202

Indeed a dynamic agriculture sector may be key for peaceand development in South Sudan More than 95 of thecountryrsquos population is dependent on farming fishing orherding to meet their daily food needs and income as well203

201 Bloomberg 2015 Ibidem202 Biar Ajak 2015Sanctions for peace in South Sudan The New York Times

January 7th203 FAO in emergencies httpwwwfaoorgemergenciescountries

detailenc147627

75

3 SOUTH SUDAN THE OIL WAY

204 Business Daily 2011 South Sudanrsquos vast agricultural sector potentialuntapped

205 Norwegian Refugee Council 2015 Conflict a cause of hunger in SouthSudan httpreliefwebintreportsouth-sudanconflict-cause-hunger-south-sudan OCHA 2015 South Sudan Crisis Situation reportn 74 httpreliefwebintsitesreliefwebintfilesresourcesSouth_Sudan_Situation_Report_No_74pdf

206 OECD 2014 Fragile States 2014 Domestic revenue mobilisation infragile states httpwwwoecdorgdacgovernance-peaceconflictandfragilitydocsFSR-2014pdf

South Sudan has good soil and climatic conditions and morethan 70 of its land area is suitable for crop productionThere are many that believe that the investment in theagriculture sector has more potential than oil however thisthinking has not received due attention from local andforeign investors204 Efforts towards making agriculture workare vital for peace and stabililty in the country It is urgentlyneeded to work on this area particularly when at presentthere are 25 million in Sudan at risk of starvation205 andaround one third of the population are food insecure plusmore than a million displaced

The dependency on income from natural resourcesleaves fragile states vulnerable It exposes them toshocks in commodity prices ndash as demonstrated bythe sudden fall in commodity prices in 2009following the 2002-2008 boom Neither is it asustainable source of incomeSouth Sudanrsquos oilproduction for instance is projected to decreasesteadily in future years and become negligible by2035

Source OECD206

76

LIVING IN FEAR

207 UN Security Council 2015 Resolution 2206 SRES2006(2015)httpwwwunorggasearchview_docaspsymbol=SRES2206 (2015)

208 Sudan Tribune 2015 South Sudan unhappy with US support for sanctionshttpwwwsudantribunecomspipphparticle54232

209 Washington Post 2014 US appears unable to pull South Sudan backfrom the brink of civil war httpwwwwashingtonpostcomworldus-appears-unable-to-pull-south-sudan-back-from-the-brink-of-civil-w a r 2 0 1 4 0 5 0 3 d 9 2 8 0 b d a - 3 8 6 b - 4 2 4 9 - 9 4 e 0 -b5292610e5bb_storyhtml

210 Ibidem

US fallen dream

In 2015 the UN imposed a travel ban and assets freeze againstindividuals or entities which engaged in or provided supportfor acts that threaten peace security and stability of SouthSudan207 The US was behind the draft and the submission ofthe resolution This resolution prompted an angry reactionfrom the South Sudanese The South Sudanese presidencywas said to be extremely disappointed about the US ledmove208

In the past the relationship between the US and SouthSudan was completely diferent The United States was themain promoter and supporter of the worldrsquos newest nationThe Washington Post for instance asserted that ldquoSouth Sudanowes its existence to the United Statesrdquo209 The expectationscreated were high before its started its independence andsome believed that Sudan would be able to manage thecountry breaking the so-called ldquoAfrican model of pettyrivalries corruption and oppressionrdquo210 Despite all the hopesput on the young nation as of today no solution has beenfound to the ongoing war

77

3 SOUTH SUDAN THE OIL WAY

The US was the largest donor to Sudan in the years priorto independence providing 339 of the total aid to Sudanbetween 2000 to 2009211 The United States (US$472million) was the largest donor of humanitarian assistanceto South Sudan in 2012 followed by the United Kingdom(US$96 million)212 For many years Sudan was the thirdlargest recipient of US aid only after Iraq and Afghanistan213

The inteligence and information systems of theAmericans on the ground in Sudan seemed to have beenrelatively good214hellip however how come they did not foreseethat South Sudan was quickly descending once again on theavenue of a country at civil war For instance the problemsbetween President Salva Kiir and his deputy were not newAlready more than two years before the civil war started inJune 2011 in a speech in Juba the President accused hisDeputy Riek Machar ldquoof running a parallel governmentwithin the governmentrdquo215 Couldnrsquot they have preventedanother conflict Why did they fall into ridiculouscontradictions as the one recently revealed via wikileakssuggesting that the US was funding both armies in

211 Development initiatives (undated) Sudan Aid Factsheet 1995-2009httpwwwglobalhumanitarianassistanceorgwp-contentuploads201102Sudan-Aid-Factsheet-2011pdf

212 See global humanitarian assistamce ebpage httpwwwglobalhumanitarianassistanceorgcountryprofilesouth-sudan

213 The Atlantic 2011 US played key role in Southern Sudanacutes longjourney to Independence

214 The Global Intelligence files 2013 SudanUSMIL ndash SPLA trying toget US to hook it up httpssearchwikileaksorggifilesviewemailid=5047664

215 Sudan Tribune 2011 Salva Kiir exposes his rift with Machar overSouth Sudan transitional constitution httpssearchwikileaksorggifilesviewemailid=3831682

78

LIVING IN FEAR

contention the Government force of Salva Kiir and the rebelsof Riek Machar216 Why are both paid by the UShellip to dowhat As one reporter questioned why are they ldquopaid tokill each otherrdquo217

216 RT 2015 US officials tussle over arms embargo sanctions in oil-flushSouth Sudan httprtcomusa226387-south-sudan-sanctions-war

217 RT 2015 Ibidem

Seven Million

ldquoA peaceful DR Congo could transform Africa almostovernight but is there a way outrdquo218

There is always a way out However peace is not an easything particularly under certain circunstances When youhave lost your father your mother your uncle your sisterwhat else can you lose Can you still believe in peaceTwoof the bloodiest conflicts in recent decades in the world haveoccurred in Africa The Second Civil War in Sudan has leftaproximately two million casualties and the conflict in DRCis estimated to have snuffed life out of no less than fivemillion people

How many more

How does one begin to quantify the dead when they are inthe hundreds of thousands No less than seven million livesof Congolese and South Sudanese were taken away due towars and conflicts fuelled by natural resources How many

218 African Business 2009 DR Congo $24 trillion fortune

4

79

80

LIVING IN FEAR

more How many more before the world wakes up to acteffectively towards ending all those conflictsProbably unless you are one survivor from those experiencesyou would never be truly able to understand what it meansto lose entire families and friends you would never be trulyable as well to understand what it means to feel fear foryour life and the life of your close relatives

When you start counting sometimes you forget thatpeople are not numbers There are names behind thenumbers A family A life As we write this book people aredying needlessly in the DRC and in South Sudan Calculatingdead people due to conflicts in this part of the world is verydifficult due to statistical challenges and so it is conceivablethat probably the number of victims is much larger than sevenmillion (7000000) When would the volume of bloodshedthe number of lives taken be enough for the belligerentofficials to make real peace How many more should fallAthousand more Another one million The pain sadness anddestruction that those conflicts generate should not beaccepted any more

Oil and minerals the main cause of ongoingconflicts and war

Some authors argue that minerals and oil are not a cause ofwar but ldquocompetition for them could amplify and expediteconflictrdquo219 In this book as chapter two and three haveshown oil and minerals are the main motor behind theconflict in recent decades in DRC and South Sudan It would

219 UN Security Council 2013 Natural resource wealth fails to translateinto equivalent benefits for people fuelling conflict to instability DeputySecretary-General tells Security Council httpwwwunorgpressen2013sc11037dochtm

81

4 SEVEN MILLION

be very difficult if not impossible to expect those conflictsif their territories were resource poor Oil and minerals arefull of blood An activist poet wrote We Thought it was Oilbut it was Blood220 Although he was writing about the NigerDelta situation we see a universal application in that phrase

In both countries described there were other elements andfactors to take into consideration however it can be saidthat control over natural resources was the most importantcause on both conflicts in DRC and South Sudan In bothcases oil and minerals fuelled those wars and in manyoccasions these resources have inspired fueled and sustainedarmies operating in the territories of both countries

A Statersquos wealth means nothing if not shared withthe majority of the population

DRC and South Sudan ought to be wealthy countriesUnfortunately having a wealth of natural resources doesnot mean that it belongs to the citizens or that the wealthwould be shared among the population of a given State AState is a nation or territory considered as an organizedpolitical community under one government221 A goodgovernment should be the one that takes care of its citizensand shares the wealth among its citizens and not justdistribute it among an elite Jan Eliasson Deputy Secretary-General of the United Nations stated that ldquoin too manycountries a wealth of resources including timber oil coaldiamonds and precious metals failed to translate into

220 Nnimmo Bassey 1998 We Thought it was Oil but it was Blood IbadanKraft Books

221 See httpwwwoxforddictionariescomdefinitionenglishstate

82

LIVING IN FEAR

equivalent wealth for the people Only a powerful fewbenefitrdquo222

The State is expected to perform an adequateimplementation of human rights granted by several UNdeclarations and conventions including the right to foodright to health right to shelter right to clothing right towork farmersacute rights etc Paradoxically the violations andabuses of human rights have been constant in DRC and SouthSudan Both countries have suffered from acts of war oncivilian population both have as well a large number ofdisplaced people with no access to food without healthcarewithout shelter and without any work Both countries havemore than 90 people living below one dollar per day andthey are considered among least developed countries andfragile states Due to this both are some of the biggestrecipients of humanitarian aid Moreover both have hugesecurity problems shown for instance by the presence ofUN peacekeeping operations Out of the 17th worldwideongoing peacekeeping UN operations three are in DRCSouth Sudan and in Abyeia disputed territory between Sudanand South Sudan

They possess resources that have a huge monetary valueand that in most cases have the involvement of foreigncountries and corporations and other stakeholders of theprivate sector which are ready to pay enormous sums ofmoney to gain control of the natural resources belonging toother countries If no war or significant armed conflict takes

222 UN Security Council 2013 Natural resource wealth fails to translateinto equivalent benefits for people fuelling conflict to instability DeputySecretary-General tells Security Council httpwwwunorgpressen2013sc11037dochtm

83

4 SEVEN MILLION

place common elements among those countries that possesssuch resources in Africa is the existence of massive povertyand corruption and in most cases this is contrasted withmega-rich individuals Letacutes take for instance the case ofoil-rich Angola where the president and his daughter possessmultibillionaire fortunes while at the same time the majorityof the country population is living on less than two dollarsper day223

Greed power and control over natural resources

It must be noted as well that often oil and minerals involvemillions and multibillion profits With such large sums ofmoney greed power and control take the driving seat ofwhatever country government in the world When theprospects for such money flow arrives many leaders andelites start distancing themselves from the majority of thepopulation and stop thinking about the welfare of their ownpeople

At the centre of most of the conflicts in both countriesare struggles for power and control of natural resourcesMinerals and oils are the main cause of the ongoing conflictsand wars Unfortunately most commentators qualify therecent civil war in South Sudan as a ldquopower strugglerdquo withoutfurther qualifications In South Sudan who gets the oil getsthe power Therefore the power struggle is a war overnatural resources for control of the oil in the country Areporter affirmed that ldquowhoever controls South Sudanrsquos oiltherefore could seize the upper hand in the battle for

223 Forbes 2013 Daddyacutes girl how an African ldquoprincessrdquo banked $3 billionin a country living on $2 day httpwwwforbescomsiteskerryadolan20130814how-isabel-dos-santos-took-the-short-route-to-become-africas-richest-woman

84

LIVING IN FEAR

224 France 24 2013 Battle for oil adds new dimension to South SudanConflict httpwwwfrance24comen20131227-battle-oil-adds-new-dimension-south-sudan-conflict

225 OECD 2014 Fragile States 2014 Domestic revenue mobilisation infragile states httpwwwoecdorgdacgovernance-peaceconflictandfragilitydocsFSR-2014pdf

powerrdquo224 In both countriesrsquo non-renewable natural resourcetook a dominant share of the fiscal revenue of DRC andSouth Sudan ndash 82 in the DRC and 98 in South Sudan225

Who controls those resources controls the countryThe case of South Sudan where the president has

recognized the disappearance of $4 billion by corruptindividuals is compelling President Salva Kiir pinpointed thespirit behind the rot ldquoOnce we got to power we forgot whatwe fought for and began to enrich ourselves at the expenseof our peoplerdquo This might also include him as well becauseit is difficult to imagine that such huge amount of money couldbe stolen without the leader noticing anything at all

Greed for minerals and oil is at the heart of the massivedeath toll and impoverishment of the Congolese and SouthSudanese people in recent decades It can be affirmed quitecomfortably that if the Eastern part of the DRC would havenot sat on huge mineral reserves it would be very difficultto imagine all the conflicts that have occurred in that zoneIt can be affirmed as well that without oil ongoing wars inSouth Sudan might most probably never have occured

Peace is the only way forward

Achieving peace is a complex issue To create peace thereare many issues to resolve with all stakeholders such as

85

4 SEVEN MILLION

mutual accusations of support to rebel groups226 goodgovernance transparency demobilisation and disarmamentof local militia etc227

A positive but vital first step is that there are calls at veryhigh levels in both countries and at international fora Thismust be followed with open debate on the core causes of theconflict and ways of achieving reconciliation It does notappear that lasting peace can be achieved otherwise In thatprocess the people need to be put at the centre ofdevelopment policies and actions in both countries in orderto stop the plunder reverse environmental degradation andfight poverty As long as the political military and corporateelite maintain their control of the natural resources of thecountry the devastating plunder will continue to the benefitof only such elite and a handful of corporations

226 UN Security Council 2015 Reports of the Secretary-General on theSudan and South Sudan SPV7392

227 The Guardian 2014 South Sudan is divided by the spoils of oil notethnicity httpwwwtheguardiancomcommentisfree2014jan14south-sudan-divided-oil-ethnicity-violence

INDEX

AAbyei Joint Oversight

Committee (AJOC) 47Abyei Police Service 46 62Abyei 43-home of the Ngok Dinka 43

45Africa 18 20 see minerals

-and wars at the greatlakes 20 25-armed groups in 26-criminal networks in 26-death in 20-exploitation naturalresources in 18-militias in 26-minerals in 20-poverty in 20-wealth in 20

Africarsquos wealth 14-and resource curse 14-blessing or curse 14

African Business 22African Development Bank

(AfDB) 16 17

African Unionrsquos (AU) Peaceand Security Council 48

Algeria 15Allied Democratic Forces

(ADF) 25 28-in North Kivu 25

American Mineral Fields(AMF) 36

AngloAmerican corporation35

AngloGold Ashanti 35Anvil Mining 36Armed Forces of the DRC

(FARDC) 26Athorbei David Deng 73Auty Richard 14

BBBC 18Blom Ulrika 59Blue Nile 45

CCentral African Republic 7China National Petroleum

Corporation 49

86

INDEX

87

Citibank NY 36Clinton Bill 24 36Conflict minerals 30 see

Rwanda-legitimate exports of 30-smuggling of 30

Conflicts 7-and natural resources 7-causes of 10 80-uniqueness of 10

Congolese Government 18

DDemocratic Republic of

Congo (DRC) 7-85-and (MONUC) 29-greed for minerals in 32-UN peacekeeping opera-tion in 29

Diffra oil complex 47DR Congo 79

EEastern Congo 28

-insecurity in 28Eliasson Jan 81

-Deputy Secretary-Generalof the United Nations 81

European Coalition on Oil inSudan (ECOS) 63

Exploration GmbH (OMV)64

Exxon corporate 15

FFirst Sudanese Civil War 42Forces deacutemocratiques de

libeacuteration du Rwanda(FDLR) 28

GGabon 18

-oil in 18Gertler Dan 12 13Ghana 18

-oil in 18Giambrone Antonino 38Glencore Anglo-Swiss 35Government of South Sudan

(GOSS) 69Government of Sudan (GoS)

62Great War of Africa 23Greater Nile Oil Project

Company (GNOPC) 6667

Guinea Equatorial 15

HHague 44Permanent Court of Arbitra-

tion in 44Human Rights Watch 55

IIMF 22International Rescue Commi-

ttee 23

LIVING IN FEAR

88

JJoak Daniel Wuor 69Juba 74

-Center for StrategicAnalysis and Research in74

Katanga Minister of Planning22

KKenya 19Kerry John 24Kiir Salva 43 84

LLibya 7Lumumba Patrice 13 20Lundin Oil Consortium 63

MMachar Riek 43 57 77 78Madagascar 16Mala fields 73Malakal 59Mali 7Mayardit Salva Kiir 69McKinney Cynthia Ann 23

-US Congresswomanfrom the Democratic Party23

McMurrough Mike 36McNamara Robert 37

-as World Bank President37

Minerals 20 see Africa-and death 20

-and poverty 20-and wars at the GreatLakes 20-and wealth 20

Mozambique 18-gas in 18

Muloni Irene 18

NNationalist and Integrationist

Front (FNI) 36Natural resources 8 83 see

conflicts-and conflict 8-and greed 83-and power 83-and wars 8-control over 83

Niger Delta 16-oil is a curse for 16

N o n - g o v e r n m e n t a lorganisations (NGOs) 12

Non-OPEC African oilproducer 48

Norwegian Refugee Council59

OOECD Guidelines for

Multinational Enterprises37

Oil 48-and geopolitics 48

PPeace 84

INDEX

89

-as way forward 84Petronas Carigali Overseas

Sdn Bhd (Petronas) 64Powell Colin 58PR Newswire 30President Kabila 24President Obama 24

RRDC Mining Code 35Republic of South Sudan

(RSS) 69Rio Tintorsquos QMM 16Ruweng County 67Rwanda 24 31

-conflict minerals from 31

SSecond Congo War 24 32

34Second Sudanese Civil War

42Somalia 7South Kordofan 45South Sudan Civil War 57South Sudan 11 18 19 41

-Dinka ethnic group in 4357-Nuer ethnic group in 4357the oil way 41-UN peacekeeping opera-tions 61

South Sudanese Civil War 58Sudan 79

-Second Civil War in 79

Sudan Armed Forces 46Sudan oil police 47Sudan Peoplersquos Liberation

Army (SPLA) 41 46 5462-civil wars and conflict in41

Sudan vs South Sudan 43-and Heglig battles 47-and peace agreement 43-main oil companies in 51-oil-centered conflict 46-Row over oil tariffs 51

Sudanese Civil War 52-and Addis AbabaAgreement 53-and Islamic law 53-causes of 52

Swedish oil company LundinOil AB (Lundin) 64

TTalisman Energy 65Thar Jath 73Transnational Corporations

(Tncs) 34-and the private sector 34

UUganda 19 24UN Interim Security Force for

Abyei (UNISFA)UN Mission in the Republic of

South Sudan (UNMISS)61 62

UN Organization Stabiliza-

LIVING IN FEAR

90

tion Mission in the DRC(MONUSCO) 29

UN peacekeeping operations11

UN Security Council 11UNICEF 59UNISFA 47United Nations Office of the

Special Adviser on Africa(OSAA) 8

United Nations SecurityCouncil 25

United Nations 13University of California

(UCLA) 54 55Upper Nile State 59 69US fallen dream 76

VVirunga National Park 18

WWar and conflict 58

-consequences of 58Wars and minerals 21

-cobalt 22-coltan 22-copper 22-diamond 22-gold 22-manganese 22-peace at last 21-timber 22-tin 22-zinc 22

Wau Shilluk 59We Thought it was Oil but it

was Blood 81Wealth 12 13

-for whom 13-quest for 12

World Heritage site 18Worldwatch 40

Page 9: LIVING IN FEAR - Health of Mother Earth Foundation...Les quatre puissances militaires regionales d´Afrique. 12 LAVDC. 2014. Les quatre puissances militaires regionales d´Afrique

11

PROLOGUE

Republic of Congo (DRC) and South Sudan Both countrieshave gone through some of the bloodiest wars and conflictsin recent decades in the world Peace efforts have been madeat the UN level to try to minimize the conflict situations In2014 both countries had UN peacekeeping operationsmandated by the UN Security Council to promote protectand monitor human rights in DRC and South Sudan14 Weaim to provide a succinct but comprehensive overview ofboth conflicts and show their relation with natural resources

14 In 2014 there were ongoing 17 peacekeeping operations under theUN There were DRC and South Sudan ndashAbyei- See Office of theHigh Commissioner for Human Rights httpwwwohchrorgENCountriesPagesPeaceMissionsIndexaspx

LIVING IN FEAR

12

The Quest for WealthldquoDan Gertler is essentially looting Congo at the expense of

its peoplerdquo15

If there is wealth in DRC Dan Gertler has found a goodpiece of it The 41-years-old Israeli-born Dan Getler has adeclared fortune estimated at $144 billion While he isformally based in Bnei Brak Israel he has made his billiondollars fortune in the mining sector of DRC He is also verywell known for being a close friend of President JosephKabila16 Gertler is criticized over his way of doing businessand has been accused by non-governmental organisations(NGOs) to have obtained mining assets on the cheap bycavorting with politicians17 Congolese NGOs have said abouthim for example that ldquohe has political connections so statecompanies sell him mines for low prices and he sells themon for huge profitsrdquo The quest for wealth attracts manyGertler-like types to the African continent one of thewealthiest places of the planet

1

15 Affirmation of Jean Pierre Muteba head of a group of NGOs thatmonitor mining in DRC at The Washington Post 2012 Dan Gertlerearns billions as mine deals fail to enrich Congo

16 Forbes profile of Dan Getler httpwwwforbescomprofiledan-gertler

17 Forbes Ibiacutedem

13

1 THE QUEST FOR WEALTH

Wealth for whom

Everybody wants to be wealthier however not everybodyshares the same definition of wealth18One definition ofwealth is that it is a ldquotangible or intangible thing that makesa person family or group better offrdquo19 Under this definitionoil or a mineral would be considered wealth if it makes aperson family or group better off Certainly a person likeMr Getler is obviously doing better off in terms of moneywith his work and therefore he is wealthier under thoseterms Howeverthe resources that make Getler wealthy havenot necessarily benefited Congoacutes people Minerals or oilas said by Patrice Lumumba belongs to the people of DRCit is the responsbility of the State to manage its benefits andto share it among the population The wealth of a country isthe wealth of their people

However the wealth of natural resources revenues doesnot frequently bring benefits to the majority of thepopulation but rather a handful of elites The United Nationsoffice of the Special Adviser on Africa affirmed that the richesderived from the ldquoexploitation of natural resources are notonly used for sustainaing armies but also for personalenrichment and building political supportrdquo20 In additionthe office added that ldquocontrol over natural resources andtheir revenues often stay in the hands of a small elite and isnot used for broader development of the countryrdquo21

18 CNBC 2013 what is wealthy $5 million and plenty of cash19 See the business dictionary httpwwwbusinessdictionarycom

definitionwealthhtml20 United Nations office of the Special Adviser on Africa 2006 Natural

resources and conflicts in Africa transforming a peace liability intoa peace asset Conference Report

21 United Nations office of the Special Adviser on Africa 2006 Ibidem

LIVING IN FEAR

14

Africarsquos wealth blessing or curse

The resource curse

In a sea of wealth there are often oceans of povertyResource-rich countries are often accompanied by slowerthan expected economic growth poor economicdiversification gloomy social welfare indicators devastatingenvironmental impacts rampant corruption high inequalityhuge impoverishment bad governance and as said beforewars and conflicts22 This situation has been termed thetheory of ldquoresource courserdquo which term was used first in1993 by Richard Auty23 In 1995 the theory of the ldquoresourcecurserdquo was popularized thanks to an article of Sachs andWarner24 Both authors showed in their paper that ldquoeconomieswith a high ratio of natural resource exports to GDP in 1971tended to have low growth rates during the subsequentperiod 1971-1989rdquo From there a vast number of literaturehas been written on this matter and is divided between thosethat believe exploitation of natural resources is a curse andthose that believe that it can promote growth and

22 Mildner et al 2011 lsquoScarcity and abundance revisited a literaturereview on natural resources and conflictrsquo International Journal ofConflict and Violence Vol 5 Karl 2005 lsquoCovering oil a guide toEnergy and Developmentrsquo Understanding the resource curse opensociety institute

23 Time 2010 Brief history the resource curse httpcontenttimecomtimemagazinearticle09171199746000html

24 Sachs and Warner 1995 lsquoNatural resources and economic growthrsquoHarvard Institute for International Development

15

1 THE QUEST FOR WEALTH

development in developing countries25 Others for instanceprefer to use different terminology like Exxon corporatewhich has said ldquowe donacutet like to call it the oil curse weprefer governance curse We are private investors and it isnot our role to tell governments how to spend their moneyrdquo26

Africarsquos wealth

Africa is full of natural resources and there are manycountries considered as having a huge wealth Oil gasminerals timber fertile land water are often mentioned asthe riches of the continent However oil and minerals arethe favourites of some of the top leaders of the continentAngola with oil and diamonds Nigeria with oil GuineaEquatorial with oil Algeria with plenty of oil and gasdeposits DRC with minerals and South Sudan with oil justto name some of them

Many would think that all those States with lots of oiland mineral are very wealthy The truth is that although theStates are wealthy the countries are paradoxically full ofpoverty and their populations are not benefiting from thoseresources Moreover in many cases the wealth derived from

25 Pedro (undated) lsquoMainstreaming mineral wealth in growth andpoverty reduction strategiesrsquo Economic Commission for Africa PolicyPaper Ross 1999 lsquoThe political economy of the resource cursersquoWorld Politics n51 Hodler 2004 lsquoThe curse of natural resourcesin fractionalized countriesrsquo Economic department University ofBern SwitzerlandSwilling 2012 lsquoBeyond the resource curse fromresource wars to sustainable resource management in Africarsquo Paperpresented at the Winelands Conference on Integrity and GovernanceStellenbosch Pendergast et al 2008 lsquoCorruption and the curse ofNatural resourcesrsquo Department of Economics University of VictoriaDavis 2012 Replicating Sachs and Warner the 1997 Working PaperColorado School of Mines Neumayer 2004 Does the resource cursehold for growth in genuine income as well World Developmentvol 32

LIVING IN FEAR

16

oil and minerals mostly fuel wars and conflicts While somedie while some are displaced while some are injured orrape Some on the contrary are making money lots andlots of money hellip and while they make money they just puta blind eye on the horrors occurring outside the fence Thisis well described in the Harker report on the Sudanese warand the role of oil corporations ldquoIf the oil companies donrsquotknow whatrsquos going on theyrsquore not looking over the fencesof their compoundsrdquo27

Although some may believe that the importance of theoil and mineral sectors is the creation of jobs for thepopulation this has been denied by several authors

The oil gas and mining sectors are notoriously poorwhen it comes to job creation An offshore platformtapping deep-sea reserves will create few if anypositions for locals Only recently protests werereported outside Rio Tintorsquos QMM mineral sandsoperation in the south of Madagascar due to highlocal unemployment The best way to convertnatural resource wealth into jobs is to take theproceeds and invest in other more labor-intensiveindustries such as agriculture or manufacturing28

Nigeria provides a good example where communities living inthe Niger Delta have not benefited from oil extraction whichon the contrary has created serious conflicts as seen in Box 1

On the question of whether oil is a blesssing or a curse toAfrica the African Development Bank concluded that it is a

26 The Economist 2005 lsquoThe paradox of plentyrsquo27 Canadian Ministry of Foreign Affairs 2000 Human Security in

Sudan The report of Canadian Assessment Mission httpw w w e c o s o n l i n e o r g r e p o r t s 2 0 0 0 Human20Security20in20Sudanpdf

28Africa progress panel 2013 Africaacutes mineral wealth eternally cursedhttpwwwafricaprogresspanelorgafricas-mineral-wealth-eternally-cursed

17

1 THE QUEST FOR WEALTH

ldquohuge blessingrdquo29 It justifies that with the following analysis

We estimate that Africa has 120bn barrels of oilreserves no less than half of Saudi Arabia and 600million hectares of uncultivated arable land halfof the world total We at the African DevelopmentBank (AfDB) estimate that the continentrsquos naturalresources will contribute over $30bn per annumin government revenues over the next 20 years30

Box 1 Oil is a curse for the Niger Delta people

Most people think of oil states as wealthy states ButNigeria proves that sometimes the opposite is true It isAfricarsquos leading oil producer and yet it is one of theworldrsquos 20 poorest countries Whatrsquos more the peopleliving in the Niger Delta the countryrsquos oil-producingregion are among Nigeriarsquos most impoverishedcommunities with a large percentage of the populationhaving to survive on less than one dollar a day For thesepeople lsquoblack goldrsquo has not brought prosperity ordevelopment Instead it has increased corruption socialproblems environmental damage and armed conflictThe many billions of US dollars in oil revenue that havepoured into the country during its oil industryrsquos 50-yearhistory have completely bypassed these communitiesSource Petra Hannen 2011 lsquoBlessing our Coursersquo GIZmagazine akzent

29 African Development Bank 2013 lsquoAfricarsquos mineral wealth a blessingor a cursersquo httpwwwafdborgenblogsafdb-president-this-is-africas-hourpostafricas-mineral-wealth-a-blessing-or-a-curse-12336

30 African Development Bank 2013 Africaacutes mineral wealth a blessingor a curse httpwwwafdborgenblogsafdb-president-this-is-africas-hourpostafricas-mineral-wealth-a-blessing-or-a-curse-12336

LIVING IN FEAR

18

Africa continues the exploitation of its naturalresources

Most of the African Governments that discover naturalresources in their territory eagerly move forward with theexploration of those Therefore natural resources areexplored all over the continent oil in Ghana manganese inGabon gas in Mozambique just to name a few Often thereis little consideration of the destruction or the conflicts theseextractive activities bring For instance according to the BBCin March 2015 the Congolese Government consideredmodifying the boundaries of the Virunga National Park homeof gorilla mountains and World Heritage site to permit oilexploration activities31

DRC and South Sudan as well are exploring a joint projectnow DRC has a frontier with South Sudan in the Northeastpart of the country While historically both ndash referring alsoto Sudan ndash did not often have a common grounds after theIndependence of South Sudan in 2011 it appears possiblethat natural resources may unite them more closely IreneMuloni Minister for Energy and Minerals Development fromUganda announced in an interview in February 2015 thatSouth Sudan and the DRC have expressed interest in theconstruction of an oil pipeline of over 1000 km to the Kenyancoast32 Although yet to be implemented there have beendiscussions and plans to construct a pipeline that would unite

31 BBC 2015 DR Congo seeks Virunga park bounary httpwwwbbccomnewsworld-africa-31876577See also New York Times2014 Oil dispute takes a page from Congoacutes bloody past httpwwwnytimescom20141116worldoil-dispute-takes-a-page-from-congos-bloody-pasthtml_r=1

32 Platts 2015 South Sudan DR Congo interested in Ugandan crudeoil export pipeline minister httpwwwplattscomlatest-newsoilkampalasouth-sudan-dr-congo-interested-in-ugandan-crude-26025080

19

1 THE QUEST FOR WEALTH

oil production and distribution in several African countriesincluding South Sudan Uganda Kenya Democratic Republicof Congo (DRC) and maybe others33

The forthcoming chapters will develop more elementsaround this topic in order to conclude some final remarkswith the particular case studies of DRC and South Sudan

33 The Economist 2013 Pipeline poacuteker httpwwweconomistcomnewsmiddle-east-and-africa21578402-east-africa-danger-throwing-away-part-its-new-found-oil

20

LIVING IN FEAR

Minerals and Wars at the GreatLakes Wealth Death and Massive

Poverty in the Heart of Africa

Our internal difficulties tribal war and the nucleiof political opposition seemed to have beenaccidentally concentrated in the regions with ourrichest mineral and power resources We know howall this was organised and in particular whosupports it today in our house

Our Katanga because of its uranium copper andgold and our Bakwanga in Kasai because of itsdiamonds have become hotbeds of imperialistintrigues The object of these intrigues is torecapture economic control of our country

Patrice Lumumba speech in Leopoldville in August 25th1960 34

34 Speech at the opening of the All-African Conference in Leopoldville in1960 See httpwwwassatashakurorgforumshoulders-our-freedom-fighters42970-collected-speeches-writings-patrice-lumumbahtml

2

21

2 MINERALS AND WARS AT THE GREAT LAKES

Lumumba the first democratically elected Prime Ministerof the Republic of Congo gave a speech in 1960 that wasremarkably prescient of the fate of Democratic Republic ofCongo (DRC) today Conflict minerals and ldquotribal warsrdquo gohand in hand in the DRC historyrsquos past decades Lumumbawas planning to get the DRCrsquos related difficulties undercontrol however he was executed a few months after thespeech by a firing squad in January 1961 The US throughthe CIA the United Kingdom through the M16 and Belgiumwere all blamed for their involvement in his death35

Paradoxically ldquothe assassinations were made by the ordersof those who proclaim themselves to be champions ofdemocracy and respecters of human rightsrdquo36 Externalmeddling and intervention in Congorsquos affairs by foreigncountries is another of the concurrent and repeated situationsthat continue in recent history of the DRC37

Wars and minerals peace at last

hellip The heart of Africa is bleeding hellip

Two wars raged in DRC from 1996-1997 and from 1998-2003 Contrary to what some affirm these were not ethnicconflicts but resource wars38 No coincidence that the

35 BBC 2013 M16 and the death of Patrice Lumumba httpwwwbbccomnewsworld-africa-22006446

36 VVAA 1992 Congo (Zaire) Democratie neo-coloniale ou deuxiemeIndependance Ed LrsquoHarmattan

37 The Guardian 2011 Patrice Lumumba the most importantassassination of the 20th centuryhttpwwwtheguardiancomglobal-developmentpoverty-matters2011jan17patrice-lumumba-50th-anniversary-assassination

38 See Friends of the Congo websitehttpwwwfriendsofthecongoorgresource-centercongo-primerhtml See also Lanotte 2003 RDCguerre sans frontiers Editions Complexe

22

LIVING IN FEAR

country possesses extraordinary mineral wealth with someof the most valuable and strategic minerals on earth suchas coltan diamond cobalt copper gold tin zincmanganese timber and others The highest concentrationof mining activities existin the Eastern part of the countryTo illustrate the predominance of mining here we wouldunderline the affirmation of the Katanga Minister ofPlanning who said that 72 of the territory of Katanga isdevoted to mining No surprise why the IMF has namedDRC one of the worldrsquos mining giants of today39 Themagazine African Business stated in 2009 that ldquothe totalmineral wealth of the DRC was estimated to be some $24trillionrdquo40 As Lumumba indicated back in 1960 the samescenario repeated in recent years ndash minerals and conflictscontinue to go hand by hand

DR Congo possesses some 80 of the worldrsquoscoltan ore reserves(hellip) Additionally the DRCongo produces significant quantities ofdiamonds gold cassiterite copper cobalt (ofwhich it has the worldrsquos largest reservesalthough the trade is largely controlled byZimbabwe) oil tin zinc gold and coffee Thecountry has large reserves of uranium it wasCongolese uranium that was used for theManhattan Project that produced the worldrsquosfirst atomic bombs dropped on Japan The vastcountry also has more than half of sub-SaharanAfricarsquos timber stocks

Source African Business

39 IMF 2013 DRC Poverty reduction strategy paper N 1322640 African Business 2009 DR Congo $24 trillion fortune

23

2 MINERALS AND WARS AT THE GREAT LAKES

The casualties over the years are overwhelming Whileeverybody is familiar with the death toll during the genocidein Rwanda estimated between 500000 and 800000 peoplethere is much less awareness about the conflict situation inCongo The International Rescue Committee has estimatedthat the conflict and humanitarian crisis in the DemocraticRepublic of Congo has taken a death toll of 54 million peoplefrom 1998 to 200741 A CNN correspondent in trying togive an illustration of the heavy toll made the followingcomparative analysis

The wars in that country ndash RD Congo ndash haveclaimed nearly the same number of lives as havinga 911 every single day for 360 days the genocidethat struck Rwanda in 1994 the ethnic cleansingthat overwhelmed Bosnia in the mid-1990s thegenocide that took place in Darfur the number ofpeople killed in the great tsunami that struck Asiain 2004 and the number of people who died inHiroshima and Nagasaki mdash all combined and thendoubled42

Rwanda and Uganda were actively involved in the invasionof Congo in both wars The second war was known as theGreat War of Africa involving nine countries and more than20 armed groups According to Cynthia Ann McKinney aUS Congresswoman from the Democratic Party and an

41 IRC 2007 IRC study shows Congorsquos neglected crisis leaves 54 milliondead httpwwwrescueorgnewsirc-study-shows-congos-neglected-crisis-leaves-54-million-dead-peace-deal-n-kivu-increased-aidmdash4331 Some groups put the death toll much higher See GlobalResearch webpage httpwwwglobalresearchcathe-war-that-did-not-make-the-headlines-over-five-million-dead-in-congo7957

42 CNN 2012 Why the world is ignoring Congo war httpeditioncnncom20121127opinioncongo-war-ignored-vava-tampa

24

LIVING IN FEAR

expert on the Great Lakes issues while invading DRC in theSecond Congo War the US continued providing financialsupport to the governments of Rwanda and Uganda43 Howwas this allowed US President Bill Clinton was personallyin Rwanda in March 1998 only a few months before theRwandese army invaded Congo44 President Clinton was inAfrica at that time addressing its presidents includingPresidents Kagame and Museveni as leaders of the ldquoAfricanRenaissancerdquo and seeing a bright future for Africa45 ThereClinton made an important call to embrace peace How wasit possible to talk about peace while these allies were directlyengaging in war Moreover with the experience of thegenocide in Rwanda how could it be that foreign powersclosely involved in the region particularly the United Stateslet this occur again How did they allow wars and conflictsthat killed millions of people How could they allow whatmany called another genocide in Congo

On a positive note at last in recent months the calls forpeace have been growing from many different stakeholdersIn May 2014 US Secretary of State John Kerry after ameeting with DRC President Kabila stated that ldquoachievinga lasting peace in the DRC is a priority of President ObamardquoHe added ldquoNow I canrsquot emphasize enough how importantthat process is in identifying and resolving the root causesof the conflict in the DRC as well as in the entire GreatLakes regionrdquo46 Not a minor task going to the roots causes

43 Order of Indictment from Juzgao de instruccion numero CuatroAudiencia Nacional Case 320008-D 6-2-2008

44 See CBS News httpwwwcbsnewscomnewstext-of-clintons-rwanda-speech

45 Schaefer 2000 The Keys to an African Economic Renaissance httpwwwheritageorgresearchreports200005the-keys-to-an-african-economic-renaissance

46 See US Dept of State 2014 Press Availability on the DRC and theGreat Lakes Region httpwwwstategovsecretaryremarks201405225587htm

25

2 MINERALS AND WARS AT THE GREAT LAKES

of those problems in the Great Lakes Indeed achieving peaceand reconciliation in the Great Lakes Region in countriesthat had suffered like DRC is a difficult and cumbersometask and making it by finding the ldquorealrdquo root causes can bea very complex and lengthy exercise taking decades orlonger

The situation remains tense We recall that in 2006 theUN Security Council issued a resolution condemning ldquotheactivities of militias and armed groups operating in the GreatLakes regionrdquo47 Almost a decade later those armed groupsare still there and despite the efforts made the situationremains tense and insecure A report of the Group of Expertson the RDC published in 2015 by the United Nations SecurityCouncil concludes that in DRC despite a defeat of one of therebel groups ndash the Movement of 23 March ndash at the end of2013 this ldquofailed to translate into significant gains in securityand security and stability in 2014rdquo48 For example in thebeginning of 2015 a rebel group from Uganda the AlliedDemocratic Forces (ADF) created havoc in North Kivuwhere 17 people were hacked to death with machetes49

47 UN Security Council 2006 Resolution 1653 (2006) SRES165348 UN Security Council 2015 Final report of the Group of Experts on

the DRC S20151949 UN Security Council 2015 March 2015 monthly forecast http

wwwsecuritycouncilreportorgmonthly-forecast2015-03democratic_republic_of_the_congo_7phpVP-BX5Sm4agmailto

26

LIVING IN FEAR

Armed groups militias and criminal networkswithin the military structure making a lucrativebusiness out of minerals

The UN has solidly demonstrated that natural resources areused to finance armed groups and therefore to fuel war inthe region 50 The UN concludes that ldquoarmed groups continueto control many mining sites and to profit from mining andthe minerals traderdquo51 Later on those minerals particularlytin tungsten and tantalum are smuggled to neighbouringcountries For example one of the armed groups theMovement of 23 March (M23) responsible for taking Gomaat the end of 2012 was financing its organisation fromnatural resources in Eastern Congo In relation to thisparticular case the UN asserts that ldquoseveral traders havecontributed to financing M23 rebels using profits resultingfrom the smuggling of Congolese minerals into Rwandardquo52

Besides the rebel groups a criminal network within theArmed Forces of the DRC (FARDC) was involved in the illegalexploitation of natural resources The types of involvementinclude illegal taxation protection rackets and indirectcommercial control to more direct coercive control53

For some top army officials their military work wasconverted into economic businesses Indeed the existing

50 UN Security Council 2014 Final report of the Group of Experts onthe Democratic Republic of the Congo

51 Ibidem52 Ibidem53 UN Security Council 2010 Letter dated 26 October 2010 from the

Group of Experts on the DRC addressed to the Chair of the SecurityCouncil Committee established pursuant resolution 1533 (2004) S2010596

27

2 MINERALS AND WARS AT THE GREAT LAKES

practices made the UN qualify the war as a ldquolucrativebusinessrdquo

illegal exploitation of resources by BurundiRwanda and Uganda took different forms includingconfiscation extraction forced monopoly andprice-fixing The first two forms reachedproportions that made the war in the DRC a verylucrative business There are strong indicationsthat even if security and political reasons werethe professed motivation to move into the easternDRC some top army officials clearly had economicand financial objectives54

The most UN recent reports affirm that ldquomany armed groupsin Eastern Democratic Republic of the Congo have derivedtheir revenue from the production of and trade in naturalresourcesrdquo55

54 UN Security Council 2001 Security Council condemns ilegal exploitationof Democratic Republic of Congoacutes natural resources Press Releasehttpwwwunorgpressen2001sc7057dochtm

55 UN Security Council 2014 Final report of the Group of Experts on theDRC S201442

28

LIVING IN FEAR

Insecurity still booming in Eastern Congo

As already mentioned the momentum created bythe defeat of the Movement of 23 March inNovember 2013 failed to translate into significantgains in security and stability in 2014 in EasternDemocratic Republic of the Congo A militaryoperation against the Allied Democratic Forces(ADF) significantly weakened but did not defeatthe sanctioned armed group An expected militaryoperation against the Forces deacutemocratiques delibeacuteration du Rwanda (FDLR) did not materializeand as of the end of November 2014 efforts tonegotiate the disarmament of this sanctionedarmed group failed to produce meaningful resultsIn addition numerous Congolese and foreignarmed groups contributed to instability inOrientale North Kivu South Kivu and KatangaprovincesADF FDLR Nduma Defence for Congo (led bysanctioned individual Sheka Ntabo Ntaberi) andother armed groups continued to recruit train anduse child soldiers in 2014 Armed groups alsocommitted a variety of other abuses includingtorture enslavement and sexual violence Therewere mass killings in June in Mutarule (South Kivu)and in October and November in Beni territory(North Kivu)

Source United Nations Security Council 201556

29

2 MINERALS AND WARS AT THE GREAT LAKES

One of the problems the existing insecurity and conflicts havecreated is the proliferation of internally displaced peopleestimated in September 2014 at 27 million people57

UN peacekeeping operation in Congo

In July1999 Heads of State of Angola DRC NamibiaRwanda Uganda Zambia and Zimbabwe signed the Lusakaagreement focusing on the establishment of a ceasefire asone of the other components necessary for the deploymentof a UN peacekeeping force

The first UN Peacekeeping operation in DRC wasestablished in November 1999 after the Lusaka Ceasefireagreement It was called the UN Mission in the DRC(MONUC) In 2010 it was renamed the UN OrganizationStabilization Mission in the DRC (MONUSCO)

Ten years later despite the deployment of MONUC thesecurity challenges in DRC ndash particularly in the Eastern Partof the country ndash remain high58 There is still a strong presenceof armed groups chronic humanitarian crisis continuoushuman rights violations and continued illegal exploitationof natural resources In the light of this context the UNcreated an ldquoIntervention brigaderdquo with a key objective ofneutralizing armed groups59 As of today the MONUSCOand the intervention brigade are operational but are theresignificant security changes

56 Ibidem57 See global humanitarian assistance webpage http

wwwglobalhumanitarianassistanceorgcountryprofiledemocratic-republic-of-congo

58 UN Security Council 2010 Resolution 192559 UN Security Council 2013 Resolution 2098

30

LIVING IN FEAR

60 UN Security Council 2014 Final report of the Group of Experts on theDRC S201442

61 PR Newswire 2014 Rwanda has become worldacutes largest coltanexporterhttpwwwprnewswirecomnews-releasesrwanda-has-become-worlds-largest-coltan-exporter-reports-kt-press-300010371html

62 PR Newswire 2014 Rwanda has become worldacutes largest coltanexporter

63 Africa Briefing 2015 Rwanda has abundant deposits of best qualitycoltan Kagame affirms httpafricabriefingorgp=478

Legitimate exports or smuggling conflictminerals

It is well known that many of the minerals in Eastern Congoare smuggled and do not follow legal channels For instancethe UN estimates that 98 of the gold produced in DRC issmuggled out of the DRC making the country lose millionsof dollars in tax revenue60

In December 2014 numerous media covered a story onRwanda and coltan PR Newswire affirmed that ldquoRwandahas become worldacutes largest coltan exporterrdquo61 The dataprovided concluded that in 2013 Rwanda exported around2500000 kg of tantalum which constituted 28 of the total8807232Kg of tantalum produced globally The overallrevenue from the coltan was estimated at around $140 M62

Rwandese President Paul Kagame was quoted as affirmingthat the production was local and dismissed all possibleallegations of plundering the coltan from Congo He affirmedldquoRwanda has not only enough coltan but of a very highquality (hellip) we can even pay for a ticket give them a visaand take them to the minesrdquo63

Contrary to such statements there are many reports thatcoltan is smuggled from Congo to Rwanda and that Rwandadoes not have significant coltan mining on its own For

31

2 MINERALS AND WARS AT THE GREAT LAKES

instance a 2012 report prepared by a European Foundationaffirmed that ldquoRwanda does not house any industrial coltanmines which would suggest legitimate Rwandan coltanproductionrdquo64 A US governmental agency which analyzesthe mining sector in Congo made a table with coltan exportedfrom Rwanda qualifying it as ldquoconflict mineralsrdquo as seen inTable 165 Since there is no known conflict in Rwanda it canonly refer to Rwanda exports of minerals originating froman external conflict zone the DRC

Table 1 Estimates of exports of conflictminerals from Rwanda for Fiscal years2009-2013 in Metric Tons

Year Tantalum

FY 2009 958

FY 2010 827

FY2011 915

FY2012 1139

FY 2013 2466

Source Based on United States Government Accountability Office 2014

64 Van Teeffelen 2012 The EU raw materials policy and mining in RwandaEvert Vermeer Foundation

65 United States Government Accountability Office 2014 Conflictminerals stakeholder options for responsible sourcing are expandingbut more information on smelters is needed

32

LIVING IN FEAR

In this particular situation either somebody is wrong orsomebody is lying Hopefully future events will unveil thetruth around the nature of the coltan exports from Rwandato clarify whether they are a legitimate export or theconsequence of smuggling conflict minerals

Greed for minerals everybody wants a pieceof Congo66

What is at the origin of those wars and instability of theCongo While there could be diverse factors for conflictthere is one that seems to be always recurrent and is recog-nized by most authors and by relevant UN reports the racefor minerals and natural resources The UN recognized thatin the Second Congo War minerals were the coveted trophyand that all actors ldquobuilt up a self-financing war economycentred on mineral exploitationrdquo67 The conflicts that con-tinued after the Second Congo War like those in Kivu andIturi provinces are recognized as well to be fuelled by tradein minerals Along the same lines Palou underlines the causesof the conflict by stating that ldquoalthough from that time un-til the present day the Rwandan regime has expressed itsconcern about the security of its border with the then Zaireobjectively the reality is that control over this strategic areandash Eastern Congo ndash and its valuable mineral resources has

66 See video at Congo Justice httpcongojusticeorg67 UN 2002 Final report of the Panel of Experts on the illegal exploitation

of natural resources and other forms of wealth of the DemocraticRepublic of the Congo S20021146

33

2 MINERALS AND WARS AT THE GREAT LAKES

proved to be at the heart of two wars that have left a hugenumber of victimsrdquo68 In conclusion a 2001 UN report as-serted that ldquothe conflict of DRC has become mainly aboutaccess control and trade of five key mineral resourcescoltan diamond copper cobalt and gold The wealth of thecountry is appealing and hard to resist in the context oflawlessness and the weakness of the central authorityrdquo69

Congolese and regional elite have also profited from thissituation as well and the appalling quantum of the plunderare reflected in the following report from UN

The elite network of Congolese and Zimbabweanpolitical military and commercial interests seeksto maintain its grip on the main mineral resourcesmdash diamonds cobalt copper germanium mdash of theGovernment-controlled area This network hastransferred ownership of at least US$ 5 billion ofassets from the State mining sector to privatecompanies under its control in the past three yearswith no compensation or benefit for the Statetreasury of the Democratic Republic of the Congo70

Funds that could have been used for public services havebeen diverted from the public coffers by fraud or by theexcuse of war effort71 The Congolese population has paid

68 Palou 2010 International Justice plunder in war human rights andmultinationals

69 UN Security Council 2001 Report of the Panel of Experts on theillegal exploitation of natural resources and other forms of wealth ofthe Democratic Republic of the Congo S2001357

70 UN Security Council 2002 Final report of the Panel of Experts on theilegal exploitation of natural resources and other forms of wealth ofthe Democratic Republic of the Congo S20021146

71 Ibidem

34

LIVING IN FEAR

dearly in this situation In terms of human development it isinstructive that the UNDP estimated in 2013 that RDCwas in the low human development category ndash positioningthe country at 186 out of 187 countries and territories72

The Role of Transnational Corporations (Tncs)and the private sector

Other key players involved in the conflict are Transnationalsand the private sector A UN Report published a few yearsafter the Second Congo War started affirmed that ldquothe roleof the private sector in the exploitation of natural resourcesand the continuation of the war has been vitalrdquo73 The reportalso added that ldquoa number of companies have been involvedand have fuelled the war directly trading arms for naturalresourcesrdquo74 Other observers share the view that ldquoWesternMultinationals have been one group responsible for thepillage and illegal exploitation of Congo mineral resourcesrdquo75

There are a large number of big foreign corporationsinvolved in mining in DRC including those from CanadaSouth Africa UK USA and others Despite the opacity ofmost of the activities of the private sector numerousexamples have been reported of how TNCs are responsiblefor human rights abuses and other illegal activites Thereare also many reports of the dangerous connectionsestablished with the political and military elite in order tofacilitate their businesses These are some examples

72 UNDP 2014 Sustaining human progress reducing vulnerabilities andbuilding resilience Congo (Democratic Republic of the) httphdrundporgsitesallthemeshdr_themecountry-notesCODpdf

73 UN 2001 Report of the Panel of Experts on the illegal exploitation ofnatural resources and other forms of wealth of the Democratic Republicof the Congo S2001357

74 UN 2001 Ibidem75 Palou Ibidem

35

2 MINERALS AND WARS AT THE GREAT LAKES

bull Glencore Anglo-Swiss giant in the raw material sectorwith a turnover of US $ 2397 billion in 2013 was beingaccused in 2014 of adopting a military-style response tothe problem of artisanal mining close to its mines ldquoonseveral occasions over the past 18 months mine policehave fired live ammunition in pursuit of artisanal minerson Glencorersquos site resulting in deaths and seriousinjuriesrdquo76 They are as well responsible forcontamination of the water supply with acid content andvery high and concentrations of copper and cobaltFinally the company operates some of its concessionsinside a reserve ndashndash something that in principle is illegalaccording to the RDC Mining Code77

bull An independent investigation unveiled that two miningcompanies Glencore and the Eurasian Natural ResourcesCorporation were involved in underpricing assets incomplex deals featuring offshore companies causinglosses to the DRC of no less than $136 billionIntermediary companies in the deals were linked to DanGerler78 In addition the DRC public prosecutorreportedly told mining companies that they had toreimburse $37 billion in taxes duties and fines79

bull AngloGold Ashanti part of the AngloAmericancorporation was accused of establishing links and

76 Peyer et al 2014 PR or Progress Glencoreacutes corporate responsibility inthe DRC Bread for all RAID Fastenopfer

77 Ibidem78 CRS 2014 Democratic Republic of Congo Background and US Policy79 Reuters 2014 Disputed Congo report says miners owe $37 billion in

tax fines httpwwwreuterscomarticle20140130us-congo-democratic-mining-idUSBREA0T12L20140130

36

LIVING IN FEAR

supporting one armed group the Nationalist andIntegrationist Front (FNI)80

bull In 2004 fighting between soldiers and rebels in Kilwaended in serious human rights violations againstcivilians including summary executions arbitraryarrests rape and torture Anvil Mining operated theDikulushi copper mine near Kilwa and was accused ofproviding vehicles and planes to the Congolese armedforces during this event The legal case ended in theCanadian Supreme Court in 2012 which ruled that itwould not hear the plaintiff rsquos appeal ndash they were led bythe Canadian Association Against Impunity (anassociation representing survivors of the incidents inOctober 2004)81

bull In May 1997 Citibank NY a financial institution hasbeen accused of giving $5 million loan to a Congolesemilitia allied with Rwanda82

bull American Mineral Fields (AMF) cut a $1 billion dealwith Kabila immediately after his forces captured GomaThe negotiations were led by ldquoKabilarsquos US-trainedfinance ministerrdquo who gave ldquoAMF exclusive explorationrights to zinc copper and cobalt mines in the area MikeMcMurrough a friend of US President Bill Clinton wasthen the chair of AMF83

80 Human rights watch 2005 DRC Gold fuels massive human rightsatrocities httpwwwhrworgennews20050601dr-congo-gold-fuels-massive-human-rights-atrocities

81 Business and human rights resource center 2012 Anvil Mining Lawsuit(re DRC) httpbusiness-humanrightsorgenanvil-mining-lawsuit-re-dem-rep-of-congo

82 Global research 2008 Congo Resource wars httpwwwglobalresearchcacongo-resource-wars8310

83 Global research 2008 Ibidem

37

2 MINERALS AND WARS AT THE GREAT LAKES

UN and some other independent reports generally makebroad statements about the role of corporations includingciting some of the companies however they fall short ofproviding details of the modus operandi of those companiesand in establishing or suggesting concrete measures to stopthe conflicts and solve the negative impacts on the DRCpopulation and environment A 2002 UN Report listed 85companies considered by the Panel to be in violation of theOECD Guidelines for Multinational Enterprises84 Very littlehas been done after the UN report was published

A poor country Until when

In 1969 World Bank President Robert McNamara embarkedon a trip to Africa to try to discover ldquowhat are therequirements for developmentrdquo85 At that time the WorldBank in its information document described the country asrich in natural resources but at the same time poor and witha strong mining sector

In spite of its rich natural resources and greatpotential the Congo is still a poor country (hellip)Mining and metallurgy play a leading role in theeconomy86

84 UN 2002 Final Report of the Panel of Experts on the Illegal Exploitationof Natural Resources and other Forms of Wealth of the DemocraticRepublic of the Congo S20021146

85 Records of President Robert S McNamara Travel briefs CongoKinshasa (01021969-03031969) 1772506 Reference Code WBIBRDIDA 03 EXC-10-4540S World Bank Group archives WashingtonDC United States

86 Ibidem

38

LIVING IN FEAR

More than forty years later not much has changed asupdated data shows In DRC seven out of ten householdsare poor87 Most of its nearly 60 million people areldquodesperately poor living on less than $1 a dayrdquo88 DRC is aleast developed country a fragile State that has been in thetop 10 recipients of humanitarian assistance in nine of thelast 10 years Between 2003 and 2012 DRC received US$176billion in official development assistance (ODA) making itthe 10th largest recipient89In 2012 the Democratic Republicof Congo (DRC) received US$286 billion in net officialdevelopment assistance90

With so many natural resources isnrsquot there money to getpeople out of poverty The mining sector is oftenacknowledged as being capable of contributing to povertyreduction However those mineral benefits are oftencreamed off by powerful interests and do not get to thehands of the majority of the population According to DFIDldquofiscal receipts from the minerals sector are siphoned off bypowerful interest groups instead of being used in the publicsectorrdquo91

The analysis of Mr Antonino Giambrone sheds more lightabout the earnings and who profits from mining

While the average Congolese worker earns $10 permonth the average Congolese coltan-miner earnsanywhere from $10 to $50 per week Uganda

87 IMF 2013 DRC Poverty reduction strategy paper N 1322688 DFID 2008 Democratic Republic of Congo Country Plan89 View global humanitarian assistance webpage http

wwwglobalhumanitarianassistanceorgcountryprofiledemocratic-republic-of-congo

90 CRS 2014 Democratic Republic of Congo Background and US Policy91 DFID 2008 Democratic Republic of Congo Country Plan

39

2 MINERALS AND WARS AT THE GREAT LAKES

Rwandan and Congolese rebels have earned manymillions of dollars in sales of coltan which theyhave used to finance their war efforts in the CongoBetweeen 1999 and 2000 the Rwandan army aloneearned at least $20 million a month from coltan92

Food insecurity is often a consequence of poverty One ofthe causes of existing food insecurity is the abandonment ofthe agriculture sector partly due to conflicts The governmentstated that it would like to strengthen the smallholdersldquowhile ensuring at the same time the protection of thecountryrsquos natural resourcesrdquo93

War impacts on the environment

The wars have had devastating impact on the environmentNational parks for instance home of many endangeredspecies are also affected by the exploitation of minerals94

There are numerous reports on the precarious situation ofwildlife in the region For instance between 1995 and 19994000 out of 12000 elephants were killed in the GarambaPark in North-eastern DRC95 The situation was also seriousin other parks For instance in Kahuzi-Biega Park a zonerich in coltan only 2 out of 350 elephant families remained

92 Giambrone 2006 The extraction of natural resources as a source ofconflict Etfo voice

93 IMF 2013 DRC Poverty reduction strategy paper N 1322694 Seeh ttpwww lenntech comenv ironmental -ef fec ts -

warhtmixzz3CuGZqE3M95 UN 2001 Report of the Panel of Experts on the illegal exploitation of

natural resources and other forms of wealth of the Democratic Republicof the Congo S2001357

40

LIVING IN FEAR

in 200096 Mountain gorillas are also under threat due tocontinued civil unrest and the presence of armed militiasmakes survey and conservation work difficult in the DRCrsquosprotected areas97

Deforestation is also one of the common impactsWorldwatch explains the implication of having refugeespopulation inhabiting RDC degraded forest areas

For two years beginning in late 1994 for exampleabout 720000 Rwandans inhabited refugee campson the fringes of Virunga National Park They allneeded wood for cooking fires and for buildingshelters and some also earned extra money bymanufacturing charcoal As a result up to 80000people entered the park and carted away up to1000 tons of wood every day By mid-1996 105square kilometers of forest had been affected toone degree or another by their activities 35 squarekilometers had been stripped bare98

Besides the need for fuelwood by refugees movement ofmilitary hardware through forests and woodlands also causeserious damage to forests and the landscape generally

96 Ibidem97 See WWF webpage httpwwfpandaorgwhat_we_doendangered_species

great_apesgorillasmountain_gorilla98 Worldwatch 2008 War and Environment httpwwwworldwatchorg

node5520

3South Sudan The Oil Way

99 Washington Post 2012 lsquoSouth Sudan civilians are trapped in conflictover oilrsquo httpwwwwashingtonpostcomworldsouth-sudan-civi l i ans-are- trapped-in-conf l ict -over-o i l20120501gIQAUX6buT_storyhtml

100 See UN Mission in South Sudan web page httpwwwunmultimediaorgtvunifeed201404south-sudan-bentiu-massacre

101 Reuters 2014 Bentiu massacre is game-changer in South Sudanconflict says UN official httpwwwtheguardiancomworld2014apr22bentiu-massacre-south-sudan-united-nations

41

ldquoIf we had no oil we would not be attackedrdquo

Nyak a 27-year-old sitting outside herhut in Bentiu South Sudan 201299

In April 2014 Bentiu the capital of the oil producing UnityState was the scenario of one of the worst massacres of thecivil war between South Sudanese forces100 Hundreds ofpeople were killed in the fighting that took place betweenthe Sudan Peoplersquos Liberation Army (SPLA) and anti-government forces in the oil-rich State101

42

LIVING IN FEAR

Civil wars and conflict

Since its independence in 1956 Sudan has been at war andconflict for most of its modern history Specialists in conflictand security have described the history of modern Sudan asldquoan unremitting sequence of wars punctuated by oft-violatedpeace agreementsrdquo102 The First Sudanese Civil War (1955ndash1972) was followed by a Second Sudanese Civil War (1983ndash2005) with barely 11 years breathing space of tenuoussecurity

The Second Civil War ended when both sides signed theComprehensive Peace Agreement in 2005 That agreementgave autonomy to South Sudan within Sudan However areferendum held in January 2011 moved the region towardsecession and then in July 2011 independence was achievedand South Sudan became an autonomous nation103 Theprocess that led to South Sudanrsquos independence was stronglysupported by the US government which backed Juba in itstwo decades struggle against Khartoum104 It should be notedthat even during the 11 years of supposed peace there wereconflicts on a regular basis particularly in the border areasbetween South Sudan and Sudan105 Two years after theindependence the first South Sudanese Civil War started inDecember 2013 The civil war erupted as a result of a power

102 Cox and Snapper 2013 The Strategic Importance of South Sudan TelAviv University

103 National Geographic 2013 South Sudan oil the environment andborder conflicts httpvoicesnationalgeographiccom2013032286550

104 See webpagehttpwwwworkersorgarticles20140101south-sudan-yet-another-oil-war

105 International Crisis Group 2006 Sudan Saving peace in the Easthttpwwwcrisisgrouporgenregionsafricahorn-of-africasudan102-sudan-saving-peace-in-the-eastaspx BBC 2015 South SudanProfile httpwwwbbccomnewsworld-africa-14019202

43

3 SOUTH SUDAN THE OIL WAY

struggle between president Salva Kiir from the Dinka ethnicgroup and his deputy Riek Machar from the Nuer ethnicgroup whom he had sacked As at the time of this writingthe civil war continues

Sudan vs South Sudan

The tensions and conflicts after the independence of SouthSudan from its neighbour Sudan did not stop in 2011 Topleaders from both sides accuse and threaten each other innumerous occasions For instance Sudanese President Bashirpromised to teach South Sudan a ldquofinal lesson by forcerdquo106

South Sudan President firmly swore that ldquowhether Umar al-Bashir likes it or not one day Abyei will rejoin the southrdquo107

Abyei

Abyei is traditionally the home of the Ngok Dinka asubdivision of the Dinka tribe with strong links to the Dinkain South Sudan Besides the Dinka Misseriya herders aremembers of nomadic Arab tribes that seasonally cross Abyeiand other nearby areas with their cattle in search of waterand pasture108

Since the signing of the Peace Agreement in 2005 betweenthe Government of Sudan and the SPLM the dispute over

106 The Washington Post 2012 lsquoSudanese president vows war againstSouth Sudanrsquo httpwwwwashingtonpostcomworldsudanese-president-threatens-force-against-south-sudan-over-oil-field20120419gIQAJ0G8ST_storyhtml

107 The Global Intelligence Files 2013 Sudan- President Kiir says Abyeiwill ldquorejoinrdquo South Sudan httpssearchwikileaksorggifilesviewemailid=674314

108 Enough Project 2013 What is the Abyei Area and why is it disputedhttpwwwenoughprojectorgblogsenough-101-what-abyei-area-and-why-it-disputed

44

LIVING IN FEAR

the future status of the Abyei area has beenone of the bigbarriers to stability in the region109Abyei is an oil-rich areadisputed by Sudan and South Sudan and stands out as thehotspot of bigger tension beetween Sudan and South Sudannowadays

The conflicts over Abyei have a history of more than 50years After the First Civil war the parties signatories to thepeace pact agreed that Abyei would hold a referendum todetermine whether they would be part of Sudan or a newlyregion in the South The second war commenced in 1983and the foreseen referendum was not done

In 2009 the Permanent Court of Arbitration in the Hagueruled on Abyei territory giving concessions to the Governmentof Sudan and the Southern Sudan Heglig and other closeroil-fields remained out of Abyei area while the rest of theAbyei region remained under control of the Ngok Dinka anethnic group close to Southern Sudan and keen on voting tojoin the South in a future referendum110Another referendumwas scheduled to be done in parallel with the South Sudanreferendum in 2011 but once again this never took place

Although a series of temporary security arrangementswere agreed in January and March 2011111 in May SudaneseArmy tanks entered the town of Abyei and by the 22nd ofMay they seized control of the town112The government ofSudan launched numerous military attacks in the disputed

109 UN Security Council 2011 Report of the Secretary-General on thesituation in Abyei S2011451

110 New York Times 2009 lsquoCourt redraws disputed area in Sudanrsquo httpwwwnytimescom20090723worldafrica23sudanhtml_r=1amp

111 UN Security Council 2011 Report of the Secretary-General on thesituation in Abyei S2011451

112 Reuters 2011 North Sudan seizes disputed Abyei thousands fleehttpwwwreuterscomarticle20110522us-sudan-abyei-north-idUSTRE74L14L20110522

45

3 SOUTH SUDAN THE OIL WAY

border of area where much of Sudanacutes remaining oil fieldsare situated113 Two years later the fighting remains intensein parts of South Kordofan and Blue Nile114 More than 2million people have been internally displaced or severelyaffected by the conflict since 2011115

In addition to military attacks other actions contributedto the tension There have been cattle raids by the MissiriyandashArab nomadic cattle herders inhabiting the area ndash on theNgok Dinka ndasha subdivision of the Dinka tribe inhabitingthis area In occasions more than 200 cows were stolenwith a large part of it recovered by the UN Interim SecurityForce for Abyei(UNISFA) These raids increase further thealready tense situation in the region and in particular thevery tense situation among the Missiriya and the NgokDinka116

113 The Conversation 2012 Oil fuels the conflict between Sudan andSouth Sudan ndashand it keeps getting hotter

114 OCHA 2014 South Kordofan and Blue Nile population movementsfact sheet httpreliefwebintsitesreliefwebintfilesresourcesSouth20Kordofan20and20Blue20Nile20Population20Movements20Fact20Sheet20-201920May202014pdfReuters 2013 Khartoum says rebels based in South Sudan caused oilpipeline blast

115 OCHA 2014 Ibidem116 See Human Security baseline assessment for Sudan and South Sudan

webpage httpwwwsmallarmssurveysudanorgdefacts-figuresborderdisputed-areasabyeihtml

46

LIVING IN FEAR

An oil-centered conflict

ldquoThe violence underscores the extent to which oilis at the heart of the dispute Khartoum whichcontrols the pipelines that take oil out of SouthSudan depends heavily on oil transit fees SouthSudan which depends on oil for 98 percent of itsrevenue has refused to pay the fees which it saysare exorbitantKhartoum responded by seizing oil tankers carryingSouth Sudanese oil and imposing economicblockades That prompted South Sudan to shutdown its entire oil production in February Thatmonth Sudan allegedly bombed an oilfield inSouth Sudan that was nine miles from the borderrdquo

Washington Post 2012

Missiriya attacks continue as of today UNISFA reported thatin March 2015 100 armed Missiriya killed several peopleand burnt over 20 houses in a village in the southern part ofAbyei117 Many of those attacks occur despite the presenceof UN peacekeepers in the zone

In this context a UN force was deployed in 2011 withmore than 4000 personnel mostly Ethiopian with theobjective of ensuring the demilitarization of the Abyei areaand particularly checking the Sudan Armed Forces and theSudan Peoplersquos Liberation Army Interestingly the UN forceshad also the task to provide security for oil infrastructure inthe Abyei Area in cooperation with the Abyei PoliceService118 In February 2015 the Security Council extended

117 Sudan Tribune 2015 South Sudan condemns deadly clashes in Abyeihttpwwwsudantribunecomspipphparticle54191

118 UN Security Council 2011 Resolution 1990 (2011) SRES1990(2011)

47

3 SOUTH SUDAN THE OIL WAY

the mandate of the UNISFA again until July 2015119 The AbyeiJoint Oversight Committee (AJOC) decided in May 2013 thatAbyei should adopt a status as weapons-free area and thatonly UNISFA would be authorized to carry weapons in thearea120

The situation in the area is still very fragile121 For instancevarious resolutions have called for the redeployement of allmilitary personnel from Abyei including those protecting itsoil infrastructure However the Sudanese Governmentskeeps at the Diffra oil complex around 150 Sudan oil policein a clear violation of an agreement and Security Councilresolutions adopted in 2011122 The UN Security council ina recent resolution

Condemns the presence of Diffra Oil Police unitsdeployed in the Abyei Area as well as the repeatedentry of armed militias into the territory andreiterates its demands that immediately andwithout preconditions the Government of Sudanredeploy the Oil Police in Diffra from the AbyeiArea ()123

Conflicts escalating over oil Heglig battles

In 2012 despite the Permanent Court of Arbitration ruling124

which placed Heglig oilfields in the Sudanese territories

119 UN News Center 2015 Security Council extends UN peacekeepingforce in Abyei through July 2015

120 UN Security Council 2015 Ibidem121 UN Security Council 2015 Security Council adopting resolution 2205

(2015) extends interim force in Abyei until 15 july voicing concernover delays in Borde Mechanismrsquos operation httpwwwunorgpressen2015sc11800dochtm

122 UN Security Council 2014 Report of the Secretary-General on thesituation in Abyei S2014518

123 UN Security Council 2015 Ibidem124 See Permanent Court of Arbritation webpage httpwwwlocgov

lawwebservletlloc_newsdisp3_l205401463_text

48

LIVING IN FEAR

the South Sudanese army launched an attack over Heglig125

South Sudanrsquos army took control of the oil-producing townof Heglig The South Sudan move did not enjoy sympathyfrom many countries including its allies such as the US andBritain126 The African Unionrsquos (AU) Peace and SecurityCouncil considered Sudanrsquos occupation of Heglig as illegal127

At the end after a few days South Sudan pulled back itstroops from Heglig even though President Salva Kiir stillclaims that Heglig is a part of South Sudan and is expectinginternational arbitration

Oil and geopolitics

The implications of the oil economy are self-telling Prior tothe separation of Sudan from South Sudan in 2011 theunified Sudan was the second-largest non-OPEC oil producerin Africa in 2010 When they separated Sudan and SouthSudanrsquos production diminished and together they rankedas the fourth-largest non-OPEC African oil producer in 2013Particularly the split of the country in oil revenues economicterms was a huge blow to Sudan with its crude oil exportrevenues falling from almost $11 billion in 2010 to around$18 billion in 2012128 It has been estimated that oilcontributes 98 of South Sudan government income morethan for any other government in the world129

125 Wall Street Journal 2012 Sudan escalates fight over oil httpwwwwsjcomarticlesSB10001424052702304444604577339461981143808

126 The Guardian 2012 South Sudan to withdraw from disputed oiltownhttpwwwtheguardiancomworld2012apr20south-sudan-withdraw-oil-town

127 IRIN 2012 Sudan-South Sudan Heglig and the border128 US Energy Information Administration 2014 Country analysis brief

Sudan and South SudanhttpwwweiagovcountriesanalysisbriefsSudansudanpdf

129 Global Witness 2009 Fuelling mistrust

49

3 SOUTH SUDAN THE OIL WAY

Although oil exploration started at the end of the 1950showever no success was achieved with the activities of Italianoil company Agip130 Discoveries were found in the years tofollow The first oil discovery was made in 1979 when theAmerican company Chevron found oil near the Darfur-Kordofan boundary Three years later Chevron made twolarger discoveries the Heglig and Unity oilfields which asof today are the most productive However by 1984 Chevronstopped its operations when some of its workers were killedby an armed group By 1988 the company dismantled all ofits operations in Bentiu and Unity provinces131

As a landlocked country all the oil in South Sudan had tobe extracted and exported via a pipeline The pipeline wasconstructed by China National Petroleum Corporation andit covered a length of around 1600 kilometers132 Ittransports the oil from South Sudan to the Red Sea Thecost of the pipeline was estimated at $1 billion and it wasfinished in 1999133At the time of the construction of thepipeline Sudan provided less than 1 of Chinarsquos oil importsbut a few years later by 2009 the investments of Chinatotalled more than $8 billion134

130 Understanding Sudan 2009 Fact sheet two A history of oil in theSudan httpunderstandingsudanorgOilOilResourcesL2FS2-HistoryofOilinSudanpdf

131 Understanding Sudan Ibidem132 The Conversation 2012 Oil fuels the conflict between Sudan and

South Sudan ndashand it keeps getting hotter133 Sitarek 2001 The human price of oil ICE Case Studies Number 83

httpwww1americanedutedicesudansanctionshtm16134 The Conversation 2012 Ibidem

50

LIVING IN FEAR

Source US Energy Information Administration 2014

South Sudan becameindependenth in July2011 Taking aboutthree-quarters of theproduction A disputeover transit fees ledSouth Sudan to haltproduction for most of2012

Oil production inSudan and South Sudan

thousand barrels per day

51

3 SOUTH SUDAN THE OIL WAY

Main oil companies in Sudan and South Sudan

While initially many companies involved were of Westernorigin most of the companies now involved in the oil sectorare from China and Malaysia

Source US Energy Information Administration 2014 Countryanalysis Brief Sudan and South Sudan

Row over oil tariffs

By 2011 both countries did not agree on how much SouthSudan should pay to export its oil through the pipelines inSudan Sudan requested a fee of 33 dollars a barrel whileSouth Sudan said the highest fee they could afford was 2

Table 2 Main oil companies in Sudan and South Sudan

52

LIVING IN FEAR

dollars a barrel135 Following this lack of agreement SouthSudan halted crude oil production in early 2012

This decision worsened the economic situation in bothcountries as both depend hugely on money from oil exportsfor their revenues However an agreement was reached andin April 2013 South Sudan restarted oil production136

Causes of the Sudanese Civil War

Wars in Sudan have been often portrayed quite simplisticallyas an ArabMuslim north versus and an AfricanCristiansouth While certainly ethnicity and religion played a rolethe conflict has been mainly fought over natural resources137

Today oil is the countryrsquos main natural resource and ithas been estimated that it accounts for 98 of South Sudanrsquosrevenue138 The multibillion potential of their revenuehowever has not translated into wealth and benefits for themajority of the population of South Sudan First of all it hasnot solved the problem of security as since the very inceptionof the State of South Sudan in 2011 there were conflicts inmany areas of the country particularly in the borderline withSudan A 2013 report from the World Bank illustrates thisby asserting that ldquodespite South Sudanrsquos great resourcewealth its population is one of the most deprived due todecades of neglect and war and the distortions of the oil

135 IPS 2011 South Sudan rows over exorbitant fees for pipeline use136 Reuters 2013 South Sudan resumes oil output after ending row with

Sudan over transit fees137 Caas 2007 Natural resources and conflict in Sudan138 See World Bank webpagehttpwwwworldbankorgencountry

southsudanoverview

53

3 SOUTH SUDAN THE OIL WAY

economyrdquo139 Indeed oil reserves sitting on a disputed borderbetween Sudan and South Sudan have not translated yetinto wealth for the majority of citizens of South SudanInstead most of the inhabitants of the country remain deeplypoor and do not enjoy even basic rights to access potablewater and adequate sanitation140

Oil has been a main cause for the war and conflicts inSudan For instance it influenced the end of the peaceagreement obtained after the first civil war This first civilwar ended in 1972 with the Addis Ababa Agreement Theagreement established a system of peaceful co-existence witha single country by guaranteeing aNorthern basedgovernment but granted at the same time autonomy in theSouth This however was not going to last long as thediscovery of oil at the end of the 1970s in Southern Sudanchanged the ldquocoexistencerdquo idea In 1978 Sudanese PresidentNimeiry decided to embark on oil exploration project thatwould lead to the finding of oil in commercial quantities Inorder to control the oil within the hands of the Northernbased Government military force was used and in additionto imposing islamic law which led to the new civil warstarting in 1983141

139 World Bank 2013 Interim Strategy Note (FY 2013-2014) httpwww-wdsworldbankorgexternaldefaultWDSContentServerWDSPIB20130207000333037_20130207110223RenderedPDF747670ISN0P1290Official0Use0Only090pdf

140 National Geographic 2013 South Sudan oil the environment andborder conflicts httpvoicesnationalgeographiccom2013032286550

141 Sitarek 2001 The human price of oil ICE Case Studies Number 83httpwww1americanedutedicesudansanctionshtm16

54

LIVING IN FEAR

Numerous authors have identified natural resources ashaving a direct correlation with wars and conflicts142 Ananalysis by Ross of the University of California (UCLA) ofthirteen wars and conflicts concluded that in the case ofSudan oil was one of the key causes of the second civil warand an incentive for advancing the independence of SouthSudan143 Ross describes his conclusion in the followingmanner

War in Sudan began in 1983 when SudanesePresident Nimeiry took a series of measures thatupset the delicate balance between thepredominantly Muslim north and the heavilyChristian and Animist south among these measureswas his decision to place newly discovered oil inthe countryrsquos south under the jurisdiction of thenorth and to build an oil refinery in the northinstead of the south The Sudan Peoplersquos LiberationArmy (SPLA) subsequently complained that thenorth was stealing the resources of the southincluding oil demanded that work cease on apipeline to take oil from the south to the refineryin the north and in February 1984 attacked an oilexploration base killing three foreign workers andbringing the project to a halt144

142 Varisco 2010 lsquoA study on the inter-relation between armed conflictand natural resources and its implications for conflict resolution andpeace buildingrsquo Journal of Peace Conflict and Development issue 15Ross 2003 How do natural resources influence civil war Evidencefrom 13 cases httpwwwsscnetuclaedupoliscifacultyrossHowDoesNat3pdf

143 Ross Ibidem144 Ross Ibidem

55

3 SOUTH SUDAN THE OIL WAY

Even when the different parties were discussing an agreementon ldquono attacks on civilians or civilian objectsrdquo oil was playinga central role It is instructive to note that the Sudanesegovernment desired language in the text stating that oilinstallations were ldquocivilian objectsrdquo while the SPLA wantedthe contrary145

Human Rights Watch reached the same conclusion thatoil without doubt has been a key fuel for war particularlysince the end of the 90s when crude oil was first exportedfrom Sudan in 1999146

Oil became the main objective and a principal causeof war (hellip) The large-scale exploitation of oil byforeign companies operating in the theatre of warin Southern Sudan has increased human rightsabuses there and has exacerbated the long-runningconflict in Sudan a conflict marked by gross rightsabuses ndashtwo million dead four million displacedsince 1983 ndashand recurring famine and epidemics147

Also the UN makes clear statements on the issue Specialenvoy Leonardo Franco expressed in a report that oilexacerbated the conflict

the economic political and strategic implicationssurrounding oil exploitation in western Upper Nilewhich have seriously exacerbated the conflictthereby causing a deterioration in the overall

145 Ibidem146 Human Rights Watch 2003 Sudan oil and human rights147 Human Rights Watch 2003 Sudan oil and human rights

56

LIVING IN FEAR

situation of human rights and respect forhumanitarian law and narrowing the slim chancesfor peace148

Indeed multiple causes and elements contributed to theconflicts It was recognized that ethnicity and religion wereimportant elements however the key dimension is controlover natural resources particularly oil Added to this are alsotensions over land and resources and the promotion by thegovernment of crops like cotton and sugar which displacedcertain groups of people149 Similar conclusions were reachedyears back by a Canadian Government Mission in Sudanwhich fully recognized some ethnic disputes as well asdisputes over other natural resources however oil was thekey factor which made things really dramatic

148 UN 2000 Interim report of the Special Rapporteur of the Commissionon human rights on the situation of human rights in the Sudan A55374 httpwwwunorgdocumentsgadocs55a55374pdf Seealso UN 1999 Situation of human rights in Sudan UN Doc A54467

149 University of Massachusetts (undated) Modern conflicts conflictprofile SudanhttpwwwperiumassedufileadminpdfSudan1pdf

57

3 SOUTH SUDAN THE OIL WAY

The Harker mission pointed out that while therehave always been pressures on the Dinka in theHeglig- Ruweng area as a result of inter-tribalfighting with Arab nomads for grazing areas anddry-season water the situation had worsened withthe beginning of oilexploration and had continuedto deteriorate over theyears because of the periodicoffensives launched by the Government and itsallies resulting in destructionand mass populationdisplacement150

South Sudan has one of the largest oil reserves inSub Saharan Africa and the commodity is thelifeline of the countryrsquos economy accounting for98 percent of the governmentrsquos financial resources

Whoever controls South Sudanrsquos oil thereforecould seize the upper hand in the battle for power

Source France 24 2013 lsquoBattle for oil adds newdimension to South Sudan conflictrsquo

Whoever controls South Sudanrsquos oil therefore could seizethe upper hand in the battle for power

The same scenario applies to the South Sudan Civil Warwhich initially was also portrayed along ethnic line TheDinka ethnic group of President Salva Kiir has fought rebelsallied with former vice president Riek Machar of the Nuer

150 UN 2000 Interim report of the Special Rapporteur of the Commissionon human rights on the situation of human rights in the Sudan A55374 Ibidem

58

LIVING IN FEAR

ethnic group However increasingly ldquothe focus of the fightingis shifting to the battle to control the countryrsquos mostimportant natural resource ndash oilrdquo151 The oilfields haveliterally become the battlefields

Consequences of war and conflict

The damage inflicted on people as a consequence of war ishuge Back in 2001 US Secretary of State Colin Powellqualified the war in Sudan in the following terms ldquoThere isperhaps no greater tragedy on the face of the earth todaythan the tragedy that is unfolding in the Sudanrdquo152 Firstthere is a large number of deaths due to war and war relatedcauses and also a huge number of displaced people Thedeath toll derived from the Second Civil Sudanese War isestimated at two million The US Commitee for refugeesasserted that ldquothis massive loss of life surpasses the civiliandeath toll in any war since World War IIrdquo153 In the mostrecent civil war the South Sudanese Civil War that startedin December 2013 by April 2014 the death toll wasestimated to be at 10000154

Besides the death toll there are estimated more than fourmillion people of the Southern Sudanese population forced

151 France 24 2013 Battle for oil adds new dimension to South Sudanconflicthttpwwwfrance24comen20131227-battle-oil-adds-new-dimension-south-sudan-conflict

152 Human Rights Watch 2003 Ibidem153 See US Committee for Refugees webpage in 2001 http

webarchiveorgweb20041210024759httpwwwrefugeesorgnewscrisissudanhtm

154 International crisis group 2014 South Sudan a civil war by any othernamehttpwwwcrisisgrouporg~mediaFilesafricahorn-of-africasouth20sudan217-south-sudan-a-civil-war-by-any-other-namepdf

59

3 SOUTH SUDAN THE OIL WAY

to flee their homes at one time or another It has also beenargued that the development of oilfields has led to the forcedremoval of the local population In the words of the lateJohn Garang oil was a ldquokiller itrsquos evicting our civilianpopulationrdquo claiming 100 000 people displaced due to thiscause155

Children are some of the main victims of conflict beingrecruited for instance for war and suffering sexual violenceFrom March 2011 to September 2014 the UN estimatesthat there were 1243 incidents affecting 68776 children156

UN reports indicate that both armed groups have usedchildren ldquoon a large scale and committed other graveviolations including killing maiming and sexual violencerdquo157

For instance in 2015 an incident was reported where closeto 100 children were abducted some as young as 13 Armedsoldiers were advancing house to house looking for boysand taking them by force158 According to UNICEF this occuredin Wau Shilluk close to the city of Malakal in Upper NileState159

Not surprisingly as put by a high UN representativepeople are desperate for peace

155 BBC 2001 Garang Oil firms are targetshttpnewsbbccouk2hiafrica1393481stm

156 UN Security Council 2014 Report of the Secretary-General on childrenand armed conflict in South Sudan S2014884

157 Ibidem158 The Guardian 2015 South Sudan gunmen kidnap at least 89 boys

from village near Malakal httpwwwtheguardiancomworld2015feb22south-sudan-gunmen-kidnap-89-boys-village-malakal-child-soldiers

159 The Guardian 2015 South Sudan gunmen kidnap at least 89 boysfrom village near Malakal

60

LIVING IN FEAR

People are desperate for peace They are tired ofliving in fear Many have had to flee several timesThey are exhausted They lack water they areextremely worried for their children who are notin school and at risk of being recruited into armedgroups Sexual violence is rife All people want isto live in safety security and stability160

Wars have also an impact on food security and nutrition Asof February 2015 there was an alert that the food situationwas critical in South Sudan for more than 25 millionpeople161 This was famine related to war Ulrika BlomCountry Director for Norwegian Refugee Council in 2015succinctly stated ldquoThere is an urgent need for a solution onthe conflict so that people are able to resume their dailylives in dignity and not be dependent on massive foodassistancerdquo162

The harsh consequences of war are inevitable and occurfrom a systematic destruction of infrastructure erosion ofthe human capital and weakening of essential institutions

Besides causing an appalling loss of life Sudanrsquoslong civil war eroded the capital base The wardepleted the labour force while roads irrigationsystems and other key components of rural

160 Under-Secretary-General for Humanitarian Affairs and Emergency ReliefCoordinator Valerie Amos remarks to the press Juba South Sudan 9February 2015 httpreliefwebintreportsouth-sudanunder-secretary-general-humanitarian-affairs-and-emergency-relief-coordinator-1

161 UN Security Council 2015 Reports of the Secretary-General on theSudan and South Sudan SPV7392

162 Norwegian Refugee Council 2015 Conflict a cause of hunger in SouthSudan httpwwwnrcnodid=9192498

61

3 SOUTH SUDAN THE OIL WAY

infrastructure were destroyed damaged orneglected It also weakened institutions divertedfinancial capital from economic development andundermined interpersonal trust which is criticalto productive business dealings163

Some have tried to put a figure on the costs of war A recentreport estimates that the cost of the civil war may be between$223 and $28 billion over the next five years for SouthSudan alone if the factions fail to bring peace to the worldrsquosnewest country164

UN peacekeeping operations

In July 2011 the Security Council determined that thesituation in South Sudan constituted a threat to internationalpeace and security in the region and established the UNMission in the Republic of South Sudan (UNMISS)165 Thekey elements of the mandate is to consolidate peace andsecurity However after the civil war broke in July 2013 inthe light of significant human rights violations the large-scale displacement of persons the UNMISS mandate wasreshaped and a focus was given to the protection of civiliansand creation of the conditions for delivery of humanitarianassistance166

163 IFAD 2013 Enabling poor rural people to overcome poverty in SouthSudan

164 Frontier Economics 2015 South Sudan the cost of war httpwwwfrontier-economicscomdocuments201501south-sudan-cost-warpdf

165 UN Security Council 2011 Resolution 1996166 UN Security Council 2014 Resolution 2155

62

LIVING IN FEAR

In June 2011 a month before the establishement ofUNMISS a second UN peacekeeping operation wasestablished in the disputed border between Sudan and SouthSudan The United Nations Interim Security Force for Abyei(UNISFA) was created in a context of escalating violenceand tensions and population displacement167 One of the topobjectives was to achieve the demilitarization of the Abyeifrom any force other than UNISFA and the Abyei PoliceService facilitate the delivery of humanitarian aidstrenghten the capacity of the Abyei Police Service and incooperation with the police provide security for oilinfrastructure in the Abyei area168

Corporations and conflicts with communities

Since the conclusion of the 2005 Peace Agreement betweenthe Government of Sudan (GoS) and Sudan PeoplersquosLiberation MovementArmy (SPLM) negative impacts ofoil exploration and extraction have continued to ignitemistrust among local communities towards the oilcompanies Many problems from the oil activities wereidentified such as water pollution and uncompensateddispossession of land However oil companies or thegovernment did little to assess correct and reduce suchimpacts169 In this context many communities chose the ldquopath

167 UN Security Council 2011 Resolution 1990168 UN Security Council 2011 Resolution 1990169 ECOS 2014 Scrutiny of South Sudanacutes oil industry http

w w w e c o s o n l i n e o r g r e p o r t s 2 0 1 4 Scrutiny_of_South_Sudans_Oil_Industrypdf

63

3 SOUTH SUDAN THE OIL WAY

of confrontation with oil companiesrdquo170 For instance byblocking and interfering in oil operations by truck blockagesand other stoppages171

Resentment of local communities againstoil companies

The negative consequences of oil developmenthave been causing deep resentment against oilcompanies in many oil-rich parts of SouthernSudan Arriving in any oil area where activeexploitation is ongoing one is often confrontedwith persistent complaints from local people aboutpoor management of ldquoproduced waterrdquo which isblamed for pollution of the environment This isoften linked to unexplained deaths of animals andstrange or new human ailments Moreover the oilinfrastructure such as oil roads wells and pipesare frequently blamed for disrupting the means oflivelihoods of local people as well as destructionof property

Source ECOS

170 ECOS 2014 Ibidem171 ECOS 2014 Ibidem

64

LIVING IN FEAR

Lundin Oil Consortium facing war and violencein their work territory

In 2010 the European Coalition on Oil in Sudan (ECOS)requested an investigation on the activities of the LundinGroup and its connection with the conflict in Sudan and thepossible ldquocomplicity in the commission of war crimes andcrimes against humanityrdquo172 During the Second Civil War in1997 a consortium of oil companies led by the Swedish oilcompany Lundin Oil AB (ldquoLundinrdquo) signed a contract withthe Government for the exploration of oil in the concessionarea called Block 5A that was not at that time under fullGovernment control The other members of the Consortiumwere Petronas Carigali Overseas Sdn Bhd (ldquoPetronasrdquo) fromMalaysia OMV (Sudan) Exploration GmbH (ldquoOMVrdquo) fromAustria and the Sudanese state-owned oil company SudapetLtd

Before the start of explorations the area around Block5A was relatively peaceful When the oil exploration startedthe escalation of violence and war followed suit173 Accordingto the European Coilation on oil in Sudan Block 5A ldquobecamethe scene of intense fighting and gross human rightsviolations as soon as the Lundin Consortium started oilexploration activities on the groundrdquo Right from thebeginning there are reports of significant war and violence

172 ECOS 2010 Unpaid debt The Legacy of Lundin Petronas and OMV inSudan 1997-2003 Press Release httpwwwecosonlineorgreports2010Press_release_UNPAID_DEBT

173 ECOS 2010 Unpaid debt The Legacy of Lundin Petronas and OMV inSudan 1997-2003 httpwwwecosonlineorgreports2010UNPAID_DEBT_textonlywebpdf

65

3 SOUTH SUDAN THE OIL WAY

where villages and towns were burnt and looted Tens ofthousands of people in Block 5A were also moved out fromthe exploration areas

In 1999 the Lundin Group discovered major reserves ofoil This accelerated the Government desire to control allthe areas surrounding the well and the infighting intensifiedLundinrsquos explorations in Block 5A had to be suspended twicedue to insecurity174

The consequences of all the violence towards thepopulation which were in the middle of the power battlefor controlling Block 5A were severe abuse of all humanrights and war crimes More than 10000 people were killedalmost 160000 displaced with thousands of peoplepermanently uprooted from their villages hundreds ofthousands of cattle lost or looted destruction of churchesschools markets medical clinics and many otherincalculable moral damage and inmense loss of income175

Talisman Energy accused of complicity with forceddisplacements

A Canadian company Talisman Energy which at that timewas considered to be the largest independent oil and gascompany in Canada has been accused of indirectly helpingto exacerbate the war and of being complicit in human rightsabuses and crimes against humanity176 Talisman has a 25

174 HRW 2003 Ibidem175 ECOS 2010 Unpaid debt Ibidem See also Medecins sans frontieres

2002 Violence health and access to aid in Unity Statewestern uppernile Sudan httpwwwdoctorswithoutbordersorgsitesusafilessudan_04-2002pdf

176 Africa files 2000 Corporate immunity for oiling repression Talismanin Sudan httpwwwafricafilesorgarticleaspID=621

66

LIVING IN FEAR

stake in the Greater Nile Oil Project Company (GNOPC) aninitiative located in south-central Sudan with threeadditional partners the national petroleum company ofChina (40) the national oil company of Malaysia (30)and the national petroleum company of Sudan (5)177

There were many allegations that people were forcefullydisplaced in the area of the oil field ran by Talisman UNreported that accusations were made on Talisman of ldquobeingaccomplice of human rights abuses in Upper Nile so as toguarantee security for its oil operationsrdquo178

Moreover a report from the Canadian Foreign AffairsMnistry ndashthe Harker Report ndash which undertook a mission toSudan described with concern that fighting was intense inthe areas of oil development in general and that oilextraction may have contributed to relocation of civiliansby force179

Violence and the fear of it impact immediatelyon the peoplersquos use of the land and result in foodinsecurity which in turn propels movement ordisplacement

Contradicting that oil is at stake in the displacement issueTalisman explained that displacement was a result of an inter-tribal issue Once again the Harker report concluded thatthe displacement was because of oil

177 Africa files 2000 Ibidem178 UN Security Council 2000 Interim report of the Special Rapporteur of

the Commission on Human Rights on the situation of human rights inthe Sudan A55374

179 Canadian Ministry of Foreign Affairs 2000 Human Security in SudanThe Report of Canadian Assessment Mission httpwwwecosonlineorgreports2000Human20Security20in20Sudanpdf

67

3 SOUTH SUDAN THE OIL WAY

ldquoFor Talisman so very much seems to be explained as merelyan inter-tribal problem but displacement has gone on andis still going on and in Ruweng County it is hard to denythat displacement is now and has been for some timebecause of oilrdquo180

Talisman Energy decided in 2002 to end its controversialfour-year investment in Sudan by selling its 25 percent stakein the Greater Nile Petroleum Operating Company to anIndian firm Most of the rumours is that the reasons for thiswas the strong pressure from the US particularly to end itswork in Sudan in order to stop indirectly supporting theGovernment in Sudan with its oil revenue181

The oil way developing what

Sharing the wealth with the Sudanese people The resourcecurse again

As said before 98 of the governmentrsquos revenue comesfrom oil production royalties and South Sudan sits on thethird-largest oil reserves in Africa182 It was estimated in 2011that South Sudan controlled 75 of the overall oil productionof Sudan and South Sudan altogether ndasharound 500000barrels per day However South Sudan remains dependenton the North for processing refinement and export to theRed Sea

180 Canadian Ministry of Foreign Affairs 2000 Ibidem181 New York Times 2002 Talisman to sell its stake in company in Sudan

httpwwwnytimescom20021031businesstalisman-to-sell-its-stake-in-company-in-sudanhtml

182 Africa Business Initiative 2011 Investment climate upate Sudanhttpswwwuschambercomsitesdefaultfileslegacyinternationalafricafiles16920_AfricaNewsletter_Sudanpdf

68

LIVING IN FEAR

Paradoxically South Sudan is considered a fragile StateSitting on oil as has occured to many other countries acrossAfrica and abroad does not guarantee wealth for the majorityof the population A 2013 report concluded that ldquoover thelast decade Sudan has been the largest recipient ofhumanitarian assistance by some distance receiving US$106 billion over the periodrdquo183 90 per cent of the populationearn less than a dollar a day184

Oil money through the State budget is expected to serveto finance all the key governmental activities of the Statesuch as agriculture health infrastructures and educationDespite the fact that the benefits from oil are substantialthere are numerous questions arising about the destiny ofall the oil money For instance how could it be explainedthat one of the sectors more financed is the military andsecurity apparatus Since South Sudanrsquos independence theGovernment has allocated 38 of oil revenue to the militaryand security services with only 10 and 7 ininfrastructures and education respectively185 In 2012 SouthSudan was the among top 8 African countries having militaryexpenditure of almost $1 billion186 For instance TheEconomist reports that South Sudan bought 100 Ukrainian

183 Global humanitarian assistance 2013 Global humanitarian assistancehttpwwwglobalhumanitarianassistanceorgwp-contentuploads201307GHA-Report-2013pdf

184 Kebede 2014 The role of oil in South Sudanhttpswwwruoruottawacabitstream10393315631KEBEDE20Solomon2020145pdf

185 The Guardian 2014 South Suan is divided by the spoils of oil notethnicity httpwwwtheguardiancomcommentisfree2014jan14south-sudan-divided-oil-ethnicity-violence

186 LAVDC 2014 Les quatre puissances militaires regionales dacuteAfriquehttpwwwlavdcnetportailles-quatre-puissances-militaires-regionales-dafrique

69

3 SOUTH SUDAN THE OIL WAY

T-72 tanks187 At the same time agriculture and livestock hasbeen completely neglected despite the fact that more than80 of the population depend on that sector for fulfiliingtheir basic needs

Where the money goes

Daniel Wuor Joak former MP in South Sudan LegislativeAssembly and Minister of Education Science and Technologyin Upper Nile State claims that between 2005 and 2014both the Government of South Sudan (GOSS) and theRepublic of South Sudan (RSS) have been receiving onaverage not less than two billion of USD per year Somehave already manifested the unclarities over the destiny ofall that money as described by Mr Wuor Joak

Since 2005 upwards both the GOSS and RSS havebeen receiving no less than 18 billion USD in oilrevenues without implementing any majordevelopmental projects like roads network linkingdifferent States in South Sudan conducive learningschools from basics to universities level referralmedical facilities clean drinking water in remoteareas throughout the country setting up vibrantand credible institutions which can adhere to rulesof law All these things have not been implementeddue to poor system of governance under leadershipof Salva Kiir Mayardit Most of the counties have

187 The Economist 2014 Arms and the African

70

LIVING IN FEAR

no roads linking them with their State capitals andlack schools health centres clean drinking wateretc South Sudanese population in the rural areasthroughout the country are still living in the sameconditions as they were under Khartoumrsquos rule interms of scarcity of development188

Speaking more directly Kebede made firm remarks aboutthe overall situation in South Sudan

In general poverty corruption bad governance andviolence characterized the resource curse in SouthSudan A relatively small group of elite capturesvast wealth while leaving much of their societywithout access to the minimum resource necessaryfor long term wellbeing As a result South Sudanremains one of the worldacutes least-developedcountries despite its oil (hellip) hellipmuch of the oilrevenue has been squandered189

188 Wuor Joak 2014 Major Causes of the Current Conflict in Sudan SouthSudan News Agency

189 Kebede 2014 The role of oil in South Sudanhttpsw w w r u o r u o t t a w a c a b i t s t r e a m 1 0 3 9 3 3 1 5 6 3 1 KEBEDE20Solomon2020145pdf

71

3 SOUTH SUDAN THE OIL WAY

Even before the current tensions Bentiu saw little benefitfrom oil The streets are unpaved and covered with trashelectricity is scarce reserved for those with privategenerators () Most expect more violence Bentiu hasbecome more militarized with armed soldiers placed atcheck points and at the bridge Troops are constantlymoving to the front Weapons are being flown into theairport

ldquoThe oil is a curse ldquoMohammed Abdurahman Kili 56mumbled from his hospital bed his body covered withburns He was inside his shop in a crowded market onthe edge of town when a Sudanese warplane attackedkilling a 9-year-old child and another person and settinghis shop on fire

Washington Post 2012

President Salva Kiir recognized in 2012 that corrupt officialshad stolen from the people of South Sudan and the amountlost or taken by lead government and military officials mightbe as much as $4 billion190 Kiir sent a letter to 75 SouthSudanese officials or individuals close to the governmentasking them return all the amount lost The letter describedin general terms how the money got ldquolostrdquo

An estimated $4 billion are unaccounted for orsimply put stolen by current and former officialsas well as corrupt individuals with close ties togovernment officials Most of these funds have beentaken out of the country and deposited in foreignaccounts Some have purchased properties oftenpaid in cash191

190 Ibidem191 Paanluel Wel South Sudanese bloggers httppaanluelwelcom2012

0601letter-from-president-kiir-on-corruption-4-billion-dollars-stolen192 Sudan Tribune 2013 South Sudanacutes Kiir accuses army of corruption

72

LIVING IN FEAR

A year later Kiir accused the armed forces of being corruptHe said that despite the big budget allocations made to thearmy there were even no ldquovehicles to transport soldiers onmissionsrdquo192 Two years later the issue remained unclearand the names of the officials referred to in the letter wereyet to be disclosed However Kiir accused Machar of beingresponsible for a lot of corrupted activities in the country193

Machar responded to Kiir by saying that his claims wereunfounded and then also accusing him of such practices194

It seems South Sudan epitomises all the features of theresource curse argued in Chapter 1195 How can the corruptionbe prevented How can the money go to the people It isalso important to note that the oil sector provides littleemployment to the people of South Sudan Most of thehousehold income and employment is generated in theagriculture and farming sector primarily196 Would investingin other sectors like agriculture that provide real wealth tothe people make a difference

193 Sudan Tribune 2014 South Sudan rebel leader should face corruptioncharges Kiir

194 Sudan Tribune 2014 South Sudan Macharacutes Rebentildes dismiss corruptionaccusations no spiritual powers httpallafricacomstories201407221384html

195 Kebede 2014 The role of oil in South Sudan Ibidem196 Tizikara et al 2012 Post-conflict development of Agriculture in South

Sudan perspective on approaches to capacity strenghtening httpwwwerailsnetimagesfarasecretariatkigali-movementfileKigali20MovementPost-Coflict20Agriculture_South20Sudanpdf

73

3 SOUTH SUDAN THE OIL WAY

Environment

As experienced in oilfileds in other parts of the world the oilfields here are also leaving a significant impact on theenvironment and local communities A three year study inThar Jath and Mala fields in Unity State show thatgroundwater is very polluted making the water unsafe forhuman consumption197 The study made by a team of SouthSudanese and German geologists concluded that water usedby 180000 people was too salty to drink and containdangerous amounts of heavy metals198

In many occasions the oil fields that causeenvironmental pollution are even abandoned due to the warSome observers identified that oil pipelines damaged duringthe conflict were leaking199

South Sudan must produce for its needs

In 2015 the Minister of Finance of South Sudan David DengAthorbei made a statement saying that the country shouldbe self-sufficient in agriculture terms and in addition itneeds to increase its non-oil revenue and to achieve peace200

197 Rueskamp et al 2014 Effect of oil exploration and production on thesalinity of a marginally permeable aquifer system in the Thar Jath-Mala- and Unity Oil fields Southern Sudan Zbl Geol Palaont Teil IJ

198 Radio Tamazuj 2015 Study Direct link between oil exploration andwater pollution in Unity httpsradiotamazujorgenarticlestudy-E28098direct-linkE28099-between-oil-exploration-and-water-pollution-unity

199 Star Africa 2014 South Sudan Oil leaks cause pollution fears httpenstarafricacomnewsssudan-oil-leaks-cause-pollution-fearshtml

200 Bloomberg 2015 South Sudan Finance Minister says food output canoffset oil httpwwwbloombergcomnewsarticles2015-01-20south-sudan-finance-minister-says-food-output-can-offset-oil-1-

74

LIVING IN FEAR

He also made a call for a reduction of the countryrsquos relianceon agriculture imports particularly in the context of aneconomy affected by the plunge in global oil prices201

Peter Biar Ajak from the Center for Strategic Analysis andResearch in Juba illustrates the macroeconomic weaknessesof South Sudan today because of its oil dependence

South Sudanrsquos oil-dependent economy is nearingcatastrophe The production of crude oil has droppedby about 35 percent since the conflict began Thatcombined with a drop of roughly 45 percent in globaloil prices since the summer has meant a substantialreduction in the governmentrsquos oil revenues andenormous fiscal and budgetary ressures

Since South Sudan exports almost nothing asidefrom oil and imports almost everything else tradeand monetary policy have also been buffeted byfalling oil revenues Access to foreign currency hasbecome extremely limited The prices of manyimported goods have risen There are shortages ofpetrol which must be imported because SouthSudan has no refinery202

Indeed a dynamic agriculture sector may be key for peaceand development in South Sudan More than 95 of thecountryrsquos population is dependent on farming fishing orherding to meet their daily food needs and income as well203

201 Bloomberg 2015 Ibidem202 Biar Ajak 2015Sanctions for peace in South Sudan The New York Times

January 7th203 FAO in emergencies httpwwwfaoorgemergenciescountries

detailenc147627

75

3 SOUTH SUDAN THE OIL WAY

204 Business Daily 2011 South Sudanrsquos vast agricultural sector potentialuntapped

205 Norwegian Refugee Council 2015 Conflict a cause of hunger in SouthSudan httpreliefwebintreportsouth-sudanconflict-cause-hunger-south-sudan OCHA 2015 South Sudan Crisis Situation reportn 74 httpreliefwebintsitesreliefwebintfilesresourcesSouth_Sudan_Situation_Report_No_74pdf

206 OECD 2014 Fragile States 2014 Domestic revenue mobilisation infragile states httpwwwoecdorgdacgovernance-peaceconflictandfragilitydocsFSR-2014pdf

South Sudan has good soil and climatic conditions and morethan 70 of its land area is suitable for crop productionThere are many that believe that the investment in theagriculture sector has more potential than oil however thisthinking has not received due attention from local andforeign investors204 Efforts towards making agriculture workare vital for peace and stabililty in the country It is urgentlyneeded to work on this area particularly when at presentthere are 25 million in Sudan at risk of starvation205 andaround one third of the population are food insecure plusmore than a million displaced

The dependency on income from natural resourcesleaves fragile states vulnerable It exposes them toshocks in commodity prices ndash as demonstrated bythe sudden fall in commodity prices in 2009following the 2002-2008 boom Neither is it asustainable source of incomeSouth Sudanrsquos oilproduction for instance is projected to decreasesteadily in future years and become negligible by2035

Source OECD206

76

LIVING IN FEAR

207 UN Security Council 2015 Resolution 2206 SRES2006(2015)httpwwwunorggasearchview_docaspsymbol=SRES2206 (2015)

208 Sudan Tribune 2015 South Sudan unhappy with US support for sanctionshttpwwwsudantribunecomspipphparticle54232

209 Washington Post 2014 US appears unable to pull South Sudan backfrom the brink of civil war httpwwwwashingtonpostcomworldus-appears-unable-to-pull-south-sudan-back-from-the-brink-of-civil-w a r 2 0 1 4 0 5 0 3 d 9 2 8 0 b d a - 3 8 6 b - 4 2 4 9 - 9 4 e 0 -b5292610e5bb_storyhtml

210 Ibidem

US fallen dream

In 2015 the UN imposed a travel ban and assets freeze againstindividuals or entities which engaged in or provided supportfor acts that threaten peace security and stability of SouthSudan207 The US was behind the draft and the submission ofthe resolution This resolution prompted an angry reactionfrom the South Sudanese The South Sudanese presidencywas said to be extremely disappointed about the US ledmove208

In the past the relationship between the US and SouthSudan was completely diferent The United States was themain promoter and supporter of the worldrsquos newest nationThe Washington Post for instance asserted that ldquoSouth Sudanowes its existence to the United Statesrdquo209 The expectationscreated were high before its started its independence andsome believed that Sudan would be able to manage thecountry breaking the so-called ldquoAfrican model of pettyrivalries corruption and oppressionrdquo210 Despite all the hopesput on the young nation as of today no solution has beenfound to the ongoing war

77

3 SOUTH SUDAN THE OIL WAY

The US was the largest donor to Sudan in the years priorto independence providing 339 of the total aid to Sudanbetween 2000 to 2009211 The United States (US$472million) was the largest donor of humanitarian assistanceto South Sudan in 2012 followed by the United Kingdom(US$96 million)212 For many years Sudan was the thirdlargest recipient of US aid only after Iraq and Afghanistan213

The inteligence and information systems of theAmericans on the ground in Sudan seemed to have beenrelatively good214hellip however how come they did not foreseethat South Sudan was quickly descending once again on theavenue of a country at civil war For instance the problemsbetween President Salva Kiir and his deputy were not newAlready more than two years before the civil war started inJune 2011 in a speech in Juba the President accused hisDeputy Riek Machar ldquoof running a parallel governmentwithin the governmentrdquo215 Couldnrsquot they have preventedanother conflict Why did they fall into ridiculouscontradictions as the one recently revealed via wikileakssuggesting that the US was funding both armies in

211 Development initiatives (undated) Sudan Aid Factsheet 1995-2009httpwwwglobalhumanitarianassistanceorgwp-contentuploads201102Sudan-Aid-Factsheet-2011pdf

212 See global humanitarian assistamce ebpage httpwwwglobalhumanitarianassistanceorgcountryprofilesouth-sudan

213 The Atlantic 2011 US played key role in Southern Sudanacutes longjourney to Independence

214 The Global Intelligence files 2013 SudanUSMIL ndash SPLA trying toget US to hook it up httpssearchwikileaksorggifilesviewemailid=5047664

215 Sudan Tribune 2011 Salva Kiir exposes his rift with Machar overSouth Sudan transitional constitution httpssearchwikileaksorggifilesviewemailid=3831682

78

LIVING IN FEAR

contention the Government force of Salva Kiir and the rebelsof Riek Machar216 Why are both paid by the UShellip to dowhat As one reporter questioned why are they ldquopaid tokill each otherrdquo217

216 RT 2015 US officials tussle over arms embargo sanctions in oil-flushSouth Sudan httprtcomusa226387-south-sudan-sanctions-war

217 RT 2015 Ibidem

Seven Million

ldquoA peaceful DR Congo could transform Africa almostovernight but is there a way outrdquo218

There is always a way out However peace is not an easything particularly under certain circunstances When youhave lost your father your mother your uncle your sisterwhat else can you lose Can you still believe in peaceTwoof the bloodiest conflicts in recent decades in the world haveoccurred in Africa The Second Civil War in Sudan has leftaproximately two million casualties and the conflict in DRCis estimated to have snuffed life out of no less than fivemillion people

How many more

How does one begin to quantify the dead when they are inthe hundreds of thousands No less than seven million livesof Congolese and South Sudanese were taken away due towars and conflicts fuelled by natural resources How many

218 African Business 2009 DR Congo $24 trillion fortune

4

79

80

LIVING IN FEAR

more How many more before the world wakes up to acteffectively towards ending all those conflictsProbably unless you are one survivor from those experiencesyou would never be truly able to understand what it meansto lose entire families and friends you would never be trulyable as well to understand what it means to feel fear foryour life and the life of your close relatives

When you start counting sometimes you forget thatpeople are not numbers There are names behind thenumbers A family A life As we write this book people aredying needlessly in the DRC and in South Sudan Calculatingdead people due to conflicts in this part of the world is verydifficult due to statistical challenges and so it is conceivablethat probably the number of victims is much larger than sevenmillion (7000000) When would the volume of bloodshedthe number of lives taken be enough for the belligerentofficials to make real peace How many more should fallAthousand more Another one million The pain sadness anddestruction that those conflicts generate should not beaccepted any more

Oil and minerals the main cause of ongoingconflicts and war

Some authors argue that minerals and oil are not a cause ofwar but ldquocompetition for them could amplify and expediteconflictrdquo219 In this book as chapter two and three haveshown oil and minerals are the main motor behind theconflict in recent decades in DRC and South Sudan It would

219 UN Security Council 2013 Natural resource wealth fails to translateinto equivalent benefits for people fuelling conflict to instability DeputySecretary-General tells Security Council httpwwwunorgpressen2013sc11037dochtm

81

4 SEVEN MILLION

be very difficult if not impossible to expect those conflictsif their territories were resource poor Oil and minerals arefull of blood An activist poet wrote We Thought it was Oilbut it was Blood220 Although he was writing about the NigerDelta situation we see a universal application in that phrase

In both countries described there were other elements andfactors to take into consideration however it can be saidthat control over natural resources was the most importantcause on both conflicts in DRC and South Sudan In bothcases oil and minerals fuelled those wars and in manyoccasions these resources have inspired fueled and sustainedarmies operating in the territories of both countries

A Statersquos wealth means nothing if not shared withthe majority of the population

DRC and South Sudan ought to be wealthy countriesUnfortunately having a wealth of natural resources doesnot mean that it belongs to the citizens or that the wealthwould be shared among the population of a given State AState is a nation or territory considered as an organizedpolitical community under one government221 A goodgovernment should be the one that takes care of its citizensand shares the wealth among its citizens and not justdistribute it among an elite Jan Eliasson Deputy Secretary-General of the United Nations stated that ldquoin too manycountries a wealth of resources including timber oil coaldiamonds and precious metals failed to translate into

220 Nnimmo Bassey 1998 We Thought it was Oil but it was Blood IbadanKraft Books

221 See httpwwwoxforddictionariescomdefinitionenglishstate

82

LIVING IN FEAR

equivalent wealth for the people Only a powerful fewbenefitrdquo222

The State is expected to perform an adequateimplementation of human rights granted by several UNdeclarations and conventions including the right to foodright to health right to shelter right to clothing right towork farmersacute rights etc Paradoxically the violations andabuses of human rights have been constant in DRC and SouthSudan Both countries have suffered from acts of war oncivilian population both have as well a large number ofdisplaced people with no access to food without healthcarewithout shelter and without any work Both countries havemore than 90 people living below one dollar per day andthey are considered among least developed countries andfragile states Due to this both are some of the biggestrecipients of humanitarian aid Moreover both have hugesecurity problems shown for instance by the presence ofUN peacekeeping operations Out of the 17th worldwideongoing peacekeeping UN operations three are in DRCSouth Sudan and in Abyeia disputed territory between Sudanand South Sudan

They possess resources that have a huge monetary valueand that in most cases have the involvement of foreigncountries and corporations and other stakeholders of theprivate sector which are ready to pay enormous sums ofmoney to gain control of the natural resources belonging toother countries If no war or significant armed conflict takes

222 UN Security Council 2013 Natural resource wealth fails to translateinto equivalent benefits for people fuelling conflict to instability DeputySecretary-General tells Security Council httpwwwunorgpressen2013sc11037dochtm

83

4 SEVEN MILLION

place common elements among those countries that possesssuch resources in Africa is the existence of massive povertyand corruption and in most cases this is contrasted withmega-rich individuals Letacutes take for instance the case ofoil-rich Angola where the president and his daughter possessmultibillionaire fortunes while at the same time the majorityof the country population is living on less than two dollarsper day223

Greed power and control over natural resources

It must be noted as well that often oil and minerals involvemillions and multibillion profits With such large sums ofmoney greed power and control take the driving seat ofwhatever country government in the world When theprospects for such money flow arrives many leaders andelites start distancing themselves from the majority of thepopulation and stop thinking about the welfare of their ownpeople

At the centre of most of the conflicts in both countriesare struggles for power and control of natural resourcesMinerals and oils are the main cause of the ongoing conflictsand wars Unfortunately most commentators qualify therecent civil war in South Sudan as a ldquopower strugglerdquo withoutfurther qualifications In South Sudan who gets the oil getsthe power Therefore the power struggle is a war overnatural resources for control of the oil in the country Areporter affirmed that ldquowhoever controls South Sudanrsquos oiltherefore could seize the upper hand in the battle for

223 Forbes 2013 Daddyacutes girl how an African ldquoprincessrdquo banked $3 billionin a country living on $2 day httpwwwforbescomsiteskerryadolan20130814how-isabel-dos-santos-took-the-short-route-to-become-africas-richest-woman

84

LIVING IN FEAR

224 France 24 2013 Battle for oil adds new dimension to South SudanConflict httpwwwfrance24comen20131227-battle-oil-adds-new-dimension-south-sudan-conflict

225 OECD 2014 Fragile States 2014 Domestic revenue mobilisation infragile states httpwwwoecdorgdacgovernance-peaceconflictandfragilitydocsFSR-2014pdf

powerrdquo224 In both countriesrsquo non-renewable natural resourcetook a dominant share of the fiscal revenue of DRC andSouth Sudan ndash 82 in the DRC and 98 in South Sudan225

Who controls those resources controls the countryThe case of South Sudan where the president has

recognized the disappearance of $4 billion by corruptindividuals is compelling President Salva Kiir pinpointed thespirit behind the rot ldquoOnce we got to power we forgot whatwe fought for and began to enrich ourselves at the expenseof our peoplerdquo This might also include him as well becauseit is difficult to imagine that such huge amount of money couldbe stolen without the leader noticing anything at all

Greed for minerals and oil is at the heart of the massivedeath toll and impoverishment of the Congolese and SouthSudanese people in recent decades It can be affirmed quitecomfortably that if the Eastern part of the DRC would havenot sat on huge mineral reserves it would be very difficultto imagine all the conflicts that have occurred in that zoneIt can be affirmed as well that without oil ongoing wars inSouth Sudan might most probably never have occured

Peace is the only way forward

Achieving peace is a complex issue To create peace thereare many issues to resolve with all stakeholders such as

85

4 SEVEN MILLION

mutual accusations of support to rebel groups226 goodgovernance transparency demobilisation and disarmamentof local militia etc227

A positive but vital first step is that there are calls at veryhigh levels in both countries and at international fora Thismust be followed with open debate on the core causes of theconflict and ways of achieving reconciliation It does notappear that lasting peace can be achieved otherwise In thatprocess the people need to be put at the centre ofdevelopment policies and actions in both countries in orderto stop the plunder reverse environmental degradation andfight poverty As long as the political military and corporateelite maintain their control of the natural resources of thecountry the devastating plunder will continue to the benefitof only such elite and a handful of corporations

226 UN Security Council 2015 Reports of the Secretary-General on theSudan and South Sudan SPV7392

227 The Guardian 2014 South Sudan is divided by the spoils of oil notethnicity httpwwwtheguardiancomcommentisfree2014jan14south-sudan-divided-oil-ethnicity-violence

INDEX

AAbyei Joint Oversight

Committee (AJOC) 47Abyei Police Service 46 62Abyei 43-home of the Ngok Dinka 43

45Africa 18 20 see minerals

-and wars at the greatlakes 20 25-armed groups in 26-criminal networks in 26-death in 20-exploitation naturalresources in 18-militias in 26-minerals in 20-poverty in 20-wealth in 20

Africarsquos wealth 14-and resource curse 14-blessing or curse 14

African Business 22African Development Bank

(AfDB) 16 17

African Unionrsquos (AU) Peaceand Security Council 48

Algeria 15Allied Democratic Forces

(ADF) 25 28-in North Kivu 25

American Mineral Fields(AMF) 36

AngloAmerican corporation35

AngloGold Ashanti 35Anvil Mining 36Armed Forces of the DRC

(FARDC) 26Athorbei David Deng 73Auty Richard 14

BBBC 18Blom Ulrika 59Blue Nile 45

CCentral African Republic 7China National Petroleum

Corporation 49

86

INDEX

87

Citibank NY 36Clinton Bill 24 36Conflict minerals 30 see

Rwanda-legitimate exports of 30-smuggling of 30

Conflicts 7-and natural resources 7-causes of 10 80-uniqueness of 10

Congolese Government 18

DDemocratic Republic of

Congo (DRC) 7-85-and (MONUC) 29-greed for minerals in 32-UN peacekeeping opera-tion in 29

Diffra oil complex 47DR Congo 79

EEastern Congo 28

-insecurity in 28Eliasson Jan 81

-Deputy Secretary-Generalof the United Nations 81

European Coalition on Oil inSudan (ECOS) 63

Exploration GmbH (OMV)64

Exxon corporate 15

FFirst Sudanese Civil War 42Forces deacutemocratiques de

libeacuteration du Rwanda(FDLR) 28

GGabon 18

-oil in 18Gertler Dan 12 13Ghana 18

-oil in 18Giambrone Antonino 38Glencore Anglo-Swiss 35Government of South Sudan

(GOSS) 69Government of Sudan (GoS)

62Great War of Africa 23Greater Nile Oil Project

Company (GNOPC) 6667

Guinea Equatorial 15

HHague 44Permanent Court of Arbitra-

tion in 44Human Rights Watch 55

IIMF 22International Rescue Commi-

ttee 23

LIVING IN FEAR

88

JJoak Daniel Wuor 69Juba 74

-Center for StrategicAnalysis and Research in74

Katanga Minister of Planning22

KKenya 19Kerry John 24Kiir Salva 43 84

LLibya 7Lumumba Patrice 13 20Lundin Oil Consortium 63

MMachar Riek 43 57 77 78Madagascar 16Mala fields 73Malakal 59Mali 7Mayardit Salva Kiir 69McKinney Cynthia Ann 23

-US Congresswomanfrom the Democratic Party23

McMurrough Mike 36McNamara Robert 37

-as World Bank President37

Minerals 20 see Africa-and death 20

-and poverty 20-and wars at the GreatLakes 20-and wealth 20

Mozambique 18-gas in 18

Muloni Irene 18

NNationalist and Integrationist

Front (FNI) 36Natural resources 8 83 see

conflicts-and conflict 8-and greed 83-and power 83-and wars 8-control over 83

Niger Delta 16-oil is a curse for 16

N o n - g o v e r n m e n t a lorganisations (NGOs) 12

Non-OPEC African oilproducer 48

Norwegian Refugee Council59

OOECD Guidelines for

Multinational Enterprises37

Oil 48-and geopolitics 48

PPeace 84

INDEX

89

-as way forward 84Petronas Carigali Overseas

Sdn Bhd (Petronas) 64Powell Colin 58PR Newswire 30President Kabila 24President Obama 24

RRDC Mining Code 35Republic of South Sudan

(RSS) 69Rio Tintorsquos QMM 16Ruweng County 67Rwanda 24 31

-conflict minerals from 31

SSecond Congo War 24 32

34Second Sudanese Civil War

42Somalia 7South Kordofan 45South Sudan Civil War 57South Sudan 11 18 19 41

-Dinka ethnic group in 4357-Nuer ethnic group in 4357the oil way 41-UN peacekeeping opera-tions 61

South Sudanese Civil War 58Sudan 79

-Second Civil War in 79

Sudan Armed Forces 46Sudan oil police 47Sudan Peoplersquos Liberation

Army (SPLA) 41 46 5462-civil wars and conflict in41

Sudan vs South Sudan 43-and Heglig battles 47-and peace agreement 43-main oil companies in 51-oil-centered conflict 46-Row over oil tariffs 51

Sudanese Civil War 52-and Addis AbabaAgreement 53-and Islamic law 53-causes of 52

Swedish oil company LundinOil AB (Lundin) 64

TTalisman Energy 65Thar Jath 73Transnational Corporations

(Tncs) 34-and the private sector 34

UUganda 19 24UN Interim Security Force for

Abyei (UNISFA)UN Mission in the Republic of

South Sudan (UNMISS)61 62

UN Organization Stabiliza-

LIVING IN FEAR

90

tion Mission in the DRC(MONUSCO) 29

UN peacekeeping operations11

UN Security Council 11UNICEF 59UNISFA 47United Nations Office of the

Special Adviser on Africa(OSAA) 8

United Nations SecurityCouncil 25

United Nations 13University of California

(UCLA) 54 55Upper Nile State 59 69US fallen dream 76

VVirunga National Park 18

WWar and conflict 58

-consequences of 58Wars and minerals 21

-cobalt 22-coltan 22-copper 22-diamond 22-gold 22-manganese 22-peace at last 21-timber 22-tin 22-zinc 22

Wau Shilluk 59We Thought it was Oil but it

was Blood 81Wealth 12 13

-for whom 13-quest for 12

World Heritage site 18Worldwatch 40

Page 10: LIVING IN FEAR - Health of Mother Earth Foundation...Les quatre puissances militaires regionales d´Afrique. 12 LAVDC. 2014. Les quatre puissances militaires regionales d´Afrique

LIVING IN FEAR

12

The Quest for WealthldquoDan Gertler is essentially looting Congo at the expense of

its peoplerdquo15

If there is wealth in DRC Dan Gertler has found a goodpiece of it The 41-years-old Israeli-born Dan Getler has adeclared fortune estimated at $144 billion While he isformally based in Bnei Brak Israel he has made his billiondollars fortune in the mining sector of DRC He is also verywell known for being a close friend of President JosephKabila16 Gertler is criticized over his way of doing businessand has been accused by non-governmental organisations(NGOs) to have obtained mining assets on the cheap bycavorting with politicians17 Congolese NGOs have said abouthim for example that ldquohe has political connections so statecompanies sell him mines for low prices and he sells themon for huge profitsrdquo The quest for wealth attracts manyGertler-like types to the African continent one of thewealthiest places of the planet

1

15 Affirmation of Jean Pierre Muteba head of a group of NGOs thatmonitor mining in DRC at The Washington Post 2012 Dan Gertlerearns billions as mine deals fail to enrich Congo

16 Forbes profile of Dan Getler httpwwwforbescomprofiledan-gertler

17 Forbes Ibiacutedem

13

1 THE QUEST FOR WEALTH

Wealth for whom

Everybody wants to be wealthier however not everybodyshares the same definition of wealth18One definition ofwealth is that it is a ldquotangible or intangible thing that makesa person family or group better offrdquo19 Under this definitionoil or a mineral would be considered wealth if it makes aperson family or group better off Certainly a person likeMr Getler is obviously doing better off in terms of moneywith his work and therefore he is wealthier under thoseterms Howeverthe resources that make Getler wealthy havenot necessarily benefited Congoacutes people Minerals or oilas said by Patrice Lumumba belongs to the people of DRCit is the responsbility of the State to manage its benefits andto share it among the population The wealth of a country isthe wealth of their people

However the wealth of natural resources revenues doesnot frequently bring benefits to the majority of thepopulation but rather a handful of elites The United Nationsoffice of the Special Adviser on Africa affirmed that the richesderived from the ldquoexploitation of natural resources are notonly used for sustainaing armies but also for personalenrichment and building political supportrdquo20 In additionthe office added that ldquocontrol over natural resources andtheir revenues often stay in the hands of a small elite and isnot used for broader development of the countryrdquo21

18 CNBC 2013 what is wealthy $5 million and plenty of cash19 See the business dictionary httpwwwbusinessdictionarycom

definitionwealthhtml20 United Nations office of the Special Adviser on Africa 2006 Natural

resources and conflicts in Africa transforming a peace liability intoa peace asset Conference Report

21 United Nations office of the Special Adviser on Africa 2006 Ibidem

LIVING IN FEAR

14

Africarsquos wealth blessing or curse

The resource curse

In a sea of wealth there are often oceans of povertyResource-rich countries are often accompanied by slowerthan expected economic growth poor economicdiversification gloomy social welfare indicators devastatingenvironmental impacts rampant corruption high inequalityhuge impoverishment bad governance and as said beforewars and conflicts22 This situation has been termed thetheory of ldquoresource courserdquo which term was used first in1993 by Richard Auty23 In 1995 the theory of the ldquoresourcecurserdquo was popularized thanks to an article of Sachs andWarner24 Both authors showed in their paper that ldquoeconomieswith a high ratio of natural resource exports to GDP in 1971tended to have low growth rates during the subsequentperiod 1971-1989rdquo From there a vast number of literaturehas been written on this matter and is divided between thosethat believe exploitation of natural resources is a curse andthose that believe that it can promote growth and

22 Mildner et al 2011 lsquoScarcity and abundance revisited a literaturereview on natural resources and conflictrsquo International Journal ofConflict and Violence Vol 5 Karl 2005 lsquoCovering oil a guide toEnergy and Developmentrsquo Understanding the resource curse opensociety institute

23 Time 2010 Brief history the resource curse httpcontenttimecomtimemagazinearticle09171199746000html

24 Sachs and Warner 1995 lsquoNatural resources and economic growthrsquoHarvard Institute for International Development

15

1 THE QUEST FOR WEALTH

development in developing countries25 Others for instanceprefer to use different terminology like Exxon corporatewhich has said ldquowe donacutet like to call it the oil curse weprefer governance curse We are private investors and it isnot our role to tell governments how to spend their moneyrdquo26

Africarsquos wealth

Africa is full of natural resources and there are manycountries considered as having a huge wealth Oil gasminerals timber fertile land water are often mentioned asthe riches of the continent However oil and minerals arethe favourites of some of the top leaders of the continentAngola with oil and diamonds Nigeria with oil GuineaEquatorial with oil Algeria with plenty of oil and gasdeposits DRC with minerals and South Sudan with oil justto name some of them

Many would think that all those States with lots of oiland mineral are very wealthy The truth is that although theStates are wealthy the countries are paradoxically full ofpoverty and their populations are not benefiting from thoseresources Moreover in many cases the wealth derived from

25 Pedro (undated) lsquoMainstreaming mineral wealth in growth andpoverty reduction strategiesrsquo Economic Commission for Africa PolicyPaper Ross 1999 lsquoThe political economy of the resource cursersquoWorld Politics n51 Hodler 2004 lsquoThe curse of natural resourcesin fractionalized countriesrsquo Economic department University ofBern SwitzerlandSwilling 2012 lsquoBeyond the resource curse fromresource wars to sustainable resource management in Africarsquo Paperpresented at the Winelands Conference on Integrity and GovernanceStellenbosch Pendergast et al 2008 lsquoCorruption and the curse ofNatural resourcesrsquo Department of Economics University of VictoriaDavis 2012 Replicating Sachs and Warner the 1997 Working PaperColorado School of Mines Neumayer 2004 Does the resource cursehold for growth in genuine income as well World Developmentvol 32

LIVING IN FEAR

16

oil and minerals mostly fuel wars and conflicts While somedie while some are displaced while some are injured orrape Some on the contrary are making money lots andlots of money hellip and while they make money they just puta blind eye on the horrors occurring outside the fence Thisis well described in the Harker report on the Sudanese warand the role of oil corporations ldquoIf the oil companies donrsquotknow whatrsquos going on theyrsquore not looking over the fencesof their compoundsrdquo27

Although some may believe that the importance of theoil and mineral sectors is the creation of jobs for thepopulation this has been denied by several authors

The oil gas and mining sectors are notoriously poorwhen it comes to job creation An offshore platformtapping deep-sea reserves will create few if anypositions for locals Only recently protests werereported outside Rio Tintorsquos QMM mineral sandsoperation in the south of Madagascar due to highlocal unemployment The best way to convertnatural resource wealth into jobs is to take theproceeds and invest in other more labor-intensiveindustries such as agriculture or manufacturing28

Nigeria provides a good example where communities living inthe Niger Delta have not benefited from oil extraction whichon the contrary has created serious conflicts as seen in Box 1

On the question of whether oil is a blesssing or a curse toAfrica the African Development Bank concluded that it is a

26 The Economist 2005 lsquoThe paradox of plentyrsquo27 Canadian Ministry of Foreign Affairs 2000 Human Security in

Sudan The report of Canadian Assessment Mission httpw w w e c o s o n l i n e o r g r e p o r t s 2 0 0 0 Human20Security20in20Sudanpdf

28Africa progress panel 2013 Africaacutes mineral wealth eternally cursedhttpwwwafricaprogresspanelorgafricas-mineral-wealth-eternally-cursed

17

1 THE QUEST FOR WEALTH

ldquohuge blessingrdquo29 It justifies that with the following analysis

We estimate that Africa has 120bn barrels of oilreserves no less than half of Saudi Arabia and 600million hectares of uncultivated arable land halfof the world total We at the African DevelopmentBank (AfDB) estimate that the continentrsquos naturalresources will contribute over $30bn per annumin government revenues over the next 20 years30

Box 1 Oil is a curse for the Niger Delta people

Most people think of oil states as wealthy states ButNigeria proves that sometimes the opposite is true It isAfricarsquos leading oil producer and yet it is one of theworldrsquos 20 poorest countries Whatrsquos more the peopleliving in the Niger Delta the countryrsquos oil-producingregion are among Nigeriarsquos most impoverishedcommunities with a large percentage of the populationhaving to survive on less than one dollar a day For thesepeople lsquoblack goldrsquo has not brought prosperity ordevelopment Instead it has increased corruption socialproblems environmental damage and armed conflictThe many billions of US dollars in oil revenue that havepoured into the country during its oil industryrsquos 50-yearhistory have completely bypassed these communitiesSource Petra Hannen 2011 lsquoBlessing our Coursersquo GIZmagazine akzent

29 African Development Bank 2013 lsquoAfricarsquos mineral wealth a blessingor a cursersquo httpwwwafdborgenblogsafdb-president-this-is-africas-hourpostafricas-mineral-wealth-a-blessing-or-a-curse-12336

30 African Development Bank 2013 Africaacutes mineral wealth a blessingor a curse httpwwwafdborgenblogsafdb-president-this-is-africas-hourpostafricas-mineral-wealth-a-blessing-or-a-curse-12336

LIVING IN FEAR

18

Africa continues the exploitation of its naturalresources

Most of the African Governments that discover naturalresources in their territory eagerly move forward with theexploration of those Therefore natural resources areexplored all over the continent oil in Ghana manganese inGabon gas in Mozambique just to name a few Often thereis little consideration of the destruction or the conflicts theseextractive activities bring For instance according to the BBCin March 2015 the Congolese Government consideredmodifying the boundaries of the Virunga National Park homeof gorilla mountains and World Heritage site to permit oilexploration activities31

DRC and South Sudan as well are exploring a joint projectnow DRC has a frontier with South Sudan in the Northeastpart of the country While historically both ndash referring alsoto Sudan ndash did not often have a common grounds after theIndependence of South Sudan in 2011 it appears possiblethat natural resources may unite them more closely IreneMuloni Minister for Energy and Minerals Development fromUganda announced in an interview in February 2015 thatSouth Sudan and the DRC have expressed interest in theconstruction of an oil pipeline of over 1000 km to the Kenyancoast32 Although yet to be implemented there have beendiscussions and plans to construct a pipeline that would unite

31 BBC 2015 DR Congo seeks Virunga park bounary httpwwwbbccomnewsworld-africa-31876577See also New York Times2014 Oil dispute takes a page from Congoacutes bloody past httpwwwnytimescom20141116worldoil-dispute-takes-a-page-from-congos-bloody-pasthtml_r=1

32 Platts 2015 South Sudan DR Congo interested in Ugandan crudeoil export pipeline minister httpwwwplattscomlatest-newsoilkampalasouth-sudan-dr-congo-interested-in-ugandan-crude-26025080

19

1 THE QUEST FOR WEALTH

oil production and distribution in several African countriesincluding South Sudan Uganda Kenya Democratic Republicof Congo (DRC) and maybe others33

The forthcoming chapters will develop more elementsaround this topic in order to conclude some final remarkswith the particular case studies of DRC and South Sudan

33 The Economist 2013 Pipeline poacuteker httpwwweconomistcomnewsmiddle-east-and-africa21578402-east-africa-danger-throwing-away-part-its-new-found-oil

20

LIVING IN FEAR

Minerals and Wars at the GreatLakes Wealth Death and Massive

Poverty in the Heart of Africa

Our internal difficulties tribal war and the nucleiof political opposition seemed to have beenaccidentally concentrated in the regions with ourrichest mineral and power resources We know howall this was organised and in particular whosupports it today in our house

Our Katanga because of its uranium copper andgold and our Bakwanga in Kasai because of itsdiamonds have become hotbeds of imperialistintrigues The object of these intrigues is torecapture economic control of our country

Patrice Lumumba speech in Leopoldville in August 25th1960 34

34 Speech at the opening of the All-African Conference in Leopoldville in1960 See httpwwwassatashakurorgforumshoulders-our-freedom-fighters42970-collected-speeches-writings-patrice-lumumbahtml

2

21

2 MINERALS AND WARS AT THE GREAT LAKES

Lumumba the first democratically elected Prime Ministerof the Republic of Congo gave a speech in 1960 that wasremarkably prescient of the fate of Democratic Republic ofCongo (DRC) today Conflict minerals and ldquotribal warsrdquo gohand in hand in the DRC historyrsquos past decades Lumumbawas planning to get the DRCrsquos related difficulties undercontrol however he was executed a few months after thespeech by a firing squad in January 1961 The US throughthe CIA the United Kingdom through the M16 and Belgiumwere all blamed for their involvement in his death35

Paradoxically ldquothe assassinations were made by the ordersof those who proclaim themselves to be champions ofdemocracy and respecters of human rightsrdquo36 Externalmeddling and intervention in Congorsquos affairs by foreigncountries is another of the concurrent and repeated situationsthat continue in recent history of the DRC37

Wars and minerals peace at last

hellip The heart of Africa is bleeding hellip

Two wars raged in DRC from 1996-1997 and from 1998-2003 Contrary to what some affirm these were not ethnicconflicts but resource wars38 No coincidence that the

35 BBC 2013 M16 and the death of Patrice Lumumba httpwwwbbccomnewsworld-africa-22006446

36 VVAA 1992 Congo (Zaire) Democratie neo-coloniale ou deuxiemeIndependance Ed LrsquoHarmattan

37 The Guardian 2011 Patrice Lumumba the most importantassassination of the 20th centuryhttpwwwtheguardiancomglobal-developmentpoverty-matters2011jan17patrice-lumumba-50th-anniversary-assassination

38 See Friends of the Congo websitehttpwwwfriendsofthecongoorgresource-centercongo-primerhtml See also Lanotte 2003 RDCguerre sans frontiers Editions Complexe

22

LIVING IN FEAR

country possesses extraordinary mineral wealth with someof the most valuable and strategic minerals on earth suchas coltan diamond cobalt copper gold tin zincmanganese timber and others The highest concentrationof mining activities existin the Eastern part of the countryTo illustrate the predominance of mining here we wouldunderline the affirmation of the Katanga Minister ofPlanning who said that 72 of the territory of Katanga isdevoted to mining No surprise why the IMF has namedDRC one of the worldrsquos mining giants of today39 Themagazine African Business stated in 2009 that ldquothe totalmineral wealth of the DRC was estimated to be some $24trillionrdquo40 As Lumumba indicated back in 1960 the samescenario repeated in recent years ndash minerals and conflictscontinue to go hand by hand

DR Congo possesses some 80 of the worldrsquoscoltan ore reserves(hellip) Additionally the DRCongo produces significant quantities ofdiamonds gold cassiterite copper cobalt (ofwhich it has the worldrsquos largest reservesalthough the trade is largely controlled byZimbabwe) oil tin zinc gold and coffee Thecountry has large reserves of uranium it wasCongolese uranium that was used for theManhattan Project that produced the worldrsquosfirst atomic bombs dropped on Japan The vastcountry also has more than half of sub-SaharanAfricarsquos timber stocks

Source African Business

39 IMF 2013 DRC Poverty reduction strategy paper N 1322640 African Business 2009 DR Congo $24 trillion fortune

23

2 MINERALS AND WARS AT THE GREAT LAKES

The casualties over the years are overwhelming Whileeverybody is familiar with the death toll during the genocidein Rwanda estimated between 500000 and 800000 peoplethere is much less awareness about the conflict situation inCongo The International Rescue Committee has estimatedthat the conflict and humanitarian crisis in the DemocraticRepublic of Congo has taken a death toll of 54 million peoplefrom 1998 to 200741 A CNN correspondent in trying togive an illustration of the heavy toll made the followingcomparative analysis

The wars in that country ndash RD Congo ndash haveclaimed nearly the same number of lives as havinga 911 every single day for 360 days the genocidethat struck Rwanda in 1994 the ethnic cleansingthat overwhelmed Bosnia in the mid-1990s thegenocide that took place in Darfur the number ofpeople killed in the great tsunami that struck Asiain 2004 and the number of people who died inHiroshima and Nagasaki mdash all combined and thendoubled42

Rwanda and Uganda were actively involved in the invasionof Congo in both wars The second war was known as theGreat War of Africa involving nine countries and more than20 armed groups According to Cynthia Ann McKinney aUS Congresswoman from the Democratic Party and an

41 IRC 2007 IRC study shows Congorsquos neglected crisis leaves 54 milliondead httpwwwrescueorgnewsirc-study-shows-congos-neglected-crisis-leaves-54-million-dead-peace-deal-n-kivu-increased-aidmdash4331 Some groups put the death toll much higher See GlobalResearch webpage httpwwwglobalresearchcathe-war-that-did-not-make-the-headlines-over-five-million-dead-in-congo7957

42 CNN 2012 Why the world is ignoring Congo war httpeditioncnncom20121127opinioncongo-war-ignored-vava-tampa

24

LIVING IN FEAR

expert on the Great Lakes issues while invading DRC in theSecond Congo War the US continued providing financialsupport to the governments of Rwanda and Uganda43 Howwas this allowed US President Bill Clinton was personallyin Rwanda in March 1998 only a few months before theRwandese army invaded Congo44 President Clinton was inAfrica at that time addressing its presidents includingPresidents Kagame and Museveni as leaders of the ldquoAfricanRenaissancerdquo and seeing a bright future for Africa45 ThereClinton made an important call to embrace peace How wasit possible to talk about peace while these allies were directlyengaging in war Moreover with the experience of thegenocide in Rwanda how could it be that foreign powersclosely involved in the region particularly the United Stateslet this occur again How did they allow wars and conflictsthat killed millions of people How could they allow whatmany called another genocide in Congo

On a positive note at last in recent months the calls forpeace have been growing from many different stakeholdersIn May 2014 US Secretary of State John Kerry after ameeting with DRC President Kabila stated that ldquoachievinga lasting peace in the DRC is a priority of President ObamardquoHe added ldquoNow I canrsquot emphasize enough how importantthat process is in identifying and resolving the root causesof the conflict in the DRC as well as in the entire GreatLakes regionrdquo46 Not a minor task going to the roots causes

43 Order of Indictment from Juzgao de instruccion numero CuatroAudiencia Nacional Case 320008-D 6-2-2008

44 See CBS News httpwwwcbsnewscomnewstext-of-clintons-rwanda-speech

45 Schaefer 2000 The Keys to an African Economic Renaissance httpwwwheritageorgresearchreports200005the-keys-to-an-african-economic-renaissance

46 See US Dept of State 2014 Press Availability on the DRC and theGreat Lakes Region httpwwwstategovsecretaryremarks201405225587htm

25

2 MINERALS AND WARS AT THE GREAT LAKES

of those problems in the Great Lakes Indeed achieving peaceand reconciliation in the Great Lakes Region in countriesthat had suffered like DRC is a difficult and cumbersometask and making it by finding the ldquorealrdquo root causes can bea very complex and lengthy exercise taking decades orlonger

The situation remains tense We recall that in 2006 theUN Security Council issued a resolution condemning ldquotheactivities of militias and armed groups operating in the GreatLakes regionrdquo47 Almost a decade later those armed groupsare still there and despite the efforts made the situationremains tense and insecure A report of the Group of Expertson the RDC published in 2015 by the United Nations SecurityCouncil concludes that in DRC despite a defeat of one of therebel groups ndash the Movement of 23 March ndash at the end of2013 this ldquofailed to translate into significant gains in securityand security and stability in 2014rdquo48 For example in thebeginning of 2015 a rebel group from Uganda the AlliedDemocratic Forces (ADF) created havoc in North Kivuwhere 17 people were hacked to death with machetes49

47 UN Security Council 2006 Resolution 1653 (2006) SRES165348 UN Security Council 2015 Final report of the Group of Experts on

the DRC S20151949 UN Security Council 2015 March 2015 monthly forecast http

wwwsecuritycouncilreportorgmonthly-forecast2015-03democratic_republic_of_the_congo_7phpVP-BX5Sm4agmailto

26

LIVING IN FEAR

Armed groups militias and criminal networkswithin the military structure making a lucrativebusiness out of minerals

The UN has solidly demonstrated that natural resources areused to finance armed groups and therefore to fuel war inthe region 50 The UN concludes that ldquoarmed groups continueto control many mining sites and to profit from mining andthe minerals traderdquo51 Later on those minerals particularlytin tungsten and tantalum are smuggled to neighbouringcountries For example one of the armed groups theMovement of 23 March (M23) responsible for taking Gomaat the end of 2012 was financing its organisation fromnatural resources in Eastern Congo In relation to thisparticular case the UN asserts that ldquoseveral traders havecontributed to financing M23 rebels using profits resultingfrom the smuggling of Congolese minerals into Rwandardquo52

Besides the rebel groups a criminal network within theArmed Forces of the DRC (FARDC) was involved in the illegalexploitation of natural resources The types of involvementinclude illegal taxation protection rackets and indirectcommercial control to more direct coercive control53

For some top army officials their military work wasconverted into economic businesses Indeed the existing

50 UN Security Council 2014 Final report of the Group of Experts onthe Democratic Republic of the Congo

51 Ibidem52 Ibidem53 UN Security Council 2010 Letter dated 26 October 2010 from the

Group of Experts on the DRC addressed to the Chair of the SecurityCouncil Committee established pursuant resolution 1533 (2004) S2010596

27

2 MINERALS AND WARS AT THE GREAT LAKES

practices made the UN qualify the war as a ldquolucrativebusinessrdquo

illegal exploitation of resources by BurundiRwanda and Uganda took different forms includingconfiscation extraction forced monopoly andprice-fixing The first two forms reachedproportions that made the war in the DRC a verylucrative business There are strong indicationsthat even if security and political reasons werethe professed motivation to move into the easternDRC some top army officials clearly had economicand financial objectives54

The most UN recent reports affirm that ldquomany armed groupsin Eastern Democratic Republic of the Congo have derivedtheir revenue from the production of and trade in naturalresourcesrdquo55

54 UN Security Council 2001 Security Council condemns ilegal exploitationof Democratic Republic of Congoacutes natural resources Press Releasehttpwwwunorgpressen2001sc7057dochtm

55 UN Security Council 2014 Final report of the Group of Experts on theDRC S201442

28

LIVING IN FEAR

Insecurity still booming in Eastern Congo

As already mentioned the momentum created bythe defeat of the Movement of 23 March inNovember 2013 failed to translate into significantgains in security and stability in 2014 in EasternDemocratic Republic of the Congo A militaryoperation against the Allied Democratic Forces(ADF) significantly weakened but did not defeatthe sanctioned armed group An expected militaryoperation against the Forces deacutemocratiques delibeacuteration du Rwanda (FDLR) did not materializeand as of the end of November 2014 efforts tonegotiate the disarmament of this sanctionedarmed group failed to produce meaningful resultsIn addition numerous Congolese and foreignarmed groups contributed to instability inOrientale North Kivu South Kivu and KatangaprovincesADF FDLR Nduma Defence for Congo (led bysanctioned individual Sheka Ntabo Ntaberi) andother armed groups continued to recruit train anduse child soldiers in 2014 Armed groups alsocommitted a variety of other abuses includingtorture enslavement and sexual violence Therewere mass killings in June in Mutarule (South Kivu)and in October and November in Beni territory(North Kivu)

Source United Nations Security Council 201556

29

2 MINERALS AND WARS AT THE GREAT LAKES

One of the problems the existing insecurity and conflicts havecreated is the proliferation of internally displaced peopleestimated in September 2014 at 27 million people57

UN peacekeeping operation in Congo

In July1999 Heads of State of Angola DRC NamibiaRwanda Uganda Zambia and Zimbabwe signed the Lusakaagreement focusing on the establishment of a ceasefire asone of the other components necessary for the deploymentof a UN peacekeeping force

The first UN Peacekeeping operation in DRC wasestablished in November 1999 after the Lusaka Ceasefireagreement It was called the UN Mission in the DRC(MONUC) In 2010 it was renamed the UN OrganizationStabilization Mission in the DRC (MONUSCO)

Ten years later despite the deployment of MONUC thesecurity challenges in DRC ndash particularly in the Eastern Partof the country ndash remain high58 There is still a strong presenceof armed groups chronic humanitarian crisis continuoushuman rights violations and continued illegal exploitationof natural resources In the light of this context the UNcreated an ldquoIntervention brigaderdquo with a key objective ofneutralizing armed groups59 As of today the MONUSCOand the intervention brigade are operational but are theresignificant security changes

56 Ibidem57 See global humanitarian assistance webpage http

wwwglobalhumanitarianassistanceorgcountryprofiledemocratic-republic-of-congo

58 UN Security Council 2010 Resolution 192559 UN Security Council 2013 Resolution 2098

30

LIVING IN FEAR

60 UN Security Council 2014 Final report of the Group of Experts on theDRC S201442

61 PR Newswire 2014 Rwanda has become worldacutes largest coltanexporterhttpwwwprnewswirecomnews-releasesrwanda-has-become-worlds-largest-coltan-exporter-reports-kt-press-300010371html

62 PR Newswire 2014 Rwanda has become worldacutes largest coltanexporter

63 Africa Briefing 2015 Rwanda has abundant deposits of best qualitycoltan Kagame affirms httpafricabriefingorgp=478

Legitimate exports or smuggling conflictminerals

It is well known that many of the minerals in Eastern Congoare smuggled and do not follow legal channels For instancethe UN estimates that 98 of the gold produced in DRC issmuggled out of the DRC making the country lose millionsof dollars in tax revenue60

In December 2014 numerous media covered a story onRwanda and coltan PR Newswire affirmed that ldquoRwandahas become worldacutes largest coltan exporterrdquo61 The dataprovided concluded that in 2013 Rwanda exported around2500000 kg of tantalum which constituted 28 of the total8807232Kg of tantalum produced globally The overallrevenue from the coltan was estimated at around $140 M62

Rwandese President Paul Kagame was quoted as affirmingthat the production was local and dismissed all possibleallegations of plundering the coltan from Congo He affirmedldquoRwanda has not only enough coltan but of a very highquality (hellip) we can even pay for a ticket give them a visaand take them to the minesrdquo63

Contrary to such statements there are many reports thatcoltan is smuggled from Congo to Rwanda and that Rwandadoes not have significant coltan mining on its own For

31

2 MINERALS AND WARS AT THE GREAT LAKES

instance a 2012 report prepared by a European Foundationaffirmed that ldquoRwanda does not house any industrial coltanmines which would suggest legitimate Rwandan coltanproductionrdquo64 A US governmental agency which analyzesthe mining sector in Congo made a table with coltan exportedfrom Rwanda qualifying it as ldquoconflict mineralsrdquo as seen inTable 165 Since there is no known conflict in Rwanda it canonly refer to Rwanda exports of minerals originating froman external conflict zone the DRC

Table 1 Estimates of exports of conflictminerals from Rwanda for Fiscal years2009-2013 in Metric Tons

Year Tantalum

FY 2009 958

FY 2010 827

FY2011 915

FY2012 1139

FY 2013 2466

Source Based on United States Government Accountability Office 2014

64 Van Teeffelen 2012 The EU raw materials policy and mining in RwandaEvert Vermeer Foundation

65 United States Government Accountability Office 2014 Conflictminerals stakeholder options for responsible sourcing are expandingbut more information on smelters is needed

32

LIVING IN FEAR

In this particular situation either somebody is wrong orsomebody is lying Hopefully future events will unveil thetruth around the nature of the coltan exports from Rwandato clarify whether they are a legitimate export or theconsequence of smuggling conflict minerals

Greed for minerals everybody wants a pieceof Congo66

What is at the origin of those wars and instability of theCongo While there could be diverse factors for conflictthere is one that seems to be always recurrent and is recog-nized by most authors and by relevant UN reports the racefor minerals and natural resources The UN recognized thatin the Second Congo War minerals were the coveted trophyand that all actors ldquobuilt up a self-financing war economycentred on mineral exploitationrdquo67 The conflicts that con-tinued after the Second Congo War like those in Kivu andIturi provinces are recognized as well to be fuelled by tradein minerals Along the same lines Palou underlines the causesof the conflict by stating that ldquoalthough from that time un-til the present day the Rwandan regime has expressed itsconcern about the security of its border with the then Zaireobjectively the reality is that control over this strategic areandash Eastern Congo ndash and its valuable mineral resources has

66 See video at Congo Justice httpcongojusticeorg67 UN 2002 Final report of the Panel of Experts on the illegal exploitation

of natural resources and other forms of wealth of the DemocraticRepublic of the Congo S20021146

33

2 MINERALS AND WARS AT THE GREAT LAKES

proved to be at the heart of two wars that have left a hugenumber of victimsrdquo68 In conclusion a 2001 UN report as-serted that ldquothe conflict of DRC has become mainly aboutaccess control and trade of five key mineral resourcescoltan diamond copper cobalt and gold The wealth of thecountry is appealing and hard to resist in the context oflawlessness and the weakness of the central authorityrdquo69

Congolese and regional elite have also profited from thissituation as well and the appalling quantum of the plunderare reflected in the following report from UN

The elite network of Congolese and Zimbabweanpolitical military and commercial interests seeksto maintain its grip on the main mineral resourcesmdash diamonds cobalt copper germanium mdash of theGovernment-controlled area This network hastransferred ownership of at least US$ 5 billion ofassets from the State mining sector to privatecompanies under its control in the past three yearswith no compensation or benefit for the Statetreasury of the Democratic Republic of the Congo70

Funds that could have been used for public services havebeen diverted from the public coffers by fraud or by theexcuse of war effort71 The Congolese population has paid

68 Palou 2010 International Justice plunder in war human rights andmultinationals

69 UN Security Council 2001 Report of the Panel of Experts on theillegal exploitation of natural resources and other forms of wealth ofthe Democratic Republic of the Congo S2001357

70 UN Security Council 2002 Final report of the Panel of Experts on theilegal exploitation of natural resources and other forms of wealth ofthe Democratic Republic of the Congo S20021146

71 Ibidem

34

LIVING IN FEAR

dearly in this situation In terms of human development it isinstructive that the UNDP estimated in 2013 that RDCwas in the low human development category ndash positioningthe country at 186 out of 187 countries and territories72

The Role of Transnational Corporations (Tncs)and the private sector

Other key players involved in the conflict are Transnationalsand the private sector A UN Report published a few yearsafter the Second Congo War started affirmed that ldquothe roleof the private sector in the exploitation of natural resourcesand the continuation of the war has been vitalrdquo73 The reportalso added that ldquoa number of companies have been involvedand have fuelled the war directly trading arms for naturalresourcesrdquo74 Other observers share the view that ldquoWesternMultinationals have been one group responsible for thepillage and illegal exploitation of Congo mineral resourcesrdquo75

There are a large number of big foreign corporationsinvolved in mining in DRC including those from CanadaSouth Africa UK USA and others Despite the opacity ofmost of the activities of the private sector numerousexamples have been reported of how TNCs are responsiblefor human rights abuses and other illegal activites Thereare also many reports of the dangerous connectionsestablished with the political and military elite in order tofacilitate their businesses These are some examples

72 UNDP 2014 Sustaining human progress reducing vulnerabilities andbuilding resilience Congo (Democratic Republic of the) httphdrundporgsitesallthemeshdr_themecountry-notesCODpdf

73 UN 2001 Report of the Panel of Experts on the illegal exploitation ofnatural resources and other forms of wealth of the Democratic Republicof the Congo S2001357

74 UN 2001 Ibidem75 Palou Ibidem

35

2 MINERALS AND WARS AT THE GREAT LAKES

bull Glencore Anglo-Swiss giant in the raw material sectorwith a turnover of US $ 2397 billion in 2013 was beingaccused in 2014 of adopting a military-style response tothe problem of artisanal mining close to its mines ldquoonseveral occasions over the past 18 months mine policehave fired live ammunition in pursuit of artisanal minerson Glencorersquos site resulting in deaths and seriousinjuriesrdquo76 They are as well responsible forcontamination of the water supply with acid content andvery high and concentrations of copper and cobaltFinally the company operates some of its concessionsinside a reserve ndashndash something that in principle is illegalaccording to the RDC Mining Code77

bull An independent investigation unveiled that two miningcompanies Glencore and the Eurasian Natural ResourcesCorporation were involved in underpricing assets incomplex deals featuring offshore companies causinglosses to the DRC of no less than $136 billionIntermediary companies in the deals were linked to DanGerler78 In addition the DRC public prosecutorreportedly told mining companies that they had toreimburse $37 billion in taxes duties and fines79

bull AngloGold Ashanti part of the AngloAmericancorporation was accused of establishing links and

76 Peyer et al 2014 PR or Progress Glencoreacutes corporate responsibility inthe DRC Bread for all RAID Fastenopfer

77 Ibidem78 CRS 2014 Democratic Republic of Congo Background and US Policy79 Reuters 2014 Disputed Congo report says miners owe $37 billion in

tax fines httpwwwreuterscomarticle20140130us-congo-democratic-mining-idUSBREA0T12L20140130

36

LIVING IN FEAR

supporting one armed group the Nationalist andIntegrationist Front (FNI)80

bull In 2004 fighting between soldiers and rebels in Kilwaended in serious human rights violations againstcivilians including summary executions arbitraryarrests rape and torture Anvil Mining operated theDikulushi copper mine near Kilwa and was accused ofproviding vehicles and planes to the Congolese armedforces during this event The legal case ended in theCanadian Supreme Court in 2012 which ruled that itwould not hear the plaintiff rsquos appeal ndash they were led bythe Canadian Association Against Impunity (anassociation representing survivors of the incidents inOctober 2004)81

bull In May 1997 Citibank NY a financial institution hasbeen accused of giving $5 million loan to a Congolesemilitia allied with Rwanda82

bull American Mineral Fields (AMF) cut a $1 billion dealwith Kabila immediately after his forces captured GomaThe negotiations were led by ldquoKabilarsquos US-trainedfinance ministerrdquo who gave ldquoAMF exclusive explorationrights to zinc copper and cobalt mines in the area MikeMcMurrough a friend of US President Bill Clinton wasthen the chair of AMF83

80 Human rights watch 2005 DRC Gold fuels massive human rightsatrocities httpwwwhrworgennews20050601dr-congo-gold-fuels-massive-human-rights-atrocities

81 Business and human rights resource center 2012 Anvil Mining Lawsuit(re DRC) httpbusiness-humanrightsorgenanvil-mining-lawsuit-re-dem-rep-of-congo

82 Global research 2008 Congo Resource wars httpwwwglobalresearchcacongo-resource-wars8310

83 Global research 2008 Ibidem

37

2 MINERALS AND WARS AT THE GREAT LAKES

UN and some other independent reports generally makebroad statements about the role of corporations includingciting some of the companies however they fall short ofproviding details of the modus operandi of those companiesand in establishing or suggesting concrete measures to stopthe conflicts and solve the negative impacts on the DRCpopulation and environment A 2002 UN Report listed 85companies considered by the Panel to be in violation of theOECD Guidelines for Multinational Enterprises84 Very littlehas been done after the UN report was published

A poor country Until when

In 1969 World Bank President Robert McNamara embarkedon a trip to Africa to try to discover ldquowhat are therequirements for developmentrdquo85 At that time the WorldBank in its information document described the country asrich in natural resources but at the same time poor and witha strong mining sector

In spite of its rich natural resources and greatpotential the Congo is still a poor country (hellip)Mining and metallurgy play a leading role in theeconomy86

84 UN 2002 Final Report of the Panel of Experts on the Illegal Exploitationof Natural Resources and other Forms of Wealth of the DemocraticRepublic of the Congo S20021146

85 Records of President Robert S McNamara Travel briefs CongoKinshasa (01021969-03031969) 1772506 Reference Code WBIBRDIDA 03 EXC-10-4540S World Bank Group archives WashingtonDC United States

86 Ibidem

38

LIVING IN FEAR

More than forty years later not much has changed asupdated data shows In DRC seven out of ten householdsare poor87 Most of its nearly 60 million people areldquodesperately poor living on less than $1 a dayrdquo88 DRC is aleast developed country a fragile State that has been in thetop 10 recipients of humanitarian assistance in nine of thelast 10 years Between 2003 and 2012 DRC received US$176billion in official development assistance (ODA) making itthe 10th largest recipient89In 2012 the Democratic Republicof Congo (DRC) received US$286 billion in net officialdevelopment assistance90

With so many natural resources isnrsquot there money to getpeople out of poverty The mining sector is oftenacknowledged as being capable of contributing to povertyreduction However those mineral benefits are oftencreamed off by powerful interests and do not get to thehands of the majority of the population According to DFIDldquofiscal receipts from the minerals sector are siphoned off bypowerful interest groups instead of being used in the publicsectorrdquo91

The analysis of Mr Antonino Giambrone sheds more lightabout the earnings and who profits from mining

While the average Congolese worker earns $10 permonth the average Congolese coltan-miner earnsanywhere from $10 to $50 per week Uganda

87 IMF 2013 DRC Poverty reduction strategy paper N 1322688 DFID 2008 Democratic Republic of Congo Country Plan89 View global humanitarian assistance webpage http

wwwglobalhumanitarianassistanceorgcountryprofiledemocratic-republic-of-congo

90 CRS 2014 Democratic Republic of Congo Background and US Policy91 DFID 2008 Democratic Republic of Congo Country Plan

39

2 MINERALS AND WARS AT THE GREAT LAKES

Rwandan and Congolese rebels have earned manymillions of dollars in sales of coltan which theyhave used to finance their war efforts in the CongoBetweeen 1999 and 2000 the Rwandan army aloneearned at least $20 million a month from coltan92

Food insecurity is often a consequence of poverty One ofthe causes of existing food insecurity is the abandonment ofthe agriculture sector partly due to conflicts The governmentstated that it would like to strengthen the smallholdersldquowhile ensuring at the same time the protection of thecountryrsquos natural resourcesrdquo93

War impacts on the environment

The wars have had devastating impact on the environmentNational parks for instance home of many endangeredspecies are also affected by the exploitation of minerals94

There are numerous reports on the precarious situation ofwildlife in the region For instance between 1995 and 19994000 out of 12000 elephants were killed in the GarambaPark in North-eastern DRC95 The situation was also seriousin other parks For instance in Kahuzi-Biega Park a zonerich in coltan only 2 out of 350 elephant families remained

92 Giambrone 2006 The extraction of natural resources as a source ofconflict Etfo voice

93 IMF 2013 DRC Poverty reduction strategy paper N 1322694 Seeh ttpwww lenntech comenv ironmental -ef fec ts -

warhtmixzz3CuGZqE3M95 UN 2001 Report of the Panel of Experts on the illegal exploitation of

natural resources and other forms of wealth of the Democratic Republicof the Congo S2001357

40

LIVING IN FEAR

in 200096 Mountain gorillas are also under threat due tocontinued civil unrest and the presence of armed militiasmakes survey and conservation work difficult in the DRCrsquosprotected areas97

Deforestation is also one of the common impactsWorldwatch explains the implication of having refugeespopulation inhabiting RDC degraded forest areas

For two years beginning in late 1994 for exampleabout 720000 Rwandans inhabited refugee campson the fringes of Virunga National Park They allneeded wood for cooking fires and for buildingshelters and some also earned extra money bymanufacturing charcoal As a result up to 80000people entered the park and carted away up to1000 tons of wood every day By mid-1996 105square kilometers of forest had been affected toone degree or another by their activities 35 squarekilometers had been stripped bare98

Besides the need for fuelwood by refugees movement ofmilitary hardware through forests and woodlands also causeserious damage to forests and the landscape generally

96 Ibidem97 See WWF webpage httpwwfpandaorgwhat_we_doendangered_species

great_apesgorillasmountain_gorilla98 Worldwatch 2008 War and Environment httpwwwworldwatchorg

node5520

3South Sudan The Oil Way

99 Washington Post 2012 lsquoSouth Sudan civilians are trapped in conflictover oilrsquo httpwwwwashingtonpostcomworldsouth-sudan-civi l i ans-are- trapped-in-conf l ict -over-o i l20120501gIQAUX6buT_storyhtml

100 See UN Mission in South Sudan web page httpwwwunmultimediaorgtvunifeed201404south-sudan-bentiu-massacre

101 Reuters 2014 Bentiu massacre is game-changer in South Sudanconflict says UN official httpwwwtheguardiancomworld2014apr22bentiu-massacre-south-sudan-united-nations

41

ldquoIf we had no oil we would not be attackedrdquo

Nyak a 27-year-old sitting outside herhut in Bentiu South Sudan 201299

In April 2014 Bentiu the capital of the oil producing UnityState was the scenario of one of the worst massacres of thecivil war between South Sudanese forces100 Hundreds ofpeople were killed in the fighting that took place betweenthe Sudan Peoplersquos Liberation Army (SPLA) and anti-government forces in the oil-rich State101

42

LIVING IN FEAR

Civil wars and conflict

Since its independence in 1956 Sudan has been at war andconflict for most of its modern history Specialists in conflictand security have described the history of modern Sudan asldquoan unremitting sequence of wars punctuated by oft-violatedpeace agreementsrdquo102 The First Sudanese Civil War (1955ndash1972) was followed by a Second Sudanese Civil War (1983ndash2005) with barely 11 years breathing space of tenuoussecurity

The Second Civil War ended when both sides signed theComprehensive Peace Agreement in 2005 That agreementgave autonomy to South Sudan within Sudan However areferendum held in January 2011 moved the region towardsecession and then in July 2011 independence was achievedand South Sudan became an autonomous nation103 Theprocess that led to South Sudanrsquos independence was stronglysupported by the US government which backed Juba in itstwo decades struggle against Khartoum104 It should be notedthat even during the 11 years of supposed peace there wereconflicts on a regular basis particularly in the border areasbetween South Sudan and Sudan105 Two years after theindependence the first South Sudanese Civil War started inDecember 2013 The civil war erupted as a result of a power

102 Cox and Snapper 2013 The Strategic Importance of South Sudan TelAviv University

103 National Geographic 2013 South Sudan oil the environment andborder conflicts httpvoicesnationalgeographiccom2013032286550

104 See webpagehttpwwwworkersorgarticles20140101south-sudan-yet-another-oil-war

105 International Crisis Group 2006 Sudan Saving peace in the Easthttpwwwcrisisgrouporgenregionsafricahorn-of-africasudan102-sudan-saving-peace-in-the-eastaspx BBC 2015 South SudanProfile httpwwwbbccomnewsworld-africa-14019202

43

3 SOUTH SUDAN THE OIL WAY

struggle between president Salva Kiir from the Dinka ethnicgroup and his deputy Riek Machar from the Nuer ethnicgroup whom he had sacked As at the time of this writingthe civil war continues

Sudan vs South Sudan

The tensions and conflicts after the independence of SouthSudan from its neighbour Sudan did not stop in 2011 Topleaders from both sides accuse and threaten each other innumerous occasions For instance Sudanese President Bashirpromised to teach South Sudan a ldquofinal lesson by forcerdquo106

South Sudan President firmly swore that ldquowhether Umar al-Bashir likes it or not one day Abyei will rejoin the southrdquo107

Abyei

Abyei is traditionally the home of the Ngok Dinka asubdivision of the Dinka tribe with strong links to the Dinkain South Sudan Besides the Dinka Misseriya herders aremembers of nomadic Arab tribes that seasonally cross Abyeiand other nearby areas with their cattle in search of waterand pasture108

Since the signing of the Peace Agreement in 2005 betweenthe Government of Sudan and the SPLM the dispute over

106 The Washington Post 2012 lsquoSudanese president vows war againstSouth Sudanrsquo httpwwwwashingtonpostcomworldsudanese-president-threatens-force-against-south-sudan-over-oil-field20120419gIQAJ0G8ST_storyhtml

107 The Global Intelligence Files 2013 Sudan- President Kiir says Abyeiwill ldquorejoinrdquo South Sudan httpssearchwikileaksorggifilesviewemailid=674314

108 Enough Project 2013 What is the Abyei Area and why is it disputedhttpwwwenoughprojectorgblogsenough-101-what-abyei-area-and-why-it-disputed

44

LIVING IN FEAR

the future status of the Abyei area has beenone of the bigbarriers to stability in the region109Abyei is an oil-rich areadisputed by Sudan and South Sudan and stands out as thehotspot of bigger tension beetween Sudan and South Sudannowadays

The conflicts over Abyei have a history of more than 50years After the First Civil war the parties signatories to thepeace pact agreed that Abyei would hold a referendum todetermine whether they would be part of Sudan or a newlyregion in the South The second war commenced in 1983and the foreseen referendum was not done

In 2009 the Permanent Court of Arbitration in the Hagueruled on Abyei territory giving concessions to the Governmentof Sudan and the Southern Sudan Heglig and other closeroil-fields remained out of Abyei area while the rest of theAbyei region remained under control of the Ngok Dinka anethnic group close to Southern Sudan and keen on voting tojoin the South in a future referendum110Another referendumwas scheduled to be done in parallel with the South Sudanreferendum in 2011 but once again this never took place

Although a series of temporary security arrangementswere agreed in January and March 2011111 in May SudaneseArmy tanks entered the town of Abyei and by the 22nd ofMay they seized control of the town112The government ofSudan launched numerous military attacks in the disputed

109 UN Security Council 2011 Report of the Secretary-General on thesituation in Abyei S2011451

110 New York Times 2009 lsquoCourt redraws disputed area in Sudanrsquo httpwwwnytimescom20090723worldafrica23sudanhtml_r=1amp

111 UN Security Council 2011 Report of the Secretary-General on thesituation in Abyei S2011451

112 Reuters 2011 North Sudan seizes disputed Abyei thousands fleehttpwwwreuterscomarticle20110522us-sudan-abyei-north-idUSTRE74L14L20110522

45

3 SOUTH SUDAN THE OIL WAY

border of area where much of Sudanacutes remaining oil fieldsare situated113 Two years later the fighting remains intensein parts of South Kordofan and Blue Nile114 More than 2million people have been internally displaced or severelyaffected by the conflict since 2011115

In addition to military attacks other actions contributedto the tension There have been cattle raids by the MissiriyandashArab nomadic cattle herders inhabiting the area ndash on theNgok Dinka ndasha subdivision of the Dinka tribe inhabitingthis area In occasions more than 200 cows were stolenwith a large part of it recovered by the UN Interim SecurityForce for Abyei(UNISFA) These raids increase further thealready tense situation in the region and in particular thevery tense situation among the Missiriya and the NgokDinka116

113 The Conversation 2012 Oil fuels the conflict between Sudan andSouth Sudan ndashand it keeps getting hotter

114 OCHA 2014 South Kordofan and Blue Nile population movementsfact sheet httpreliefwebintsitesreliefwebintfilesresourcesSouth20Kordofan20and20Blue20Nile20Population20Movements20Fact20Sheet20-201920May202014pdfReuters 2013 Khartoum says rebels based in South Sudan caused oilpipeline blast

115 OCHA 2014 Ibidem116 See Human Security baseline assessment for Sudan and South Sudan

webpage httpwwwsmallarmssurveysudanorgdefacts-figuresborderdisputed-areasabyeihtml

46

LIVING IN FEAR

An oil-centered conflict

ldquoThe violence underscores the extent to which oilis at the heart of the dispute Khartoum whichcontrols the pipelines that take oil out of SouthSudan depends heavily on oil transit fees SouthSudan which depends on oil for 98 percent of itsrevenue has refused to pay the fees which it saysare exorbitantKhartoum responded by seizing oil tankers carryingSouth Sudanese oil and imposing economicblockades That prompted South Sudan to shutdown its entire oil production in February Thatmonth Sudan allegedly bombed an oilfield inSouth Sudan that was nine miles from the borderrdquo

Washington Post 2012

Missiriya attacks continue as of today UNISFA reported thatin March 2015 100 armed Missiriya killed several peopleand burnt over 20 houses in a village in the southern part ofAbyei117 Many of those attacks occur despite the presenceof UN peacekeepers in the zone

In this context a UN force was deployed in 2011 withmore than 4000 personnel mostly Ethiopian with theobjective of ensuring the demilitarization of the Abyei areaand particularly checking the Sudan Armed Forces and theSudan Peoplersquos Liberation Army Interestingly the UN forceshad also the task to provide security for oil infrastructure inthe Abyei Area in cooperation with the Abyei PoliceService118 In February 2015 the Security Council extended

117 Sudan Tribune 2015 South Sudan condemns deadly clashes in Abyeihttpwwwsudantribunecomspipphparticle54191

118 UN Security Council 2011 Resolution 1990 (2011) SRES1990(2011)

47

3 SOUTH SUDAN THE OIL WAY

the mandate of the UNISFA again until July 2015119 The AbyeiJoint Oversight Committee (AJOC) decided in May 2013 thatAbyei should adopt a status as weapons-free area and thatonly UNISFA would be authorized to carry weapons in thearea120

The situation in the area is still very fragile121 For instancevarious resolutions have called for the redeployement of allmilitary personnel from Abyei including those protecting itsoil infrastructure However the Sudanese Governmentskeeps at the Diffra oil complex around 150 Sudan oil policein a clear violation of an agreement and Security Councilresolutions adopted in 2011122 The UN Security council ina recent resolution

Condemns the presence of Diffra Oil Police unitsdeployed in the Abyei Area as well as the repeatedentry of armed militias into the territory andreiterates its demands that immediately andwithout preconditions the Government of Sudanredeploy the Oil Police in Diffra from the AbyeiArea ()123

Conflicts escalating over oil Heglig battles

In 2012 despite the Permanent Court of Arbitration ruling124

which placed Heglig oilfields in the Sudanese territories

119 UN News Center 2015 Security Council extends UN peacekeepingforce in Abyei through July 2015

120 UN Security Council 2015 Ibidem121 UN Security Council 2015 Security Council adopting resolution 2205

(2015) extends interim force in Abyei until 15 july voicing concernover delays in Borde Mechanismrsquos operation httpwwwunorgpressen2015sc11800dochtm

122 UN Security Council 2014 Report of the Secretary-General on thesituation in Abyei S2014518

123 UN Security Council 2015 Ibidem124 See Permanent Court of Arbritation webpage httpwwwlocgov

lawwebservletlloc_newsdisp3_l205401463_text

48

LIVING IN FEAR

the South Sudanese army launched an attack over Heglig125

South Sudanrsquos army took control of the oil-producing townof Heglig The South Sudan move did not enjoy sympathyfrom many countries including its allies such as the US andBritain126 The African Unionrsquos (AU) Peace and SecurityCouncil considered Sudanrsquos occupation of Heglig as illegal127

At the end after a few days South Sudan pulled back itstroops from Heglig even though President Salva Kiir stillclaims that Heglig is a part of South Sudan and is expectinginternational arbitration

Oil and geopolitics

The implications of the oil economy are self-telling Prior tothe separation of Sudan from South Sudan in 2011 theunified Sudan was the second-largest non-OPEC oil producerin Africa in 2010 When they separated Sudan and SouthSudanrsquos production diminished and together they rankedas the fourth-largest non-OPEC African oil producer in 2013Particularly the split of the country in oil revenues economicterms was a huge blow to Sudan with its crude oil exportrevenues falling from almost $11 billion in 2010 to around$18 billion in 2012128 It has been estimated that oilcontributes 98 of South Sudan government income morethan for any other government in the world129

125 Wall Street Journal 2012 Sudan escalates fight over oil httpwwwwsjcomarticlesSB10001424052702304444604577339461981143808

126 The Guardian 2012 South Sudan to withdraw from disputed oiltownhttpwwwtheguardiancomworld2012apr20south-sudan-withdraw-oil-town

127 IRIN 2012 Sudan-South Sudan Heglig and the border128 US Energy Information Administration 2014 Country analysis brief

Sudan and South SudanhttpwwweiagovcountriesanalysisbriefsSudansudanpdf

129 Global Witness 2009 Fuelling mistrust

49

3 SOUTH SUDAN THE OIL WAY

Although oil exploration started at the end of the 1950showever no success was achieved with the activities of Italianoil company Agip130 Discoveries were found in the years tofollow The first oil discovery was made in 1979 when theAmerican company Chevron found oil near the Darfur-Kordofan boundary Three years later Chevron made twolarger discoveries the Heglig and Unity oilfields which asof today are the most productive However by 1984 Chevronstopped its operations when some of its workers were killedby an armed group By 1988 the company dismantled all ofits operations in Bentiu and Unity provinces131

As a landlocked country all the oil in South Sudan had tobe extracted and exported via a pipeline The pipeline wasconstructed by China National Petroleum Corporation andit covered a length of around 1600 kilometers132 Ittransports the oil from South Sudan to the Red Sea Thecost of the pipeline was estimated at $1 billion and it wasfinished in 1999133At the time of the construction of thepipeline Sudan provided less than 1 of Chinarsquos oil importsbut a few years later by 2009 the investments of Chinatotalled more than $8 billion134

130 Understanding Sudan 2009 Fact sheet two A history of oil in theSudan httpunderstandingsudanorgOilOilResourcesL2FS2-HistoryofOilinSudanpdf

131 Understanding Sudan Ibidem132 The Conversation 2012 Oil fuels the conflict between Sudan and

South Sudan ndashand it keeps getting hotter133 Sitarek 2001 The human price of oil ICE Case Studies Number 83

httpwww1americanedutedicesudansanctionshtm16134 The Conversation 2012 Ibidem

50

LIVING IN FEAR

Source US Energy Information Administration 2014

South Sudan becameindependenth in July2011 Taking aboutthree-quarters of theproduction A disputeover transit fees ledSouth Sudan to haltproduction for most of2012

Oil production inSudan and South Sudan

thousand barrels per day

51

3 SOUTH SUDAN THE OIL WAY

Main oil companies in Sudan and South Sudan

While initially many companies involved were of Westernorigin most of the companies now involved in the oil sectorare from China and Malaysia

Source US Energy Information Administration 2014 Countryanalysis Brief Sudan and South Sudan

Row over oil tariffs

By 2011 both countries did not agree on how much SouthSudan should pay to export its oil through the pipelines inSudan Sudan requested a fee of 33 dollars a barrel whileSouth Sudan said the highest fee they could afford was 2

Table 2 Main oil companies in Sudan and South Sudan

52

LIVING IN FEAR

dollars a barrel135 Following this lack of agreement SouthSudan halted crude oil production in early 2012

This decision worsened the economic situation in bothcountries as both depend hugely on money from oil exportsfor their revenues However an agreement was reached andin April 2013 South Sudan restarted oil production136

Causes of the Sudanese Civil War

Wars in Sudan have been often portrayed quite simplisticallyas an ArabMuslim north versus and an AfricanCristiansouth While certainly ethnicity and religion played a rolethe conflict has been mainly fought over natural resources137

Today oil is the countryrsquos main natural resource and ithas been estimated that it accounts for 98 of South Sudanrsquosrevenue138 The multibillion potential of their revenuehowever has not translated into wealth and benefits for themajority of the population of South Sudan First of all it hasnot solved the problem of security as since the very inceptionof the State of South Sudan in 2011 there were conflicts inmany areas of the country particularly in the borderline withSudan A 2013 report from the World Bank illustrates thisby asserting that ldquodespite South Sudanrsquos great resourcewealth its population is one of the most deprived due todecades of neglect and war and the distortions of the oil

135 IPS 2011 South Sudan rows over exorbitant fees for pipeline use136 Reuters 2013 South Sudan resumes oil output after ending row with

Sudan over transit fees137 Caas 2007 Natural resources and conflict in Sudan138 See World Bank webpagehttpwwwworldbankorgencountry

southsudanoverview

53

3 SOUTH SUDAN THE OIL WAY

economyrdquo139 Indeed oil reserves sitting on a disputed borderbetween Sudan and South Sudan have not translated yetinto wealth for the majority of citizens of South SudanInstead most of the inhabitants of the country remain deeplypoor and do not enjoy even basic rights to access potablewater and adequate sanitation140

Oil has been a main cause for the war and conflicts inSudan For instance it influenced the end of the peaceagreement obtained after the first civil war This first civilwar ended in 1972 with the Addis Ababa Agreement Theagreement established a system of peaceful co-existence witha single country by guaranteeing aNorthern basedgovernment but granted at the same time autonomy in theSouth This however was not going to last long as thediscovery of oil at the end of the 1970s in Southern Sudanchanged the ldquocoexistencerdquo idea In 1978 Sudanese PresidentNimeiry decided to embark on oil exploration project thatwould lead to the finding of oil in commercial quantities Inorder to control the oil within the hands of the Northernbased Government military force was used and in additionto imposing islamic law which led to the new civil warstarting in 1983141

139 World Bank 2013 Interim Strategy Note (FY 2013-2014) httpwww-wdsworldbankorgexternaldefaultWDSContentServerWDSPIB20130207000333037_20130207110223RenderedPDF747670ISN0P1290Official0Use0Only090pdf

140 National Geographic 2013 South Sudan oil the environment andborder conflicts httpvoicesnationalgeographiccom2013032286550

141 Sitarek 2001 The human price of oil ICE Case Studies Number 83httpwww1americanedutedicesudansanctionshtm16

54

LIVING IN FEAR

Numerous authors have identified natural resources ashaving a direct correlation with wars and conflicts142 Ananalysis by Ross of the University of California (UCLA) ofthirteen wars and conflicts concluded that in the case ofSudan oil was one of the key causes of the second civil warand an incentive for advancing the independence of SouthSudan143 Ross describes his conclusion in the followingmanner

War in Sudan began in 1983 when SudanesePresident Nimeiry took a series of measures thatupset the delicate balance between thepredominantly Muslim north and the heavilyChristian and Animist south among these measureswas his decision to place newly discovered oil inthe countryrsquos south under the jurisdiction of thenorth and to build an oil refinery in the northinstead of the south The Sudan Peoplersquos LiberationArmy (SPLA) subsequently complained that thenorth was stealing the resources of the southincluding oil demanded that work cease on apipeline to take oil from the south to the refineryin the north and in February 1984 attacked an oilexploration base killing three foreign workers andbringing the project to a halt144

142 Varisco 2010 lsquoA study on the inter-relation between armed conflictand natural resources and its implications for conflict resolution andpeace buildingrsquo Journal of Peace Conflict and Development issue 15Ross 2003 How do natural resources influence civil war Evidencefrom 13 cases httpwwwsscnetuclaedupoliscifacultyrossHowDoesNat3pdf

143 Ross Ibidem144 Ross Ibidem

55

3 SOUTH SUDAN THE OIL WAY

Even when the different parties were discussing an agreementon ldquono attacks on civilians or civilian objectsrdquo oil was playinga central role It is instructive to note that the Sudanesegovernment desired language in the text stating that oilinstallations were ldquocivilian objectsrdquo while the SPLA wantedthe contrary145

Human Rights Watch reached the same conclusion thatoil without doubt has been a key fuel for war particularlysince the end of the 90s when crude oil was first exportedfrom Sudan in 1999146

Oil became the main objective and a principal causeof war (hellip) The large-scale exploitation of oil byforeign companies operating in the theatre of warin Southern Sudan has increased human rightsabuses there and has exacerbated the long-runningconflict in Sudan a conflict marked by gross rightsabuses ndashtwo million dead four million displacedsince 1983 ndashand recurring famine and epidemics147

Also the UN makes clear statements on the issue Specialenvoy Leonardo Franco expressed in a report that oilexacerbated the conflict

the economic political and strategic implicationssurrounding oil exploitation in western Upper Nilewhich have seriously exacerbated the conflictthereby causing a deterioration in the overall

145 Ibidem146 Human Rights Watch 2003 Sudan oil and human rights147 Human Rights Watch 2003 Sudan oil and human rights

56

LIVING IN FEAR

situation of human rights and respect forhumanitarian law and narrowing the slim chancesfor peace148

Indeed multiple causes and elements contributed to theconflicts It was recognized that ethnicity and religion wereimportant elements however the key dimension is controlover natural resources particularly oil Added to this are alsotensions over land and resources and the promotion by thegovernment of crops like cotton and sugar which displacedcertain groups of people149 Similar conclusions were reachedyears back by a Canadian Government Mission in Sudanwhich fully recognized some ethnic disputes as well asdisputes over other natural resources however oil was thekey factor which made things really dramatic

148 UN 2000 Interim report of the Special Rapporteur of the Commissionon human rights on the situation of human rights in the Sudan A55374 httpwwwunorgdocumentsgadocs55a55374pdf Seealso UN 1999 Situation of human rights in Sudan UN Doc A54467

149 University of Massachusetts (undated) Modern conflicts conflictprofile SudanhttpwwwperiumassedufileadminpdfSudan1pdf

57

3 SOUTH SUDAN THE OIL WAY

The Harker mission pointed out that while therehave always been pressures on the Dinka in theHeglig- Ruweng area as a result of inter-tribalfighting with Arab nomads for grazing areas anddry-season water the situation had worsened withthe beginning of oilexploration and had continuedto deteriorate over theyears because of the periodicoffensives launched by the Government and itsallies resulting in destructionand mass populationdisplacement150

South Sudan has one of the largest oil reserves inSub Saharan Africa and the commodity is thelifeline of the countryrsquos economy accounting for98 percent of the governmentrsquos financial resources

Whoever controls South Sudanrsquos oil thereforecould seize the upper hand in the battle for power

Source France 24 2013 lsquoBattle for oil adds newdimension to South Sudan conflictrsquo

Whoever controls South Sudanrsquos oil therefore could seizethe upper hand in the battle for power

The same scenario applies to the South Sudan Civil Warwhich initially was also portrayed along ethnic line TheDinka ethnic group of President Salva Kiir has fought rebelsallied with former vice president Riek Machar of the Nuer

150 UN 2000 Interim report of the Special Rapporteur of the Commissionon human rights on the situation of human rights in the Sudan A55374 Ibidem

58

LIVING IN FEAR

ethnic group However increasingly ldquothe focus of the fightingis shifting to the battle to control the countryrsquos mostimportant natural resource ndash oilrdquo151 The oilfields haveliterally become the battlefields

Consequences of war and conflict

The damage inflicted on people as a consequence of war ishuge Back in 2001 US Secretary of State Colin Powellqualified the war in Sudan in the following terms ldquoThere isperhaps no greater tragedy on the face of the earth todaythan the tragedy that is unfolding in the Sudanrdquo152 Firstthere is a large number of deaths due to war and war relatedcauses and also a huge number of displaced people Thedeath toll derived from the Second Civil Sudanese War isestimated at two million The US Commitee for refugeesasserted that ldquothis massive loss of life surpasses the civiliandeath toll in any war since World War IIrdquo153 In the mostrecent civil war the South Sudanese Civil War that startedin December 2013 by April 2014 the death toll wasestimated to be at 10000154

Besides the death toll there are estimated more than fourmillion people of the Southern Sudanese population forced

151 France 24 2013 Battle for oil adds new dimension to South Sudanconflicthttpwwwfrance24comen20131227-battle-oil-adds-new-dimension-south-sudan-conflict

152 Human Rights Watch 2003 Ibidem153 See US Committee for Refugees webpage in 2001 http

webarchiveorgweb20041210024759httpwwwrefugeesorgnewscrisissudanhtm

154 International crisis group 2014 South Sudan a civil war by any othernamehttpwwwcrisisgrouporg~mediaFilesafricahorn-of-africasouth20sudan217-south-sudan-a-civil-war-by-any-other-namepdf

59

3 SOUTH SUDAN THE OIL WAY

to flee their homes at one time or another It has also beenargued that the development of oilfields has led to the forcedremoval of the local population In the words of the lateJohn Garang oil was a ldquokiller itrsquos evicting our civilianpopulationrdquo claiming 100 000 people displaced due to thiscause155

Children are some of the main victims of conflict beingrecruited for instance for war and suffering sexual violenceFrom March 2011 to September 2014 the UN estimatesthat there were 1243 incidents affecting 68776 children156

UN reports indicate that both armed groups have usedchildren ldquoon a large scale and committed other graveviolations including killing maiming and sexual violencerdquo157

For instance in 2015 an incident was reported where closeto 100 children were abducted some as young as 13 Armedsoldiers were advancing house to house looking for boysand taking them by force158 According to UNICEF this occuredin Wau Shilluk close to the city of Malakal in Upper NileState159

Not surprisingly as put by a high UN representativepeople are desperate for peace

155 BBC 2001 Garang Oil firms are targetshttpnewsbbccouk2hiafrica1393481stm

156 UN Security Council 2014 Report of the Secretary-General on childrenand armed conflict in South Sudan S2014884

157 Ibidem158 The Guardian 2015 South Sudan gunmen kidnap at least 89 boys

from village near Malakal httpwwwtheguardiancomworld2015feb22south-sudan-gunmen-kidnap-89-boys-village-malakal-child-soldiers

159 The Guardian 2015 South Sudan gunmen kidnap at least 89 boysfrom village near Malakal

60

LIVING IN FEAR

People are desperate for peace They are tired ofliving in fear Many have had to flee several timesThey are exhausted They lack water they areextremely worried for their children who are notin school and at risk of being recruited into armedgroups Sexual violence is rife All people want isto live in safety security and stability160

Wars have also an impact on food security and nutrition Asof February 2015 there was an alert that the food situationwas critical in South Sudan for more than 25 millionpeople161 This was famine related to war Ulrika BlomCountry Director for Norwegian Refugee Council in 2015succinctly stated ldquoThere is an urgent need for a solution onthe conflict so that people are able to resume their dailylives in dignity and not be dependent on massive foodassistancerdquo162

The harsh consequences of war are inevitable and occurfrom a systematic destruction of infrastructure erosion ofthe human capital and weakening of essential institutions

Besides causing an appalling loss of life Sudanrsquoslong civil war eroded the capital base The wardepleted the labour force while roads irrigationsystems and other key components of rural

160 Under-Secretary-General for Humanitarian Affairs and Emergency ReliefCoordinator Valerie Amos remarks to the press Juba South Sudan 9February 2015 httpreliefwebintreportsouth-sudanunder-secretary-general-humanitarian-affairs-and-emergency-relief-coordinator-1

161 UN Security Council 2015 Reports of the Secretary-General on theSudan and South Sudan SPV7392

162 Norwegian Refugee Council 2015 Conflict a cause of hunger in SouthSudan httpwwwnrcnodid=9192498

61

3 SOUTH SUDAN THE OIL WAY

infrastructure were destroyed damaged orneglected It also weakened institutions divertedfinancial capital from economic development andundermined interpersonal trust which is criticalto productive business dealings163

Some have tried to put a figure on the costs of war A recentreport estimates that the cost of the civil war may be between$223 and $28 billion over the next five years for SouthSudan alone if the factions fail to bring peace to the worldrsquosnewest country164

UN peacekeeping operations

In July 2011 the Security Council determined that thesituation in South Sudan constituted a threat to internationalpeace and security in the region and established the UNMission in the Republic of South Sudan (UNMISS)165 Thekey elements of the mandate is to consolidate peace andsecurity However after the civil war broke in July 2013 inthe light of significant human rights violations the large-scale displacement of persons the UNMISS mandate wasreshaped and a focus was given to the protection of civiliansand creation of the conditions for delivery of humanitarianassistance166

163 IFAD 2013 Enabling poor rural people to overcome poverty in SouthSudan

164 Frontier Economics 2015 South Sudan the cost of war httpwwwfrontier-economicscomdocuments201501south-sudan-cost-warpdf

165 UN Security Council 2011 Resolution 1996166 UN Security Council 2014 Resolution 2155

62

LIVING IN FEAR

In June 2011 a month before the establishement ofUNMISS a second UN peacekeeping operation wasestablished in the disputed border between Sudan and SouthSudan The United Nations Interim Security Force for Abyei(UNISFA) was created in a context of escalating violenceand tensions and population displacement167 One of the topobjectives was to achieve the demilitarization of the Abyeifrom any force other than UNISFA and the Abyei PoliceService facilitate the delivery of humanitarian aidstrenghten the capacity of the Abyei Police Service and incooperation with the police provide security for oilinfrastructure in the Abyei area168

Corporations and conflicts with communities

Since the conclusion of the 2005 Peace Agreement betweenthe Government of Sudan (GoS) and Sudan PeoplersquosLiberation MovementArmy (SPLM) negative impacts ofoil exploration and extraction have continued to ignitemistrust among local communities towards the oilcompanies Many problems from the oil activities wereidentified such as water pollution and uncompensateddispossession of land However oil companies or thegovernment did little to assess correct and reduce suchimpacts169 In this context many communities chose the ldquopath

167 UN Security Council 2011 Resolution 1990168 UN Security Council 2011 Resolution 1990169 ECOS 2014 Scrutiny of South Sudanacutes oil industry http

w w w e c o s o n l i n e o r g r e p o r t s 2 0 1 4 Scrutiny_of_South_Sudans_Oil_Industrypdf

63

3 SOUTH SUDAN THE OIL WAY

of confrontation with oil companiesrdquo170 For instance byblocking and interfering in oil operations by truck blockagesand other stoppages171

Resentment of local communities againstoil companies

The negative consequences of oil developmenthave been causing deep resentment against oilcompanies in many oil-rich parts of SouthernSudan Arriving in any oil area where activeexploitation is ongoing one is often confrontedwith persistent complaints from local people aboutpoor management of ldquoproduced waterrdquo which isblamed for pollution of the environment This isoften linked to unexplained deaths of animals andstrange or new human ailments Moreover the oilinfrastructure such as oil roads wells and pipesare frequently blamed for disrupting the means oflivelihoods of local people as well as destructionof property

Source ECOS

170 ECOS 2014 Ibidem171 ECOS 2014 Ibidem

64

LIVING IN FEAR

Lundin Oil Consortium facing war and violencein their work territory

In 2010 the European Coalition on Oil in Sudan (ECOS)requested an investigation on the activities of the LundinGroup and its connection with the conflict in Sudan and thepossible ldquocomplicity in the commission of war crimes andcrimes against humanityrdquo172 During the Second Civil War in1997 a consortium of oil companies led by the Swedish oilcompany Lundin Oil AB (ldquoLundinrdquo) signed a contract withthe Government for the exploration of oil in the concessionarea called Block 5A that was not at that time under fullGovernment control The other members of the Consortiumwere Petronas Carigali Overseas Sdn Bhd (ldquoPetronasrdquo) fromMalaysia OMV (Sudan) Exploration GmbH (ldquoOMVrdquo) fromAustria and the Sudanese state-owned oil company SudapetLtd

Before the start of explorations the area around Block5A was relatively peaceful When the oil exploration startedthe escalation of violence and war followed suit173 Accordingto the European Coilation on oil in Sudan Block 5A ldquobecamethe scene of intense fighting and gross human rightsviolations as soon as the Lundin Consortium started oilexploration activities on the groundrdquo Right from thebeginning there are reports of significant war and violence

172 ECOS 2010 Unpaid debt The Legacy of Lundin Petronas and OMV inSudan 1997-2003 Press Release httpwwwecosonlineorgreports2010Press_release_UNPAID_DEBT

173 ECOS 2010 Unpaid debt The Legacy of Lundin Petronas and OMV inSudan 1997-2003 httpwwwecosonlineorgreports2010UNPAID_DEBT_textonlywebpdf

65

3 SOUTH SUDAN THE OIL WAY

where villages and towns were burnt and looted Tens ofthousands of people in Block 5A were also moved out fromthe exploration areas

In 1999 the Lundin Group discovered major reserves ofoil This accelerated the Government desire to control allthe areas surrounding the well and the infighting intensifiedLundinrsquos explorations in Block 5A had to be suspended twicedue to insecurity174

The consequences of all the violence towards thepopulation which were in the middle of the power battlefor controlling Block 5A were severe abuse of all humanrights and war crimes More than 10000 people were killedalmost 160000 displaced with thousands of peoplepermanently uprooted from their villages hundreds ofthousands of cattle lost or looted destruction of churchesschools markets medical clinics and many otherincalculable moral damage and inmense loss of income175

Talisman Energy accused of complicity with forceddisplacements

A Canadian company Talisman Energy which at that timewas considered to be the largest independent oil and gascompany in Canada has been accused of indirectly helpingto exacerbate the war and of being complicit in human rightsabuses and crimes against humanity176 Talisman has a 25

174 HRW 2003 Ibidem175 ECOS 2010 Unpaid debt Ibidem See also Medecins sans frontieres

2002 Violence health and access to aid in Unity Statewestern uppernile Sudan httpwwwdoctorswithoutbordersorgsitesusafilessudan_04-2002pdf

176 Africa files 2000 Corporate immunity for oiling repression Talismanin Sudan httpwwwafricafilesorgarticleaspID=621

66

LIVING IN FEAR

stake in the Greater Nile Oil Project Company (GNOPC) aninitiative located in south-central Sudan with threeadditional partners the national petroleum company ofChina (40) the national oil company of Malaysia (30)and the national petroleum company of Sudan (5)177

There were many allegations that people were forcefullydisplaced in the area of the oil field ran by Talisman UNreported that accusations were made on Talisman of ldquobeingaccomplice of human rights abuses in Upper Nile so as toguarantee security for its oil operationsrdquo178

Moreover a report from the Canadian Foreign AffairsMnistry ndashthe Harker Report ndash which undertook a mission toSudan described with concern that fighting was intense inthe areas of oil development in general and that oilextraction may have contributed to relocation of civiliansby force179

Violence and the fear of it impact immediatelyon the peoplersquos use of the land and result in foodinsecurity which in turn propels movement ordisplacement

Contradicting that oil is at stake in the displacement issueTalisman explained that displacement was a result of an inter-tribal issue Once again the Harker report concluded thatthe displacement was because of oil

177 Africa files 2000 Ibidem178 UN Security Council 2000 Interim report of the Special Rapporteur of

the Commission on Human Rights on the situation of human rights inthe Sudan A55374

179 Canadian Ministry of Foreign Affairs 2000 Human Security in SudanThe Report of Canadian Assessment Mission httpwwwecosonlineorgreports2000Human20Security20in20Sudanpdf

67

3 SOUTH SUDAN THE OIL WAY

ldquoFor Talisman so very much seems to be explained as merelyan inter-tribal problem but displacement has gone on andis still going on and in Ruweng County it is hard to denythat displacement is now and has been for some timebecause of oilrdquo180

Talisman Energy decided in 2002 to end its controversialfour-year investment in Sudan by selling its 25 percent stakein the Greater Nile Petroleum Operating Company to anIndian firm Most of the rumours is that the reasons for thiswas the strong pressure from the US particularly to end itswork in Sudan in order to stop indirectly supporting theGovernment in Sudan with its oil revenue181

The oil way developing what

Sharing the wealth with the Sudanese people The resourcecurse again

As said before 98 of the governmentrsquos revenue comesfrom oil production royalties and South Sudan sits on thethird-largest oil reserves in Africa182 It was estimated in 2011that South Sudan controlled 75 of the overall oil productionof Sudan and South Sudan altogether ndasharound 500000barrels per day However South Sudan remains dependenton the North for processing refinement and export to theRed Sea

180 Canadian Ministry of Foreign Affairs 2000 Ibidem181 New York Times 2002 Talisman to sell its stake in company in Sudan

httpwwwnytimescom20021031businesstalisman-to-sell-its-stake-in-company-in-sudanhtml

182 Africa Business Initiative 2011 Investment climate upate Sudanhttpswwwuschambercomsitesdefaultfileslegacyinternationalafricafiles16920_AfricaNewsletter_Sudanpdf

68

LIVING IN FEAR

Paradoxically South Sudan is considered a fragile StateSitting on oil as has occured to many other countries acrossAfrica and abroad does not guarantee wealth for the majorityof the population A 2013 report concluded that ldquoover thelast decade Sudan has been the largest recipient ofhumanitarian assistance by some distance receiving US$106 billion over the periodrdquo183 90 per cent of the populationearn less than a dollar a day184

Oil money through the State budget is expected to serveto finance all the key governmental activities of the Statesuch as agriculture health infrastructures and educationDespite the fact that the benefits from oil are substantialthere are numerous questions arising about the destiny ofall the oil money For instance how could it be explainedthat one of the sectors more financed is the military andsecurity apparatus Since South Sudanrsquos independence theGovernment has allocated 38 of oil revenue to the militaryand security services with only 10 and 7 ininfrastructures and education respectively185 In 2012 SouthSudan was the among top 8 African countries having militaryexpenditure of almost $1 billion186 For instance TheEconomist reports that South Sudan bought 100 Ukrainian

183 Global humanitarian assistance 2013 Global humanitarian assistancehttpwwwglobalhumanitarianassistanceorgwp-contentuploads201307GHA-Report-2013pdf

184 Kebede 2014 The role of oil in South Sudanhttpswwwruoruottawacabitstream10393315631KEBEDE20Solomon2020145pdf

185 The Guardian 2014 South Suan is divided by the spoils of oil notethnicity httpwwwtheguardiancomcommentisfree2014jan14south-sudan-divided-oil-ethnicity-violence

186 LAVDC 2014 Les quatre puissances militaires regionales dacuteAfriquehttpwwwlavdcnetportailles-quatre-puissances-militaires-regionales-dafrique

69

3 SOUTH SUDAN THE OIL WAY

T-72 tanks187 At the same time agriculture and livestock hasbeen completely neglected despite the fact that more than80 of the population depend on that sector for fulfiliingtheir basic needs

Where the money goes

Daniel Wuor Joak former MP in South Sudan LegislativeAssembly and Minister of Education Science and Technologyin Upper Nile State claims that between 2005 and 2014both the Government of South Sudan (GOSS) and theRepublic of South Sudan (RSS) have been receiving onaverage not less than two billion of USD per year Somehave already manifested the unclarities over the destiny ofall that money as described by Mr Wuor Joak

Since 2005 upwards both the GOSS and RSS havebeen receiving no less than 18 billion USD in oilrevenues without implementing any majordevelopmental projects like roads network linkingdifferent States in South Sudan conducive learningschools from basics to universities level referralmedical facilities clean drinking water in remoteareas throughout the country setting up vibrantand credible institutions which can adhere to rulesof law All these things have not been implementeddue to poor system of governance under leadershipof Salva Kiir Mayardit Most of the counties have

187 The Economist 2014 Arms and the African

70

LIVING IN FEAR

no roads linking them with their State capitals andlack schools health centres clean drinking wateretc South Sudanese population in the rural areasthroughout the country are still living in the sameconditions as they were under Khartoumrsquos rule interms of scarcity of development188

Speaking more directly Kebede made firm remarks aboutthe overall situation in South Sudan

In general poverty corruption bad governance andviolence characterized the resource curse in SouthSudan A relatively small group of elite capturesvast wealth while leaving much of their societywithout access to the minimum resource necessaryfor long term wellbeing As a result South Sudanremains one of the worldacutes least-developedcountries despite its oil (hellip) hellipmuch of the oilrevenue has been squandered189

188 Wuor Joak 2014 Major Causes of the Current Conflict in Sudan SouthSudan News Agency

189 Kebede 2014 The role of oil in South Sudanhttpsw w w r u o r u o t t a w a c a b i t s t r e a m 1 0 3 9 3 3 1 5 6 3 1 KEBEDE20Solomon2020145pdf

71

3 SOUTH SUDAN THE OIL WAY

Even before the current tensions Bentiu saw little benefitfrom oil The streets are unpaved and covered with trashelectricity is scarce reserved for those with privategenerators () Most expect more violence Bentiu hasbecome more militarized with armed soldiers placed atcheck points and at the bridge Troops are constantlymoving to the front Weapons are being flown into theairport

ldquoThe oil is a curse ldquoMohammed Abdurahman Kili 56mumbled from his hospital bed his body covered withburns He was inside his shop in a crowded market onthe edge of town when a Sudanese warplane attackedkilling a 9-year-old child and another person and settinghis shop on fire

Washington Post 2012

President Salva Kiir recognized in 2012 that corrupt officialshad stolen from the people of South Sudan and the amountlost or taken by lead government and military officials mightbe as much as $4 billion190 Kiir sent a letter to 75 SouthSudanese officials or individuals close to the governmentasking them return all the amount lost The letter describedin general terms how the money got ldquolostrdquo

An estimated $4 billion are unaccounted for orsimply put stolen by current and former officialsas well as corrupt individuals with close ties togovernment officials Most of these funds have beentaken out of the country and deposited in foreignaccounts Some have purchased properties oftenpaid in cash191

190 Ibidem191 Paanluel Wel South Sudanese bloggers httppaanluelwelcom2012

0601letter-from-president-kiir-on-corruption-4-billion-dollars-stolen192 Sudan Tribune 2013 South Sudanacutes Kiir accuses army of corruption

72

LIVING IN FEAR

A year later Kiir accused the armed forces of being corruptHe said that despite the big budget allocations made to thearmy there were even no ldquovehicles to transport soldiers onmissionsrdquo192 Two years later the issue remained unclearand the names of the officials referred to in the letter wereyet to be disclosed However Kiir accused Machar of beingresponsible for a lot of corrupted activities in the country193

Machar responded to Kiir by saying that his claims wereunfounded and then also accusing him of such practices194

It seems South Sudan epitomises all the features of theresource curse argued in Chapter 1195 How can the corruptionbe prevented How can the money go to the people It isalso important to note that the oil sector provides littleemployment to the people of South Sudan Most of thehousehold income and employment is generated in theagriculture and farming sector primarily196 Would investingin other sectors like agriculture that provide real wealth tothe people make a difference

193 Sudan Tribune 2014 South Sudan rebel leader should face corruptioncharges Kiir

194 Sudan Tribune 2014 South Sudan Macharacutes Rebentildes dismiss corruptionaccusations no spiritual powers httpallafricacomstories201407221384html

195 Kebede 2014 The role of oil in South Sudan Ibidem196 Tizikara et al 2012 Post-conflict development of Agriculture in South

Sudan perspective on approaches to capacity strenghtening httpwwwerailsnetimagesfarasecretariatkigali-movementfileKigali20MovementPost-Coflict20Agriculture_South20Sudanpdf

73

3 SOUTH SUDAN THE OIL WAY

Environment

As experienced in oilfileds in other parts of the world the oilfields here are also leaving a significant impact on theenvironment and local communities A three year study inThar Jath and Mala fields in Unity State show thatgroundwater is very polluted making the water unsafe forhuman consumption197 The study made by a team of SouthSudanese and German geologists concluded that water usedby 180000 people was too salty to drink and containdangerous amounts of heavy metals198

In many occasions the oil fields that causeenvironmental pollution are even abandoned due to the warSome observers identified that oil pipelines damaged duringthe conflict were leaking199

South Sudan must produce for its needs

In 2015 the Minister of Finance of South Sudan David DengAthorbei made a statement saying that the country shouldbe self-sufficient in agriculture terms and in addition itneeds to increase its non-oil revenue and to achieve peace200

197 Rueskamp et al 2014 Effect of oil exploration and production on thesalinity of a marginally permeable aquifer system in the Thar Jath-Mala- and Unity Oil fields Southern Sudan Zbl Geol Palaont Teil IJ

198 Radio Tamazuj 2015 Study Direct link between oil exploration andwater pollution in Unity httpsradiotamazujorgenarticlestudy-E28098direct-linkE28099-between-oil-exploration-and-water-pollution-unity

199 Star Africa 2014 South Sudan Oil leaks cause pollution fears httpenstarafricacomnewsssudan-oil-leaks-cause-pollution-fearshtml

200 Bloomberg 2015 South Sudan Finance Minister says food output canoffset oil httpwwwbloombergcomnewsarticles2015-01-20south-sudan-finance-minister-says-food-output-can-offset-oil-1-

74

LIVING IN FEAR

He also made a call for a reduction of the countryrsquos relianceon agriculture imports particularly in the context of aneconomy affected by the plunge in global oil prices201

Peter Biar Ajak from the Center for Strategic Analysis andResearch in Juba illustrates the macroeconomic weaknessesof South Sudan today because of its oil dependence

South Sudanrsquos oil-dependent economy is nearingcatastrophe The production of crude oil has droppedby about 35 percent since the conflict began Thatcombined with a drop of roughly 45 percent in globaloil prices since the summer has meant a substantialreduction in the governmentrsquos oil revenues andenormous fiscal and budgetary ressures

Since South Sudan exports almost nothing asidefrom oil and imports almost everything else tradeand monetary policy have also been buffeted byfalling oil revenues Access to foreign currency hasbecome extremely limited The prices of manyimported goods have risen There are shortages ofpetrol which must be imported because SouthSudan has no refinery202

Indeed a dynamic agriculture sector may be key for peaceand development in South Sudan More than 95 of thecountryrsquos population is dependent on farming fishing orherding to meet their daily food needs and income as well203

201 Bloomberg 2015 Ibidem202 Biar Ajak 2015Sanctions for peace in South Sudan The New York Times

January 7th203 FAO in emergencies httpwwwfaoorgemergenciescountries

detailenc147627

75

3 SOUTH SUDAN THE OIL WAY

204 Business Daily 2011 South Sudanrsquos vast agricultural sector potentialuntapped

205 Norwegian Refugee Council 2015 Conflict a cause of hunger in SouthSudan httpreliefwebintreportsouth-sudanconflict-cause-hunger-south-sudan OCHA 2015 South Sudan Crisis Situation reportn 74 httpreliefwebintsitesreliefwebintfilesresourcesSouth_Sudan_Situation_Report_No_74pdf

206 OECD 2014 Fragile States 2014 Domestic revenue mobilisation infragile states httpwwwoecdorgdacgovernance-peaceconflictandfragilitydocsFSR-2014pdf

South Sudan has good soil and climatic conditions and morethan 70 of its land area is suitable for crop productionThere are many that believe that the investment in theagriculture sector has more potential than oil however thisthinking has not received due attention from local andforeign investors204 Efforts towards making agriculture workare vital for peace and stabililty in the country It is urgentlyneeded to work on this area particularly when at presentthere are 25 million in Sudan at risk of starvation205 andaround one third of the population are food insecure plusmore than a million displaced

The dependency on income from natural resourcesleaves fragile states vulnerable It exposes them toshocks in commodity prices ndash as demonstrated bythe sudden fall in commodity prices in 2009following the 2002-2008 boom Neither is it asustainable source of incomeSouth Sudanrsquos oilproduction for instance is projected to decreasesteadily in future years and become negligible by2035

Source OECD206

76

LIVING IN FEAR

207 UN Security Council 2015 Resolution 2206 SRES2006(2015)httpwwwunorggasearchview_docaspsymbol=SRES2206 (2015)

208 Sudan Tribune 2015 South Sudan unhappy with US support for sanctionshttpwwwsudantribunecomspipphparticle54232

209 Washington Post 2014 US appears unable to pull South Sudan backfrom the brink of civil war httpwwwwashingtonpostcomworldus-appears-unable-to-pull-south-sudan-back-from-the-brink-of-civil-w a r 2 0 1 4 0 5 0 3 d 9 2 8 0 b d a - 3 8 6 b - 4 2 4 9 - 9 4 e 0 -b5292610e5bb_storyhtml

210 Ibidem

US fallen dream

In 2015 the UN imposed a travel ban and assets freeze againstindividuals or entities which engaged in or provided supportfor acts that threaten peace security and stability of SouthSudan207 The US was behind the draft and the submission ofthe resolution This resolution prompted an angry reactionfrom the South Sudanese The South Sudanese presidencywas said to be extremely disappointed about the US ledmove208

In the past the relationship between the US and SouthSudan was completely diferent The United States was themain promoter and supporter of the worldrsquos newest nationThe Washington Post for instance asserted that ldquoSouth Sudanowes its existence to the United Statesrdquo209 The expectationscreated were high before its started its independence andsome believed that Sudan would be able to manage thecountry breaking the so-called ldquoAfrican model of pettyrivalries corruption and oppressionrdquo210 Despite all the hopesput on the young nation as of today no solution has beenfound to the ongoing war

77

3 SOUTH SUDAN THE OIL WAY

The US was the largest donor to Sudan in the years priorto independence providing 339 of the total aid to Sudanbetween 2000 to 2009211 The United States (US$472million) was the largest donor of humanitarian assistanceto South Sudan in 2012 followed by the United Kingdom(US$96 million)212 For many years Sudan was the thirdlargest recipient of US aid only after Iraq and Afghanistan213

The inteligence and information systems of theAmericans on the ground in Sudan seemed to have beenrelatively good214hellip however how come they did not foreseethat South Sudan was quickly descending once again on theavenue of a country at civil war For instance the problemsbetween President Salva Kiir and his deputy were not newAlready more than two years before the civil war started inJune 2011 in a speech in Juba the President accused hisDeputy Riek Machar ldquoof running a parallel governmentwithin the governmentrdquo215 Couldnrsquot they have preventedanother conflict Why did they fall into ridiculouscontradictions as the one recently revealed via wikileakssuggesting that the US was funding both armies in

211 Development initiatives (undated) Sudan Aid Factsheet 1995-2009httpwwwglobalhumanitarianassistanceorgwp-contentuploads201102Sudan-Aid-Factsheet-2011pdf

212 See global humanitarian assistamce ebpage httpwwwglobalhumanitarianassistanceorgcountryprofilesouth-sudan

213 The Atlantic 2011 US played key role in Southern Sudanacutes longjourney to Independence

214 The Global Intelligence files 2013 SudanUSMIL ndash SPLA trying toget US to hook it up httpssearchwikileaksorggifilesviewemailid=5047664

215 Sudan Tribune 2011 Salva Kiir exposes his rift with Machar overSouth Sudan transitional constitution httpssearchwikileaksorggifilesviewemailid=3831682

78

LIVING IN FEAR

contention the Government force of Salva Kiir and the rebelsof Riek Machar216 Why are both paid by the UShellip to dowhat As one reporter questioned why are they ldquopaid tokill each otherrdquo217

216 RT 2015 US officials tussle over arms embargo sanctions in oil-flushSouth Sudan httprtcomusa226387-south-sudan-sanctions-war

217 RT 2015 Ibidem

Seven Million

ldquoA peaceful DR Congo could transform Africa almostovernight but is there a way outrdquo218

There is always a way out However peace is not an easything particularly under certain circunstances When youhave lost your father your mother your uncle your sisterwhat else can you lose Can you still believe in peaceTwoof the bloodiest conflicts in recent decades in the world haveoccurred in Africa The Second Civil War in Sudan has leftaproximately two million casualties and the conflict in DRCis estimated to have snuffed life out of no less than fivemillion people

How many more

How does one begin to quantify the dead when they are inthe hundreds of thousands No less than seven million livesof Congolese and South Sudanese were taken away due towars and conflicts fuelled by natural resources How many

218 African Business 2009 DR Congo $24 trillion fortune

4

79

80

LIVING IN FEAR

more How many more before the world wakes up to acteffectively towards ending all those conflictsProbably unless you are one survivor from those experiencesyou would never be truly able to understand what it meansto lose entire families and friends you would never be trulyable as well to understand what it means to feel fear foryour life and the life of your close relatives

When you start counting sometimes you forget thatpeople are not numbers There are names behind thenumbers A family A life As we write this book people aredying needlessly in the DRC and in South Sudan Calculatingdead people due to conflicts in this part of the world is verydifficult due to statistical challenges and so it is conceivablethat probably the number of victims is much larger than sevenmillion (7000000) When would the volume of bloodshedthe number of lives taken be enough for the belligerentofficials to make real peace How many more should fallAthousand more Another one million The pain sadness anddestruction that those conflicts generate should not beaccepted any more

Oil and minerals the main cause of ongoingconflicts and war

Some authors argue that minerals and oil are not a cause ofwar but ldquocompetition for them could amplify and expediteconflictrdquo219 In this book as chapter two and three haveshown oil and minerals are the main motor behind theconflict in recent decades in DRC and South Sudan It would

219 UN Security Council 2013 Natural resource wealth fails to translateinto equivalent benefits for people fuelling conflict to instability DeputySecretary-General tells Security Council httpwwwunorgpressen2013sc11037dochtm

81

4 SEVEN MILLION

be very difficult if not impossible to expect those conflictsif their territories were resource poor Oil and minerals arefull of blood An activist poet wrote We Thought it was Oilbut it was Blood220 Although he was writing about the NigerDelta situation we see a universal application in that phrase

In both countries described there were other elements andfactors to take into consideration however it can be saidthat control over natural resources was the most importantcause on both conflicts in DRC and South Sudan In bothcases oil and minerals fuelled those wars and in manyoccasions these resources have inspired fueled and sustainedarmies operating in the territories of both countries

A Statersquos wealth means nothing if not shared withthe majority of the population

DRC and South Sudan ought to be wealthy countriesUnfortunately having a wealth of natural resources doesnot mean that it belongs to the citizens or that the wealthwould be shared among the population of a given State AState is a nation or territory considered as an organizedpolitical community under one government221 A goodgovernment should be the one that takes care of its citizensand shares the wealth among its citizens and not justdistribute it among an elite Jan Eliasson Deputy Secretary-General of the United Nations stated that ldquoin too manycountries a wealth of resources including timber oil coaldiamonds and precious metals failed to translate into

220 Nnimmo Bassey 1998 We Thought it was Oil but it was Blood IbadanKraft Books

221 See httpwwwoxforddictionariescomdefinitionenglishstate

82

LIVING IN FEAR

equivalent wealth for the people Only a powerful fewbenefitrdquo222

The State is expected to perform an adequateimplementation of human rights granted by several UNdeclarations and conventions including the right to foodright to health right to shelter right to clothing right towork farmersacute rights etc Paradoxically the violations andabuses of human rights have been constant in DRC and SouthSudan Both countries have suffered from acts of war oncivilian population both have as well a large number ofdisplaced people with no access to food without healthcarewithout shelter and without any work Both countries havemore than 90 people living below one dollar per day andthey are considered among least developed countries andfragile states Due to this both are some of the biggestrecipients of humanitarian aid Moreover both have hugesecurity problems shown for instance by the presence ofUN peacekeeping operations Out of the 17th worldwideongoing peacekeeping UN operations three are in DRCSouth Sudan and in Abyeia disputed territory between Sudanand South Sudan

They possess resources that have a huge monetary valueand that in most cases have the involvement of foreigncountries and corporations and other stakeholders of theprivate sector which are ready to pay enormous sums ofmoney to gain control of the natural resources belonging toother countries If no war or significant armed conflict takes

222 UN Security Council 2013 Natural resource wealth fails to translateinto equivalent benefits for people fuelling conflict to instability DeputySecretary-General tells Security Council httpwwwunorgpressen2013sc11037dochtm

83

4 SEVEN MILLION

place common elements among those countries that possesssuch resources in Africa is the existence of massive povertyand corruption and in most cases this is contrasted withmega-rich individuals Letacutes take for instance the case ofoil-rich Angola where the president and his daughter possessmultibillionaire fortunes while at the same time the majorityof the country population is living on less than two dollarsper day223

Greed power and control over natural resources

It must be noted as well that often oil and minerals involvemillions and multibillion profits With such large sums ofmoney greed power and control take the driving seat ofwhatever country government in the world When theprospects for such money flow arrives many leaders andelites start distancing themselves from the majority of thepopulation and stop thinking about the welfare of their ownpeople

At the centre of most of the conflicts in both countriesare struggles for power and control of natural resourcesMinerals and oils are the main cause of the ongoing conflictsand wars Unfortunately most commentators qualify therecent civil war in South Sudan as a ldquopower strugglerdquo withoutfurther qualifications In South Sudan who gets the oil getsthe power Therefore the power struggle is a war overnatural resources for control of the oil in the country Areporter affirmed that ldquowhoever controls South Sudanrsquos oiltherefore could seize the upper hand in the battle for

223 Forbes 2013 Daddyacutes girl how an African ldquoprincessrdquo banked $3 billionin a country living on $2 day httpwwwforbescomsiteskerryadolan20130814how-isabel-dos-santos-took-the-short-route-to-become-africas-richest-woman

84

LIVING IN FEAR

224 France 24 2013 Battle for oil adds new dimension to South SudanConflict httpwwwfrance24comen20131227-battle-oil-adds-new-dimension-south-sudan-conflict

225 OECD 2014 Fragile States 2014 Domestic revenue mobilisation infragile states httpwwwoecdorgdacgovernance-peaceconflictandfragilitydocsFSR-2014pdf

powerrdquo224 In both countriesrsquo non-renewable natural resourcetook a dominant share of the fiscal revenue of DRC andSouth Sudan ndash 82 in the DRC and 98 in South Sudan225

Who controls those resources controls the countryThe case of South Sudan where the president has

recognized the disappearance of $4 billion by corruptindividuals is compelling President Salva Kiir pinpointed thespirit behind the rot ldquoOnce we got to power we forgot whatwe fought for and began to enrich ourselves at the expenseof our peoplerdquo This might also include him as well becauseit is difficult to imagine that such huge amount of money couldbe stolen without the leader noticing anything at all

Greed for minerals and oil is at the heart of the massivedeath toll and impoverishment of the Congolese and SouthSudanese people in recent decades It can be affirmed quitecomfortably that if the Eastern part of the DRC would havenot sat on huge mineral reserves it would be very difficultto imagine all the conflicts that have occurred in that zoneIt can be affirmed as well that without oil ongoing wars inSouth Sudan might most probably never have occured

Peace is the only way forward

Achieving peace is a complex issue To create peace thereare many issues to resolve with all stakeholders such as

85

4 SEVEN MILLION

mutual accusations of support to rebel groups226 goodgovernance transparency demobilisation and disarmamentof local militia etc227

A positive but vital first step is that there are calls at veryhigh levels in both countries and at international fora Thismust be followed with open debate on the core causes of theconflict and ways of achieving reconciliation It does notappear that lasting peace can be achieved otherwise In thatprocess the people need to be put at the centre ofdevelopment policies and actions in both countries in orderto stop the plunder reverse environmental degradation andfight poverty As long as the political military and corporateelite maintain their control of the natural resources of thecountry the devastating plunder will continue to the benefitof only such elite and a handful of corporations

226 UN Security Council 2015 Reports of the Secretary-General on theSudan and South Sudan SPV7392

227 The Guardian 2014 South Sudan is divided by the spoils of oil notethnicity httpwwwtheguardiancomcommentisfree2014jan14south-sudan-divided-oil-ethnicity-violence

INDEX

AAbyei Joint Oversight

Committee (AJOC) 47Abyei Police Service 46 62Abyei 43-home of the Ngok Dinka 43

45Africa 18 20 see minerals

-and wars at the greatlakes 20 25-armed groups in 26-criminal networks in 26-death in 20-exploitation naturalresources in 18-militias in 26-minerals in 20-poverty in 20-wealth in 20

Africarsquos wealth 14-and resource curse 14-blessing or curse 14

African Business 22African Development Bank

(AfDB) 16 17

African Unionrsquos (AU) Peaceand Security Council 48

Algeria 15Allied Democratic Forces

(ADF) 25 28-in North Kivu 25

American Mineral Fields(AMF) 36

AngloAmerican corporation35

AngloGold Ashanti 35Anvil Mining 36Armed Forces of the DRC

(FARDC) 26Athorbei David Deng 73Auty Richard 14

BBBC 18Blom Ulrika 59Blue Nile 45

CCentral African Republic 7China National Petroleum

Corporation 49

86

INDEX

87

Citibank NY 36Clinton Bill 24 36Conflict minerals 30 see

Rwanda-legitimate exports of 30-smuggling of 30

Conflicts 7-and natural resources 7-causes of 10 80-uniqueness of 10

Congolese Government 18

DDemocratic Republic of

Congo (DRC) 7-85-and (MONUC) 29-greed for minerals in 32-UN peacekeeping opera-tion in 29

Diffra oil complex 47DR Congo 79

EEastern Congo 28

-insecurity in 28Eliasson Jan 81

-Deputy Secretary-Generalof the United Nations 81

European Coalition on Oil inSudan (ECOS) 63

Exploration GmbH (OMV)64

Exxon corporate 15

FFirst Sudanese Civil War 42Forces deacutemocratiques de

libeacuteration du Rwanda(FDLR) 28

GGabon 18

-oil in 18Gertler Dan 12 13Ghana 18

-oil in 18Giambrone Antonino 38Glencore Anglo-Swiss 35Government of South Sudan

(GOSS) 69Government of Sudan (GoS)

62Great War of Africa 23Greater Nile Oil Project

Company (GNOPC) 6667

Guinea Equatorial 15

HHague 44Permanent Court of Arbitra-

tion in 44Human Rights Watch 55

IIMF 22International Rescue Commi-

ttee 23

LIVING IN FEAR

88

JJoak Daniel Wuor 69Juba 74

-Center for StrategicAnalysis and Research in74

Katanga Minister of Planning22

KKenya 19Kerry John 24Kiir Salva 43 84

LLibya 7Lumumba Patrice 13 20Lundin Oil Consortium 63

MMachar Riek 43 57 77 78Madagascar 16Mala fields 73Malakal 59Mali 7Mayardit Salva Kiir 69McKinney Cynthia Ann 23

-US Congresswomanfrom the Democratic Party23

McMurrough Mike 36McNamara Robert 37

-as World Bank President37

Minerals 20 see Africa-and death 20

-and poverty 20-and wars at the GreatLakes 20-and wealth 20

Mozambique 18-gas in 18

Muloni Irene 18

NNationalist and Integrationist

Front (FNI) 36Natural resources 8 83 see

conflicts-and conflict 8-and greed 83-and power 83-and wars 8-control over 83

Niger Delta 16-oil is a curse for 16

N o n - g o v e r n m e n t a lorganisations (NGOs) 12

Non-OPEC African oilproducer 48

Norwegian Refugee Council59

OOECD Guidelines for

Multinational Enterprises37

Oil 48-and geopolitics 48

PPeace 84

INDEX

89

-as way forward 84Petronas Carigali Overseas

Sdn Bhd (Petronas) 64Powell Colin 58PR Newswire 30President Kabila 24President Obama 24

RRDC Mining Code 35Republic of South Sudan

(RSS) 69Rio Tintorsquos QMM 16Ruweng County 67Rwanda 24 31

-conflict minerals from 31

SSecond Congo War 24 32

34Second Sudanese Civil War

42Somalia 7South Kordofan 45South Sudan Civil War 57South Sudan 11 18 19 41

-Dinka ethnic group in 4357-Nuer ethnic group in 4357the oil way 41-UN peacekeeping opera-tions 61

South Sudanese Civil War 58Sudan 79

-Second Civil War in 79

Sudan Armed Forces 46Sudan oil police 47Sudan Peoplersquos Liberation

Army (SPLA) 41 46 5462-civil wars and conflict in41

Sudan vs South Sudan 43-and Heglig battles 47-and peace agreement 43-main oil companies in 51-oil-centered conflict 46-Row over oil tariffs 51

Sudanese Civil War 52-and Addis AbabaAgreement 53-and Islamic law 53-causes of 52

Swedish oil company LundinOil AB (Lundin) 64

TTalisman Energy 65Thar Jath 73Transnational Corporations

(Tncs) 34-and the private sector 34

UUganda 19 24UN Interim Security Force for

Abyei (UNISFA)UN Mission in the Republic of

South Sudan (UNMISS)61 62

UN Organization Stabiliza-

LIVING IN FEAR

90

tion Mission in the DRC(MONUSCO) 29

UN peacekeeping operations11

UN Security Council 11UNICEF 59UNISFA 47United Nations Office of the

Special Adviser on Africa(OSAA) 8

United Nations SecurityCouncil 25

United Nations 13University of California

(UCLA) 54 55Upper Nile State 59 69US fallen dream 76

VVirunga National Park 18

WWar and conflict 58

-consequences of 58Wars and minerals 21

-cobalt 22-coltan 22-copper 22-diamond 22-gold 22-manganese 22-peace at last 21-timber 22-tin 22-zinc 22

Wau Shilluk 59We Thought it was Oil but it

was Blood 81Wealth 12 13

-for whom 13-quest for 12

World Heritage site 18Worldwatch 40

Page 11: LIVING IN FEAR - Health of Mother Earth Foundation...Les quatre puissances militaires regionales d´Afrique. 12 LAVDC. 2014. Les quatre puissances militaires regionales d´Afrique

13

1 THE QUEST FOR WEALTH

Wealth for whom

Everybody wants to be wealthier however not everybodyshares the same definition of wealth18One definition ofwealth is that it is a ldquotangible or intangible thing that makesa person family or group better offrdquo19 Under this definitionoil or a mineral would be considered wealth if it makes aperson family or group better off Certainly a person likeMr Getler is obviously doing better off in terms of moneywith his work and therefore he is wealthier under thoseterms Howeverthe resources that make Getler wealthy havenot necessarily benefited Congoacutes people Minerals or oilas said by Patrice Lumumba belongs to the people of DRCit is the responsbility of the State to manage its benefits andto share it among the population The wealth of a country isthe wealth of their people

However the wealth of natural resources revenues doesnot frequently bring benefits to the majority of thepopulation but rather a handful of elites The United Nationsoffice of the Special Adviser on Africa affirmed that the richesderived from the ldquoexploitation of natural resources are notonly used for sustainaing armies but also for personalenrichment and building political supportrdquo20 In additionthe office added that ldquocontrol over natural resources andtheir revenues often stay in the hands of a small elite and isnot used for broader development of the countryrdquo21

18 CNBC 2013 what is wealthy $5 million and plenty of cash19 See the business dictionary httpwwwbusinessdictionarycom

definitionwealthhtml20 United Nations office of the Special Adviser on Africa 2006 Natural

resources and conflicts in Africa transforming a peace liability intoa peace asset Conference Report

21 United Nations office of the Special Adviser on Africa 2006 Ibidem

LIVING IN FEAR

14

Africarsquos wealth blessing or curse

The resource curse

In a sea of wealth there are often oceans of povertyResource-rich countries are often accompanied by slowerthan expected economic growth poor economicdiversification gloomy social welfare indicators devastatingenvironmental impacts rampant corruption high inequalityhuge impoverishment bad governance and as said beforewars and conflicts22 This situation has been termed thetheory of ldquoresource courserdquo which term was used first in1993 by Richard Auty23 In 1995 the theory of the ldquoresourcecurserdquo was popularized thanks to an article of Sachs andWarner24 Both authors showed in their paper that ldquoeconomieswith a high ratio of natural resource exports to GDP in 1971tended to have low growth rates during the subsequentperiod 1971-1989rdquo From there a vast number of literaturehas been written on this matter and is divided between thosethat believe exploitation of natural resources is a curse andthose that believe that it can promote growth and

22 Mildner et al 2011 lsquoScarcity and abundance revisited a literaturereview on natural resources and conflictrsquo International Journal ofConflict and Violence Vol 5 Karl 2005 lsquoCovering oil a guide toEnergy and Developmentrsquo Understanding the resource curse opensociety institute

23 Time 2010 Brief history the resource curse httpcontenttimecomtimemagazinearticle09171199746000html

24 Sachs and Warner 1995 lsquoNatural resources and economic growthrsquoHarvard Institute for International Development

15

1 THE QUEST FOR WEALTH

development in developing countries25 Others for instanceprefer to use different terminology like Exxon corporatewhich has said ldquowe donacutet like to call it the oil curse weprefer governance curse We are private investors and it isnot our role to tell governments how to spend their moneyrdquo26

Africarsquos wealth

Africa is full of natural resources and there are manycountries considered as having a huge wealth Oil gasminerals timber fertile land water are often mentioned asthe riches of the continent However oil and minerals arethe favourites of some of the top leaders of the continentAngola with oil and diamonds Nigeria with oil GuineaEquatorial with oil Algeria with plenty of oil and gasdeposits DRC with minerals and South Sudan with oil justto name some of them

Many would think that all those States with lots of oiland mineral are very wealthy The truth is that although theStates are wealthy the countries are paradoxically full ofpoverty and their populations are not benefiting from thoseresources Moreover in many cases the wealth derived from

25 Pedro (undated) lsquoMainstreaming mineral wealth in growth andpoverty reduction strategiesrsquo Economic Commission for Africa PolicyPaper Ross 1999 lsquoThe political economy of the resource cursersquoWorld Politics n51 Hodler 2004 lsquoThe curse of natural resourcesin fractionalized countriesrsquo Economic department University ofBern SwitzerlandSwilling 2012 lsquoBeyond the resource curse fromresource wars to sustainable resource management in Africarsquo Paperpresented at the Winelands Conference on Integrity and GovernanceStellenbosch Pendergast et al 2008 lsquoCorruption and the curse ofNatural resourcesrsquo Department of Economics University of VictoriaDavis 2012 Replicating Sachs and Warner the 1997 Working PaperColorado School of Mines Neumayer 2004 Does the resource cursehold for growth in genuine income as well World Developmentvol 32

LIVING IN FEAR

16

oil and minerals mostly fuel wars and conflicts While somedie while some are displaced while some are injured orrape Some on the contrary are making money lots andlots of money hellip and while they make money they just puta blind eye on the horrors occurring outside the fence Thisis well described in the Harker report on the Sudanese warand the role of oil corporations ldquoIf the oil companies donrsquotknow whatrsquos going on theyrsquore not looking over the fencesof their compoundsrdquo27

Although some may believe that the importance of theoil and mineral sectors is the creation of jobs for thepopulation this has been denied by several authors

The oil gas and mining sectors are notoriously poorwhen it comes to job creation An offshore platformtapping deep-sea reserves will create few if anypositions for locals Only recently protests werereported outside Rio Tintorsquos QMM mineral sandsoperation in the south of Madagascar due to highlocal unemployment The best way to convertnatural resource wealth into jobs is to take theproceeds and invest in other more labor-intensiveindustries such as agriculture or manufacturing28

Nigeria provides a good example where communities living inthe Niger Delta have not benefited from oil extraction whichon the contrary has created serious conflicts as seen in Box 1

On the question of whether oil is a blesssing or a curse toAfrica the African Development Bank concluded that it is a

26 The Economist 2005 lsquoThe paradox of plentyrsquo27 Canadian Ministry of Foreign Affairs 2000 Human Security in

Sudan The report of Canadian Assessment Mission httpw w w e c o s o n l i n e o r g r e p o r t s 2 0 0 0 Human20Security20in20Sudanpdf

28Africa progress panel 2013 Africaacutes mineral wealth eternally cursedhttpwwwafricaprogresspanelorgafricas-mineral-wealth-eternally-cursed

17

1 THE QUEST FOR WEALTH

ldquohuge blessingrdquo29 It justifies that with the following analysis

We estimate that Africa has 120bn barrels of oilreserves no less than half of Saudi Arabia and 600million hectares of uncultivated arable land halfof the world total We at the African DevelopmentBank (AfDB) estimate that the continentrsquos naturalresources will contribute over $30bn per annumin government revenues over the next 20 years30

Box 1 Oil is a curse for the Niger Delta people

Most people think of oil states as wealthy states ButNigeria proves that sometimes the opposite is true It isAfricarsquos leading oil producer and yet it is one of theworldrsquos 20 poorest countries Whatrsquos more the peopleliving in the Niger Delta the countryrsquos oil-producingregion are among Nigeriarsquos most impoverishedcommunities with a large percentage of the populationhaving to survive on less than one dollar a day For thesepeople lsquoblack goldrsquo has not brought prosperity ordevelopment Instead it has increased corruption socialproblems environmental damage and armed conflictThe many billions of US dollars in oil revenue that havepoured into the country during its oil industryrsquos 50-yearhistory have completely bypassed these communitiesSource Petra Hannen 2011 lsquoBlessing our Coursersquo GIZmagazine akzent

29 African Development Bank 2013 lsquoAfricarsquos mineral wealth a blessingor a cursersquo httpwwwafdborgenblogsafdb-president-this-is-africas-hourpostafricas-mineral-wealth-a-blessing-or-a-curse-12336

30 African Development Bank 2013 Africaacutes mineral wealth a blessingor a curse httpwwwafdborgenblogsafdb-president-this-is-africas-hourpostafricas-mineral-wealth-a-blessing-or-a-curse-12336

LIVING IN FEAR

18

Africa continues the exploitation of its naturalresources

Most of the African Governments that discover naturalresources in their territory eagerly move forward with theexploration of those Therefore natural resources areexplored all over the continent oil in Ghana manganese inGabon gas in Mozambique just to name a few Often thereis little consideration of the destruction or the conflicts theseextractive activities bring For instance according to the BBCin March 2015 the Congolese Government consideredmodifying the boundaries of the Virunga National Park homeof gorilla mountains and World Heritage site to permit oilexploration activities31

DRC and South Sudan as well are exploring a joint projectnow DRC has a frontier with South Sudan in the Northeastpart of the country While historically both ndash referring alsoto Sudan ndash did not often have a common grounds after theIndependence of South Sudan in 2011 it appears possiblethat natural resources may unite them more closely IreneMuloni Minister for Energy and Minerals Development fromUganda announced in an interview in February 2015 thatSouth Sudan and the DRC have expressed interest in theconstruction of an oil pipeline of over 1000 km to the Kenyancoast32 Although yet to be implemented there have beendiscussions and plans to construct a pipeline that would unite

31 BBC 2015 DR Congo seeks Virunga park bounary httpwwwbbccomnewsworld-africa-31876577See also New York Times2014 Oil dispute takes a page from Congoacutes bloody past httpwwwnytimescom20141116worldoil-dispute-takes-a-page-from-congos-bloody-pasthtml_r=1

32 Platts 2015 South Sudan DR Congo interested in Ugandan crudeoil export pipeline minister httpwwwplattscomlatest-newsoilkampalasouth-sudan-dr-congo-interested-in-ugandan-crude-26025080

19

1 THE QUEST FOR WEALTH

oil production and distribution in several African countriesincluding South Sudan Uganda Kenya Democratic Republicof Congo (DRC) and maybe others33

The forthcoming chapters will develop more elementsaround this topic in order to conclude some final remarkswith the particular case studies of DRC and South Sudan

33 The Economist 2013 Pipeline poacuteker httpwwweconomistcomnewsmiddle-east-and-africa21578402-east-africa-danger-throwing-away-part-its-new-found-oil

20

LIVING IN FEAR

Minerals and Wars at the GreatLakes Wealth Death and Massive

Poverty in the Heart of Africa

Our internal difficulties tribal war and the nucleiof political opposition seemed to have beenaccidentally concentrated in the regions with ourrichest mineral and power resources We know howall this was organised and in particular whosupports it today in our house

Our Katanga because of its uranium copper andgold and our Bakwanga in Kasai because of itsdiamonds have become hotbeds of imperialistintrigues The object of these intrigues is torecapture economic control of our country

Patrice Lumumba speech in Leopoldville in August 25th1960 34

34 Speech at the opening of the All-African Conference in Leopoldville in1960 See httpwwwassatashakurorgforumshoulders-our-freedom-fighters42970-collected-speeches-writings-patrice-lumumbahtml

2

21

2 MINERALS AND WARS AT THE GREAT LAKES

Lumumba the first democratically elected Prime Ministerof the Republic of Congo gave a speech in 1960 that wasremarkably prescient of the fate of Democratic Republic ofCongo (DRC) today Conflict minerals and ldquotribal warsrdquo gohand in hand in the DRC historyrsquos past decades Lumumbawas planning to get the DRCrsquos related difficulties undercontrol however he was executed a few months after thespeech by a firing squad in January 1961 The US throughthe CIA the United Kingdom through the M16 and Belgiumwere all blamed for their involvement in his death35

Paradoxically ldquothe assassinations were made by the ordersof those who proclaim themselves to be champions ofdemocracy and respecters of human rightsrdquo36 Externalmeddling and intervention in Congorsquos affairs by foreigncountries is another of the concurrent and repeated situationsthat continue in recent history of the DRC37

Wars and minerals peace at last

hellip The heart of Africa is bleeding hellip

Two wars raged in DRC from 1996-1997 and from 1998-2003 Contrary to what some affirm these were not ethnicconflicts but resource wars38 No coincidence that the

35 BBC 2013 M16 and the death of Patrice Lumumba httpwwwbbccomnewsworld-africa-22006446

36 VVAA 1992 Congo (Zaire) Democratie neo-coloniale ou deuxiemeIndependance Ed LrsquoHarmattan

37 The Guardian 2011 Patrice Lumumba the most importantassassination of the 20th centuryhttpwwwtheguardiancomglobal-developmentpoverty-matters2011jan17patrice-lumumba-50th-anniversary-assassination

38 See Friends of the Congo websitehttpwwwfriendsofthecongoorgresource-centercongo-primerhtml See also Lanotte 2003 RDCguerre sans frontiers Editions Complexe

22

LIVING IN FEAR

country possesses extraordinary mineral wealth with someof the most valuable and strategic minerals on earth suchas coltan diamond cobalt copper gold tin zincmanganese timber and others The highest concentrationof mining activities existin the Eastern part of the countryTo illustrate the predominance of mining here we wouldunderline the affirmation of the Katanga Minister ofPlanning who said that 72 of the territory of Katanga isdevoted to mining No surprise why the IMF has namedDRC one of the worldrsquos mining giants of today39 Themagazine African Business stated in 2009 that ldquothe totalmineral wealth of the DRC was estimated to be some $24trillionrdquo40 As Lumumba indicated back in 1960 the samescenario repeated in recent years ndash minerals and conflictscontinue to go hand by hand

DR Congo possesses some 80 of the worldrsquoscoltan ore reserves(hellip) Additionally the DRCongo produces significant quantities ofdiamonds gold cassiterite copper cobalt (ofwhich it has the worldrsquos largest reservesalthough the trade is largely controlled byZimbabwe) oil tin zinc gold and coffee Thecountry has large reserves of uranium it wasCongolese uranium that was used for theManhattan Project that produced the worldrsquosfirst atomic bombs dropped on Japan The vastcountry also has more than half of sub-SaharanAfricarsquos timber stocks

Source African Business

39 IMF 2013 DRC Poverty reduction strategy paper N 1322640 African Business 2009 DR Congo $24 trillion fortune

23

2 MINERALS AND WARS AT THE GREAT LAKES

The casualties over the years are overwhelming Whileeverybody is familiar with the death toll during the genocidein Rwanda estimated between 500000 and 800000 peoplethere is much less awareness about the conflict situation inCongo The International Rescue Committee has estimatedthat the conflict and humanitarian crisis in the DemocraticRepublic of Congo has taken a death toll of 54 million peoplefrom 1998 to 200741 A CNN correspondent in trying togive an illustration of the heavy toll made the followingcomparative analysis

The wars in that country ndash RD Congo ndash haveclaimed nearly the same number of lives as havinga 911 every single day for 360 days the genocidethat struck Rwanda in 1994 the ethnic cleansingthat overwhelmed Bosnia in the mid-1990s thegenocide that took place in Darfur the number ofpeople killed in the great tsunami that struck Asiain 2004 and the number of people who died inHiroshima and Nagasaki mdash all combined and thendoubled42

Rwanda and Uganda were actively involved in the invasionof Congo in both wars The second war was known as theGreat War of Africa involving nine countries and more than20 armed groups According to Cynthia Ann McKinney aUS Congresswoman from the Democratic Party and an

41 IRC 2007 IRC study shows Congorsquos neglected crisis leaves 54 milliondead httpwwwrescueorgnewsirc-study-shows-congos-neglected-crisis-leaves-54-million-dead-peace-deal-n-kivu-increased-aidmdash4331 Some groups put the death toll much higher See GlobalResearch webpage httpwwwglobalresearchcathe-war-that-did-not-make-the-headlines-over-five-million-dead-in-congo7957

42 CNN 2012 Why the world is ignoring Congo war httpeditioncnncom20121127opinioncongo-war-ignored-vava-tampa

24

LIVING IN FEAR

expert on the Great Lakes issues while invading DRC in theSecond Congo War the US continued providing financialsupport to the governments of Rwanda and Uganda43 Howwas this allowed US President Bill Clinton was personallyin Rwanda in March 1998 only a few months before theRwandese army invaded Congo44 President Clinton was inAfrica at that time addressing its presidents includingPresidents Kagame and Museveni as leaders of the ldquoAfricanRenaissancerdquo and seeing a bright future for Africa45 ThereClinton made an important call to embrace peace How wasit possible to talk about peace while these allies were directlyengaging in war Moreover with the experience of thegenocide in Rwanda how could it be that foreign powersclosely involved in the region particularly the United Stateslet this occur again How did they allow wars and conflictsthat killed millions of people How could they allow whatmany called another genocide in Congo

On a positive note at last in recent months the calls forpeace have been growing from many different stakeholdersIn May 2014 US Secretary of State John Kerry after ameeting with DRC President Kabila stated that ldquoachievinga lasting peace in the DRC is a priority of President ObamardquoHe added ldquoNow I canrsquot emphasize enough how importantthat process is in identifying and resolving the root causesof the conflict in the DRC as well as in the entire GreatLakes regionrdquo46 Not a minor task going to the roots causes

43 Order of Indictment from Juzgao de instruccion numero CuatroAudiencia Nacional Case 320008-D 6-2-2008

44 See CBS News httpwwwcbsnewscomnewstext-of-clintons-rwanda-speech

45 Schaefer 2000 The Keys to an African Economic Renaissance httpwwwheritageorgresearchreports200005the-keys-to-an-african-economic-renaissance

46 See US Dept of State 2014 Press Availability on the DRC and theGreat Lakes Region httpwwwstategovsecretaryremarks201405225587htm

25

2 MINERALS AND WARS AT THE GREAT LAKES

of those problems in the Great Lakes Indeed achieving peaceand reconciliation in the Great Lakes Region in countriesthat had suffered like DRC is a difficult and cumbersometask and making it by finding the ldquorealrdquo root causes can bea very complex and lengthy exercise taking decades orlonger

The situation remains tense We recall that in 2006 theUN Security Council issued a resolution condemning ldquotheactivities of militias and armed groups operating in the GreatLakes regionrdquo47 Almost a decade later those armed groupsare still there and despite the efforts made the situationremains tense and insecure A report of the Group of Expertson the RDC published in 2015 by the United Nations SecurityCouncil concludes that in DRC despite a defeat of one of therebel groups ndash the Movement of 23 March ndash at the end of2013 this ldquofailed to translate into significant gains in securityand security and stability in 2014rdquo48 For example in thebeginning of 2015 a rebel group from Uganda the AlliedDemocratic Forces (ADF) created havoc in North Kivuwhere 17 people were hacked to death with machetes49

47 UN Security Council 2006 Resolution 1653 (2006) SRES165348 UN Security Council 2015 Final report of the Group of Experts on

the DRC S20151949 UN Security Council 2015 March 2015 monthly forecast http

wwwsecuritycouncilreportorgmonthly-forecast2015-03democratic_republic_of_the_congo_7phpVP-BX5Sm4agmailto

26

LIVING IN FEAR

Armed groups militias and criminal networkswithin the military structure making a lucrativebusiness out of minerals

The UN has solidly demonstrated that natural resources areused to finance armed groups and therefore to fuel war inthe region 50 The UN concludes that ldquoarmed groups continueto control many mining sites and to profit from mining andthe minerals traderdquo51 Later on those minerals particularlytin tungsten and tantalum are smuggled to neighbouringcountries For example one of the armed groups theMovement of 23 March (M23) responsible for taking Gomaat the end of 2012 was financing its organisation fromnatural resources in Eastern Congo In relation to thisparticular case the UN asserts that ldquoseveral traders havecontributed to financing M23 rebels using profits resultingfrom the smuggling of Congolese minerals into Rwandardquo52

Besides the rebel groups a criminal network within theArmed Forces of the DRC (FARDC) was involved in the illegalexploitation of natural resources The types of involvementinclude illegal taxation protection rackets and indirectcommercial control to more direct coercive control53

For some top army officials their military work wasconverted into economic businesses Indeed the existing

50 UN Security Council 2014 Final report of the Group of Experts onthe Democratic Republic of the Congo

51 Ibidem52 Ibidem53 UN Security Council 2010 Letter dated 26 October 2010 from the

Group of Experts on the DRC addressed to the Chair of the SecurityCouncil Committee established pursuant resolution 1533 (2004) S2010596

27

2 MINERALS AND WARS AT THE GREAT LAKES

practices made the UN qualify the war as a ldquolucrativebusinessrdquo

illegal exploitation of resources by BurundiRwanda and Uganda took different forms includingconfiscation extraction forced monopoly andprice-fixing The first two forms reachedproportions that made the war in the DRC a verylucrative business There are strong indicationsthat even if security and political reasons werethe professed motivation to move into the easternDRC some top army officials clearly had economicand financial objectives54

The most UN recent reports affirm that ldquomany armed groupsin Eastern Democratic Republic of the Congo have derivedtheir revenue from the production of and trade in naturalresourcesrdquo55

54 UN Security Council 2001 Security Council condemns ilegal exploitationof Democratic Republic of Congoacutes natural resources Press Releasehttpwwwunorgpressen2001sc7057dochtm

55 UN Security Council 2014 Final report of the Group of Experts on theDRC S201442

28

LIVING IN FEAR

Insecurity still booming in Eastern Congo

As already mentioned the momentum created bythe defeat of the Movement of 23 March inNovember 2013 failed to translate into significantgains in security and stability in 2014 in EasternDemocratic Republic of the Congo A militaryoperation against the Allied Democratic Forces(ADF) significantly weakened but did not defeatthe sanctioned armed group An expected militaryoperation against the Forces deacutemocratiques delibeacuteration du Rwanda (FDLR) did not materializeand as of the end of November 2014 efforts tonegotiate the disarmament of this sanctionedarmed group failed to produce meaningful resultsIn addition numerous Congolese and foreignarmed groups contributed to instability inOrientale North Kivu South Kivu and KatangaprovincesADF FDLR Nduma Defence for Congo (led bysanctioned individual Sheka Ntabo Ntaberi) andother armed groups continued to recruit train anduse child soldiers in 2014 Armed groups alsocommitted a variety of other abuses includingtorture enslavement and sexual violence Therewere mass killings in June in Mutarule (South Kivu)and in October and November in Beni territory(North Kivu)

Source United Nations Security Council 201556

29

2 MINERALS AND WARS AT THE GREAT LAKES

One of the problems the existing insecurity and conflicts havecreated is the proliferation of internally displaced peopleestimated in September 2014 at 27 million people57

UN peacekeeping operation in Congo

In July1999 Heads of State of Angola DRC NamibiaRwanda Uganda Zambia and Zimbabwe signed the Lusakaagreement focusing on the establishment of a ceasefire asone of the other components necessary for the deploymentof a UN peacekeeping force

The first UN Peacekeeping operation in DRC wasestablished in November 1999 after the Lusaka Ceasefireagreement It was called the UN Mission in the DRC(MONUC) In 2010 it was renamed the UN OrganizationStabilization Mission in the DRC (MONUSCO)

Ten years later despite the deployment of MONUC thesecurity challenges in DRC ndash particularly in the Eastern Partof the country ndash remain high58 There is still a strong presenceof armed groups chronic humanitarian crisis continuoushuman rights violations and continued illegal exploitationof natural resources In the light of this context the UNcreated an ldquoIntervention brigaderdquo with a key objective ofneutralizing armed groups59 As of today the MONUSCOand the intervention brigade are operational but are theresignificant security changes

56 Ibidem57 See global humanitarian assistance webpage http

wwwglobalhumanitarianassistanceorgcountryprofiledemocratic-republic-of-congo

58 UN Security Council 2010 Resolution 192559 UN Security Council 2013 Resolution 2098

30

LIVING IN FEAR

60 UN Security Council 2014 Final report of the Group of Experts on theDRC S201442

61 PR Newswire 2014 Rwanda has become worldacutes largest coltanexporterhttpwwwprnewswirecomnews-releasesrwanda-has-become-worlds-largest-coltan-exporter-reports-kt-press-300010371html

62 PR Newswire 2014 Rwanda has become worldacutes largest coltanexporter

63 Africa Briefing 2015 Rwanda has abundant deposits of best qualitycoltan Kagame affirms httpafricabriefingorgp=478

Legitimate exports or smuggling conflictminerals

It is well known that many of the minerals in Eastern Congoare smuggled and do not follow legal channels For instancethe UN estimates that 98 of the gold produced in DRC issmuggled out of the DRC making the country lose millionsof dollars in tax revenue60

In December 2014 numerous media covered a story onRwanda and coltan PR Newswire affirmed that ldquoRwandahas become worldacutes largest coltan exporterrdquo61 The dataprovided concluded that in 2013 Rwanda exported around2500000 kg of tantalum which constituted 28 of the total8807232Kg of tantalum produced globally The overallrevenue from the coltan was estimated at around $140 M62

Rwandese President Paul Kagame was quoted as affirmingthat the production was local and dismissed all possibleallegations of plundering the coltan from Congo He affirmedldquoRwanda has not only enough coltan but of a very highquality (hellip) we can even pay for a ticket give them a visaand take them to the minesrdquo63

Contrary to such statements there are many reports thatcoltan is smuggled from Congo to Rwanda and that Rwandadoes not have significant coltan mining on its own For

31

2 MINERALS AND WARS AT THE GREAT LAKES

instance a 2012 report prepared by a European Foundationaffirmed that ldquoRwanda does not house any industrial coltanmines which would suggest legitimate Rwandan coltanproductionrdquo64 A US governmental agency which analyzesthe mining sector in Congo made a table with coltan exportedfrom Rwanda qualifying it as ldquoconflict mineralsrdquo as seen inTable 165 Since there is no known conflict in Rwanda it canonly refer to Rwanda exports of minerals originating froman external conflict zone the DRC

Table 1 Estimates of exports of conflictminerals from Rwanda for Fiscal years2009-2013 in Metric Tons

Year Tantalum

FY 2009 958

FY 2010 827

FY2011 915

FY2012 1139

FY 2013 2466

Source Based on United States Government Accountability Office 2014

64 Van Teeffelen 2012 The EU raw materials policy and mining in RwandaEvert Vermeer Foundation

65 United States Government Accountability Office 2014 Conflictminerals stakeholder options for responsible sourcing are expandingbut more information on smelters is needed

32

LIVING IN FEAR

In this particular situation either somebody is wrong orsomebody is lying Hopefully future events will unveil thetruth around the nature of the coltan exports from Rwandato clarify whether they are a legitimate export or theconsequence of smuggling conflict minerals

Greed for minerals everybody wants a pieceof Congo66

What is at the origin of those wars and instability of theCongo While there could be diverse factors for conflictthere is one that seems to be always recurrent and is recog-nized by most authors and by relevant UN reports the racefor minerals and natural resources The UN recognized thatin the Second Congo War minerals were the coveted trophyand that all actors ldquobuilt up a self-financing war economycentred on mineral exploitationrdquo67 The conflicts that con-tinued after the Second Congo War like those in Kivu andIturi provinces are recognized as well to be fuelled by tradein minerals Along the same lines Palou underlines the causesof the conflict by stating that ldquoalthough from that time un-til the present day the Rwandan regime has expressed itsconcern about the security of its border with the then Zaireobjectively the reality is that control over this strategic areandash Eastern Congo ndash and its valuable mineral resources has

66 See video at Congo Justice httpcongojusticeorg67 UN 2002 Final report of the Panel of Experts on the illegal exploitation

of natural resources and other forms of wealth of the DemocraticRepublic of the Congo S20021146

33

2 MINERALS AND WARS AT THE GREAT LAKES

proved to be at the heart of two wars that have left a hugenumber of victimsrdquo68 In conclusion a 2001 UN report as-serted that ldquothe conflict of DRC has become mainly aboutaccess control and trade of five key mineral resourcescoltan diamond copper cobalt and gold The wealth of thecountry is appealing and hard to resist in the context oflawlessness and the weakness of the central authorityrdquo69

Congolese and regional elite have also profited from thissituation as well and the appalling quantum of the plunderare reflected in the following report from UN

The elite network of Congolese and Zimbabweanpolitical military and commercial interests seeksto maintain its grip on the main mineral resourcesmdash diamonds cobalt copper germanium mdash of theGovernment-controlled area This network hastransferred ownership of at least US$ 5 billion ofassets from the State mining sector to privatecompanies under its control in the past three yearswith no compensation or benefit for the Statetreasury of the Democratic Republic of the Congo70

Funds that could have been used for public services havebeen diverted from the public coffers by fraud or by theexcuse of war effort71 The Congolese population has paid

68 Palou 2010 International Justice plunder in war human rights andmultinationals

69 UN Security Council 2001 Report of the Panel of Experts on theillegal exploitation of natural resources and other forms of wealth ofthe Democratic Republic of the Congo S2001357

70 UN Security Council 2002 Final report of the Panel of Experts on theilegal exploitation of natural resources and other forms of wealth ofthe Democratic Republic of the Congo S20021146

71 Ibidem

34

LIVING IN FEAR

dearly in this situation In terms of human development it isinstructive that the UNDP estimated in 2013 that RDCwas in the low human development category ndash positioningthe country at 186 out of 187 countries and territories72

The Role of Transnational Corporations (Tncs)and the private sector

Other key players involved in the conflict are Transnationalsand the private sector A UN Report published a few yearsafter the Second Congo War started affirmed that ldquothe roleof the private sector in the exploitation of natural resourcesand the continuation of the war has been vitalrdquo73 The reportalso added that ldquoa number of companies have been involvedand have fuelled the war directly trading arms for naturalresourcesrdquo74 Other observers share the view that ldquoWesternMultinationals have been one group responsible for thepillage and illegal exploitation of Congo mineral resourcesrdquo75

There are a large number of big foreign corporationsinvolved in mining in DRC including those from CanadaSouth Africa UK USA and others Despite the opacity ofmost of the activities of the private sector numerousexamples have been reported of how TNCs are responsiblefor human rights abuses and other illegal activites Thereare also many reports of the dangerous connectionsestablished with the political and military elite in order tofacilitate their businesses These are some examples

72 UNDP 2014 Sustaining human progress reducing vulnerabilities andbuilding resilience Congo (Democratic Republic of the) httphdrundporgsitesallthemeshdr_themecountry-notesCODpdf

73 UN 2001 Report of the Panel of Experts on the illegal exploitation ofnatural resources and other forms of wealth of the Democratic Republicof the Congo S2001357

74 UN 2001 Ibidem75 Palou Ibidem

35

2 MINERALS AND WARS AT THE GREAT LAKES

bull Glencore Anglo-Swiss giant in the raw material sectorwith a turnover of US $ 2397 billion in 2013 was beingaccused in 2014 of adopting a military-style response tothe problem of artisanal mining close to its mines ldquoonseveral occasions over the past 18 months mine policehave fired live ammunition in pursuit of artisanal minerson Glencorersquos site resulting in deaths and seriousinjuriesrdquo76 They are as well responsible forcontamination of the water supply with acid content andvery high and concentrations of copper and cobaltFinally the company operates some of its concessionsinside a reserve ndashndash something that in principle is illegalaccording to the RDC Mining Code77

bull An independent investigation unveiled that two miningcompanies Glencore and the Eurasian Natural ResourcesCorporation were involved in underpricing assets incomplex deals featuring offshore companies causinglosses to the DRC of no less than $136 billionIntermediary companies in the deals were linked to DanGerler78 In addition the DRC public prosecutorreportedly told mining companies that they had toreimburse $37 billion in taxes duties and fines79

bull AngloGold Ashanti part of the AngloAmericancorporation was accused of establishing links and

76 Peyer et al 2014 PR or Progress Glencoreacutes corporate responsibility inthe DRC Bread for all RAID Fastenopfer

77 Ibidem78 CRS 2014 Democratic Republic of Congo Background and US Policy79 Reuters 2014 Disputed Congo report says miners owe $37 billion in

tax fines httpwwwreuterscomarticle20140130us-congo-democratic-mining-idUSBREA0T12L20140130

36

LIVING IN FEAR

supporting one armed group the Nationalist andIntegrationist Front (FNI)80

bull In 2004 fighting between soldiers and rebels in Kilwaended in serious human rights violations againstcivilians including summary executions arbitraryarrests rape and torture Anvil Mining operated theDikulushi copper mine near Kilwa and was accused ofproviding vehicles and planes to the Congolese armedforces during this event The legal case ended in theCanadian Supreme Court in 2012 which ruled that itwould not hear the plaintiff rsquos appeal ndash they were led bythe Canadian Association Against Impunity (anassociation representing survivors of the incidents inOctober 2004)81

bull In May 1997 Citibank NY a financial institution hasbeen accused of giving $5 million loan to a Congolesemilitia allied with Rwanda82

bull American Mineral Fields (AMF) cut a $1 billion dealwith Kabila immediately after his forces captured GomaThe negotiations were led by ldquoKabilarsquos US-trainedfinance ministerrdquo who gave ldquoAMF exclusive explorationrights to zinc copper and cobalt mines in the area MikeMcMurrough a friend of US President Bill Clinton wasthen the chair of AMF83

80 Human rights watch 2005 DRC Gold fuels massive human rightsatrocities httpwwwhrworgennews20050601dr-congo-gold-fuels-massive-human-rights-atrocities

81 Business and human rights resource center 2012 Anvil Mining Lawsuit(re DRC) httpbusiness-humanrightsorgenanvil-mining-lawsuit-re-dem-rep-of-congo

82 Global research 2008 Congo Resource wars httpwwwglobalresearchcacongo-resource-wars8310

83 Global research 2008 Ibidem

37

2 MINERALS AND WARS AT THE GREAT LAKES

UN and some other independent reports generally makebroad statements about the role of corporations includingciting some of the companies however they fall short ofproviding details of the modus operandi of those companiesand in establishing or suggesting concrete measures to stopthe conflicts and solve the negative impacts on the DRCpopulation and environment A 2002 UN Report listed 85companies considered by the Panel to be in violation of theOECD Guidelines for Multinational Enterprises84 Very littlehas been done after the UN report was published

A poor country Until when

In 1969 World Bank President Robert McNamara embarkedon a trip to Africa to try to discover ldquowhat are therequirements for developmentrdquo85 At that time the WorldBank in its information document described the country asrich in natural resources but at the same time poor and witha strong mining sector

In spite of its rich natural resources and greatpotential the Congo is still a poor country (hellip)Mining and metallurgy play a leading role in theeconomy86

84 UN 2002 Final Report of the Panel of Experts on the Illegal Exploitationof Natural Resources and other Forms of Wealth of the DemocraticRepublic of the Congo S20021146

85 Records of President Robert S McNamara Travel briefs CongoKinshasa (01021969-03031969) 1772506 Reference Code WBIBRDIDA 03 EXC-10-4540S World Bank Group archives WashingtonDC United States

86 Ibidem

38

LIVING IN FEAR

More than forty years later not much has changed asupdated data shows In DRC seven out of ten householdsare poor87 Most of its nearly 60 million people areldquodesperately poor living on less than $1 a dayrdquo88 DRC is aleast developed country a fragile State that has been in thetop 10 recipients of humanitarian assistance in nine of thelast 10 years Between 2003 and 2012 DRC received US$176billion in official development assistance (ODA) making itthe 10th largest recipient89In 2012 the Democratic Republicof Congo (DRC) received US$286 billion in net officialdevelopment assistance90

With so many natural resources isnrsquot there money to getpeople out of poverty The mining sector is oftenacknowledged as being capable of contributing to povertyreduction However those mineral benefits are oftencreamed off by powerful interests and do not get to thehands of the majority of the population According to DFIDldquofiscal receipts from the minerals sector are siphoned off bypowerful interest groups instead of being used in the publicsectorrdquo91

The analysis of Mr Antonino Giambrone sheds more lightabout the earnings and who profits from mining

While the average Congolese worker earns $10 permonth the average Congolese coltan-miner earnsanywhere from $10 to $50 per week Uganda

87 IMF 2013 DRC Poverty reduction strategy paper N 1322688 DFID 2008 Democratic Republic of Congo Country Plan89 View global humanitarian assistance webpage http

wwwglobalhumanitarianassistanceorgcountryprofiledemocratic-republic-of-congo

90 CRS 2014 Democratic Republic of Congo Background and US Policy91 DFID 2008 Democratic Republic of Congo Country Plan

39

2 MINERALS AND WARS AT THE GREAT LAKES

Rwandan and Congolese rebels have earned manymillions of dollars in sales of coltan which theyhave used to finance their war efforts in the CongoBetweeen 1999 and 2000 the Rwandan army aloneearned at least $20 million a month from coltan92

Food insecurity is often a consequence of poverty One ofthe causes of existing food insecurity is the abandonment ofthe agriculture sector partly due to conflicts The governmentstated that it would like to strengthen the smallholdersldquowhile ensuring at the same time the protection of thecountryrsquos natural resourcesrdquo93

War impacts on the environment

The wars have had devastating impact on the environmentNational parks for instance home of many endangeredspecies are also affected by the exploitation of minerals94

There are numerous reports on the precarious situation ofwildlife in the region For instance between 1995 and 19994000 out of 12000 elephants were killed in the GarambaPark in North-eastern DRC95 The situation was also seriousin other parks For instance in Kahuzi-Biega Park a zonerich in coltan only 2 out of 350 elephant families remained

92 Giambrone 2006 The extraction of natural resources as a source ofconflict Etfo voice

93 IMF 2013 DRC Poverty reduction strategy paper N 1322694 Seeh ttpwww lenntech comenv ironmental -ef fec ts -

warhtmixzz3CuGZqE3M95 UN 2001 Report of the Panel of Experts on the illegal exploitation of

natural resources and other forms of wealth of the Democratic Republicof the Congo S2001357

40

LIVING IN FEAR

in 200096 Mountain gorillas are also under threat due tocontinued civil unrest and the presence of armed militiasmakes survey and conservation work difficult in the DRCrsquosprotected areas97

Deforestation is also one of the common impactsWorldwatch explains the implication of having refugeespopulation inhabiting RDC degraded forest areas

For two years beginning in late 1994 for exampleabout 720000 Rwandans inhabited refugee campson the fringes of Virunga National Park They allneeded wood for cooking fires and for buildingshelters and some also earned extra money bymanufacturing charcoal As a result up to 80000people entered the park and carted away up to1000 tons of wood every day By mid-1996 105square kilometers of forest had been affected toone degree or another by their activities 35 squarekilometers had been stripped bare98

Besides the need for fuelwood by refugees movement ofmilitary hardware through forests and woodlands also causeserious damage to forests and the landscape generally

96 Ibidem97 See WWF webpage httpwwfpandaorgwhat_we_doendangered_species

great_apesgorillasmountain_gorilla98 Worldwatch 2008 War and Environment httpwwwworldwatchorg

node5520

3South Sudan The Oil Way

99 Washington Post 2012 lsquoSouth Sudan civilians are trapped in conflictover oilrsquo httpwwwwashingtonpostcomworldsouth-sudan-civi l i ans-are- trapped-in-conf l ict -over-o i l20120501gIQAUX6buT_storyhtml

100 See UN Mission in South Sudan web page httpwwwunmultimediaorgtvunifeed201404south-sudan-bentiu-massacre

101 Reuters 2014 Bentiu massacre is game-changer in South Sudanconflict says UN official httpwwwtheguardiancomworld2014apr22bentiu-massacre-south-sudan-united-nations

41

ldquoIf we had no oil we would not be attackedrdquo

Nyak a 27-year-old sitting outside herhut in Bentiu South Sudan 201299

In April 2014 Bentiu the capital of the oil producing UnityState was the scenario of one of the worst massacres of thecivil war between South Sudanese forces100 Hundreds ofpeople were killed in the fighting that took place betweenthe Sudan Peoplersquos Liberation Army (SPLA) and anti-government forces in the oil-rich State101

42

LIVING IN FEAR

Civil wars and conflict

Since its independence in 1956 Sudan has been at war andconflict for most of its modern history Specialists in conflictand security have described the history of modern Sudan asldquoan unremitting sequence of wars punctuated by oft-violatedpeace agreementsrdquo102 The First Sudanese Civil War (1955ndash1972) was followed by a Second Sudanese Civil War (1983ndash2005) with barely 11 years breathing space of tenuoussecurity

The Second Civil War ended when both sides signed theComprehensive Peace Agreement in 2005 That agreementgave autonomy to South Sudan within Sudan However areferendum held in January 2011 moved the region towardsecession and then in July 2011 independence was achievedand South Sudan became an autonomous nation103 Theprocess that led to South Sudanrsquos independence was stronglysupported by the US government which backed Juba in itstwo decades struggle against Khartoum104 It should be notedthat even during the 11 years of supposed peace there wereconflicts on a regular basis particularly in the border areasbetween South Sudan and Sudan105 Two years after theindependence the first South Sudanese Civil War started inDecember 2013 The civil war erupted as a result of a power

102 Cox and Snapper 2013 The Strategic Importance of South Sudan TelAviv University

103 National Geographic 2013 South Sudan oil the environment andborder conflicts httpvoicesnationalgeographiccom2013032286550

104 See webpagehttpwwwworkersorgarticles20140101south-sudan-yet-another-oil-war

105 International Crisis Group 2006 Sudan Saving peace in the Easthttpwwwcrisisgrouporgenregionsafricahorn-of-africasudan102-sudan-saving-peace-in-the-eastaspx BBC 2015 South SudanProfile httpwwwbbccomnewsworld-africa-14019202

43

3 SOUTH SUDAN THE OIL WAY

struggle between president Salva Kiir from the Dinka ethnicgroup and his deputy Riek Machar from the Nuer ethnicgroup whom he had sacked As at the time of this writingthe civil war continues

Sudan vs South Sudan

The tensions and conflicts after the independence of SouthSudan from its neighbour Sudan did not stop in 2011 Topleaders from both sides accuse and threaten each other innumerous occasions For instance Sudanese President Bashirpromised to teach South Sudan a ldquofinal lesson by forcerdquo106

South Sudan President firmly swore that ldquowhether Umar al-Bashir likes it or not one day Abyei will rejoin the southrdquo107

Abyei

Abyei is traditionally the home of the Ngok Dinka asubdivision of the Dinka tribe with strong links to the Dinkain South Sudan Besides the Dinka Misseriya herders aremembers of nomadic Arab tribes that seasonally cross Abyeiand other nearby areas with their cattle in search of waterand pasture108

Since the signing of the Peace Agreement in 2005 betweenthe Government of Sudan and the SPLM the dispute over

106 The Washington Post 2012 lsquoSudanese president vows war againstSouth Sudanrsquo httpwwwwashingtonpostcomworldsudanese-president-threatens-force-against-south-sudan-over-oil-field20120419gIQAJ0G8ST_storyhtml

107 The Global Intelligence Files 2013 Sudan- President Kiir says Abyeiwill ldquorejoinrdquo South Sudan httpssearchwikileaksorggifilesviewemailid=674314

108 Enough Project 2013 What is the Abyei Area and why is it disputedhttpwwwenoughprojectorgblogsenough-101-what-abyei-area-and-why-it-disputed

44

LIVING IN FEAR

the future status of the Abyei area has beenone of the bigbarriers to stability in the region109Abyei is an oil-rich areadisputed by Sudan and South Sudan and stands out as thehotspot of bigger tension beetween Sudan and South Sudannowadays

The conflicts over Abyei have a history of more than 50years After the First Civil war the parties signatories to thepeace pact agreed that Abyei would hold a referendum todetermine whether they would be part of Sudan or a newlyregion in the South The second war commenced in 1983and the foreseen referendum was not done

In 2009 the Permanent Court of Arbitration in the Hagueruled on Abyei territory giving concessions to the Governmentof Sudan and the Southern Sudan Heglig and other closeroil-fields remained out of Abyei area while the rest of theAbyei region remained under control of the Ngok Dinka anethnic group close to Southern Sudan and keen on voting tojoin the South in a future referendum110Another referendumwas scheduled to be done in parallel with the South Sudanreferendum in 2011 but once again this never took place

Although a series of temporary security arrangementswere agreed in January and March 2011111 in May SudaneseArmy tanks entered the town of Abyei and by the 22nd ofMay they seized control of the town112The government ofSudan launched numerous military attacks in the disputed

109 UN Security Council 2011 Report of the Secretary-General on thesituation in Abyei S2011451

110 New York Times 2009 lsquoCourt redraws disputed area in Sudanrsquo httpwwwnytimescom20090723worldafrica23sudanhtml_r=1amp

111 UN Security Council 2011 Report of the Secretary-General on thesituation in Abyei S2011451

112 Reuters 2011 North Sudan seizes disputed Abyei thousands fleehttpwwwreuterscomarticle20110522us-sudan-abyei-north-idUSTRE74L14L20110522

45

3 SOUTH SUDAN THE OIL WAY

border of area where much of Sudanacutes remaining oil fieldsare situated113 Two years later the fighting remains intensein parts of South Kordofan and Blue Nile114 More than 2million people have been internally displaced or severelyaffected by the conflict since 2011115

In addition to military attacks other actions contributedto the tension There have been cattle raids by the MissiriyandashArab nomadic cattle herders inhabiting the area ndash on theNgok Dinka ndasha subdivision of the Dinka tribe inhabitingthis area In occasions more than 200 cows were stolenwith a large part of it recovered by the UN Interim SecurityForce for Abyei(UNISFA) These raids increase further thealready tense situation in the region and in particular thevery tense situation among the Missiriya and the NgokDinka116

113 The Conversation 2012 Oil fuels the conflict between Sudan andSouth Sudan ndashand it keeps getting hotter

114 OCHA 2014 South Kordofan and Blue Nile population movementsfact sheet httpreliefwebintsitesreliefwebintfilesresourcesSouth20Kordofan20and20Blue20Nile20Population20Movements20Fact20Sheet20-201920May202014pdfReuters 2013 Khartoum says rebels based in South Sudan caused oilpipeline blast

115 OCHA 2014 Ibidem116 See Human Security baseline assessment for Sudan and South Sudan

webpage httpwwwsmallarmssurveysudanorgdefacts-figuresborderdisputed-areasabyeihtml

46

LIVING IN FEAR

An oil-centered conflict

ldquoThe violence underscores the extent to which oilis at the heart of the dispute Khartoum whichcontrols the pipelines that take oil out of SouthSudan depends heavily on oil transit fees SouthSudan which depends on oil for 98 percent of itsrevenue has refused to pay the fees which it saysare exorbitantKhartoum responded by seizing oil tankers carryingSouth Sudanese oil and imposing economicblockades That prompted South Sudan to shutdown its entire oil production in February Thatmonth Sudan allegedly bombed an oilfield inSouth Sudan that was nine miles from the borderrdquo

Washington Post 2012

Missiriya attacks continue as of today UNISFA reported thatin March 2015 100 armed Missiriya killed several peopleand burnt over 20 houses in a village in the southern part ofAbyei117 Many of those attacks occur despite the presenceof UN peacekeepers in the zone

In this context a UN force was deployed in 2011 withmore than 4000 personnel mostly Ethiopian with theobjective of ensuring the demilitarization of the Abyei areaand particularly checking the Sudan Armed Forces and theSudan Peoplersquos Liberation Army Interestingly the UN forceshad also the task to provide security for oil infrastructure inthe Abyei Area in cooperation with the Abyei PoliceService118 In February 2015 the Security Council extended

117 Sudan Tribune 2015 South Sudan condemns deadly clashes in Abyeihttpwwwsudantribunecomspipphparticle54191

118 UN Security Council 2011 Resolution 1990 (2011) SRES1990(2011)

47

3 SOUTH SUDAN THE OIL WAY

the mandate of the UNISFA again until July 2015119 The AbyeiJoint Oversight Committee (AJOC) decided in May 2013 thatAbyei should adopt a status as weapons-free area and thatonly UNISFA would be authorized to carry weapons in thearea120

The situation in the area is still very fragile121 For instancevarious resolutions have called for the redeployement of allmilitary personnel from Abyei including those protecting itsoil infrastructure However the Sudanese Governmentskeeps at the Diffra oil complex around 150 Sudan oil policein a clear violation of an agreement and Security Councilresolutions adopted in 2011122 The UN Security council ina recent resolution

Condemns the presence of Diffra Oil Police unitsdeployed in the Abyei Area as well as the repeatedentry of armed militias into the territory andreiterates its demands that immediately andwithout preconditions the Government of Sudanredeploy the Oil Police in Diffra from the AbyeiArea ()123

Conflicts escalating over oil Heglig battles

In 2012 despite the Permanent Court of Arbitration ruling124

which placed Heglig oilfields in the Sudanese territories

119 UN News Center 2015 Security Council extends UN peacekeepingforce in Abyei through July 2015

120 UN Security Council 2015 Ibidem121 UN Security Council 2015 Security Council adopting resolution 2205

(2015) extends interim force in Abyei until 15 july voicing concernover delays in Borde Mechanismrsquos operation httpwwwunorgpressen2015sc11800dochtm

122 UN Security Council 2014 Report of the Secretary-General on thesituation in Abyei S2014518

123 UN Security Council 2015 Ibidem124 See Permanent Court of Arbritation webpage httpwwwlocgov

lawwebservletlloc_newsdisp3_l205401463_text

48

LIVING IN FEAR

the South Sudanese army launched an attack over Heglig125

South Sudanrsquos army took control of the oil-producing townof Heglig The South Sudan move did not enjoy sympathyfrom many countries including its allies such as the US andBritain126 The African Unionrsquos (AU) Peace and SecurityCouncil considered Sudanrsquos occupation of Heglig as illegal127

At the end after a few days South Sudan pulled back itstroops from Heglig even though President Salva Kiir stillclaims that Heglig is a part of South Sudan and is expectinginternational arbitration

Oil and geopolitics

The implications of the oil economy are self-telling Prior tothe separation of Sudan from South Sudan in 2011 theunified Sudan was the second-largest non-OPEC oil producerin Africa in 2010 When they separated Sudan and SouthSudanrsquos production diminished and together they rankedas the fourth-largest non-OPEC African oil producer in 2013Particularly the split of the country in oil revenues economicterms was a huge blow to Sudan with its crude oil exportrevenues falling from almost $11 billion in 2010 to around$18 billion in 2012128 It has been estimated that oilcontributes 98 of South Sudan government income morethan for any other government in the world129

125 Wall Street Journal 2012 Sudan escalates fight over oil httpwwwwsjcomarticlesSB10001424052702304444604577339461981143808

126 The Guardian 2012 South Sudan to withdraw from disputed oiltownhttpwwwtheguardiancomworld2012apr20south-sudan-withdraw-oil-town

127 IRIN 2012 Sudan-South Sudan Heglig and the border128 US Energy Information Administration 2014 Country analysis brief

Sudan and South SudanhttpwwweiagovcountriesanalysisbriefsSudansudanpdf

129 Global Witness 2009 Fuelling mistrust

49

3 SOUTH SUDAN THE OIL WAY

Although oil exploration started at the end of the 1950showever no success was achieved with the activities of Italianoil company Agip130 Discoveries were found in the years tofollow The first oil discovery was made in 1979 when theAmerican company Chevron found oil near the Darfur-Kordofan boundary Three years later Chevron made twolarger discoveries the Heglig and Unity oilfields which asof today are the most productive However by 1984 Chevronstopped its operations when some of its workers were killedby an armed group By 1988 the company dismantled all ofits operations in Bentiu and Unity provinces131

As a landlocked country all the oil in South Sudan had tobe extracted and exported via a pipeline The pipeline wasconstructed by China National Petroleum Corporation andit covered a length of around 1600 kilometers132 Ittransports the oil from South Sudan to the Red Sea Thecost of the pipeline was estimated at $1 billion and it wasfinished in 1999133At the time of the construction of thepipeline Sudan provided less than 1 of Chinarsquos oil importsbut a few years later by 2009 the investments of Chinatotalled more than $8 billion134

130 Understanding Sudan 2009 Fact sheet two A history of oil in theSudan httpunderstandingsudanorgOilOilResourcesL2FS2-HistoryofOilinSudanpdf

131 Understanding Sudan Ibidem132 The Conversation 2012 Oil fuels the conflict between Sudan and

South Sudan ndashand it keeps getting hotter133 Sitarek 2001 The human price of oil ICE Case Studies Number 83

httpwww1americanedutedicesudansanctionshtm16134 The Conversation 2012 Ibidem

50

LIVING IN FEAR

Source US Energy Information Administration 2014

South Sudan becameindependenth in July2011 Taking aboutthree-quarters of theproduction A disputeover transit fees ledSouth Sudan to haltproduction for most of2012

Oil production inSudan and South Sudan

thousand barrels per day

51

3 SOUTH SUDAN THE OIL WAY

Main oil companies in Sudan and South Sudan

While initially many companies involved were of Westernorigin most of the companies now involved in the oil sectorare from China and Malaysia

Source US Energy Information Administration 2014 Countryanalysis Brief Sudan and South Sudan

Row over oil tariffs

By 2011 both countries did not agree on how much SouthSudan should pay to export its oil through the pipelines inSudan Sudan requested a fee of 33 dollars a barrel whileSouth Sudan said the highest fee they could afford was 2

Table 2 Main oil companies in Sudan and South Sudan

52

LIVING IN FEAR

dollars a barrel135 Following this lack of agreement SouthSudan halted crude oil production in early 2012

This decision worsened the economic situation in bothcountries as both depend hugely on money from oil exportsfor their revenues However an agreement was reached andin April 2013 South Sudan restarted oil production136

Causes of the Sudanese Civil War

Wars in Sudan have been often portrayed quite simplisticallyas an ArabMuslim north versus and an AfricanCristiansouth While certainly ethnicity and religion played a rolethe conflict has been mainly fought over natural resources137

Today oil is the countryrsquos main natural resource and ithas been estimated that it accounts for 98 of South Sudanrsquosrevenue138 The multibillion potential of their revenuehowever has not translated into wealth and benefits for themajority of the population of South Sudan First of all it hasnot solved the problem of security as since the very inceptionof the State of South Sudan in 2011 there were conflicts inmany areas of the country particularly in the borderline withSudan A 2013 report from the World Bank illustrates thisby asserting that ldquodespite South Sudanrsquos great resourcewealth its population is one of the most deprived due todecades of neglect and war and the distortions of the oil

135 IPS 2011 South Sudan rows over exorbitant fees for pipeline use136 Reuters 2013 South Sudan resumes oil output after ending row with

Sudan over transit fees137 Caas 2007 Natural resources and conflict in Sudan138 See World Bank webpagehttpwwwworldbankorgencountry

southsudanoverview

53

3 SOUTH SUDAN THE OIL WAY

economyrdquo139 Indeed oil reserves sitting on a disputed borderbetween Sudan and South Sudan have not translated yetinto wealth for the majority of citizens of South SudanInstead most of the inhabitants of the country remain deeplypoor and do not enjoy even basic rights to access potablewater and adequate sanitation140

Oil has been a main cause for the war and conflicts inSudan For instance it influenced the end of the peaceagreement obtained after the first civil war This first civilwar ended in 1972 with the Addis Ababa Agreement Theagreement established a system of peaceful co-existence witha single country by guaranteeing aNorthern basedgovernment but granted at the same time autonomy in theSouth This however was not going to last long as thediscovery of oil at the end of the 1970s in Southern Sudanchanged the ldquocoexistencerdquo idea In 1978 Sudanese PresidentNimeiry decided to embark on oil exploration project thatwould lead to the finding of oil in commercial quantities Inorder to control the oil within the hands of the Northernbased Government military force was used and in additionto imposing islamic law which led to the new civil warstarting in 1983141

139 World Bank 2013 Interim Strategy Note (FY 2013-2014) httpwww-wdsworldbankorgexternaldefaultWDSContentServerWDSPIB20130207000333037_20130207110223RenderedPDF747670ISN0P1290Official0Use0Only090pdf

140 National Geographic 2013 South Sudan oil the environment andborder conflicts httpvoicesnationalgeographiccom2013032286550

141 Sitarek 2001 The human price of oil ICE Case Studies Number 83httpwww1americanedutedicesudansanctionshtm16

54

LIVING IN FEAR

Numerous authors have identified natural resources ashaving a direct correlation with wars and conflicts142 Ananalysis by Ross of the University of California (UCLA) ofthirteen wars and conflicts concluded that in the case ofSudan oil was one of the key causes of the second civil warand an incentive for advancing the independence of SouthSudan143 Ross describes his conclusion in the followingmanner

War in Sudan began in 1983 when SudanesePresident Nimeiry took a series of measures thatupset the delicate balance between thepredominantly Muslim north and the heavilyChristian and Animist south among these measureswas his decision to place newly discovered oil inthe countryrsquos south under the jurisdiction of thenorth and to build an oil refinery in the northinstead of the south The Sudan Peoplersquos LiberationArmy (SPLA) subsequently complained that thenorth was stealing the resources of the southincluding oil demanded that work cease on apipeline to take oil from the south to the refineryin the north and in February 1984 attacked an oilexploration base killing three foreign workers andbringing the project to a halt144

142 Varisco 2010 lsquoA study on the inter-relation between armed conflictand natural resources and its implications for conflict resolution andpeace buildingrsquo Journal of Peace Conflict and Development issue 15Ross 2003 How do natural resources influence civil war Evidencefrom 13 cases httpwwwsscnetuclaedupoliscifacultyrossHowDoesNat3pdf

143 Ross Ibidem144 Ross Ibidem

55

3 SOUTH SUDAN THE OIL WAY

Even when the different parties were discussing an agreementon ldquono attacks on civilians or civilian objectsrdquo oil was playinga central role It is instructive to note that the Sudanesegovernment desired language in the text stating that oilinstallations were ldquocivilian objectsrdquo while the SPLA wantedthe contrary145

Human Rights Watch reached the same conclusion thatoil without doubt has been a key fuel for war particularlysince the end of the 90s when crude oil was first exportedfrom Sudan in 1999146

Oil became the main objective and a principal causeof war (hellip) The large-scale exploitation of oil byforeign companies operating in the theatre of warin Southern Sudan has increased human rightsabuses there and has exacerbated the long-runningconflict in Sudan a conflict marked by gross rightsabuses ndashtwo million dead four million displacedsince 1983 ndashand recurring famine and epidemics147

Also the UN makes clear statements on the issue Specialenvoy Leonardo Franco expressed in a report that oilexacerbated the conflict

the economic political and strategic implicationssurrounding oil exploitation in western Upper Nilewhich have seriously exacerbated the conflictthereby causing a deterioration in the overall

145 Ibidem146 Human Rights Watch 2003 Sudan oil and human rights147 Human Rights Watch 2003 Sudan oil and human rights

56

LIVING IN FEAR

situation of human rights and respect forhumanitarian law and narrowing the slim chancesfor peace148

Indeed multiple causes and elements contributed to theconflicts It was recognized that ethnicity and religion wereimportant elements however the key dimension is controlover natural resources particularly oil Added to this are alsotensions over land and resources and the promotion by thegovernment of crops like cotton and sugar which displacedcertain groups of people149 Similar conclusions were reachedyears back by a Canadian Government Mission in Sudanwhich fully recognized some ethnic disputes as well asdisputes over other natural resources however oil was thekey factor which made things really dramatic

148 UN 2000 Interim report of the Special Rapporteur of the Commissionon human rights on the situation of human rights in the Sudan A55374 httpwwwunorgdocumentsgadocs55a55374pdf Seealso UN 1999 Situation of human rights in Sudan UN Doc A54467

149 University of Massachusetts (undated) Modern conflicts conflictprofile SudanhttpwwwperiumassedufileadminpdfSudan1pdf

57

3 SOUTH SUDAN THE OIL WAY

The Harker mission pointed out that while therehave always been pressures on the Dinka in theHeglig- Ruweng area as a result of inter-tribalfighting with Arab nomads for grazing areas anddry-season water the situation had worsened withthe beginning of oilexploration and had continuedto deteriorate over theyears because of the periodicoffensives launched by the Government and itsallies resulting in destructionand mass populationdisplacement150

South Sudan has one of the largest oil reserves inSub Saharan Africa and the commodity is thelifeline of the countryrsquos economy accounting for98 percent of the governmentrsquos financial resources

Whoever controls South Sudanrsquos oil thereforecould seize the upper hand in the battle for power

Source France 24 2013 lsquoBattle for oil adds newdimension to South Sudan conflictrsquo

Whoever controls South Sudanrsquos oil therefore could seizethe upper hand in the battle for power

The same scenario applies to the South Sudan Civil Warwhich initially was also portrayed along ethnic line TheDinka ethnic group of President Salva Kiir has fought rebelsallied with former vice president Riek Machar of the Nuer

150 UN 2000 Interim report of the Special Rapporteur of the Commissionon human rights on the situation of human rights in the Sudan A55374 Ibidem

58

LIVING IN FEAR

ethnic group However increasingly ldquothe focus of the fightingis shifting to the battle to control the countryrsquos mostimportant natural resource ndash oilrdquo151 The oilfields haveliterally become the battlefields

Consequences of war and conflict

The damage inflicted on people as a consequence of war ishuge Back in 2001 US Secretary of State Colin Powellqualified the war in Sudan in the following terms ldquoThere isperhaps no greater tragedy on the face of the earth todaythan the tragedy that is unfolding in the Sudanrdquo152 Firstthere is a large number of deaths due to war and war relatedcauses and also a huge number of displaced people Thedeath toll derived from the Second Civil Sudanese War isestimated at two million The US Commitee for refugeesasserted that ldquothis massive loss of life surpasses the civiliandeath toll in any war since World War IIrdquo153 In the mostrecent civil war the South Sudanese Civil War that startedin December 2013 by April 2014 the death toll wasestimated to be at 10000154

Besides the death toll there are estimated more than fourmillion people of the Southern Sudanese population forced

151 France 24 2013 Battle for oil adds new dimension to South Sudanconflicthttpwwwfrance24comen20131227-battle-oil-adds-new-dimension-south-sudan-conflict

152 Human Rights Watch 2003 Ibidem153 See US Committee for Refugees webpage in 2001 http

webarchiveorgweb20041210024759httpwwwrefugeesorgnewscrisissudanhtm

154 International crisis group 2014 South Sudan a civil war by any othernamehttpwwwcrisisgrouporg~mediaFilesafricahorn-of-africasouth20sudan217-south-sudan-a-civil-war-by-any-other-namepdf

59

3 SOUTH SUDAN THE OIL WAY

to flee their homes at one time or another It has also beenargued that the development of oilfields has led to the forcedremoval of the local population In the words of the lateJohn Garang oil was a ldquokiller itrsquos evicting our civilianpopulationrdquo claiming 100 000 people displaced due to thiscause155

Children are some of the main victims of conflict beingrecruited for instance for war and suffering sexual violenceFrom March 2011 to September 2014 the UN estimatesthat there were 1243 incidents affecting 68776 children156

UN reports indicate that both armed groups have usedchildren ldquoon a large scale and committed other graveviolations including killing maiming and sexual violencerdquo157

For instance in 2015 an incident was reported where closeto 100 children were abducted some as young as 13 Armedsoldiers were advancing house to house looking for boysand taking them by force158 According to UNICEF this occuredin Wau Shilluk close to the city of Malakal in Upper NileState159

Not surprisingly as put by a high UN representativepeople are desperate for peace

155 BBC 2001 Garang Oil firms are targetshttpnewsbbccouk2hiafrica1393481stm

156 UN Security Council 2014 Report of the Secretary-General on childrenand armed conflict in South Sudan S2014884

157 Ibidem158 The Guardian 2015 South Sudan gunmen kidnap at least 89 boys

from village near Malakal httpwwwtheguardiancomworld2015feb22south-sudan-gunmen-kidnap-89-boys-village-malakal-child-soldiers

159 The Guardian 2015 South Sudan gunmen kidnap at least 89 boysfrom village near Malakal

60

LIVING IN FEAR

People are desperate for peace They are tired ofliving in fear Many have had to flee several timesThey are exhausted They lack water they areextremely worried for their children who are notin school and at risk of being recruited into armedgroups Sexual violence is rife All people want isto live in safety security and stability160

Wars have also an impact on food security and nutrition Asof February 2015 there was an alert that the food situationwas critical in South Sudan for more than 25 millionpeople161 This was famine related to war Ulrika BlomCountry Director for Norwegian Refugee Council in 2015succinctly stated ldquoThere is an urgent need for a solution onthe conflict so that people are able to resume their dailylives in dignity and not be dependent on massive foodassistancerdquo162

The harsh consequences of war are inevitable and occurfrom a systematic destruction of infrastructure erosion ofthe human capital and weakening of essential institutions

Besides causing an appalling loss of life Sudanrsquoslong civil war eroded the capital base The wardepleted the labour force while roads irrigationsystems and other key components of rural

160 Under-Secretary-General for Humanitarian Affairs and Emergency ReliefCoordinator Valerie Amos remarks to the press Juba South Sudan 9February 2015 httpreliefwebintreportsouth-sudanunder-secretary-general-humanitarian-affairs-and-emergency-relief-coordinator-1

161 UN Security Council 2015 Reports of the Secretary-General on theSudan and South Sudan SPV7392

162 Norwegian Refugee Council 2015 Conflict a cause of hunger in SouthSudan httpwwwnrcnodid=9192498

61

3 SOUTH SUDAN THE OIL WAY

infrastructure were destroyed damaged orneglected It also weakened institutions divertedfinancial capital from economic development andundermined interpersonal trust which is criticalto productive business dealings163

Some have tried to put a figure on the costs of war A recentreport estimates that the cost of the civil war may be between$223 and $28 billion over the next five years for SouthSudan alone if the factions fail to bring peace to the worldrsquosnewest country164

UN peacekeeping operations

In July 2011 the Security Council determined that thesituation in South Sudan constituted a threat to internationalpeace and security in the region and established the UNMission in the Republic of South Sudan (UNMISS)165 Thekey elements of the mandate is to consolidate peace andsecurity However after the civil war broke in July 2013 inthe light of significant human rights violations the large-scale displacement of persons the UNMISS mandate wasreshaped and a focus was given to the protection of civiliansand creation of the conditions for delivery of humanitarianassistance166

163 IFAD 2013 Enabling poor rural people to overcome poverty in SouthSudan

164 Frontier Economics 2015 South Sudan the cost of war httpwwwfrontier-economicscomdocuments201501south-sudan-cost-warpdf

165 UN Security Council 2011 Resolution 1996166 UN Security Council 2014 Resolution 2155

62

LIVING IN FEAR

In June 2011 a month before the establishement ofUNMISS a second UN peacekeeping operation wasestablished in the disputed border between Sudan and SouthSudan The United Nations Interim Security Force for Abyei(UNISFA) was created in a context of escalating violenceand tensions and population displacement167 One of the topobjectives was to achieve the demilitarization of the Abyeifrom any force other than UNISFA and the Abyei PoliceService facilitate the delivery of humanitarian aidstrenghten the capacity of the Abyei Police Service and incooperation with the police provide security for oilinfrastructure in the Abyei area168

Corporations and conflicts with communities

Since the conclusion of the 2005 Peace Agreement betweenthe Government of Sudan (GoS) and Sudan PeoplersquosLiberation MovementArmy (SPLM) negative impacts ofoil exploration and extraction have continued to ignitemistrust among local communities towards the oilcompanies Many problems from the oil activities wereidentified such as water pollution and uncompensateddispossession of land However oil companies or thegovernment did little to assess correct and reduce suchimpacts169 In this context many communities chose the ldquopath

167 UN Security Council 2011 Resolution 1990168 UN Security Council 2011 Resolution 1990169 ECOS 2014 Scrutiny of South Sudanacutes oil industry http

w w w e c o s o n l i n e o r g r e p o r t s 2 0 1 4 Scrutiny_of_South_Sudans_Oil_Industrypdf

63

3 SOUTH SUDAN THE OIL WAY

of confrontation with oil companiesrdquo170 For instance byblocking and interfering in oil operations by truck blockagesand other stoppages171

Resentment of local communities againstoil companies

The negative consequences of oil developmenthave been causing deep resentment against oilcompanies in many oil-rich parts of SouthernSudan Arriving in any oil area where activeexploitation is ongoing one is often confrontedwith persistent complaints from local people aboutpoor management of ldquoproduced waterrdquo which isblamed for pollution of the environment This isoften linked to unexplained deaths of animals andstrange or new human ailments Moreover the oilinfrastructure such as oil roads wells and pipesare frequently blamed for disrupting the means oflivelihoods of local people as well as destructionof property

Source ECOS

170 ECOS 2014 Ibidem171 ECOS 2014 Ibidem

64

LIVING IN FEAR

Lundin Oil Consortium facing war and violencein their work territory

In 2010 the European Coalition on Oil in Sudan (ECOS)requested an investigation on the activities of the LundinGroup and its connection with the conflict in Sudan and thepossible ldquocomplicity in the commission of war crimes andcrimes against humanityrdquo172 During the Second Civil War in1997 a consortium of oil companies led by the Swedish oilcompany Lundin Oil AB (ldquoLundinrdquo) signed a contract withthe Government for the exploration of oil in the concessionarea called Block 5A that was not at that time under fullGovernment control The other members of the Consortiumwere Petronas Carigali Overseas Sdn Bhd (ldquoPetronasrdquo) fromMalaysia OMV (Sudan) Exploration GmbH (ldquoOMVrdquo) fromAustria and the Sudanese state-owned oil company SudapetLtd

Before the start of explorations the area around Block5A was relatively peaceful When the oil exploration startedthe escalation of violence and war followed suit173 Accordingto the European Coilation on oil in Sudan Block 5A ldquobecamethe scene of intense fighting and gross human rightsviolations as soon as the Lundin Consortium started oilexploration activities on the groundrdquo Right from thebeginning there are reports of significant war and violence

172 ECOS 2010 Unpaid debt The Legacy of Lundin Petronas and OMV inSudan 1997-2003 Press Release httpwwwecosonlineorgreports2010Press_release_UNPAID_DEBT

173 ECOS 2010 Unpaid debt The Legacy of Lundin Petronas and OMV inSudan 1997-2003 httpwwwecosonlineorgreports2010UNPAID_DEBT_textonlywebpdf

65

3 SOUTH SUDAN THE OIL WAY

where villages and towns were burnt and looted Tens ofthousands of people in Block 5A were also moved out fromthe exploration areas

In 1999 the Lundin Group discovered major reserves ofoil This accelerated the Government desire to control allthe areas surrounding the well and the infighting intensifiedLundinrsquos explorations in Block 5A had to be suspended twicedue to insecurity174

The consequences of all the violence towards thepopulation which were in the middle of the power battlefor controlling Block 5A were severe abuse of all humanrights and war crimes More than 10000 people were killedalmost 160000 displaced with thousands of peoplepermanently uprooted from their villages hundreds ofthousands of cattle lost or looted destruction of churchesschools markets medical clinics and many otherincalculable moral damage and inmense loss of income175

Talisman Energy accused of complicity with forceddisplacements

A Canadian company Talisman Energy which at that timewas considered to be the largest independent oil and gascompany in Canada has been accused of indirectly helpingto exacerbate the war and of being complicit in human rightsabuses and crimes against humanity176 Talisman has a 25

174 HRW 2003 Ibidem175 ECOS 2010 Unpaid debt Ibidem See also Medecins sans frontieres

2002 Violence health and access to aid in Unity Statewestern uppernile Sudan httpwwwdoctorswithoutbordersorgsitesusafilessudan_04-2002pdf

176 Africa files 2000 Corporate immunity for oiling repression Talismanin Sudan httpwwwafricafilesorgarticleaspID=621

66

LIVING IN FEAR

stake in the Greater Nile Oil Project Company (GNOPC) aninitiative located in south-central Sudan with threeadditional partners the national petroleum company ofChina (40) the national oil company of Malaysia (30)and the national petroleum company of Sudan (5)177

There were many allegations that people were forcefullydisplaced in the area of the oil field ran by Talisman UNreported that accusations were made on Talisman of ldquobeingaccomplice of human rights abuses in Upper Nile so as toguarantee security for its oil operationsrdquo178

Moreover a report from the Canadian Foreign AffairsMnistry ndashthe Harker Report ndash which undertook a mission toSudan described with concern that fighting was intense inthe areas of oil development in general and that oilextraction may have contributed to relocation of civiliansby force179

Violence and the fear of it impact immediatelyon the peoplersquos use of the land and result in foodinsecurity which in turn propels movement ordisplacement

Contradicting that oil is at stake in the displacement issueTalisman explained that displacement was a result of an inter-tribal issue Once again the Harker report concluded thatthe displacement was because of oil

177 Africa files 2000 Ibidem178 UN Security Council 2000 Interim report of the Special Rapporteur of

the Commission on Human Rights on the situation of human rights inthe Sudan A55374

179 Canadian Ministry of Foreign Affairs 2000 Human Security in SudanThe Report of Canadian Assessment Mission httpwwwecosonlineorgreports2000Human20Security20in20Sudanpdf

67

3 SOUTH SUDAN THE OIL WAY

ldquoFor Talisman so very much seems to be explained as merelyan inter-tribal problem but displacement has gone on andis still going on and in Ruweng County it is hard to denythat displacement is now and has been for some timebecause of oilrdquo180

Talisman Energy decided in 2002 to end its controversialfour-year investment in Sudan by selling its 25 percent stakein the Greater Nile Petroleum Operating Company to anIndian firm Most of the rumours is that the reasons for thiswas the strong pressure from the US particularly to end itswork in Sudan in order to stop indirectly supporting theGovernment in Sudan with its oil revenue181

The oil way developing what

Sharing the wealth with the Sudanese people The resourcecurse again

As said before 98 of the governmentrsquos revenue comesfrom oil production royalties and South Sudan sits on thethird-largest oil reserves in Africa182 It was estimated in 2011that South Sudan controlled 75 of the overall oil productionof Sudan and South Sudan altogether ndasharound 500000barrels per day However South Sudan remains dependenton the North for processing refinement and export to theRed Sea

180 Canadian Ministry of Foreign Affairs 2000 Ibidem181 New York Times 2002 Talisman to sell its stake in company in Sudan

httpwwwnytimescom20021031businesstalisman-to-sell-its-stake-in-company-in-sudanhtml

182 Africa Business Initiative 2011 Investment climate upate Sudanhttpswwwuschambercomsitesdefaultfileslegacyinternationalafricafiles16920_AfricaNewsletter_Sudanpdf

68

LIVING IN FEAR

Paradoxically South Sudan is considered a fragile StateSitting on oil as has occured to many other countries acrossAfrica and abroad does not guarantee wealth for the majorityof the population A 2013 report concluded that ldquoover thelast decade Sudan has been the largest recipient ofhumanitarian assistance by some distance receiving US$106 billion over the periodrdquo183 90 per cent of the populationearn less than a dollar a day184

Oil money through the State budget is expected to serveto finance all the key governmental activities of the Statesuch as agriculture health infrastructures and educationDespite the fact that the benefits from oil are substantialthere are numerous questions arising about the destiny ofall the oil money For instance how could it be explainedthat one of the sectors more financed is the military andsecurity apparatus Since South Sudanrsquos independence theGovernment has allocated 38 of oil revenue to the militaryand security services with only 10 and 7 ininfrastructures and education respectively185 In 2012 SouthSudan was the among top 8 African countries having militaryexpenditure of almost $1 billion186 For instance TheEconomist reports that South Sudan bought 100 Ukrainian

183 Global humanitarian assistance 2013 Global humanitarian assistancehttpwwwglobalhumanitarianassistanceorgwp-contentuploads201307GHA-Report-2013pdf

184 Kebede 2014 The role of oil in South Sudanhttpswwwruoruottawacabitstream10393315631KEBEDE20Solomon2020145pdf

185 The Guardian 2014 South Suan is divided by the spoils of oil notethnicity httpwwwtheguardiancomcommentisfree2014jan14south-sudan-divided-oil-ethnicity-violence

186 LAVDC 2014 Les quatre puissances militaires regionales dacuteAfriquehttpwwwlavdcnetportailles-quatre-puissances-militaires-regionales-dafrique

69

3 SOUTH SUDAN THE OIL WAY

T-72 tanks187 At the same time agriculture and livestock hasbeen completely neglected despite the fact that more than80 of the population depend on that sector for fulfiliingtheir basic needs

Where the money goes

Daniel Wuor Joak former MP in South Sudan LegislativeAssembly and Minister of Education Science and Technologyin Upper Nile State claims that between 2005 and 2014both the Government of South Sudan (GOSS) and theRepublic of South Sudan (RSS) have been receiving onaverage not less than two billion of USD per year Somehave already manifested the unclarities over the destiny ofall that money as described by Mr Wuor Joak

Since 2005 upwards both the GOSS and RSS havebeen receiving no less than 18 billion USD in oilrevenues without implementing any majordevelopmental projects like roads network linkingdifferent States in South Sudan conducive learningschools from basics to universities level referralmedical facilities clean drinking water in remoteareas throughout the country setting up vibrantand credible institutions which can adhere to rulesof law All these things have not been implementeddue to poor system of governance under leadershipof Salva Kiir Mayardit Most of the counties have

187 The Economist 2014 Arms and the African

70

LIVING IN FEAR

no roads linking them with their State capitals andlack schools health centres clean drinking wateretc South Sudanese population in the rural areasthroughout the country are still living in the sameconditions as they were under Khartoumrsquos rule interms of scarcity of development188

Speaking more directly Kebede made firm remarks aboutthe overall situation in South Sudan

In general poverty corruption bad governance andviolence characterized the resource curse in SouthSudan A relatively small group of elite capturesvast wealth while leaving much of their societywithout access to the minimum resource necessaryfor long term wellbeing As a result South Sudanremains one of the worldacutes least-developedcountries despite its oil (hellip) hellipmuch of the oilrevenue has been squandered189

188 Wuor Joak 2014 Major Causes of the Current Conflict in Sudan SouthSudan News Agency

189 Kebede 2014 The role of oil in South Sudanhttpsw w w r u o r u o t t a w a c a b i t s t r e a m 1 0 3 9 3 3 1 5 6 3 1 KEBEDE20Solomon2020145pdf

71

3 SOUTH SUDAN THE OIL WAY

Even before the current tensions Bentiu saw little benefitfrom oil The streets are unpaved and covered with trashelectricity is scarce reserved for those with privategenerators () Most expect more violence Bentiu hasbecome more militarized with armed soldiers placed atcheck points and at the bridge Troops are constantlymoving to the front Weapons are being flown into theairport

ldquoThe oil is a curse ldquoMohammed Abdurahman Kili 56mumbled from his hospital bed his body covered withburns He was inside his shop in a crowded market onthe edge of town when a Sudanese warplane attackedkilling a 9-year-old child and another person and settinghis shop on fire

Washington Post 2012

President Salva Kiir recognized in 2012 that corrupt officialshad stolen from the people of South Sudan and the amountlost or taken by lead government and military officials mightbe as much as $4 billion190 Kiir sent a letter to 75 SouthSudanese officials or individuals close to the governmentasking them return all the amount lost The letter describedin general terms how the money got ldquolostrdquo

An estimated $4 billion are unaccounted for orsimply put stolen by current and former officialsas well as corrupt individuals with close ties togovernment officials Most of these funds have beentaken out of the country and deposited in foreignaccounts Some have purchased properties oftenpaid in cash191

190 Ibidem191 Paanluel Wel South Sudanese bloggers httppaanluelwelcom2012

0601letter-from-president-kiir-on-corruption-4-billion-dollars-stolen192 Sudan Tribune 2013 South Sudanacutes Kiir accuses army of corruption

72

LIVING IN FEAR

A year later Kiir accused the armed forces of being corruptHe said that despite the big budget allocations made to thearmy there were even no ldquovehicles to transport soldiers onmissionsrdquo192 Two years later the issue remained unclearand the names of the officials referred to in the letter wereyet to be disclosed However Kiir accused Machar of beingresponsible for a lot of corrupted activities in the country193

Machar responded to Kiir by saying that his claims wereunfounded and then also accusing him of such practices194

It seems South Sudan epitomises all the features of theresource curse argued in Chapter 1195 How can the corruptionbe prevented How can the money go to the people It isalso important to note that the oil sector provides littleemployment to the people of South Sudan Most of thehousehold income and employment is generated in theagriculture and farming sector primarily196 Would investingin other sectors like agriculture that provide real wealth tothe people make a difference

193 Sudan Tribune 2014 South Sudan rebel leader should face corruptioncharges Kiir

194 Sudan Tribune 2014 South Sudan Macharacutes Rebentildes dismiss corruptionaccusations no spiritual powers httpallafricacomstories201407221384html

195 Kebede 2014 The role of oil in South Sudan Ibidem196 Tizikara et al 2012 Post-conflict development of Agriculture in South

Sudan perspective on approaches to capacity strenghtening httpwwwerailsnetimagesfarasecretariatkigali-movementfileKigali20MovementPost-Coflict20Agriculture_South20Sudanpdf

73

3 SOUTH SUDAN THE OIL WAY

Environment

As experienced in oilfileds in other parts of the world the oilfields here are also leaving a significant impact on theenvironment and local communities A three year study inThar Jath and Mala fields in Unity State show thatgroundwater is very polluted making the water unsafe forhuman consumption197 The study made by a team of SouthSudanese and German geologists concluded that water usedby 180000 people was too salty to drink and containdangerous amounts of heavy metals198

In many occasions the oil fields that causeenvironmental pollution are even abandoned due to the warSome observers identified that oil pipelines damaged duringthe conflict were leaking199

South Sudan must produce for its needs

In 2015 the Minister of Finance of South Sudan David DengAthorbei made a statement saying that the country shouldbe self-sufficient in agriculture terms and in addition itneeds to increase its non-oil revenue and to achieve peace200

197 Rueskamp et al 2014 Effect of oil exploration and production on thesalinity of a marginally permeable aquifer system in the Thar Jath-Mala- and Unity Oil fields Southern Sudan Zbl Geol Palaont Teil IJ

198 Radio Tamazuj 2015 Study Direct link between oil exploration andwater pollution in Unity httpsradiotamazujorgenarticlestudy-E28098direct-linkE28099-between-oil-exploration-and-water-pollution-unity

199 Star Africa 2014 South Sudan Oil leaks cause pollution fears httpenstarafricacomnewsssudan-oil-leaks-cause-pollution-fearshtml

200 Bloomberg 2015 South Sudan Finance Minister says food output canoffset oil httpwwwbloombergcomnewsarticles2015-01-20south-sudan-finance-minister-says-food-output-can-offset-oil-1-

74

LIVING IN FEAR

He also made a call for a reduction of the countryrsquos relianceon agriculture imports particularly in the context of aneconomy affected by the plunge in global oil prices201

Peter Biar Ajak from the Center for Strategic Analysis andResearch in Juba illustrates the macroeconomic weaknessesof South Sudan today because of its oil dependence

South Sudanrsquos oil-dependent economy is nearingcatastrophe The production of crude oil has droppedby about 35 percent since the conflict began Thatcombined with a drop of roughly 45 percent in globaloil prices since the summer has meant a substantialreduction in the governmentrsquos oil revenues andenormous fiscal and budgetary ressures

Since South Sudan exports almost nothing asidefrom oil and imports almost everything else tradeand monetary policy have also been buffeted byfalling oil revenues Access to foreign currency hasbecome extremely limited The prices of manyimported goods have risen There are shortages ofpetrol which must be imported because SouthSudan has no refinery202

Indeed a dynamic agriculture sector may be key for peaceand development in South Sudan More than 95 of thecountryrsquos population is dependent on farming fishing orherding to meet their daily food needs and income as well203

201 Bloomberg 2015 Ibidem202 Biar Ajak 2015Sanctions for peace in South Sudan The New York Times

January 7th203 FAO in emergencies httpwwwfaoorgemergenciescountries

detailenc147627

75

3 SOUTH SUDAN THE OIL WAY

204 Business Daily 2011 South Sudanrsquos vast agricultural sector potentialuntapped

205 Norwegian Refugee Council 2015 Conflict a cause of hunger in SouthSudan httpreliefwebintreportsouth-sudanconflict-cause-hunger-south-sudan OCHA 2015 South Sudan Crisis Situation reportn 74 httpreliefwebintsitesreliefwebintfilesresourcesSouth_Sudan_Situation_Report_No_74pdf

206 OECD 2014 Fragile States 2014 Domestic revenue mobilisation infragile states httpwwwoecdorgdacgovernance-peaceconflictandfragilitydocsFSR-2014pdf

South Sudan has good soil and climatic conditions and morethan 70 of its land area is suitable for crop productionThere are many that believe that the investment in theagriculture sector has more potential than oil however thisthinking has not received due attention from local andforeign investors204 Efforts towards making agriculture workare vital for peace and stabililty in the country It is urgentlyneeded to work on this area particularly when at presentthere are 25 million in Sudan at risk of starvation205 andaround one third of the population are food insecure plusmore than a million displaced

The dependency on income from natural resourcesleaves fragile states vulnerable It exposes them toshocks in commodity prices ndash as demonstrated bythe sudden fall in commodity prices in 2009following the 2002-2008 boom Neither is it asustainable source of incomeSouth Sudanrsquos oilproduction for instance is projected to decreasesteadily in future years and become negligible by2035

Source OECD206

76

LIVING IN FEAR

207 UN Security Council 2015 Resolution 2206 SRES2006(2015)httpwwwunorggasearchview_docaspsymbol=SRES2206 (2015)

208 Sudan Tribune 2015 South Sudan unhappy with US support for sanctionshttpwwwsudantribunecomspipphparticle54232

209 Washington Post 2014 US appears unable to pull South Sudan backfrom the brink of civil war httpwwwwashingtonpostcomworldus-appears-unable-to-pull-south-sudan-back-from-the-brink-of-civil-w a r 2 0 1 4 0 5 0 3 d 9 2 8 0 b d a - 3 8 6 b - 4 2 4 9 - 9 4 e 0 -b5292610e5bb_storyhtml

210 Ibidem

US fallen dream

In 2015 the UN imposed a travel ban and assets freeze againstindividuals or entities which engaged in or provided supportfor acts that threaten peace security and stability of SouthSudan207 The US was behind the draft and the submission ofthe resolution This resolution prompted an angry reactionfrom the South Sudanese The South Sudanese presidencywas said to be extremely disappointed about the US ledmove208

In the past the relationship between the US and SouthSudan was completely diferent The United States was themain promoter and supporter of the worldrsquos newest nationThe Washington Post for instance asserted that ldquoSouth Sudanowes its existence to the United Statesrdquo209 The expectationscreated were high before its started its independence andsome believed that Sudan would be able to manage thecountry breaking the so-called ldquoAfrican model of pettyrivalries corruption and oppressionrdquo210 Despite all the hopesput on the young nation as of today no solution has beenfound to the ongoing war

77

3 SOUTH SUDAN THE OIL WAY

The US was the largest donor to Sudan in the years priorto independence providing 339 of the total aid to Sudanbetween 2000 to 2009211 The United States (US$472million) was the largest donor of humanitarian assistanceto South Sudan in 2012 followed by the United Kingdom(US$96 million)212 For many years Sudan was the thirdlargest recipient of US aid only after Iraq and Afghanistan213

The inteligence and information systems of theAmericans on the ground in Sudan seemed to have beenrelatively good214hellip however how come they did not foreseethat South Sudan was quickly descending once again on theavenue of a country at civil war For instance the problemsbetween President Salva Kiir and his deputy were not newAlready more than two years before the civil war started inJune 2011 in a speech in Juba the President accused hisDeputy Riek Machar ldquoof running a parallel governmentwithin the governmentrdquo215 Couldnrsquot they have preventedanother conflict Why did they fall into ridiculouscontradictions as the one recently revealed via wikileakssuggesting that the US was funding both armies in

211 Development initiatives (undated) Sudan Aid Factsheet 1995-2009httpwwwglobalhumanitarianassistanceorgwp-contentuploads201102Sudan-Aid-Factsheet-2011pdf

212 See global humanitarian assistamce ebpage httpwwwglobalhumanitarianassistanceorgcountryprofilesouth-sudan

213 The Atlantic 2011 US played key role in Southern Sudanacutes longjourney to Independence

214 The Global Intelligence files 2013 SudanUSMIL ndash SPLA trying toget US to hook it up httpssearchwikileaksorggifilesviewemailid=5047664

215 Sudan Tribune 2011 Salva Kiir exposes his rift with Machar overSouth Sudan transitional constitution httpssearchwikileaksorggifilesviewemailid=3831682

78

LIVING IN FEAR

contention the Government force of Salva Kiir and the rebelsof Riek Machar216 Why are both paid by the UShellip to dowhat As one reporter questioned why are they ldquopaid tokill each otherrdquo217

216 RT 2015 US officials tussle over arms embargo sanctions in oil-flushSouth Sudan httprtcomusa226387-south-sudan-sanctions-war

217 RT 2015 Ibidem

Seven Million

ldquoA peaceful DR Congo could transform Africa almostovernight but is there a way outrdquo218

There is always a way out However peace is not an easything particularly under certain circunstances When youhave lost your father your mother your uncle your sisterwhat else can you lose Can you still believe in peaceTwoof the bloodiest conflicts in recent decades in the world haveoccurred in Africa The Second Civil War in Sudan has leftaproximately two million casualties and the conflict in DRCis estimated to have snuffed life out of no less than fivemillion people

How many more

How does one begin to quantify the dead when they are inthe hundreds of thousands No less than seven million livesof Congolese and South Sudanese were taken away due towars and conflicts fuelled by natural resources How many

218 African Business 2009 DR Congo $24 trillion fortune

4

79

80

LIVING IN FEAR

more How many more before the world wakes up to acteffectively towards ending all those conflictsProbably unless you are one survivor from those experiencesyou would never be truly able to understand what it meansto lose entire families and friends you would never be trulyable as well to understand what it means to feel fear foryour life and the life of your close relatives

When you start counting sometimes you forget thatpeople are not numbers There are names behind thenumbers A family A life As we write this book people aredying needlessly in the DRC and in South Sudan Calculatingdead people due to conflicts in this part of the world is verydifficult due to statistical challenges and so it is conceivablethat probably the number of victims is much larger than sevenmillion (7000000) When would the volume of bloodshedthe number of lives taken be enough for the belligerentofficials to make real peace How many more should fallAthousand more Another one million The pain sadness anddestruction that those conflicts generate should not beaccepted any more

Oil and minerals the main cause of ongoingconflicts and war

Some authors argue that minerals and oil are not a cause ofwar but ldquocompetition for them could amplify and expediteconflictrdquo219 In this book as chapter two and three haveshown oil and minerals are the main motor behind theconflict in recent decades in DRC and South Sudan It would

219 UN Security Council 2013 Natural resource wealth fails to translateinto equivalent benefits for people fuelling conflict to instability DeputySecretary-General tells Security Council httpwwwunorgpressen2013sc11037dochtm

81

4 SEVEN MILLION

be very difficult if not impossible to expect those conflictsif their territories were resource poor Oil and minerals arefull of blood An activist poet wrote We Thought it was Oilbut it was Blood220 Although he was writing about the NigerDelta situation we see a universal application in that phrase

In both countries described there were other elements andfactors to take into consideration however it can be saidthat control over natural resources was the most importantcause on both conflicts in DRC and South Sudan In bothcases oil and minerals fuelled those wars and in manyoccasions these resources have inspired fueled and sustainedarmies operating in the territories of both countries

A Statersquos wealth means nothing if not shared withthe majority of the population

DRC and South Sudan ought to be wealthy countriesUnfortunately having a wealth of natural resources doesnot mean that it belongs to the citizens or that the wealthwould be shared among the population of a given State AState is a nation or territory considered as an organizedpolitical community under one government221 A goodgovernment should be the one that takes care of its citizensand shares the wealth among its citizens and not justdistribute it among an elite Jan Eliasson Deputy Secretary-General of the United Nations stated that ldquoin too manycountries a wealth of resources including timber oil coaldiamonds and precious metals failed to translate into

220 Nnimmo Bassey 1998 We Thought it was Oil but it was Blood IbadanKraft Books

221 See httpwwwoxforddictionariescomdefinitionenglishstate

82

LIVING IN FEAR

equivalent wealth for the people Only a powerful fewbenefitrdquo222

The State is expected to perform an adequateimplementation of human rights granted by several UNdeclarations and conventions including the right to foodright to health right to shelter right to clothing right towork farmersacute rights etc Paradoxically the violations andabuses of human rights have been constant in DRC and SouthSudan Both countries have suffered from acts of war oncivilian population both have as well a large number ofdisplaced people with no access to food without healthcarewithout shelter and without any work Both countries havemore than 90 people living below one dollar per day andthey are considered among least developed countries andfragile states Due to this both are some of the biggestrecipients of humanitarian aid Moreover both have hugesecurity problems shown for instance by the presence ofUN peacekeeping operations Out of the 17th worldwideongoing peacekeeping UN operations three are in DRCSouth Sudan and in Abyeia disputed territory between Sudanand South Sudan

They possess resources that have a huge monetary valueand that in most cases have the involvement of foreigncountries and corporations and other stakeholders of theprivate sector which are ready to pay enormous sums ofmoney to gain control of the natural resources belonging toother countries If no war or significant armed conflict takes

222 UN Security Council 2013 Natural resource wealth fails to translateinto equivalent benefits for people fuelling conflict to instability DeputySecretary-General tells Security Council httpwwwunorgpressen2013sc11037dochtm

83

4 SEVEN MILLION

place common elements among those countries that possesssuch resources in Africa is the existence of massive povertyand corruption and in most cases this is contrasted withmega-rich individuals Letacutes take for instance the case ofoil-rich Angola where the president and his daughter possessmultibillionaire fortunes while at the same time the majorityof the country population is living on less than two dollarsper day223

Greed power and control over natural resources

It must be noted as well that often oil and minerals involvemillions and multibillion profits With such large sums ofmoney greed power and control take the driving seat ofwhatever country government in the world When theprospects for such money flow arrives many leaders andelites start distancing themselves from the majority of thepopulation and stop thinking about the welfare of their ownpeople

At the centre of most of the conflicts in both countriesare struggles for power and control of natural resourcesMinerals and oils are the main cause of the ongoing conflictsand wars Unfortunately most commentators qualify therecent civil war in South Sudan as a ldquopower strugglerdquo withoutfurther qualifications In South Sudan who gets the oil getsthe power Therefore the power struggle is a war overnatural resources for control of the oil in the country Areporter affirmed that ldquowhoever controls South Sudanrsquos oiltherefore could seize the upper hand in the battle for

223 Forbes 2013 Daddyacutes girl how an African ldquoprincessrdquo banked $3 billionin a country living on $2 day httpwwwforbescomsiteskerryadolan20130814how-isabel-dos-santos-took-the-short-route-to-become-africas-richest-woman

84

LIVING IN FEAR

224 France 24 2013 Battle for oil adds new dimension to South SudanConflict httpwwwfrance24comen20131227-battle-oil-adds-new-dimension-south-sudan-conflict

225 OECD 2014 Fragile States 2014 Domestic revenue mobilisation infragile states httpwwwoecdorgdacgovernance-peaceconflictandfragilitydocsFSR-2014pdf

powerrdquo224 In both countriesrsquo non-renewable natural resourcetook a dominant share of the fiscal revenue of DRC andSouth Sudan ndash 82 in the DRC and 98 in South Sudan225

Who controls those resources controls the countryThe case of South Sudan where the president has

recognized the disappearance of $4 billion by corruptindividuals is compelling President Salva Kiir pinpointed thespirit behind the rot ldquoOnce we got to power we forgot whatwe fought for and began to enrich ourselves at the expenseof our peoplerdquo This might also include him as well becauseit is difficult to imagine that such huge amount of money couldbe stolen without the leader noticing anything at all

Greed for minerals and oil is at the heart of the massivedeath toll and impoverishment of the Congolese and SouthSudanese people in recent decades It can be affirmed quitecomfortably that if the Eastern part of the DRC would havenot sat on huge mineral reserves it would be very difficultto imagine all the conflicts that have occurred in that zoneIt can be affirmed as well that without oil ongoing wars inSouth Sudan might most probably never have occured

Peace is the only way forward

Achieving peace is a complex issue To create peace thereare many issues to resolve with all stakeholders such as

85

4 SEVEN MILLION

mutual accusations of support to rebel groups226 goodgovernance transparency demobilisation and disarmamentof local militia etc227

A positive but vital first step is that there are calls at veryhigh levels in both countries and at international fora Thismust be followed with open debate on the core causes of theconflict and ways of achieving reconciliation It does notappear that lasting peace can be achieved otherwise In thatprocess the people need to be put at the centre ofdevelopment policies and actions in both countries in orderto stop the plunder reverse environmental degradation andfight poverty As long as the political military and corporateelite maintain their control of the natural resources of thecountry the devastating plunder will continue to the benefitof only such elite and a handful of corporations

226 UN Security Council 2015 Reports of the Secretary-General on theSudan and South Sudan SPV7392

227 The Guardian 2014 South Sudan is divided by the spoils of oil notethnicity httpwwwtheguardiancomcommentisfree2014jan14south-sudan-divided-oil-ethnicity-violence

INDEX

AAbyei Joint Oversight

Committee (AJOC) 47Abyei Police Service 46 62Abyei 43-home of the Ngok Dinka 43

45Africa 18 20 see minerals

-and wars at the greatlakes 20 25-armed groups in 26-criminal networks in 26-death in 20-exploitation naturalresources in 18-militias in 26-minerals in 20-poverty in 20-wealth in 20

Africarsquos wealth 14-and resource curse 14-blessing or curse 14

African Business 22African Development Bank

(AfDB) 16 17

African Unionrsquos (AU) Peaceand Security Council 48

Algeria 15Allied Democratic Forces

(ADF) 25 28-in North Kivu 25

American Mineral Fields(AMF) 36

AngloAmerican corporation35

AngloGold Ashanti 35Anvil Mining 36Armed Forces of the DRC

(FARDC) 26Athorbei David Deng 73Auty Richard 14

BBBC 18Blom Ulrika 59Blue Nile 45

CCentral African Republic 7China National Petroleum

Corporation 49

86

INDEX

87

Citibank NY 36Clinton Bill 24 36Conflict minerals 30 see

Rwanda-legitimate exports of 30-smuggling of 30

Conflicts 7-and natural resources 7-causes of 10 80-uniqueness of 10

Congolese Government 18

DDemocratic Republic of

Congo (DRC) 7-85-and (MONUC) 29-greed for minerals in 32-UN peacekeeping opera-tion in 29

Diffra oil complex 47DR Congo 79

EEastern Congo 28

-insecurity in 28Eliasson Jan 81

-Deputy Secretary-Generalof the United Nations 81

European Coalition on Oil inSudan (ECOS) 63

Exploration GmbH (OMV)64

Exxon corporate 15

FFirst Sudanese Civil War 42Forces deacutemocratiques de

libeacuteration du Rwanda(FDLR) 28

GGabon 18

-oil in 18Gertler Dan 12 13Ghana 18

-oil in 18Giambrone Antonino 38Glencore Anglo-Swiss 35Government of South Sudan

(GOSS) 69Government of Sudan (GoS)

62Great War of Africa 23Greater Nile Oil Project

Company (GNOPC) 6667

Guinea Equatorial 15

HHague 44Permanent Court of Arbitra-

tion in 44Human Rights Watch 55

IIMF 22International Rescue Commi-

ttee 23

LIVING IN FEAR

88

JJoak Daniel Wuor 69Juba 74

-Center for StrategicAnalysis and Research in74

Katanga Minister of Planning22

KKenya 19Kerry John 24Kiir Salva 43 84

LLibya 7Lumumba Patrice 13 20Lundin Oil Consortium 63

MMachar Riek 43 57 77 78Madagascar 16Mala fields 73Malakal 59Mali 7Mayardit Salva Kiir 69McKinney Cynthia Ann 23

-US Congresswomanfrom the Democratic Party23

McMurrough Mike 36McNamara Robert 37

-as World Bank President37

Minerals 20 see Africa-and death 20

-and poverty 20-and wars at the GreatLakes 20-and wealth 20

Mozambique 18-gas in 18

Muloni Irene 18

NNationalist and Integrationist

Front (FNI) 36Natural resources 8 83 see

conflicts-and conflict 8-and greed 83-and power 83-and wars 8-control over 83

Niger Delta 16-oil is a curse for 16

N o n - g o v e r n m e n t a lorganisations (NGOs) 12

Non-OPEC African oilproducer 48

Norwegian Refugee Council59

OOECD Guidelines for

Multinational Enterprises37

Oil 48-and geopolitics 48

PPeace 84

INDEX

89

-as way forward 84Petronas Carigali Overseas

Sdn Bhd (Petronas) 64Powell Colin 58PR Newswire 30President Kabila 24President Obama 24

RRDC Mining Code 35Republic of South Sudan

(RSS) 69Rio Tintorsquos QMM 16Ruweng County 67Rwanda 24 31

-conflict minerals from 31

SSecond Congo War 24 32

34Second Sudanese Civil War

42Somalia 7South Kordofan 45South Sudan Civil War 57South Sudan 11 18 19 41

-Dinka ethnic group in 4357-Nuer ethnic group in 4357the oil way 41-UN peacekeeping opera-tions 61

South Sudanese Civil War 58Sudan 79

-Second Civil War in 79

Sudan Armed Forces 46Sudan oil police 47Sudan Peoplersquos Liberation

Army (SPLA) 41 46 5462-civil wars and conflict in41

Sudan vs South Sudan 43-and Heglig battles 47-and peace agreement 43-main oil companies in 51-oil-centered conflict 46-Row over oil tariffs 51

Sudanese Civil War 52-and Addis AbabaAgreement 53-and Islamic law 53-causes of 52

Swedish oil company LundinOil AB (Lundin) 64

TTalisman Energy 65Thar Jath 73Transnational Corporations

(Tncs) 34-and the private sector 34

UUganda 19 24UN Interim Security Force for

Abyei (UNISFA)UN Mission in the Republic of

South Sudan (UNMISS)61 62

UN Organization Stabiliza-

LIVING IN FEAR

90

tion Mission in the DRC(MONUSCO) 29

UN peacekeeping operations11

UN Security Council 11UNICEF 59UNISFA 47United Nations Office of the

Special Adviser on Africa(OSAA) 8

United Nations SecurityCouncil 25

United Nations 13University of California

(UCLA) 54 55Upper Nile State 59 69US fallen dream 76

VVirunga National Park 18

WWar and conflict 58

-consequences of 58Wars and minerals 21

-cobalt 22-coltan 22-copper 22-diamond 22-gold 22-manganese 22-peace at last 21-timber 22-tin 22-zinc 22

Wau Shilluk 59We Thought it was Oil but it

was Blood 81Wealth 12 13

-for whom 13-quest for 12

World Heritage site 18Worldwatch 40

Page 12: LIVING IN FEAR - Health of Mother Earth Foundation...Les quatre puissances militaires regionales d´Afrique. 12 LAVDC. 2014. Les quatre puissances militaires regionales d´Afrique

LIVING IN FEAR

14

Africarsquos wealth blessing or curse

The resource curse

In a sea of wealth there are often oceans of povertyResource-rich countries are often accompanied by slowerthan expected economic growth poor economicdiversification gloomy social welfare indicators devastatingenvironmental impacts rampant corruption high inequalityhuge impoverishment bad governance and as said beforewars and conflicts22 This situation has been termed thetheory of ldquoresource courserdquo which term was used first in1993 by Richard Auty23 In 1995 the theory of the ldquoresourcecurserdquo was popularized thanks to an article of Sachs andWarner24 Both authors showed in their paper that ldquoeconomieswith a high ratio of natural resource exports to GDP in 1971tended to have low growth rates during the subsequentperiod 1971-1989rdquo From there a vast number of literaturehas been written on this matter and is divided between thosethat believe exploitation of natural resources is a curse andthose that believe that it can promote growth and

22 Mildner et al 2011 lsquoScarcity and abundance revisited a literaturereview on natural resources and conflictrsquo International Journal ofConflict and Violence Vol 5 Karl 2005 lsquoCovering oil a guide toEnergy and Developmentrsquo Understanding the resource curse opensociety institute

23 Time 2010 Brief history the resource curse httpcontenttimecomtimemagazinearticle09171199746000html

24 Sachs and Warner 1995 lsquoNatural resources and economic growthrsquoHarvard Institute for International Development

15

1 THE QUEST FOR WEALTH

development in developing countries25 Others for instanceprefer to use different terminology like Exxon corporatewhich has said ldquowe donacutet like to call it the oil curse weprefer governance curse We are private investors and it isnot our role to tell governments how to spend their moneyrdquo26

Africarsquos wealth

Africa is full of natural resources and there are manycountries considered as having a huge wealth Oil gasminerals timber fertile land water are often mentioned asthe riches of the continent However oil and minerals arethe favourites of some of the top leaders of the continentAngola with oil and diamonds Nigeria with oil GuineaEquatorial with oil Algeria with plenty of oil and gasdeposits DRC with minerals and South Sudan with oil justto name some of them

Many would think that all those States with lots of oiland mineral are very wealthy The truth is that although theStates are wealthy the countries are paradoxically full ofpoverty and their populations are not benefiting from thoseresources Moreover in many cases the wealth derived from

25 Pedro (undated) lsquoMainstreaming mineral wealth in growth andpoverty reduction strategiesrsquo Economic Commission for Africa PolicyPaper Ross 1999 lsquoThe political economy of the resource cursersquoWorld Politics n51 Hodler 2004 lsquoThe curse of natural resourcesin fractionalized countriesrsquo Economic department University ofBern SwitzerlandSwilling 2012 lsquoBeyond the resource curse fromresource wars to sustainable resource management in Africarsquo Paperpresented at the Winelands Conference on Integrity and GovernanceStellenbosch Pendergast et al 2008 lsquoCorruption and the curse ofNatural resourcesrsquo Department of Economics University of VictoriaDavis 2012 Replicating Sachs and Warner the 1997 Working PaperColorado School of Mines Neumayer 2004 Does the resource cursehold for growth in genuine income as well World Developmentvol 32

LIVING IN FEAR

16

oil and minerals mostly fuel wars and conflicts While somedie while some are displaced while some are injured orrape Some on the contrary are making money lots andlots of money hellip and while they make money they just puta blind eye on the horrors occurring outside the fence Thisis well described in the Harker report on the Sudanese warand the role of oil corporations ldquoIf the oil companies donrsquotknow whatrsquos going on theyrsquore not looking over the fencesof their compoundsrdquo27

Although some may believe that the importance of theoil and mineral sectors is the creation of jobs for thepopulation this has been denied by several authors

The oil gas and mining sectors are notoriously poorwhen it comes to job creation An offshore platformtapping deep-sea reserves will create few if anypositions for locals Only recently protests werereported outside Rio Tintorsquos QMM mineral sandsoperation in the south of Madagascar due to highlocal unemployment The best way to convertnatural resource wealth into jobs is to take theproceeds and invest in other more labor-intensiveindustries such as agriculture or manufacturing28

Nigeria provides a good example where communities living inthe Niger Delta have not benefited from oil extraction whichon the contrary has created serious conflicts as seen in Box 1

On the question of whether oil is a blesssing or a curse toAfrica the African Development Bank concluded that it is a

26 The Economist 2005 lsquoThe paradox of plentyrsquo27 Canadian Ministry of Foreign Affairs 2000 Human Security in

Sudan The report of Canadian Assessment Mission httpw w w e c o s o n l i n e o r g r e p o r t s 2 0 0 0 Human20Security20in20Sudanpdf

28Africa progress panel 2013 Africaacutes mineral wealth eternally cursedhttpwwwafricaprogresspanelorgafricas-mineral-wealth-eternally-cursed

17

1 THE QUEST FOR WEALTH

ldquohuge blessingrdquo29 It justifies that with the following analysis

We estimate that Africa has 120bn barrels of oilreserves no less than half of Saudi Arabia and 600million hectares of uncultivated arable land halfof the world total We at the African DevelopmentBank (AfDB) estimate that the continentrsquos naturalresources will contribute over $30bn per annumin government revenues over the next 20 years30

Box 1 Oil is a curse for the Niger Delta people

Most people think of oil states as wealthy states ButNigeria proves that sometimes the opposite is true It isAfricarsquos leading oil producer and yet it is one of theworldrsquos 20 poorest countries Whatrsquos more the peopleliving in the Niger Delta the countryrsquos oil-producingregion are among Nigeriarsquos most impoverishedcommunities with a large percentage of the populationhaving to survive on less than one dollar a day For thesepeople lsquoblack goldrsquo has not brought prosperity ordevelopment Instead it has increased corruption socialproblems environmental damage and armed conflictThe many billions of US dollars in oil revenue that havepoured into the country during its oil industryrsquos 50-yearhistory have completely bypassed these communitiesSource Petra Hannen 2011 lsquoBlessing our Coursersquo GIZmagazine akzent

29 African Development Bank 2013 lsquoAfricarsquos mineral wealth a blessingor a cursersquo httpwwwafdborgenblogsafdb-president-this-is-africas-hourpostafricas-mineral-wealth-a-blessing-or-a-curse-12336

30 African Development Bank 2013 Africaacutes mineral wealth a blessingor a curse httpwwwafdborgenblogsafdb-president-this-is-africas-hourpostafricas-mineral-wealth-a-blessing-or-a-curse-12336

LIVING IN FEAR

18

Africa continues the exploitation of its naturalresources

Most of the African Governments that discover naturalresources in their territory eagerly move forward with theexploration of those Therefore natural resources areexplored all over the continent oil in Ghana manganese inGabon gas in Mozambique just to name a few Often thereis little consideration of the destruction or the conflicts theseextractive activities bring For instance according to the BBCin March 2015 the Congolese Government consideredmodifying the boundaries of the Virunga National Park homeof gorilla mountains and World Heritage site to permit oilexploration activities31

DRC and South Sudan as well are exploring a joint projectnow DRC has a frontier with South Sudan in the Northeastpart of the country While historically both ndash referring alsoto Sudan ndash did not often have a common grounds after theIndependence of South Sudan in 2011 it appears possiblethat natural resources may unite them more closely IreneMuloni Minister for Energy and Minerals Development fromUganda announced in an interview in February 2015 thatSouth Sudan and the DRC have expressed interest in theconstruction of an oil pipeline of over 1000 km to the Kenyancoast32 Although yet to be implemented there have beendiscussions and plans to construct a pipeline that would unite

31 BBC 2015 DR Congo seeks Virunga park bounary httpwwwbbccomnewsworld-africa-31876577See also New York Times2014 Oil dispute takes a page from Congoacutes bloody past httpwwwnytimescom20141116worldoil-dispute-takes-a-page-from-congos-bloody-pasthtml_r=1

32 Platts 2015 South Sudan DR Congo interested in Ugandan crudeoil export pipeline minister httpwwwplattscomlatest-newsoilkampalasouth-sudan-dr-congo-interested-in-ugandan-crude-26025080

19

1 THE QUEST FOR WEALTH

oil production and distribution in several African countriesincluding South Sudan Uganda Kenya Democratic Republicof Congo (DRC) and maybe others33

The forthcoming chapters will develop more elementsaround this topic in order to conclude some final remarkswith the particular case studies of DRC and South Sudan

33 The Economist 2013 Pipeline poacuteker httpwwweconomistcomnewsmiddle-east-and-africa21578402-east-africa-danger-throwing-away-part-its-new-found-oil

20

LIVING IN FEAR

Minerals and Wars at the GreatLakes Wealth Death and Massive

Poverty in the Heart of Africa

Our internal difficulties tribal war and the nucleiof political opposition seemed to have beenaccidentally concentrated in the regions with ourrichest mineral and power resources We know howall this was organised and in particular whosupports it today in our house

Our Katanga because of its uranium copper andgold and our Bakwanga in Kasai because of itsdiamonds have become hotbeds of imperialistintrigues The object of these intrigues is torecapture economic control of our country

Patrice Lumumba speech in Leopoldville in August 25th1960 34

34 Speech at the opening of the All-African Conference in Leopoldville in1960 See httpwwwassatashakurorgforumshoulders-our-freedom-fighters42970-collected-speeches-writings-patrice-lumumbahtml

2

21

2 MINERALS AND WARS AT THE GREAT LAKES

Lumumba the first democratically elected Prime Ministerof the Republic of Congo gave a speech in 1960 that wasremarkably prescient of the fate of Democratic Republic ofCongo (DRC) today Conflict minerals and ldquotribal warsrdquo gohand in hand in the DRC historyrsquos past decades Lumumbawas planning to get the DRCrsquos related difficulties undercontrol however he was executed a few months after thespeech by a firing squad in January 1961 The US throughthe CIA the United Kingdom through the M16 and Belgiumwere all blamed for their involvement in his death35

Paradoxically ldquothe assassinations were made by the ordersof those who proclaim themselves to be champions ofdemocracy and respecters of human rightsrdquo36 Externalmeddling and intervention in Congorsquos affairs by foreigncountries is another of the concurrent and repeated situationsthat continue in recent history of the DRC37

Wars and minerals peace at last

hellip The heart of Africa is bleeding hellip

Two wars raged in DRC from 1996-1997 and from 1998-2003 Contrary to what some affirm these were not ethnicconflicts but resource wars38 No coincidence that the

35 BBC 2013 M16 and the death of Patrice Lumumba httpwwwbbccomnewsworld-africa-22006446

36 VVAA 1992 Congo (Zaire) Democratie neo-coloniale ou deuxiemeIndependance Ed LrsquoHarmattan

37 The Guardian 2011 Patrice Lumumba the most importantassassination of the 20th centuryhttpwwwtheguardiancomglobal-developmentpoverty-matters2011jan17patrice-lumumba-50th-anniversary-assassination

38 See Friends of the Congo websitehttpwwwfriendsofthecongoorgresource-centercongo-primerhtml See also Lanotte 2003 RDCguerre sans frontiers Editions Complexe

22

LIVING IN FEAR

country possesses extraordinary mineral wealth with someof the most valuable and strategic minerals on earth suchas coltan diamond cobalt copper gold tin zincmanganese timber and others The highest concentrationof mining activities existin the Eastern part of the countryTo illustrate the predominance of mining here we wouldunderline the affirmation of the Katanga Minister ofPlanning who said that 72 of the territory of Katanga isdevoted to mining No surprise why the IMF has namedDRC one of the worldrsquos mining giants of today39 Themagazine African Business stated in 2009 that ldquothe totalmineral wealth of the DRC was estimated to be some $24trillionrdquo40 As Lumumba indicated back in 1960 the samescenario repeated in recent years ndash minerals and conflictscontinue to go hand by hand

DR Congo possesses some 80 of the worldrsquoscoltan ore reserves(hellip) Additionally the DRCongo produces significant quantities ofdiamonds gold cassiterite copper cobalt (ofwhich it has the worldrsquos largest reservesalthough the trade is largely controlled byZimbabwe) oil tin zinc gold and coffee Thecountry has large reserves of uranium it wasCongolese uranium that was used for theManhattan Project that produced the worldrsquosfirst atomic bombs dropped on Japan The vastcountry also has more than half of sub-SaharanAfricarsquos timber stocks

Source African Business

39 IMF 2013 DRC Poverty reduction strategy paper N 1322640 African Business 2009 DR Congo $24 trillion fortune

23

2 MINERALS AND WARS AT THE GREAT LAKES

The casualties over the years are overwhelming Whileeverybody is familiar with the death toll during the genocidein Rwanda estimated between 500000 and 800000 peoplethere is much less awareness about the conflict situation inCongo The International Rescue Committee has estimatedthat the conflict and humanitarian crisis in the DemocraticRepublic of Congo has taken a death toll of 54 million peoplefrom 1998 to 200741 A CNN correspondent in trying togive an illustration of the heavy toll made the followingcomparative analysis

The wars in that country ndash RD Congo ndash haveclaimed nearly the same number of lives as havinga 911 every single day for 360 days the genocidethat struck Rwanda in 1994 the ethnic cleansingthat overwhelmed Bosnia in the mid-1990s thegenocide that took place in Darfur the number ofpeople killed in the great tsunami that struck Asiain 2004 and the number of people who died inHiroshima and Nagasaki mdash all combined and thendoubled42

Rwanda and Uganda were actively involved in the invasionof Congo in both wars The second war was known as theGreat War of Africa involving nine countries and more than20 armed groups According to Cynthia Ann McKinney aUS Congresswoman from the Democratic Party and an

41 IRC 2007 IRC study shows Congorsquos neglected crisis leaves 54 milliondead httpwwwrescueorgnewsirc-study-shows-congos-neglected-crisis-leaves-54-million-dead-peace-deal-n-kivu-increased-aidmdash4331 Some groups put the death toll much higher See GlobalResearch webpage httpwwwglobalresearchcathe-war-that-did-not-make-the-headlines-over-five-million-dead-in-congo7957

42 CNN 2012 Why the world is ignoring Congo war httpeditioncnncom20121127opinioncongo-war-ignored-vava-tampa

24

LIVING IN FEAR

expert on the Great Lakes issues while invading DRC in theSecond Congo War the US continued providing financialsupport to the governments of Rwanda and Uganda43 Howwas this allowed US President Bill Clinton was personallyin Rwanda in March 1998 only a few months before theRwandese army invaded Congo44 President Clinton was inAfrica at that time addressing its presidents includingPresidents Kagame and Museveni as leaders of the ldquoAfricanRenaissancerdquo and seeing a bright future for Africa45 ThereClinton made an important call to embrace peace How wasit possible to talk about peace while these allies were directlyengaging in war Moreover with the experience of thegenocide in Rwanda how could it be that foreign powersclosely involved in the region particularly the United Stateslet this occur again How did they allow wars and conflictsthat killed millions of people How could they allow whatmany called another genocide in Congo

On a positive note at last in recent months the calls forpeace have been growing from many different stakeholdersIn May 2014 US Secretary of State John Kerry after ameeting with DRC President Kabila stated that ldquoachievinga lasting peace in the DRC is a priority of President ObamardquoHe added ldquoNow I canrsquot emphasize enough how importantthat process is in identifying and resolving the root causesof the conflict in the DRC as well as in the entire GreatLakes regionrdquo46 Not a minor task going to the roots causes

43 Order of Indictment from Juzgao de instruccion numero CuatroAudiencia Nacional Case 320008-D 6-2-2008

44 See CBS News httpwwwcbsnewscomnewstext-of-clintons-rwanda-speech

45 Schaefer 2000 The Keys to an African Economic Renaissance httpwwwheritageorgresearchreports200005the-keys-to-an-african-economic-renaissance

46 See US Dept of State 2014 Press Availability on the DRC and theGreat Lakes Region httpwwwstategovsecretaryremarks201405225587htm

25

2 MINERALS AND WARS AT THE GREAT LAKES

of those problems in the Great Lakes Indeed achieving peaceand reconciliation in the Great Lakes Region in countriesthat had suffered like DRC is a difficult and cumbersometask and making it by finding the ldquorealrdquo root causes can bea very complex and lengthy exercise taking decades orlonger

The situation remains tense We recall that in 2006 theUN Security Council issued a resolution condemning ldquotheactivities of militias and armed groups operating in the GreatLakes regionrdquo47 Almost a decade later those armed groupsare still there and despite the efforts made the situationremains tense and insecure A report of the Group of Expertson the RDC published in 2015 by the United Nations SecurityCouncil concludes that in DRC despite a defeat of one of therebel groups ndash the Movement of 23 March ndash at the end of2013 this ldquofailed to translate into significant gains in securityand security and stability in 2014rdquo48 For example in thebeginning of 2015 a rebel group from Uganda the AlliedDemocratic Forces (ADF) created havoc in North Kivuwhere 17 people were hacked to death with machetes49

47 UN Security Council 2006 Resolution 1653 (2006) SRES165348 UN Security Council 2015 Final report of the Group of Experts on

the DRC S20151949 UN Security Council 2015 March 2015 monthly forecast http

wwwsecuritycouncilreportorgmonthly-forecast2015-03democratic_republic_of_the_congo_7phpVP-BX5Sm4agmailto

26

LIVING IN FEAR

Armed groups militias and criminal networkswithin the military structure making a lucrativebusiness out of minerals

The UN has solidly demonstrated that natural resources areused to finance armed groups and therefore to fuel war inthe region 50 The UN concludes that ldquoarmed groups continueto control many mining sites and to profit from mining andthe minerals traderdquo51 Later on those minerals particularlytin tungsten and tantalum are smuggled to neighbouringcountries For example one of the armed groups theMovement of 23 March (M23) responsible for taking Gomaat the end of 2012 was financing its organisation fromnatural resources in Eastern Congo In relation to thisparticular case the UN asserts that ldquoseveral traders havecontributed to financing M23 rebels using profits resultingfrom the smuggling of Congolese minerals into Rwandardquo52

Besides the rebel groups a criminal network within theArmed Forces of the DRC (FARDC) was involved in the illegalexploitation of natural resources The types of involvementinclude illegal taxation protection rackets and indirectcommercial control to more direct coercive control53

For some top army officials their military work wasconverted into economic businesses Indeed the existing

50 UN Security Council 2014 Final report of the Group of Experts onthe Democratic Republic of the Congo

51 Ibidem52 Ibidem53 UN Security Council 2010 Letter dated 26 October 2010 from the

Group of Experts on the DRC addressed to the Chair of the SecurityCouncil Committee established pursuant resolution 1533 (2004) S2010596

27

2 MINERALS AND WARS AT THE GREAT LAKES

practices made the UN qualify the war as a ldquolucrativebusinessrdquo

illegal exploitation of resources by BurundiRwanda and Uganda took different forms includingconfiscation extraction forced monopoly andprice-fixing The first two forms reachedproportions that made the war in the DRC a verylucrative business There are strong indicationsthat even if security and political reasons werethe professed motivation to move into the easternDRC some top army officials clearly had economicand financial objectives54

The most UN recent reports affirm that ldquomany armed groupsin Eastern Democratic Republic of the Congo have derivedtheir revenue from the production of and trade in naturalresourcesrdquo55

54 UN Security Council 2001 Security Council condemns ilegal exploitationof Democratic Republic of Congoacutes natural resources Press Releasehttpwwwunorgpressen2001sc7057dochtm

55 UN Security Council 2014 Final report of the Group of Experts on theDRC S201442

28

LIVING IN FEAR

Insecurity still booming in Eastern Congo

As already mentioned the momentum created bythe defeat of the Movement of 23 March inNovember 2013 failed to translate into significantgains in security and stability in 2014 in EasternDemocratic Republic of the Congo A militaryoperation against the Allied Democratic Forces(ADF) significantly weakened but did not defeatthe sanctioned armed group An expected militaryoperation against the Forces deacutemocratiques delibeacuteration du Rwanda (FDLR) did not materializeand as of the end of November 2014 efforts tonegotiate the disarmament of this sanctionedarmed group failed to produce meaningful resultsIn addition numerous Congolese and foreignarmed groups contributed to instability inOrientale North Kivu South Kivu and KatangaprovincesADF FDLR Nduma Defence for Congo (led bysanctioned individual Sheka Ntabo Ntaberi) andother armed groups continued to recruit train anduse child soldiers in 2014 Armed groups alsocommitted a variety of other abuses includingtorture enslavement and sexual violence Therewere mass killings in June in Mutarule (South Kivu)and in October and November in Beni territory(North Kivu)

Source United Nations Security Council 201556

29

2 MINERALS AND WARS AT THE GREAT LAKES

One of the problems the existing insecurity and conflicts havecreated is the proliferation of internally displaced peopleestimated in September 2014 at 27 million people57

UN peacekeeping operation in Congo

In July1999 Heads of State of Angola DRC NamibiaRwanda Uganda Zambia and Zimbabwe signed the Lusakaagreement focusing on the establishment of a ceasefire asone of the other components necessary for the deploymentof a UN peacekeeping force

The first UN Peacekeeping operation in DRC wasestablished in November 1999 after the Lusaka Ceasefireagreement It was called the UN Mission in the DRC(MONUC) In 2010 it was renamed the UN OrganizationStabilization Mission in the DRC (MONUSCO)

Ten years later despite the deployment of MONUC thesecurity challenges in DRC ndash particularly in the Eastern Partof the country ndash remain high58 There is still a strong presenceof armed groups chronic humanitarian crisis continuoushuman rights violations and continued illegal exploitationof natural resources In the light of this context the UNcreated an ldquoIntervention brigaderdquo with a key objective ofneutralizing armed groups59 As of today the MONUSCOand the intervention brigade are operational but are theresignificant security changes

56 Ibidem57 See global humanitarian assistance webpage http

wwwglobalhumanitarianassistanceorgcountryprofiledemocratic-republic-of-congo

58 UN Security Council 2010 Resolution 192559 UN Security Council 2013 Resolution 2098

30

LIVING IN FEAR

60 UN Security Council 2014 Final report of the Group of Experts on theDRC S201442

61 PR Newswire 2014 Rwanda has become worldacutes largest coltanexporterhttpwwwprnewswirecomnews-releasesrwanda-has-become-worlds-largest-coltan-exporter-reports-kt-press-300010371html

62 PR Newswire 2014 Rwanda has become worldacutes largest coltanexporter

63 Africa Briefing 2015 Rwanda has abundant deposits of best qualitycoltan Kagame affirms httpafricabriefingorgp=478

Legitimate exports or smuggling conflictminerals

It is well known that many of the minerals in Eastern Congoare smuggled and do not follow legal channels For instancethe UN estimates that 98 of the gold produced in DRC issmuggled out of the DRC making the country lose millionsof dollars in tax revenue60

In December 2014 numerous media covered a story onRwanda and coltan PR Newswire affirmed that ldquoRwandahas become worldacutes largest coltan exporterrdquo61 The dataprovided concluded that in 2013 Rwanda exported around2500000 kg of tantalum which constituted 28 of the total8807232Kg of tantalum produced globally The overallrevenue from the coltan was estimated at around $140 M62

Rwandese President Paul Kagame was quoted as affirmingthat the production was local and dismissed all possibleallegations of plundering the coltan from Congo He affirmedldquoRwanda has not only enough coltan but of a very highquality (hellip) we can even pay for a ticket give them a visaand take them to the minesrdquo63

Contrary to such statements there are many reports thatcoltan is smuggled from Congo to Rwanda and that Rwandadoes not have significant coltan mining on its own For

31

2 MINERALS AND WARS AT THE GREAT LAKES

instance a 2012 report prepared by a European Foundationaffirmed that ldquoRwanda does not house any industrial coltanmines which would suggest legitimate Rwandan coltanproductionrdquo64 A US governmental agency which analyzesthe mining sector in Congo made a table with coltan exportedfrom Rwanda qualifying it as ldquoconflict mineralsrdquo as seen inTable 165 Since there is no known conflict in Rwanda it canonly refer to Rwanda exports of minerals originating froman external conflict zone the DRC

Table 1 Estimates of exports of conflictminerals from Rwanda for Fiscal years2009-2013 in Metric Tons

Year Tantalum

FY 2009 958

FY 2010 827

FY2011 915

FY2012 1139

FY 2013 2466

Source Based on United States Government Accountability Office 2014

64 Van Teeffelen 2012 The EU raw materials policy and mining in RwandaEvert Vermeer Foundation

65 United States Government Accountability Office 2014 Conflictminerals stakeholder options for responsible sourcing are expandingbut more information on smelters is needed

32

LIVING IN FEAR

In this particular situation either somebody is wrong orsomebody is lying Hopefully future events will unveil thetruth around the nature of the coltan exports from Rwandato clarify whether they are a legitimate export or theconsequence of smuggling conflict minerals

Greed for minerals everybody wants a pieceof Congo66

What is at the origin of those wars and instability of theCongo While there could be diverse factors for conflictthere is one that seems to be always recurrent and is recog-nized by most authors and by relevant UN reports the racefor minerals and natural resources The UN recognized thatin the Second Congo War minerals were the coveted trophyand that all actors ldquobuilt up a self-financing war economycentred on mineral exploitationrdquo67 The conflicts that con-tinued after the Second Congo War like those in Kivu andIturi provinces are recognized as well to be fuelled by tradein minerals Along the same lines Palou underlines the causesof the conflict by stating that ldquoalthough from that time un-til the present day the Rwandan regime has expressed itsconcern about the security of its border with the then Zaireobjectively the reality is that control over this strategic areandash Eastern Congo ndash and its valuable mineral resources has

66 See video at Congo Justice httpcongojusticeorg67 UN 2002 Final report of the Panel of Experts on the illegal exploitation

of natural resources and other forms of wealth of the DemocraticRepublic of the Congo S20021146

33

2 MINERALS AND WARS AT THE GREAT LAKES

proved to be at the heart of two wars that have left a hugenumber of victimsrdquo68 In conclusion a 2001 UN report as-serted that ldquothe conflict of DRC has become mainly aboutaccess control and trade of five key mineral resourcescoltan diamond copper cobalt and gold The wealth of thecountry is appealing and hard to resist in the context oflawlessness and the weakness of the central authorityrdquo69

Congolese and regional elite have also profited from thissituation as well and the appalling quantum of the plunderare reflected in the following report from UN

The elite network of Congolese and Zimbabweanpolitical military and commercial interests seeksto maintain its grip on the main mineral resourcesmdash diamonds cobalt copper germanium mdash of theGovernment-controlled area This network hastransferred ownership of at least US$ 5 billion ofassets from the State mining sector to privatecompanies under its control in the past three yearswith no compensation or benefit for the Statetreasury of the Democratic Republic of the Congo70

Funds that could have been used for public services havebeen diverted from the public coffers by fraud or by theexcuse of war effort71 The Congolese population has paid

68 Palou 2010 International Justice plunder in war human rights andmultinationals

69 UN Security Council 2001 Report of the Panel of Experts on theillegal exploitation of natural resources and other forms of wealth ofthe Democratic Republic of the Congo S2001357

70 UN Security Council 2002 Final report of the Panel of Experts on theilegal exploitation of natural resources and other forms of wealth ofthe Democratic Republic of the Congo S20021146

71 Ibidem

34

LIVING IN FEAR

dearly in this situation In terms of human development it isinstructive that the UNDP estimated in 2013 that RDCwas in the low human development category ndash positioningthe country at 186 out of 187 countries and territories72

The Role of Transnational Corporations (Tncs)and the private sector

Other key players involved in the conflict are Transnationalsand the private sector A UN Report published a few yearsafter the Second Congo War started affirmed that ldquothe roleof the private sector in the exploitation of natural resourcesand the continuation of the war has been vitalrdquo73 The reportalso added that ldquoa number of companies have been involvedand have fuelled the war directly trading arms for naturalresourcesrdquo74 Other observers share the view that ldquoWesternMultinationals have been one group responsible for thepillage and illegal exploitation of Congo mineral resourcesrdquo75

There are a large number of big foreign corporationsinvolved in mining in DRC including those from CanadaSouth Africa UK USA and others Despite the opacity ofmost of the activities of the private sector numerousexamples have been reported of how TNCs are responsiblefor human rights abuses and other illegal activites Thereare also many reports of the dangerous connectionsestablished with the political and military elite in order tofacilitate their businesses These are some examples

72 UNDP 2014 Sustaining human progress reducing vulnerabilities andbuilding resilience Congo (Democratic Republic of the) httphdrundporgsitesallthemeshdr_themecountry-notesCODpdf

73 UN 2001 Report of the Panel of Experts on the illegal exploitation ofnatural resources and other forms of wealth of the Democratic Republicof the Congo S2001357

74 UN 2001 Ibidem75 Palou Ibidem

35

2 MINERALS AND WARS AT THE GREAT LAKES

bull Glencore Anglo-Swiss giant in the raw material sectorwith a turnover of US $ 2397 billion in 2013 was beingaccused in 2014 of adopting a military-style response tothe problem of artisanal mining close to its mines ldquoonseveral occasions over the past 18 months mine policehave fired live ammunition in pursuit of artisanal minerson Glencorersquos site resulting in deaths and seriousinjuriesrdquo76 They are as well responsible forcontamination of the water supply with acid content andvery high and concentrations of copper and cobaltFinally the company operates some of its concessionsinside a reserve ndashndash something that in principle is illegalaccording to the RDC Mining Code77

bull An independent investigation unveiled that two miningcompanies Glencore and the Eurasian Natural ResourcesCorporation were involved in underpricing assets incomplex deals featuring offshore companies causinglosses to the DRC of no less than $136 billionIntermediary companies in the deals were linked to DanGerler78 In addition the DRC public prosecutorreportedly told mining companies that they had toreimburse $37 billion in taxes duties and fines79

bull AngloGold Ashanti part of the AngloAmericancorporation was accused of establishing links and

76 Peyer et al 2014 PR or Progress Glencoreacutes corporate responsibility inthe DRC Bread for all RAID Fastenopfer

77 Ibidem78 CRS 2014 Democratic Republic of Congo Background and US Policy79 Reuters 2014 Disputed Congo report says miners owe $37 billion in

tax fines httpwwwreuterscomarticle20140130us-congo-democratic-mining-idUSBREA0T12L20140130

36

LIVING IN FEAR

supporting one armed group the Nationalist andIntegrationist Front (FNI)80

bull In 2004 fighting between soldiers and rebels in Kilwaended in serious human rights violations againstcivilians including summary executions arbitraryarrests rape and torture Anvil Mining operated theDikulushi copper mine near Kilwa and was accused ofproviding vehicles and planes to the Congolese armedforces during this event The legal case ended in theCanadian Supreme Court in 2012 which ruled that itwould not hear the plaintiff rsquos appeal ndash they were led bythe Canadian Association Against Impunity (anassociation representing survivors of the incidents inOctober 2004)81

bull In May 1997 Citibank NY a financial institution hasbeen accused of giving $5 million loan to a Congolesemilitia allied with Rwanda82

bull American Mineral Fields (AMF) cut a $1 billion dealwith Kabila immediately after his forces captured GomaThe negotiations were led by ldquoKabilarsquos US-trainedfinance ministerrdquo who gave ldquoAMF exclusive explorationrights to zinc copper and cobalt mines in the area MikeMcMurrough a friend of US President Bill Clinton wasthen the chair of AMF83

80 Human rights watch 2005 DRC Gold fuels massive human rightsatrocities httpwwwhrworgennews20050601dr-congo-gold-fuels-massive-human-rights-atrocities

81 Business and human rights resource center 2012 Anvil Mining Lawsuit(re DRC) httpbusiness-humanrightsorgenanvil-mining-lawsuit-re-dem-rep-of-congo

82 Global research 2008 Congo Resource wars httpwwwglobalresearchcacongo-resource-wars8310

83 Global research 2008 Ibidem

37

2 MINERALS AND WARS AT THE GREAT LAKES

UN and some other independent reports generally makebroad statements about the role of corporations includingciting some of the companies however they fall short ofproviding details of the modus operandi of those companiesand in establishing or suggesting concrete measures to stopthe conflicts and solve the negative impacts on the DRCpopulation and environment A 2002 UN Report listed 85companies considered by the Panel to be in violation of theOECD Guidelines for Multinational Enterprises84 Very littlehas been done after the UN report was published

A poor country Until when

In 1969 World Bank President Robert McNamara embarkedon a trip to Africa to try to discover ldquowhat are therequirements for developmentrdquo85 At that time the WorldBank in its information document described the country asrich in natural resources but at the same time poor and witha strong mining sector

In spite of its rich natural resources and greatpotential the Congo is still a poor country (hellip)Mining and metallurgy play a leading role in theeconomy86

84 UN 2002 Final Report of the Panel of Experts on the Illegal Exploitationof Natural Resources and other Forms of Wealth of the DemocraticRepublic of the Congo S20021146

85 Records of President Robert S McNamara Travel briefs CongoKinshasa (01021969-03031969) 1772506 Reference Code WBIBRDIDA 03 EXC-10-4540S World Bank Group archives WashingtonDC United States

86 Ibidem

38

LIVING IN FEAR

More than forty years later not much has changed asupdated data shows In DRC seven out of ten householdsare poor87 Most of its nearly 60 million people areldquodesperately poor living on less than $1 a dayrdquo88 DRC is aleast developed country a fragile State that has been in thetop 10 recipients of humanitarian assistance in nine of thelast 10 years Between 2003 and 2012 DRC received US$176billion in official development assistance (ODA) making itthe 10th largest recipient89In 2012 the Democratic Republicof Congo (DRC) received US$286 billion in net officialdevelopment assistance90

With so many natural resources isnrsquot there money to getpeople out of poverty The mining sector is oftenacknowledged as being capable of contributing to povertyreduction However those mineral benefits are oftencreamed off by powerful interests and do not get to thehands of the majority of the population According to DFIDldquofiscal receipts from the minerals sector are siphoned off bypowerful interest groups instead of being used in the publicsectorrdquo91

The analysis of Mr Antonino Giambrone sheds more lightabout the earnings and who profits from mining

While the average Congolese worker earns $10 permonth the average Congolese coltan-miner earnsanywhere from $10 to $50 per week Uganda

87 IMF 2013 DRC Poverty reduction strategy paper N 1322688 DFID 2008 Democratic Republic of Congo Country Plan89 View global humanitarian assistance webpage http

wwwglobalhumanitarianassistanceorgcountryprofiledemocratic-republic-of-congo

90 CRS 2014 Democratic Republic of Congo Background and US Policy91 DFID 2008 Democratic Republic of Congo Country Plan

39

2 MINERALS AND WARS AT THE GREAT LAKES

Rwandan and Congolese rebels have earned manymillions of dollars in sales of coltan which theyhave used to finance their war efforts in the CongoBetweeen 1999 and 2000 the Rwandan army aloneearned at least $20 million a month from coltan92

Food insecurity is often a consequence of poverty One ofthe causes of existing food insecurity is the abandonment ofthe agriculture sector partly due to conflicts The governmentstated that it would like to strengthen the smallholdersldquowhile ensuring at the same time the protection of thecountryrsquos natural resourcesrdquo93

War impacts on the environment

The wars have had devastating impact on the environmentNational parks for instance home of many endangeredspecies are also affected by the exploitation of minerals94

There are numerous reports on the precarious situation ofwildlife in the region For instance between 1995 and 19994000 out of 12000 elephants were killed in the GarambaPark in North-eastern DRC95 The situation was also seriousin other parks For instance in Kahuzi-Biega Park a zonerich in coltan only 2 out of 350 elephant families remained

92 Giambrone 2006 The extraction of natural resources as a source ofconflict Etfo voice

93 IMF 2013 DRC Poverty reduction strategy paper N 1322694 Seeh ttpwww lenntech comenv ironmental -ef fec ts -

warhtmixzz3CuGZqE3M95 UN 2001 Report of the Panel of Experts on the illegal exploitation of

natural resources and other forms of wealth of the Democratic Republicof the Congo S2001357

40

LIVING IN FEAR

in 200096 Mountain gorillas are also under threat due tocontinued civil unrest and the presence of armed militiasmakes survey and conservation work difficult in the DRCrsquosprotected areas97

Deforestation is also one of the common impactsWorldwatch explains the implication of having refugeespopulation inhabiting RDC degraded forest areas

For two years beginning in late 1994 for exampleabout 720000 Rwandans inhabited refugee campson the fringes of Virunga National Park They allneeded wood for cooking fires and for buildingshelters and some also earned extra money bymanufacturing charcoal As a result up to 80000people entered the park and carted away up to1000 tons of wood every day By mid-1996 105square kilometers of forest had been affected toone degree or another by their activities 35 squarekilometers had been stripped bare98

Besides the need for fuelwood by refugees movement ofmilitary hardware through forests and woodlands also causeserious damage to forests and the landscape generally

96 Ibidem97 See WWF webpage httpwwfpandaorgwhat_we_doendangered_species

great_apesgorillasmountain_gorilla98 Worldwatch 2008 War and Environment httpwwwworldwatchorg

node5520

3South Sudan The Oil Way

99 Washington Post 2012 lsquoSouth Sudan civilians are trapped in conflictover oilrsquo httpwwwwashingtonpostcomworldsouth-sudan-civi l i ans-are- trapped-in-conf l ict -over-o i l20120501gIQAUX6buT_storyhtml

100 See UN Mission in South Sudan web page httpwwwunmultimediaorgtvunifeed201404south-sudan-bentiu-massacre

101 Reuters 2014 Bentiu massacre is game-changer in South Sudanconflict says UN official httpwwwtheguardiancomworld2014apr22bentiu-massacre-south-sudan-united-nations

41

ldquoIf we had no oil we would not be attackedrdquo

Nyak a 27-year-old sitting outside herhut in Bentiu South Sudan 201299

In April 2014 Bentiu the capital of the oil producing UnityState was the scenario of one of the worst massacres of thecivil war between South Sudanese forces100 Hundreds ofpeople were killed in the fighting that took place betweenthe Sudan Peoplersquos Liberation Army (SPLA) and anti-government forces in the oil-rich State101

42

LIVING IN FEAR

Civil wars and conflict

Since its independence in 1956 Sudan has been at war andconflict for most of its modern history Specialists in conflictand security have described the history of modern Sudan asldquoan unremitting sequence of wars punctuated by oft-violatedpeace agreementsrdquo102 The First Sudanese Civil War (1955ndash1972) was followed by a Second Sudanese Civil War (1983ndash2005) with barely 11 years breathing space of tenuoussecurity

The Second Civil War ended when both sides signed theComprehensive Peace Agreement in 2005 That agreementgave autonomy to South Sudan within Sudan However areferendum held in January 2011 moved the region towardsecession and then in July 2011 independence was achievedand South Sudan became an autonomous nation103 Theprocess that led to South Sudanrsquos independence was stronglysupported by the US government which backed Juba in itstwo decades struggle against Khartoum104 It should be notedthat even during the 11 years of supposed peace there wereconflicts on a regular basis particularly in the border areasbetween South Sudan and Sudan105 Two years after theindependence the first South Sudanese Civil War started inDecember 2013 The civil war erupted as a result of a power

102 Cox and Snapper 2013 The Strategic Importance of South Sudan TelAviv University

103 National Geographic 2013 South Sudan oil the environment andborder conflicts httpvoicesnationalgeographiccom2013032286550

104 See webpagehttpwwwworkersorgarticles20140101south-sudan-yet-another-oil-war

105 International Crisis Group 2006 Sudan Saving peace in the Easthttpwwwcrisisgrouporgenregionsafricahorn-of-africasudan102-sudan-saving-peace-in-the-eastaspx BBC 2015 South SudanProfile httpwwwbbccomnewsworld-africa-14019202

43

3 SOUTH SUDAN THE OIL WAY

struggle between president Salva Kiir from the Dinka ethnicgroup and his deputy Riek Machar from the Nuer ethnicgroup whom he had sacked As at the time of this writingthe civil war continues

Sudan vs South Sudan

The tensions and conflicts after the independence of SouthSudan from its neighbour Sudan did not stop in 2011 Topleaders from both sides accuse and threaten each other innumerous occasions For instance Sudanese President Bashirpromised to teach South Sudan a ldquofinal lesson by forcerdquo106

South Sudan President firmly swore that ldquowhether Umar al-Bashir likes it or not one day Abyei will rejoin the southrdquo107

Abyei

Abyei is traditionally the home of the Ngok Dinka asubdivision of the Dinka tribe with strong links to the Dinkain South Sudan Besides the Dinka Misseriya herders aremembers of nomadic Arab tribes that seasonally cross Abyeiand other nearby areas with their cattle in search of waterand pasture108

Since the signing of the Peace Agreement in 2005 betweenthe Government of Sudan and the SPLM the dispute over

106 The Washington Post 2012 lsquoSudanese president vows war againstSouth Sudanrsquo httpwwwwashingtonpostcomworldsudanese-president-threatens-force-against-south-sudan-over-oil-field20120419gIQAJ0G8ST_storyhtml

107 The Global Intelligence Files 2013 Sudan- President Kiir says Abyeiwill ldquorejoinrdquo South Sudan httpssearchwikileaksorggifilesviewemailid=674314

108 Enough Project 2013 What is the Abyei Area and why is it disputedhttpwwwenoughprojectorgblogsenough-101-what-abyei-area-and-why-it-disputed

44

LIVING IN FEAR

the future status of the Abyei area has beenone of the bigbarriers to stability in the region109Abyei is an oil-rich areadisputed by Sudan and South Sudan and stands out as thehotspot of bigger tension beetween Sudan and South Sudannowadays

The conflicts over Abyei have a history of more than 50years After the First Civil war the parties signatories to thepeace pact agreed that Abyei would hold a referendum todetermine whether they would be part of Sudan or a newlyregion in the South The second war commenced in 1983and the foreseen referendum was not done

In 2009 the Permanent Court of Arbitration in the Hagueruled on Abyei territory giving concessions to the Governmentof Sudan and the Southern Sudan Heglig and other closeroil-fields remained out of Abyei area while the rest of theAbyei region remained under control of the Ngok Dinka anethnic group close to Southern Sudan and keen on voting tojoin the South in a future referendum110Another referendumwas scheduled to be done in parallel with the South Sudanreferendum in 2011 but once again this never took place

Although a series of temporary security arrangementswere agreed in January and March 2011111 in May SudaneseArmy tanks entered the town of Abyei and by the 22nd ofMay they seized control of the town112The government ofSudan launched numerous military attacks in the disputed

109 UN Security Council 2011 Report of the Secretary-General on thesituation in Abyei S2011451

110 New York Times 2009 lsquoCourt redraws disputed area in Sudanrsquo httpwwwnytimescom20090723worldafrica23sudanhtml_r=1amp

111 UN Security Council 2011 Report of the Secretary-General on thesituation in Abyei S2011451

112 Reuters 2011 North Sudan seizes disputed Abyei thousands fleehttpwwwreuterscomarticle20110522us-sudan-abyei-north-idUSTRE74L14L20110522

45

3 SOUTH SUDAN THE OIL WAY

border of area where much of Sudanacutes remaining oil fieldsare situated113 Two years later the fighting remains intensein parts of South Kordofan and Blue Nile114 More than 2million people have been internally displaced or severelyaffected by the conflict since 2011115

In addition to military attacks other actions contributedto the tension There have been cattle raids by the MissiriyandashArab nomadic cattle herders inhabiting the area ndash on theNgok Dinka ndasha subdivision of the Dinka tribe inhabitingthis area In occasions more than 200 cows were stolenwith a large part of it recovered by the UN Interim SecurityForce for Abyei(UNISFA) These raids increase further thealready tense situation in the region and in particular thevery tense situation among the Missiriya and the NgokDinka116

113 The Conversation 2012 Oil fuels the conflict between Sudan andSouth Sudan ndashand it keeps getting hotter

114 OCHA 2014 South Kordofan and Blue Nile population movementsfact sheet httpreliefwebintsitesreliefwebintfilesresourcesSouth20Kordofan20and20Blue20Nile20Population20Movements20Fact20Sheet20-201920May202014pdfReuters 2013 Khartoum says rebels based in South Sudan caused oilpipeline blast

115 OCHA 2014 Ibidem116 See Human Security baseline assessment for Sudan and South Sudan

webpage httpwwwsmallarmssurveysudanorgdefacts-figuresborderdisputed-areasabyeihtml

46

LIVING IN FEAR

An oil-centered conflict

ldquoThe violence underscores the extent to which oilis at the heart of the dispute Khartoum whichcontrols the pipelines that take oil out of SouthSudan depends heavily on oil transit fees SouthSudan which depends on oil for 98 percent of itsrevenue has refused to pay the fees which it saysare exorbitantKhartoum responded by seizing oil tankers carryingSouth Sudanese oil and imposing economicblockades That prompted South Sudan to shutdown its entire oil production in February Thatmonth Sudan allegedly bombed an oilfield inSouth Sudan that was nine miles from the borderrdquo

Washington Post 2012

Missiriya attacks continue as of today UNISFA reported thatin March 2015 100 armed Missiriya killed several peopleand burnt over 20 houses in a village in the southern part ofAbyei117 Many of those attacks occur despite the presenceof UN peacekeepers in the zone

In this context a UN force was deployed in 2011 withmore than 4000 personnel mostly Ethiopian with theobjective of ensuring the demilitarization of the Abyei areaand particularly checking the Sudan Armed Forces and theSudan Peoplersquos Liberation Army Interestingly the UN forceshad also the task to provide security for oil infrastructure inthe Abyei Area in cooperation with the Abyei PoliceService118 In February 2015 the Security Council extended

117 Sudan Tribune 2015 South Sudan condemns deadly clashes in Abyeihttpwwwsudantribunecomspipphparticle54191

118 UN Security Council 2011 Resolution 1990 (2011) SRES1990(2011)

47

3 SOUTH SUDAN THE OIL WAY

the mandate of the UNISFA again until July 2015119 The AbyeiJoint Oversight Committee (AJOC) decided in May 2013 thatAbyei should adopt a status as weapons-free area and thatonly UNISFA would be authorized to carry weapons in thearea120

The situation in the area is still very fragile121 For instancevarious resolutions have called for the redeployement of allmilitary personnel from Abyei including those protecting itsoil infrastructure However the Sudanese Governmentskeeps at the Diffra oil complex around 150 Sudan oil policein a clear violation of an agreement and Security Councilresolutions adopted in 2011122 The UN Security council ina recent resolution

Condemns the presence of Diffra Oil Police unitsdeployed in the Abyei Area as well as the repeatedentry of armed militias into the territory andreiterates its demands that immediately andwithout preconditions the Government of Sudanredeploy the Oil Police in Diffra from the AbyeiArea ()123

Conflicts escalating over oil Heglig battles

In 2012 despite the Permanent Court of Arbitration ruling124

which placed Heglig oilfields in the Sudanese territories

119 UN News Center 2015 Security Council extends UN peacekeepingforce in Abyei through July 2015

120 UN Security Council 2015 Ibidem121 UN Security Council 2015 Security Council adopting resolution 2205

(2015) extends interim force in Abyei until 15 july voicing concernover delays in Borde Mechanismrsquos operation httpwwwunorgpressen2015sc11800dochtm

122 UN Security Council 2014 Report of the Secretary-General on thesituation in Abyei S2014518

123 UN Security Council 2015 Ibidem124 See Permanent Court of Arbritation webpage httpwwwlocgov

lawwebservletlloc_newsdisp3_l205401463_text

48

LIVING IN FEAR

the South Sudanese army launched an attack over Heglig125

South Sudanrsquos army took control of the oil-producing townof Heglig The South Sudan move did not enjoy sympathyfrom many countries including its allies such as the US andBritain126 The African Unionrsquos (AU) Peace and SecurityCouncil considered Sudanrsquos occupation of Heglig as illegal127

At the end after a few days South Sudan pulled back itstroops from Heglig even though President Salva Kiir stillclaims that Heglig is a part of South Sudan and is expectinginternational arbitration

Oil and geopolitics

The implications of the oil economy are self-telling Prior tothe separation of Sudan from South Sudan in 2011 theunified Sudan was the second-largest non-OPEC oil producerin Africa in 2010 When they separated Sudan and SouthSudanrsquos production diminished and together they rankedas the fourth-largest non-OPEC African oil producer in 2013Particularly the split of the country in oil revenues economicterms was a huge blow to Sudan with its crude oil exportrevenues falling from almost $11 billion in 2010 to around$18 billion in 2012128 It has been estimated that oilcontributes 98 of South Sudan government income morethan for any other government in the world129

125 Wall Street Journal 2012 Sudan escalates fight over oil httpwwwwsjcomarticlesSB10001424052702304444604577339461981143808

126 The Guardian 2012 South Sudan to withdraw from disputed oiltownhttpwwwtheguardiancomworld2012apr20south-sudan-withdraw-oil-town

127 IRIN 2012 Sudan-South Sudan Heglig and the border128 US Energy Information Administration 2014 Country analysis brief

Sudan and South SudanhttpwwweiagovcountriesanalysisbriefsSudansudanpdf

129 Global Witness 2009 Fuelling mistrust

49

3 SOUTH SUDAN THE OIL WAY

Although oil exploration started at the end of the 1950showever no success was achieved with the activities of Italianoil company Agip130 Discoveries were found in the years tofollow The first oil discovery was made in 1979 when theAmerican company Chevron found oil near the Darfur-Kordofan boundary Three years later Chevron made twolarger discoveries the Heglig and Unity oilfields which asof today are the most productive However by 1984 Chevronstopped its operations when some of its workers were killedby an armed group By 1988 the company dismantled all ofits operations in Bentiu and Unity provinces131

As a landlocked country all the oil in South Sudan had tobe extracted and exported via a pipeline The pipeline wasconstructed by China National Petroleum Corporation andit covered a length of around 1600 kilometers132 Ittransports the oil from South Sudan to the Red Sea Thecost of the pipeline was estimated at $1 billion and it wasfinished in 1999133At the time of the construction of thepipeline Sudan provided less than 1 of Chinarsquos oil importsbut a few years later by 2009 the investments of Chinatotalled more than $8 billion134

130 Understanding Sudan 2009 Fact sheet two A history of oil in theSudan httpunderstandingsudanorgOilOilResourcesL2FS2-HistoryofOilinSudanpdf

131 Understanding Sudan Ibidem132 The Conversation 2012 Oil fuels the conflict between Sudan and

South Sudan ndashand it keeps getting hotter133 Sitarek 2001 The human price of oil ICE Case Studies Number 83

httpwww1americanedutedicesudansanctionshtm16134 The Conversation 2012 Ibidem

50

LIVING IN FEAR

Source US Energy Information Administration 2014

South Sudan becameindependenth in July2011 Taking aboutthree-quarters of theproduction A disputeover transit fees ledSouth Sudan to haltproduction for most of2012

Oil production inSudan and South Sudan

thousand barrels per day

51

3 SOUTH SUDAN THE OIL WAY

Main oil companies in Sudan and South Sudan

While initially many companies involved were of Westernorigin most of the companies now involved in the oil sectorare from China and Malaysia

Source US Energy Information Administration 2014 Countryanalysis Brief Sudan and South Sudan

Row over oil tariffs

By 2011 both countries did not agree on how much SouthSudan should pay to export its oil through the pipelines inSudan Sudan requested a fee of 33 dollars a barrel whileSouth Sudan said the highest fee they could afford was 2

Table 2 Main oil companies in Sudan and South Sudan

52

LIVING IN FEAR

dollars a barrel135 Following this lack of agreement SouthSudan halted crude oil production in early 2012

This decision worsened the economic situation in bothcountries as both depend hugely on money from oil exportsfor their revenues However an agreement was reached andin April 2013 South Sudan restarted oil production136

Causes of the Sudanese Civil War

Wars in Sudan have been often portrayed quite simplisticallyas an ArabMuslim north versus and an AfricanCristiansouth While certainly ethnicity and religion played a rolethe conflict has been mainly fought over natural resources137

Today oil is the countryrsquos main natural resource and ithas been estimated that it accounts for 98 of South Sudanrsquosrevenue138 The multibillion potential of their revenuehowever has not translated into wealth and benefits for themajority of the population of South Sudan First of all it hasnot solved the problem of security as since the very inceptionof the State of South Sudan in 2011 there were conflicts inmany areas of the country particularly in the borderline withSudan A 2013 report from the World Bank illustrates thisby asserting that ldquodespite South Sudanrsquos great resourcewealth its population is one of the most deprived due todecades of neglect and war and the distortions of the oil

135 IPS 2011 South Sudan rows over exorbitant fees for pipeline use136 Reuters 2013 South Sudan resumes oil output after ending row with

Sudan over transit fees137 Caas 2007 Natural resources and conflict in Sudan138 See World Bank webpagehttpwwwworldbankorgencountry

southsudanoverview

53

3 SOUTH SUDAN THE OIL WAY

economyrdquo139 Indeed oil reserves sitting on a disputed borderbetween Sudan and South Sudan have not translated yetinto wealth for the majority of citizens of South SudanInstead most of the inhabitants of the country remain deeplypoor and do not enjoy even basic rights to access potablewater and adequate sanitation140

Oil has been a main cause for the war and conflicts inSudan For instance it influenced the end of the peaceagreement obtained after the first civil war This first civilwar ended in 1972 with the Addis Ababa Agreement Theagreement established a system of peaceful co-existence witha single country by guaranteeing aNorthern basedgovernment but granted at the same time autonomy in theSouth This however was not going to last long as thediscovery of oil at the end of the 1970s in Southern Sudanchanged the ldquocoexistencerdquo idea In 1978 Sudanese PresidentNimeiry decided to embark on oil exploration project thatwould lead to the finding of oil in commercial quantities Inorder to control the oil within the hands of the Northernbased Government military force was used and in additionto imposing islamic law which led to the new civil warstarting in 1983141

139 World Bank 2013 Interim Strategy Note (FY 2013-2014) httpwww-wdsworldbankorgexternaldefaultWDSContentServerWDSPIB20130207000333037_20130207110223RenderedPDF747670ISN0P1290Official0Use0Only090pdf

140 National Geographic 2013 South Sudan oil the environment andborder conflicts httpvoicesnationalgeographiccom2013032286550

141 Sitarek 2001 The human price of oil ICE Case Studies Number 83httpwww1americanedutedicesudansanctionshtm16

54

LIVING IN FEAR

Numerous authors have identified natural resources ashaving a direct correlation with wars and conflicts142 Ananalysis by Ross of the University of California (UCLA) ofthirteen wars and conflicts concluded that in the case ofSudan oil was one of the key causes of the second civil warand an incentive for advancing the independence of SouthSudan143 Ross describes his conclusion in the followingmanner

War in Sudan began in 1983 when SudanesePresident Nimeiry took a series of measures thatupset the delicate balance between thepredominantly Muslim north and the heavilyChristian and Animist south among these measureswas his decision to place newly discovered oil inthe countryrsquos south under the jurisdiction of thenorth and to build an oil refinery in the northinstead of the south The Sudan Peoplersquos LiberationArmy (SPLA) subsequently complained that thenorth was stealing the resources of the southincluding oil demanded that work cease on apipeline to take oil from the south to the refineryin the north and in February 1984 attacked an oilexploration base killing three foreign workers andbringing the project to a halt144

142 Varisco 2010 lsquoA study on the inter-relation between armed conflictand natural resources and its implications for conflict resolution andpeace buildingrsquo Journal of Peace Conflict and Development issue 15Ross 2003 How do natural resources influence civil war Evidencefrom 13 cases httpwwwsscnetuclaedupoliscifacultyrossHowDoesNat3pdf

143 Ross Ibidem144 Ross Ibidem

55

3 SOUTH SUDAN THE OIL WAY

Even when the different parties were discussing an agreementon ldquono attacks on civilians or civilian objectsrdquo oil was playinga central role It is instructive to note that the Sudanesegovernment desired language in the text stating that oilinstallations were ldquocivilian objectsrdquo while the SPLA wantedthe contrary145

Human Rights Watch reached the same conclusion thatoil without doubt has been a key fuel for war particularlysince the end of the 90s when crude oil was first exportedfrom Sudan in 1999146

Oil became the main objective and a principal causeof war (hellip) The large-scale exploitation of oil byforeign companies operating in the theatre of warin Southern Sudan has increased human rightsabuses there and has exacerbated the long-runningconflict in Sudan a conflict marked by gross rightsabuses ndashtwo million dead four million displacedsince 1983 ndashand recurring famine and epidemics147

Also the UN makes clear statements on the issue Specialenvoy Leonardo Franco expressed in a report that oilexacerbated the conflict

the economic political and strategic implicationssurrounding oil exploitation in western Upper Nilewhich have seriously exacerbated the conflictthereby causing a deterioration in the overall

145 Ibidem146 Human Rights Watch 2003 Sudan oil and human rights147 Human Rights Watch 2003 Sudan oil and human rights

56

LIVING IN FEAR

situation of human rights and respect forhumanitarian law and narrowing the slim chancesfor peace148

Indeed multiple causes and elements contributed to theconflicts It was recognized that ethnicity and religion wereimportant elements however the key dimension is controlover natural resources particularly oil Added to this are alsotensions over land and resources and the promotion by thegovernment of crops like cotton and sugar which displacedcertain groups of people149 Similar conclusions were reachedyears back by a Canadian Government Mission in Sudanwhich fully recognized some ethnic disputes as well asdisputes over other natural resources however oil was thekey factor which made things really dramatic

148 UN 2000 Interim report of the Special Rapporteur of the Commissionon human rights on the situation of human rights in the Sudan A55374 httpwwwunorgdocumentsgadocs55a55374pdf Seealso UN 1999 Situation of human rights in Sudan UN Doc A54467

149 University of Massachusetts (undated) Modern conflicts conflictprofile SudanhttpwwwperiumassedufileadminpdfSudan1pdf

57

3 SOUTH SUDAN THE OIL WAY

The Harker mission pointed out that while therehave always been pressures on the Dinka in theHeglig- Ruweng area as a result of inter-tribalfighting with Arab nomads for grazing areas anddry-season water the situation had worsened withthe beginning of oilexploration and had continuedto deteriorate over theyears because of the periodicoffensives launched by the Government and itsallies resulting in destructionand mass populationdisplacement150

South Sudan has one of the largest oil reserves inSub Saharan Africa and the commodity is thelifeline of the countryrsquos economy accounting for98 percent of the governmentrsquos financial resources

Whoever controls South Sudanrsquos oil thereforecould seize the upper hand in the battle for power

Source France 24 2013 lsquoBattle for oil adds newdimension to South Sudan conflictrsquo

Whoever controls South Sudanrsquos oil therefore could seizethe upper hand in the battle for power

The same scenario applies to the South Sudan Civil Warwhich initially was also portrayed along ethnic line TheDinka ethnic group of President Salva Kiir has fought rebelsallied with former vice president Riek Machar of the Nuer

150 UN 2000 Interim report of the Special Rapporteur of the Commissionon human rights on the situation of human rights in the Sudan A55374 Ibidem

58

LIVING IN FEAR

ethnic group However increasingly ldquothe focus of the fightingis shifting to the battle to control the countryrsquos mostimportant natural resource ndash oilrdquo151 The oilfields haveliterally become the battlefields

Consequences of war and conflict

The damage inflicted on people as a consequence of war ishuge Back in 2001 US Secretary of State Colin Powellqualified the war in Sudan in the following terms ldquoThere isperhaps no greater tragedy on the face of the earth todaythan the tragedy that is unfolding in the Sudanrdquo152 Firstthere is a large number of deaths due to war and war relatedcauses and also a huge number of displaced people Thedeath toll derived from the Second Civil Sudanese War isestimated at two million The US Commitee for refugeesasserted that ldquothis massive loss of life surpasses the civiliandeath toll in any war since World War IIrdquo153 In the mostrecent civil war the South Sudanese Civil War that startedin December 2013 by April 2014 the death toll wasestimated to be at 10000154

Besides the death toll there are estimated more than fourmillion people of the Southern Sudanese population forced

151 France 24 2013 Battle for oil adds new dimension to South Sudanconflicthttpwwwfrance24comen20131227-battle-oil-adds-new-dimension-south-sudan-conflict

152 Human Rights Watch 2003 Ibidem153 See US Committee for Refugees webpage in 2001 http

webarchiveorgweb20041210024759httpwwwrefugeesorgnewscrisissudanhtm

154 International crisis group 2014 South Sudan a civil war by any othernamehttpwwwcrisisgrouporg~mediaFilesafricahorn-of-africasouth20sudan217-south-sudan-a-civil-war-by-any-other-namepdf

59

3 SOUTH SUDAN THE OIL WAY

to flee their homes at one time or another It has also beenargued that the development of oilfields has led to the forcedremoval of the local population In the words of the lateJohn Garang oil was a ldquokiller itrsquos evicting our civilianpopulationrdquo claiming 100 000 people displaced due to thiscause155

Children are some of the main victims of conflict beingrecruited for instance for war and suffering sexual violenceFrom March 2011 to September 2014 the UN estimatesthat there were 1243 incidents affecting 68776 children156

UN reports indicate that both armed groups have usedchildren ldquoon a large scale and committed other graveviolations including killing maiming and sexual violencerdquo157

For instance in 2015 an incident was reported where closeto 100 children were abducted some as young as 13 Armedsoldiers were advancing house to house looking for boysand taking them by force158 According to UNICEF this occuredin Wau Shilluk close to the city of Malakal in Upper NileState159

Not surprisingly as put by a high UN representativepeople are desperate for peace

155 BBC 2001 Garang Oil firms are targetshttpnewsbbccouk2hiafrica1393481stm

156 UN Security Council 2014 Report of the Secretary-General on childrenand armed conflict in South Sudan S2014884

157 Ibidem158 The Guardian 2015 South Sudan gunmen kidnap at least 89 boys

from village near Malakal httpwwwtheguardiancomworld2015feb22south-sudan-gunmen-kidnap-89-boys-village-malakal-child-soldiers

159 The Guardian 2015 South Sudan gunmen kidnap at least 89 boysfrom village near Malakal

60

LIVING IN FEAR

People are desperate for peace They are tired ofliving in fear Many have had to flee several timesThey are exhausted They lack water they areextremely worried for their children who are notin school and at risk of being recruited into armedgroups Sexual violence is rife All people want isto live in safety security and stability160

Wars have also an impact on food security and nutrition Asof February 2015 there was an alert that the food situationwas critical in South Sudan for more than 25 millionpeople161 This was famine related to war Ulrika BlomCountry Director for Norwegian Refugee Council in 2015succinctly stated ldquoThere is an urgent need for a solution onthe conflict so that people are able to resume their dailylives in dignity and not be dependent on massive foodassistancerdquo162

The harsh consequences of war are inevitable and occurfrom a systematic destruction of infrastructure erosion ofthe human capital and weakening of essential institutions

Besides causing an appalling loss of life Sudanrsquoslong civil war eroded the capital base The wardepleted the labour force while roads irrigationsystems and other key components of rural

160 Under-Secretary-General for Humanitarian Affairs and Emergency ReliefCoordinator Valerie Amos remarks to the press Juba South Sudan 9February 2015 httpreliefwebintreportsouth-sudanunder-secretary-general-humanitarian-affairs-and-emergency-relief-coordinator-1

161 UN Security Council 2015 Reports of the Secretary-General on theSudan and South Sudan SPV7392

162 Norwegian Refugee Council 2015 Conflict a cause of hunger in SouthSudan httpwwwnrcnodid=9192498

61

3 SOUTH SUDAN THE OIL WAY

infrastructure were destroyed damaged orneglected It also weakened institutions divertedfinancial capital from economic development andundermined interpersonal trust which is criticalto productive business dealings163

Some have tried to put a figure on the costs of war A recentreport estimates that the cost of the civil war may be between$223 and $28 billion over the next five years for SouthSudan alone if the factions fail to bring peace to the worldrsquosnewest country164

UN peacekeeping operations

In July 2011 the Security Council determined that thesituation in South Sudan constituted a threat to internationalpeace and security in the region and established the UNMission in the Republic of South Sudan (UNMISS)165 Thekey elements of the mandate is to consolidate peace andsecurity However after the civil war broke in July 2013 inthe light of significant human rights violations the large-scale displacement of persons the UNMISS mandate wasreshaped and a focus was given to the protection of civiliansand creation of the conditions for delivery of humanitarianassistance166

163 IFAD 2013 Enabling poor rural people to overcome poverty in SouthSudan

164 Frontier Economics 2015 South Sudan the cost of war httpwwwfrontier-economicscomdocuments201501south-sudan-cost-warpdf

165 UN Security Council 2011 Resolution 1996166 UN Security Council 2014 Resolution 2155

62

LIVING IN FEAR

In June 2011 a month before the establishement ofUNMISS a second UN peacekeeping operation wasestablished in the disputed border between Sudan and SouthSudan The United Nations Interim Security Force for Abyei(UNISFA) was created in a context of escalating violenceand tensions and population displacement167 One of the topobjectives was to achieve the demilitarization of the Abyeifrom any force other than UNISFA and the Abyei PoliceService facilitate the delivery of humanitarian aidstrenghten the capacity of the Abyei Police Service and incooperation with the police provide security for oilinfrastructure in the Abyei area168

Corporations and conflicts with communities

Since the conclusion of the 2005 Peace Agreement betweenthe Government of Sudan (GoS) and Sudan PeoplersquosLiberation MovementArmy (SPLM) negative impacts ofoil exploration and extraction have continued to ignitemistrust among local communities towards the oilcompanies Many problems from the oil activities wereidentified such as water pollution and uncompensateddispossession of land However oil companies or thegovernment did little to assess correct and reduce suchimpacts169 In this context many communities chose the ldquopath

167 UN Security Council 2011 Resolution 1990168 UN Security Council 2011 Resolution 1990169 ECOS 2014 Scrutiny of South Sudanacutes oil industry http

w w w e c o s o n l i n e o r g r e p o r t s 2 0 1 4 Scrutiny_of_South_Sudans_Oil_Industrypdf

63

3 SOUTH SUDAN THE OIL WAY

of confrontation with oil companiesrdquo170 For instance byblocking and interfering in oil operations by truck blockagesand other stoppages171

Resentment of local communities againstoil companies

The negative consequences of oil developmenthave been causing deep resentment against oilcompanies in many oil-rich parts of SouthernSudan Arriving in any oil area where activeexploitation is ongoing one is often confrontedwith persistent complaints from local people aboutpoor management of ldquoproduced waterrdquo which isblamed for pollution of the environment This isoften linked to unexplained deaths of animals andstrange or new human ailments Moreover the oilinfrastructure such as oil roads wells and pipesare frequently blamed for disrupting the means oflivelihoods of local people as well as destructionof property

Source ECOS

170 ECOS 2014 Ibidem171 ECOS 2014 Ibidem

64

LIVING IN FEAR

Lundin Oil Consortium facing war and violencein their work territory

In 2010 the European Coalition on Oil in Sudan (ECOS)requested an investigation on the activities of the LundinGroup and its connection with the conflict in Sudan and thepossible ldquocomplicity in the commission of war crimes andcrimes against humanityrdquo172 During the Second Civil War in1997 a consortium of oil companies led by the Swedish oilcompany Lundin Oil AB (ldquoLundinrdquo) signed a contract withthe Government for the exploration of oil in the concessionarea called Block 5A that was not at that time under fullGovernment control The other members of the Consortiumwere Petronas Carigali Overseas Sdn Bhd (ldquoPetronasrdquo) fromMalaysia OMV (Sudan) Exploration GmbH (ldquoOMVrdquo) fromAustria and the Sudanese state-owned oil company SudapetLtd

Before the start of explorations the area around Block5A was relatively peaceful When the oil exploration startedthe escalation of violence and war followed suit173 Accordingto the European Coilation on oil in Sudan Block 5A ldquobecamethe scene of intense fighting and gross human rightsviolations as soon as the Lundin Consortium started oilexploration activities on the groundrdquo Right from thebeginning there are reports of significant war and violence

172 ECOS 2010 Unpaid debt The Legacy of Lundin Petronas and OMV inSudan 1997-2003 Press Release httpwwwecosonlineorgreports2010Press_release_UNPAID_DEBT

173 ECOS 2010 Unpaid debt The Legacy of Lundin Petronas and OMV inSudan 1997-2003 httpwwwecosonlineorgreports2010UNPAID_DEBT_textonlywebpdf

65

3 SOUTH SUDAN THE OIL WAY

where villages and towns were burnt and looted Tens ofthousands of people in Block 5A were also moved out fromthe exploration areas

In 1999 the Lundin Group discovered major reserves ofoil This accelerated the Government desire to control allthe areas surrounding the well and the infighting intensifiedLundinrsquos explorations in Block 5A had to be suspended twicedue to insecurity174

The consequences of all the violence towards thepopulation which were in the middle of the power battlefor controlling Block 5A were severe abuse of all humanrights and war crimes More than 10000 people were killedalmost 160000 displaced with thousands of peoplepermanently uprooted from their villages hundreds ofthousands of cattle lost or looted destruction of churchesschools markets medical clinics and many otherincalculable moral damage and inmense loss of income175

Talisman Energy accused of complicity with forceddisplacements

A Canadian company Talisman Energy which at that timewas considered to be the largest independent oil and gascompany in Canada has been accused of indirectly helpingto exacerbate the war and of being complicit in human rightsabuses and crimes against humanity176 Talisman has a 25

174 HRW 2003 Ibidem175 ECOS 2010 Unpaid debt Ibidem See also Medecins sans frontieres

2002 Violence health and access to aid in Unity Statewestern uppernile Sudan httpwwwdoctorswithoutbordersorgsitesusafilessudan_04-2002pdf

176 Africa files 2000 Corporate immunity for oiling repression Talismanin Sudan httpwwwafricafilesorgarticleaspID=621

66

LIVING IN FEAR

stake in the Greater Nile Oil Project Company (GNOPC) aninitiative located in south-central Sudan with threeadditional partners the national petroleum company ofChina (40) the national oil company of Malaysia (30)and the national petroleum company of Sudan (5)177

There were many allegations that people were forcefullydisplaced in the area of the oil field ran by Talisman UNreported that accusations were made on Talisman of ldquobeingaccomplice of human rights abuses in Upper Nile so as toguarantee security for its oil operationsrdquo178

Moreover a report from the Canadian Foreign AffairsMnistry ndashthe Harker Report ndash which undertook a mission toSudan described with concern that fighting was intense inthe areas of oil development in general and that oilextraction may have contributed to relocation of civiliansby force179

Violence and the fear of it impact immediatelyon the peoplersquos use of the land and result in foodinsecurity which in turn propels movement ordisplacement

Contradicting that oil is at stake in the displacement issueTalisman explained that displacement was a result of an inter-tribal issue Once again the Harker report concluded thatthe displacement was because of oil

177 Africa files 2000 Ibidem178 UN Security Council 2000 Interim report of the Special Rapporteur of

the Commission on Human Rights on the situation of human rights inthe Sudan A55374

179 Canadian Ministry of Foreign Affairs 2000 Human Security in SudanThe Report of Canadian Assessment Mission httpwwwecosonlineorgreports2000Human20Security20in20Sudanpdf

67

3 SOUTH SUDAN THE OIL WAY

ldquoFor Talisman so very much seems to be explained as merelyan inter-tribal problem but displacement has gone on andis still going on and in Ruweng County it is hard to denythat displacement is now and has been for some timebecause of oilrdquo180

Talisman Energy decided in 2002 to end its controversialfour-year investment in Sudan by selling its 25 percent stakein the Greater Nile Petroleum Operating Company to anIndian firm Most of the rumours is that the reasons for thiswas the strong pressure from the US particularly to end itswork in Sudan in order to stop indirectly supporting theGovernment in Sudan with its oil revenue181

The oil way developing what

Sharing the wealth with the Sudanese people The resourcecurse again

As said before 98 of the governmentrsquos revenue comesfrom oil production royalties and South Sudan sits on thethird-largest oil reserves in Africa182 It was estimated in 2011that South Sudan controlled 75 of the overall oil productionof Sudan and South Sudan altogether ndasharound 500000barrels per day However South Sudan remains dependenton the North for processing refinement and export to theRed Sea

180 Canadian Ministry of Foreign Affairs 2000 Ibidem181 New York Times 2002 Talisman to sell its stake in company in Sudan

httpwwwnytimescom20021031businesstalisman-to-sell-its-stake-in-company-in-sudanhtml

182 Africa Business Initiative 2011 Investment climate upate Sudanhttpswwwuschambercomsitesdefaultfileslegacyinternationalafricafiles16920_AfricaNewsletter_Sudanpdf

68

LIVING IN FEAR

Paradoxically South Sudan is considered a fragile StateSitting on oil as has occured to many other countries acrossAfrica and abroad does not guarantee wealth for the majorityof the population A 2013 report concluded that ldquoover thelast decade Sudan has been the largest recipient ofhumanitarian assistance by some distance receiving US$106 billion over the periodrdquo183 90 per cent of the populationearn less than a dollar a day184

Oil money through the State budget is expected to serveto finance all the key governmental activities of the Statesuch as agriculture health infrastructures and educationDespite the fact that the benefits from oil are substantialthere are numerous questions arising about the destiny ofall the oil money For instance how could it be explainedthat one of the sectors more financed is the military andsecurity apparatus Since South Sudanrsquos independence theGovernment has allocated 38 of oil revenue to the militaryand security services with only 10 and 7 ininfrastructures and education respectively185 In 2012 SouthSudan was the among top 8 African countries having militaryexpenditure of almost $1 billion186 For instance TheEconomist reports that South Sudan bought 100 Ukrainian

183 Global humanitarian assistance 2013 Global humanitarian assistancehttpwwwglobalhumanitarianassistanceorgwp-contentuploads201307GHA-Report-2013pdf

184 Kebede 2014 The role of oil in South Sudanhttpswwwruoruottawacabitstream10393315631KEBEDE20Solomon2020145pdf

185 The Guardian 2014 South Suan is divided by the spoils of oil notethnicity httpwwwtheguardiancomcommentisfree2014jan14south-sudan-divided-oil-ethnicity-violence

186 LAVDC 2014 Les quatre puissances militaires regionales dacuteAfriquehttpwwwlavdcnetportailles-quatre-puissances-militaires-regionales-dafrique

69

3 SOUTH SUDAN THE OIL WAY

T-72 tanks187 At the same time agriculture and livestock hasbeen completely neglected despite the fact that more than80 of the population depend on that sector for fulfiliingtheir basic needs

Where the money goes

Daniel Wuor Joak former MP in South Sudan LegislativeAssembly and Minister of Education Science and Technologyin Upper Nile State claims that between 2005 and 2014both the Government of South Sudan (GOSS) and theRepublic of South Sudan (RSS) have been receiving onaverage not less than two billion of USD per year Somehave already manifested the unclarities over the destiny ofall that money as described by Mr Wuor Joak

Since 2005 upwards both the GOSS and RSS havebeen receiving no less than 18 billion USD in oilrevenues without implementing any majordevelopmental projects like roads network linkingdifferent States in South Sudan conducive learningschools from basics to universities level referralmedical facilities clean drinking water in remoteareas throughout the country setting up vibrantand credible institutions which can adhere to rulesof law All these things have not been implementeddue to poor system of governance under leadershipof Salva Kiir Mayardit Most of the counties have

187 The Economist 2014 Arms and the African

70

LIVING IN FEAR

no roads linking them with their State capitals andlack schools health centres clean drinking wateretc South Sudanese population in the rural areasthroughout the country are still living in the sameconditions as they were under Khartoumrsquos rule interms of scarcity of development188

Speaking more directly Kebede made firm remarks aboutthe overall situation in South Sudan

In general poverty corruption bad governance andviolence characterized the resource curse in SouthSudan A relatively small group of elite capturesvast wealth while leaving much of their societywithout access to the minimum resource necessaryfor long term wellbeing As a result South Sudanremains one of the worldacutes least-developedcountries despite its oil (hellip) hellipmuch of the oilrevenue has been squandered189

188 Wuor Joak 2014 Major Causes of the Current Conflict in Sudan SouthSudan News Agency

189 Kebede 2014 The role of oil in South Sudanhttpsw w w r u o r u o t t a w a c a b i t s t r e a m 1 0 3 9 3 3 1 5 6 3 1 KEBEDE20Solomon2020145pdf

71

3 SOUTH SUDAN THE OIL WAY

Even before the current tensions Bentiu saw little benefitfrom oil The streets are unpaved and covered with trashelectricity is scarce reserved for those with privategenerators () Most expect more violence Bentiu hasbecome more militarized with armed soldiers placed atcheck points and at the bridge Troops are constantlymoving to the front Weapons are being flown into theairport

ldquoThe oil is a curse ldquoMohammed Abdurahman Kili 56mumbled from his hospital bed his body covered withburns He was inside his shop in a crowded market onthe edge of town when a Sudanese warplane attackedkilling a 9-year-old child and another person and settinghis shop on fire

Washington Post 2012

President Salva Kiir recognized in 2012 that corrupt officialshad stolen from the people of South Sudan and the amountlost or taken by lead government and military officials mightbe as much as $4 billion190 Kiir sent a letter to 75 SouthSudanese officials or individuals close to the governmentasking them return all the amount lost The letter describedin general terms how the money got ldquolostrdquo

An estimated $4 billion are unaccounted for orsimply put stolen by current and former officialsas well as corrupt individuals with close ties togovernment officials Most of these funds have beentaken out of the country and deposited in foreignaccounts Some have purchased properties oftenpaid in cash191

190 Ibidem191 Paanluel Wel South Sudanese bloggers httppaanluelwelcom2012

0601letter-from-president-kiir-on-corruption-4-billion-dollars-stolen192 Sudan Tribune 2013 South Sudanacutes Kiir accuses army of corruption

72

LIVING IN FEAR

A year later Kiir accused the armed forces of being corruptHe said that despite the big budget allocations made to thearmy there were even no ldquovehicles to transport soldiers onmissionsrdquo192 Two years later the issue remained unclearand the names of the officials referred to in the letter wereyet to be disclosed However Kiir accused Machar of beingresponsible for a lot of corrupted activities in the country193

Machar responded to Kiir by saying that his claims wereunfounded and then also accusing him of such practices194

It seems South Sudan epitomises all the features of theresource curse argued in Chapter 1195 How can the corruptionbe prevented How can the money go to the people It isalso important to note that the oil sector provides littleemployment to the people of South Sudan Most of thehousehold income and employment is generated in theagriculture and farming sector primarily196 Would investingin other sectors like agriculture that provide real wealth tothe people make a difference

193 Sudan Tribune 2014 South Sudan rebel leader should face corruptioncharges Kiir

194 Sudan Tribune 2014 South Sudan Macharacutes Rebentildes dismiss corruptionaccusations no spiritual powers httpallafricacomstories201407221384html

195 Kebede 2014 The role of oil in South Sudan Ibidem196 Tizikara et al 2012 Post-conflict development of Agriculture in South

Sudan perspective on approaches to capacity strenghtening httpwwwerailsnetimagesfarasecretariatkigali-movementfileKigali20MovementPost-Coflict20Agriculture_South20Sudanpdf

73

3 SOUTH SUDAN THE OIL WAY

Environment

As experienced in oilfileds in other parts of the world the oilfields here are also leaving a significant impact on theenvironment and local communities A three year study inThar Jath and Mala fields in Unity State show thatgroundwater is very polluted making the water unsafe forhuman consumption197 The study made by a team of SouthSudanese and German geologists concluded that water usedby 180000 people was too salty to drink and containdangerous amounts of heavy metals198

In many occasions the oil fields that causeenvironmental pollution are even abandoned due to the warSome observers identified that oil pipelines damaged duringthe conflict were leaking199

South Sudan must produce for its needs

In 2015 the Minister of Finance of South Sudan David DengAthorbei made a statement saying that the country shouldbe self-sufficient in agriculture terms and in addition itneeds to increase its non-oil revenue and to achieve peace200

197 Rueskamp et al 2014 Effect of oil exploration and production on thesalinity of a marginally permeable aquifer system in the Thar Jath-Mala- and Unity Oil fields Southern Sudan Zbl Geol Palaont Teil IJ

198 Radio Tamazuj 2015 Study Direct link between oil exploration andwater pollution in Unity httpsradiotamazujorgenarticlestudy-E28098direct-linkE28099-between-oil-exploration-and-water-pollution-unity

199 Star Africa 2014 South Sudan Oil leaks cause pollution fears httpenstarafricacomnewsssudan-oil-leaks-cause-pollution-fearshtml

200 Bloomberg 2015 South Sudan Finance Minister says food output canoffset oil httpwwwbloombergcomnewsarticles2015-01-20south-sudan-finance-minister-says-food-output-can-offset-oil-1-

74

LIVING IN FEAR

He also made a call for a reduction of the countryrsquos relianceon agriculture imports particularly in the context of aneconomy affected by the plunge in global oil prices201

Peter Biar Ajak from the Center for Strategic Analysis andResearch in Juba illustrates the macroeconomic weaknessesof South Sudan today because of its oil dependence

South Sudanrsquos oil-dependent economy is nearingcatastrophe The production of crude oil has droppedby about 35 percent since the conflict began Thatcombined with a drop of roughly 45 percent in globaloil prices since the summer has meant a substantialreduction in the governmentrsquos oil revenues andenormous fiscal and budgetary ressures

Since South Sudan exports almost nothing asidefrom oil and imports almost everything else tradeand monetary policy have also been buffeted byfalling oil revenues Access to foreign currency hasbecome extremely limited The prices of manyimported goods have risen There are shortages ofpetrol which must be imported because SouthSudan has no refinery202

Indeed a dynamic agriculture sector may be key for peaceand development in South Sudan More than 95 of thecountryrsquos population is dependent on farming fishing orherding to meet their daily food needs and income as well203

201 Bloomberg 2015 Ibidem202 Biar Ajak 2015Sanctions for peace in South Sudan The New York Times

January 7th203 FAO in emergencies httpwwwfaoorgemergenciescountries

detailenc147627

75

3 SOUTH SUDAN THE OIL WAY

204 Business Daily 2011 South Sudanrsquos vast agricultural sector potentialuntapped

205 Norwegian Refugee Council 2015 Conflict a cause of hunger in SouthSudan httpreliefwebintreportsouth-sudanconflict-cause-hunger-south-sudan OCHA 2015 South Sudan Crisis Situation reportn 74 httpreliefwebintsitesreliefwebintfilesresourcesSouth_Sudan_Situation_Report_No_74pdf

206 OECD 2014 Fragile States 2014 Domestic revenue mobilisation infragile states httpwwwoecdorgdacgovernance-peaceconflictandfragilitydocsFSR-2014pdf

South Sudan has good soil and climatic conditions and morethan 70 of its land area is suitable for crop productionThere are many that believe that the investment in theagriculture sector has more potential than oil however thisthinking has not received due attention from local andforeign investors204 Efforts towards making agriculture workare vital for peace and stabililty in the country It is urgentlyneeded to work on this area particularly when at presentthere are 25 million in Sudan at risk of starvation205 andaround one third of the population are food insecure plusmore than a million displaced

The dependency on income from natural resourcesleaves fragile states vulnerable It exposes them toshocks in commodity prices ndash as demonstrated bythe sudden fall in commodity prices in 2009following the 2002-2008 boom Neither is it asustainable source of incomeSouth Sudanrsquos oilproduction for instance is projected to decreasesteadily in future years and become negligible by2035

Source OECD206

76

LIVING IN FEAR

207 UN Security Council 2015 Resolution 2206 SRES2006(2015)httpwwwunorggasearchview_docaspsymbol=SRES2206 (2015)

208 Sudan Tribune 2015 South Sudan unhappy with US support for sanctionshttpwwwsudantribunecomspipphparticle54232

209 Washington Post 2014 US appears unable to pull South Sudan backfrom the brink of civil war httpwwwwashingtonpostcomworldus-appears-unable-to-pull-south-sudan-back-from-the-brink-of-civil-w a r 2 0 1 4 0 5 0 3 d 9 2 8 0 b d a - 3 8 6 b - 4 2 4 9 - 9 4 e 0 -b5292610e5bb_storyhtml

210 Ibidem

US fallen dream

In 2015 the UN imposed a travel ban and assets freeze againstindividuals or entities which engaged in or provided supportfor acts that threaten peace security and stability of SouthSudan207 The US was behind the draft and the submission ofthe resolution This resolution prompted an angry reactionfrom the South Sudanese The South Sudanese presidencywas said to be extremely disappointed about the US ledmove208

In the past the relationship between the US and SouthSudan was completely diferent The United States was themain promoter and supporter of the worldrsquos newest nationThe Washington Post for instance asserted that ldquoSouth Sudanowes its existence to the United Statesrdquo209 The expectationscreated were high before its started its independence andsome believed that Sudan would be able to manage thecountry breaking the so-called ldquoAfrican model of pettyrivalries corruption and oppressionrdquo210 Despite all the hopesput on the young nation as of today no solution has beenfound to the ongoing war

77

3 SOUTH SUDAN THE OIL WAY

The US was the largest donor to Sudan in the years priorto independence providing 339 of the total aid to Sudanbetween 2000 to 2009211 The United States (US$472million) was the largest donor of humanitarian assistanceto South Sudan in 2012 followed by the United Kingdom(US$96 million)212 For many years Sudan was the thirdlargest recipient of US aid only after Iraq and Afghanistan213

The inteligence and information systems of theAmericans on the ground in Sudan seemed to have beenrelatively good214hellip however how come they did not foreseethat South Sudan was quickly descending once again on theavenue of a country at civil war For instance the problemsbetween President Salva Kiir and his deputy were not newAlready more than two years before the civil war started inJune 2011 in a speech in Juba the President accused hisDeputy Riek Machar ldquoof running a parallel governmentwithin the governmentrdquo215 Couldnrsquot they have preventedanother conflict Why did they fall into ridiculouscontradictions as the one recently revealed via wikileakssuggesting that the US was funding both armies in

211 Development initiatives (undated) Sudan Aid Factsheet 1995-2009httpwwwglobalhumanitarianassistanceorgwp-contentuploads201102Sudan-Aid-Factsheet-2011pdf

212 See global humanitarian assistamce ebpage httpwwwglobalhumanitarianassistanceorgcountryprofilesouth-sudan

213 The Atlantic 2011 US played key role in Southern Sudanacutes longjourney to Independence

214 The Global Intelligence files 2013 SudanUSMIL ndash SPLA trying toget US to hook it up httpssearchwikileaksorggifilesviewemailid=5047664

215 Sudan Tribune 2011 Salva Kiir exposes his rift with Machar overSouth Sudan transitional constitution httpssearchwikileaksorggifilesviewemailid=3831682

78

LIVING IN FEAR

contention the Government force of Salva Kiir and the rebelsof Riek Machar216 Why are both paid by the UShellip to dowhat As one reporter questioned why are they ldquopaid tokill each otherrdquo217

216 RT 2015 US officials tussle over arms embargo sanctions in oil-flushSouth Sudan httprtcomusa226387-south-sudan-sanctions-war

217 RT 2015 Ibidem

Seven Million

ldquoA peaceful DR Congo could transform Africa almostovernight but is there a way outrdquo218

There is always a way out However peace is not an easything particularly under certain circunstances When youhave lost your father your mother your uncle your sisterwhat else can you lose Can you still believe in peaceTwoof the bloodiest conflicts in recent decades in the world haveoccurred in Africa The Second Civil War in Sudan has leftaproximately two million casualties and the conflict in DRCis estimated to have snuffed life out of no less than fivemillion people

How many more

How does one begin to quantify the dead when they are inthe hundreds of thousands No less than seven million livesof Congolese and South Sudanese were taken away due towars and conflicts fuelled by natural resources How many

218 African Business 2009 DR Congo $24 trillion fortune

4

79

80

LIVING IN FEAR

more How many more before the world wakes up to acteffectively towards ending all those conflictsProbably unless you are one survivor from those experiencesyou would never be truly able to understand what it meansto lose entire families and friends you would never be trulyable as well to understand what it means to feel fear foryour life and the life of your close relatives

When you start counting sometimes you forget thatpeople are not numbers There are names behind thenumbers A family A life As we write this book people aredying needlessly in the DRC and in South Sudan Calculatingdead people due to conflicts in this part of the world is verydifficult due to statistical challenges and so it is conceivablethat probably the number of victims is much larger than sevenmillion (7000000) When would the volume of bloodshedthe number of lives taken be enough for the belligerentofficials to make real peace How many more should fallAthousand more Another one million The pain sadness anddestruction that those conflicts generate should not beaccepted any more

Oil and minerals the main cause of ongoingconflicts and war

Some authors argue that minerals and oil are not a cause ofwar but ldquocompetition for them could amplify and expediteconflictrdquo219 In this book as chapter two and three haveshown oil and minerals are the main motor behind theconflict in recent decades in DRC and South Sudan It would

219 UN Security Council 2013 Natural resource wealth fails to translateinto equivalent benefits for people fuelling conflict to instability DeputySecretary-General tells Security Council httpwwwunorgpressen2013sc11037dochtm

81

4 SEVEN MILLION

be very difficult if not impossible to expect those conflictsif their territories were resource poor Oil and minerals arefull of blood An activist poet wrote We Thought it was Oilbut it was Blood220 Although he was writing about the NigerDelta situation we see a universal application in that phrase

In both countries described there were other elements andfactors to take into consideration however it can be saidthat control over natural resources was the most importantcause on both conflicts in DRC and South Sudan In bothcases oil and minerals fuelled those wars and in manyoccasions these resources have inspired fueled and sustainedarmies operating in the territories of both countries

A Statersquos wealth means nothing if not shared withthe majority of the population

DRC and South Sudan ought to be wealthy countriesUnfortunately having a wealth of natural resources doesnot mean that it belongs to the citizens or that the wealthwould be shared among the population of a given State AState is a nation or territory considered as an organizedpolitical community under one government221 A goodgovernment should be the one that takes care of its citizensand shares the wealth among its citizens and not justdistribute it among an elite Jan Eliasson Deputy Secretary-General of the United Nations stated that ldquoin too manycountries a wealth of resources including timber oil coaldiamonds and precious metals failed to translate into

220 Nnimmo Bassey 1998 We Thought it was Oil but it was Blood IbadanKraft Books

221 See httpwwwoxforddictionariescomdefinitionenglishstate

82

LIVING IN FEAR

equivalent wealth for the people Only a powerful fewbenefitrdquo222

The State is expected to perform an adequateimplementation of human rights granted by several UNdeclarations and conventions including the right to foodright to health right to shelter right to clothing right towork farmersacute rights etc Paradoxically the violations andabuses of human rights have been constant in DRC and SouthSudan Both countries have suffered from acts of war oncivilian population both have as well a large number ofdisplaced people with no access to food without healthcarewithout shelter and without any work Both countries havemore than 90 people living below one dollar per day andthey are considered among least developed countries andfragile states Due to this both are some of the biggestrecipients of humanitarian aid Moreover both have hugesecurity problems shown for instance by the presence ofUN peacekeeping operations Out of the 17th worldwideongoing peacekeeping UN operations three are in DRCSouth Sudan and in Abyeia disputed territory between Sudanand South Sudan

They possess resources that have a huge monetary valueand that in most cases have the involvement of foreigncountries and corporations and other stakeholders of theprivate sector which are ready to pay enormous sums ofmoney to gain control of the natural resources belonging toother countries If no war or significant armed conflict takes

222 UN Security Council 2013 Natural resource wealth fails to translateinto equivalent benefits for people fuelling conflict to instability DeputySecretary-General tells Security Council httpwwwunorgpressen2013sc11037dochtm

83

4 SEVEN MILLION

place common elements among those countries that possesssuch resources in Africa is the existence of massive povertyand corruption and in most cases this is contrasted withmega-rich individuals Letacutes take for instance the case ofoil-rich Angola where the president and his daughter possessmultibillionaire fortunes while at the same time the majorityof the country population is living on less than two dollarsper day223

Greed power and control over natural resources

It must be noted as well that often oil and minerals involvemillions and multibillion profits With such large sums ofmoney greed power and control take the driving seat ofwhatever country government in the world When theprospects for such money flow arrives many leaders andelites start distancing themselves from the majority of thepopulation and stop thinking about the welfare of their ownpeople

At the centre of most of the conflicts in both countriesare struggles for power and control of natural resourcesMinerals and oils are the main cause of the ongoing conflictsand wars Unfortunately most commentators qualify therecent civil war in South Sudan as a ldquopower strugglerdquo withoutfurther qualifications In South Sudan who gets the oil getsthe power Therefore the power struggle is a war overnatural resources for control of the oil in the country Areporter affirmed that ldquowhoever controls South Sudanrsquos oiltherefore could seize the upper hand in the battle for

223 Forbes 2013 Daddyacutes girl how an African ldquoprincessrdquo banked $3 billionin a country living on $2 day httpwwwforbescomsiteskerryadolan20130814how-isabel-dos-santos-took-the-short-route-to-become-africas-richest-woman

84

LIVING IN FEAR

224 France 24 2013 Battle for oil adds new dimension to South SudanConflict httpwwwfrance24comen20131227-battle-oil-adds-new-dimension-south-sudan-conflict

225 OECD 2014 Fragile States 2014 Domestic revenue mobilisation infragile states httpwwwoecdorgdacgovernance-peaceconflictandfragilitydocsFSR-2014pdf

powerrdquo224 In both countriesrsquo non-renewable natural resourcetook a dominant share of the fiscal revenue of DRC andSouth Sudan ndash 82 in the DRC and 98 in South Sudan225

Who controls those resources controls the countryThe case of South Sudan where the president has

recognized the disappearance of $4 billion by corruptindividuals is compelling President Salva Kiir pinpointed thespirit behind the rot ldquoOnce we got to power we forgot whatwe fought for and began to enrich ourselves at the expenseof our peoplerdquo This might also include him as well becauseit is difficult to imagine that such huge amount of money couldbe stolen without the leader noticing anything at all

Greed for minerals and oil is at the heart of the massivedeath toll and impoverishment of the Congolese and SouthSudanese people in recent decades It can be affirmed quitecomfortably that if the Eastern part of the DRC would havenot sat on huge mineral reserves it would be very difficultto imagine all the conflicts that have occurred in that zoneIt can be affirmed as well that without oil ongoing wars inSouth Sudan might most probably never have occured

Peace is the only way forward

Achieving peace is a complex issue To create peace thereare many issues to resolve with all stakeholders such as

85

4 SEVEN MILLION

mutual accusations of support to rebel groups226 goodgovernance transparency demobilisation and disarmamentof local militia etc227

A positive but vital first step is that there are calls at veryhigh levels in both countries and at international fora Thismust be followed with open debate on the core causes of theconflict and ways of achieving reconciliation It does notappear that lasting peace can be achieved otherwise In thatprocess the people need to be put at the centre ofdevelopment policies and actions in both countries in orderto stop the plunder reverse environmental degradation andfight poverty As long as the political military and corporateelite maintain their control of the natural resources of thecountry the devastating plunder will continue to the benefitof only such elite and a handful of corporations

226 UN Security Council 2015 Reports of the Secretary-General on theSudan and South Sudan SPV7392

227 The Guardian 2014 South Sudan is divided by the spoils of oil notethnicity httpwwwtheguardiancomcommentisfree2014jan14south-sudan-divided-oil-ethnicity-violence

INDEX

AAbyei Joint Oversight

Committee (AJOC) 47Abyei Police Service 46 62Abyei 43-home of the Ngok Dinka 43

45Africa 18 20 see minerals

-and wars at the greatlakes 20 25-armed groups in 26-criminal networks in 26-death in 20-exploitation naturalresources in 18-militias in 26-minerals in 20-poverty in 20-wealth in 20

Africarsquos wealth 14-and resource curse 14-blessing or curse 14

African Business 22African Development Bank

(AfDB) 16 17

African Unionrsquos (AU) Peaceand Security Council 48

Algeria 15Allied Democratic Forces

(ADF) 25 28-in North Kivu 25

American Mineral Fields(AMF) 36

AngloAmerican corporation35

AngloGold Ashanti 35Anvil Mining 36Armed Forces of the DRC

(FARDC) 26Athorbei David Deng 73Auty Richard 14

BBBC 18Blom Ulrika 59Blue Nile 45

CCentral African Republic 7China National Petroleum

Corporation 49

86

INDEX

87

Citibank NY 36Clinton Bill 24 36Conflict minerals 30 see

Rwanda-legitimate exports of 30-smuggling of 30

Conflicts 7-and natural resources 7-causes of 10 80-uniqueness of 10

Congolese Government 18

DDemocratic Republic of

Congo (DRC) 7-85-and (MONUC) 29-greed for minerals in 32-UN peacekeeping opera-tion in 29

Diffra oil complex 47DR Congo 79

EEastern Congo 28

-insecurity in 28Eliasson Jan 81

-Deputy Secretary-Generalof the United Nations 81

European Coalition on Oil inSudan (ECOS) 63

Exploration GmbH (OMV)64

Exxon corporate 15

FFirst Sudanese Civil War 42Forces deacutemocratiques de

libeacuteration du Rwanda(FDLR) 28

GGabon 18

-oil in 18Gertler Dan 12 13Ghana 18

-oil in 18Giambrone Antonino 38Glencore Anglo-Swiss 35Government of South Sudan

(GOSS) 69Government of Sudan (GoS)

62Great War of Africa 23Greater Nile Oil Project

Company (GNOPC) 6667

Guinea Equatorial 15

HHague 44Permanent Court of Arbitra-

tion in 44Human Rights Watch 55

IIMF 22International Rescue Commi-

ttee 23

LIVING IN FEAR

88

JJoak Daniel Wuor 69Juba 74

-Center for StrategicAnalysis and Research in74

Katanga Minister of Planning22

KKenya 19Kerry John 24Kiir Salva 43 84

LLibya 7Lumumba Patrice 13 20Lundin Oil Consortium 63

MMachar Riek 43 57 77 78Madagascar 16Mala fields 73Malakal 59Mali 7Mayardit Salva Kiir 69McKinney Cynthia Ann 23

-US Congresswomanfrom the Democratic Party23

McMurrough Mike 36McNamara Robert 37

-as World Bank President37

Minerals 20 see Africa-and death 20

-and poverty 20-and wars at the GreatLakes 20-and wealth 20

Mozambique 18-gas in 18

Muloni Irene 18

NNationalist and Integrationist

Front (FNI) 36Natural resources 8 83 see

conflicts-and conflict 8-and greed 83-and power 83-and wars 8-control over 83

Niger Delta 16-oil is a curse for 16

N o n - g o v e r n m e n t a lorganisations (NGOs) 12

Non-OPEC African oilproducer 48

Norwegian Refugee Council59

OOECD Guidelines for

Multinational Enterprises37

Oil 48-and geopolitics 48

PPeace 84

INDEX

89

-as way forward 84Petronas Carigali Overseas

Sdn Bhd (Petronas) 64Powell Colin 58PR Newswire 30President Kabila 24President Obama 24

RRDC Mining Code 35Republic of South Sudan

(RSS) 69Rio Tintorsquos QMM 16Ruweng County 67Rwanda 24 31

-conflict minerals from 31

SSecond Congo War 24 32

34Second Sudanese Civil War

42Somalia 7South Kordofan 45South Sudan Civil War 57South Sudan 11 18 19 41

-Dinka ethnic group in 4357-Nuer ethnic group in 4357the oil way 41-UN peacekeeping opera-tions 61

South Sudanese Civil War 58Sudan 79

-Second Civil War in 79

Sudan Armed Forces 46Sudan oil police 47Sudan Peoplersquos Liberation

Army (SPLA) 41 46 5462-civil wars and conflict in41

Sudan vs South Sudan 43-and Heglig battles 47-and peace agreement 43-main oil companies in 51-oil-centered conflict 46-Row over oil tariffs 51

Sudanese Civil War 52-and Addis AbabaAgreement 53-and Islamic law 53-causes of 52

Swedish oil company LundinOil AB (Lundin) 64

TTalisman Energy 65Thar Jath 73Transnational Corporations

(Tncs) 34-and the private sector 34

UUganda 19 24UN Interim Security Force for

Abyei (UNISFA)UN Mission in the Republic of

South Sudan (UNMISS)61 62

UN Organization Stabiliza-

LIVING IN FEAR

90

tion Mission in the DRC(MONUSCO) 29

UN peacekeeping operations11

UN Security Council 11UNICEF 59UNISFA 47United Nations Office of the

Special Adviser on Africa(OSAA) 8

United Nations SecurityCouncil 25

United Nations 13University of California

(UCLA) 54 55Upper Nile State 59 69US fallen dream 76

VVirunga National Park 18

WWar and conflict 58

-consequences of 58Wars and minerals 21

-cobalt 22-coltan 22-copper 22-diamond 22-gold 22-manganese 22-peace at last 21-timber 22-tin 22-zinc 22

Wau Shilluk 59We Thought it was Oil but it

was Blood 81Wealth 12 13

-for whom 13-quest for 12

World Heritage site 18Worldwatch 40

Page 13: LIVING IN FEAR - Health of Mother Earth Foundation...Les quatre puissances militaires regionales d´Afrique. 12 LAVDC. 2014. Les quatre puissances militaires regionales d´Afrique

15

1 THE QUEST FOR WEALTH

development in developing countries25 Others for instanceprefer to use different terminology like Exxon corporatewhich has said ldquowe donacutet like to call it the oil curse weprefer governance curse We are private investors and it isnot our role to tell governments how to spend their moneyrdquo26

Africarsquos wealth

Africa is full of natural resources and there are manycountries considered as having a huge wealth Oil gasminerals timber fertile land water are often mentioned asthe riches of the continent However oil and minerals arethe favourites of some of the top leaders of the continentAngola with oil and diamonds Nigeria with oil GuineaEquatorial with oil Algeria with plenty of oil and gasdeposits DRC with minerals and South Sudan with oil justto name some of them

Many would think that all those States with lots of oiland mineral are very wealthy The truth is that although theStates are wealthy the countries are paradoxically full ofpoverty and their populations are not benefiting from thoseresources Moreover in many cases the wealth derived from

25 Pedro (undated) lsquoMainstreaming mineral wealth in growth andpoverty reduction strategiesrsquo Economic Commission for Africa PolicyPaper Ross 1999 lsquoThe political economy of the resource cursersquoWorld Politics n51 Hodler 2004 lsquoThe curse of natural resourcesin fractionalized countriesrsquo Economic department University ofBern SwitzerlandSwilling 2012 lsquoBeyond the resource curse fromresource wars to sustainable resource management in Africarsquo Paperpresented at the Winelands Conference on Integrity and GovernanceStellenbosch Pendergast et al 2008 lsquoCorruption and the curse ofNatural resourcesrsquo Department of Economics University of VictoriaDavis 2012 Replicating Sachs and Warner the 1997 Working PaperColorado School of Mines Neumayer 2004 Does the resource cursehold for growth in genuine income as well World Developmentvol 32

LIVING IN FEAR

16

oil and minerals mostly fuel wars and conflicts While somedie while some are displaced while some are injured orrape Some on the contrary are making money lots andlots of money hellip and while they make money they just puta blind eye on the horrors occurring outside the fence Thisis well described in the Harker report on the Sudanese warand the role of oil corporations ldquoIf the oil companies donrsquotknow whatrsquos going on theyrsquore not looking over the fencesof their compoundsrdquo27

Although some may believe that the importance of theoil and mineral sectors is the creation of jobs for thepopulation this has been denied by several authors

The oil gas and mining sectors are notoriously poorwhen it comes to job creation An offshore platformtapping deep-sea reserves will create few if anypositions for locals Only recently protests werereported outside Rio Tintorsquos QMM mineral sandsoperation in the south of Madagascar due to highlocal unemployment The best way to convertnatural resource wealth into jobs is to take theproceeds and invest in other more labor-intensiveindustries such as agriculture or manufacturing28

Nigeria provides a good example where communities living inthe Niger Delta have not benefited from oil extraction whichon the contrary has created serious conflicts as seen in Box 1

On the question of whether oil is a blesssing or a curse toAfrica the African Development Bank concluded that it is a

26 The Economist 2005 lsquoThe paradox of plentyrsquo27 Canadian Ministry of Foreign Affairs 2000 Human Security in

Sudan The report of Canadian Assessment Mission httpw w w e c o s o n l i n e o r g r e p o r t s 2 0 0 0 Human20Security20in20Sudanpdf

28Africa progress panel 2013 Africaacutes mineral wealth eternally cursedhttpwwwafricaprogresspanelorgafricas-mineral-wealth-eternally-cursed

17

1 THE QUEST FOR WEALTH

ldquohuge blessingrdquo29 It justifies that with the following analysis

We estimate that Africa has 120bn barrels of oilreserves no less than half of Saudi Arabia and 600million hectares of uncultivated arable land halfof the world total We at the African DevelopmentBank (AfDB) estimate that the continentrsquos naturalresources will contribute over $30bn per annumin government revenues over the next 20 years30

Box 1 Oil is a curse for the Niger Delta people

Most people think of oil states as wealthy states ButNigeria proves that sometimes the opposite is true It isAfricarsquos leading oil producer and yet it is one of theworldrsquos 20 poorest countries Whatrsquos more the peopleliving in the Niger Delta the countryrsquos oil-producingregion are among Nigeriarsquos most impoverishedcommunities with a large percentage of the populationhaving to survive on less than one dollar a day For thesepeople lsquoblack goldrsquo has not brought prosperity ordevelopment Instead it has increased corruption socialproblems environmental damage and armed conflictThe many billions of US dollars in oil revenue that havepoured into the country during its oil industryrsquos 50-yearhistory have completely bypassed these communitiesSource Petra Hannen 2011 lsquoBlessing our Coursersquo GIZmagazine akzent

29 African Development Bank 2013 lsquoAfricarsquos mineral wealth a blessingor a cursersquo httpwwwafdborgenblogsafdb-president-this-is-africas-hourpostafricas-mineral-wealth-a-blessing-or-a-curse-12336

30 African Development Bank 2013 Africaacutes mineral wealth a blessingor a curse httpwwwafdborgenblogsafdb-president-this-is-africas-hourpostafricas-mineral-wealth-a-blessing-or-a-curse-12336

LIVING IN FEAR

18

Africa continues the exploitation of its naturalresources

Most of the African Governments that discover naturalresources in their territory eagerly move forward with theexploration of those Therefore natural resources areexplored all over the continent oil in Ghana manganese inGabon gas in Mozambique just to name a few Often thereis little consideration of the destruction or the conflicts theseextractive activities bring For instance according to the BBCin March 2015 the Congolese Government consideredmodifying the boundaries of the Virunga National Park homeof gorilla mountains and World Heritage site to permit oilexploration activities31

DRC and South Sudan as well are exploring a joint projectnow DRC has a frontier with South Sudan in the Northeastpart of the country While historically both ndash referring alsoto Sudan ndash did not often have a common grounds after theIndependence of South Sudan in 2011 it appears possiblethat natural resources may unite them more closely IreneMuloni Minister for Energy and Minerals Development fromUganda announced in an interview in February 2015 thatSouth Sudan and the DRC have expressed interest in theconstruction of an oil pipeline of over 1000 km to the Kenyancoast32 Although yet to be implemented there have beendiscussions and plans to construct a pipeline that would unite

31 BBC 2015 DR Congo seeks Virunga park bounary httpwwwbbccomnewsworld-africa-31876577See also New York Times2014 Oil dispute takes a page from Congoacutes bloody past httpwwwnytimescom20141116worldoil-dispute-takes-a-page-from-congos-bloody-pasthtml_r=1

32 Platts 2015 South Sudan DR Congo interested in Ugandan crudeoil export pipeline minister httpwwwplattscomlatest-newsoilkampalasouth-sudan-dr-congo-interested-in-ugandan-crude-26025080

19

1 THE QUEST FOR WEALTH

oil production and distribution in several African countriesincluding South Sudan Uganda Kenya Democratic Republicof Congo (DRC) and maybe others33

The forthcoming chapters will develop more elementsaround this topic in order to conclude some final remarkswith the particular case studies of DRC and South Sudan

33 The Economist 2013 Pipeline poacuteker httpwwweconomistcomnewsmiddle-east-and-africa21578402-east-africa-danger-throwing-away-part-its-new-found-oil

20

LIVING IN FEAR

Minerals and Wars at the GreatLakes Wealth Death and Massive

Poverty in the Heart of Africa

Our internal difficulties tribal war and the nucleiof political opposition seemed to have beenaccidentally concentrated in the regions with ourrichest mineral and power resources We know howall this was organised and in particular whosupports it today in our house

Our Katanga because of its uranium copper andgold and our Bakwanga in Kasai because of itsdiamonds have become hotbeds of imperialistintrigues The object of these intrigues is torecapture economic control of our country

Patrice Lumumba speech in Leopoldville in August 25th1960 34

34 Speech at the opening of the All-African Conference in Leopoldville in1960 See httpwwwassatashakurorgforumshoulders-our-freedom-fighters42970-collected-speeches-writings-patrice-lumumbahtml

2

21

2 MINERALS AND WARS AT THE GREAT LAKES

Lumumba the first democratically elected Prime Ministerof the Republic of Congo gave a speech in 1960 that wasremarkably prescient of the fate of Democratic Republic ofCongo (DRC) today Conflict minerals and ldquotribal warsrdquo gohand in hand in the DRC historyrsquos past decades Lumumbawas planning to get the DRCrsquos related difficulties undercontrol however he was executed a few months after thespeech by a firing squad in January 1961 The US throughthe CIA the United Kingdom through the M16 and Belgiumwere all blamed for their involvement in his death35

Paradoxically ldquothe assassinations were made by the ordersof those who proclaim themselves to be champions ofdemocracy and respecters of human rightsrdquo36 Externalmeddling and intervention in Congorsquos affairs by foreigncountries is another of the concurrent and repeated situationsthat continue in recent history of the DRC37

Wars and minerals peace at last

hellip The heart of Africa is bleeding hellip

Two wars raged in DRC from 1996-1997 and from 1998-2003 Contrary to what some affirm these were not ethnicconflicts but resource wars38 No coincidence that the

35 BBC 2013 M16 and the death of Patrice Lumumba httpwwwbbccomnewsworld-africa-22006446

36 VVAA 1992 Congo (Zaire) Democratie neo-coloniale ou deuxiemeIndependance Ed LrsquoHarmattan

37 The Guardian 2011 Patrice Lumumba the most importantassassination of the 20th centuryhttpwwwtheguardiancomglobal-developmentpoverty-matters2011jan17patrice-lumumba-50th-anniversary-assassination

38 See Friends of the Congo websitehttpwwwfriendsofthecongoorgresource-centercongo-primerhtml See also Lanotte 2003 RDCguerre sans frontiers Editions Complexe

22

LIVING IN FEAR

country possesses extraordinary mineral wealth with someof the most valuable and strategic minerals on earth suchas coltan diamond cobalt copper gold tin zincmanganese timber and others The highest concentrationof mining activities existin the Eastern part of the countryTo illustrate the predominance of mining here we wouldunderline the affirmation of the Katanga Minister ofPlanning who said that 72 of the territory of Katanga isdevoted to mining No surprise why the IMF has namedDRC one of the worldrsquos mining giants of today39 Themagazine African Business stated in 2009 that ldquothe totalmineral wealth of the DRC was estimated to be some $24trillionrdquo40 As Lumumba indicated back in 1960 the samescenario repeated in recent years ndash minerals and conflictscontinue to go hand by hand

DR Congo possesses some 80 of the worldrsquoscoltan ore reserves(hellip) Additionally the DRCongo produces significant quantities ofdiamonds gold cassiterite copper cobalt (ofwhich it has the worldrsquos largest reservesalthough the trade is largely controlled byZimbabwe) oil tin zinc gold and coffee Thecountry has large reserves of uranium it wasCongolese uranium that was used for theManhattan Project that produced the worldrsquosfirst atomic bombs dropped on Japan The vastcountry also has more than half of sub-SaharanAfricarsquos timber stocks

Source African Business

39 IMF 2013 DRC Poverty reduction strategy paper N 1322640 African Business 2009 DR Congo $24 trillion fortune

23

2 MINERALS AND WARS AT THE GREAT LAKES

The casualties over the years are overwhelming Whileeverybody is familiar with the death toll during the genocidein Rwanda estimated between 500000 and 800000 peoplethere is much less awareness about the conflict situation inCongo The International Rescue Committee has estimatedthat the conflict and humanitarian crisis in the DemocraticRepublic of Congo has taken a death toll of 54 million peoplefrom 1998 to 200741 A CNN correspondent in trying togive an illustration of the heavy toll made the followingcomparative analysis

The wars in that country ndash RD Congo ndash haveclaimed nearly the same number of lives as havinga 911 every single day for 360 days the genocidethat struck Rwanda in 1994 the ethnic cleansingthat overwhelmed Bosnia in the mid-1990s thegenocide that took place in Darfur the number ofpeople killed in the great tsunami that struck Asiain 2004 and the number of people who died inHiroshima and Nagasaki mdash all combined and thendoubled42

Rwanda and Uganda were actively involved in the invasionof Congo in both wars The second war was known as theGreat War of Africa involving nine countries and more than20 armed groups According to Cynthia Ann McKinney aUS Congresswoman from the Democratic Party and an

41 IRC 2007 IRC study shows Congorsquos neglected crisis leaves 54 milliondead httpwwwrescueorgnewsirc-study-shows-congos-neglected-crisis-leaves-54-million-dead-peace-deal-n-kivu-increased-aidmdash4331 Some groups put the death toll much higher See GlobalResearch webpage httpwwwglobalresearchcathe-war-that-did-not-make-the-headlines-over-five-million-dead-in-congo7957

42 CNN 2012 Why the world is ignoring Congo war httpeditioncnncom20121127opinioncongo-war-ignored-vava-tampa

24

LIVING IN FEAR

expert on the Great Lakes issues while invading DRC in theSecond Congo War the US continued providing financialsupport to the governments of Rwanda and Uganda43 Howwas this allowed US President Bill Clinton was personallyin Rwanda in March 1998 only a few months before theRwandese army invaded Congo44 President Clinton was inAfrica at that time addressing its presidents includingPresidents Kagame and Museveni as leaders of the ldquoAfricanRenaissancerdquo and seeing a bright future for Africa45 ThereClinton made an important call to embrace peace How wasit possible to talk about peace while these allies were directlyengaging in war Moreover with the experience of thegenocide in Rwanda how could it be that foreign powersclosely involved in the region particularly the United Stateslet this occur again How did they allow wars and conflictsthat killed millions of people How could they allow whatmany called another genocide in Congo

On a positive note at last in recent months the calls forpeace have been growing from many different stakeholdersIn May 2014 US Secretary of State John Kerry after ameeting with DRC President Kabila stated that ldquoachievinga lasting peace in the DRC is a priority of President ObamardquoHe added ldquoNow I canrsquot emphasize enough how importantthat process is in identifying and resolving the root causesof the conflict in the DRC as well as in the entire GreatLakes regionrdquo46 Not a minor task going to the roots causes

43 Order of Indictment from Juzgao de instruccion numero CuatroAudiencia Nacional Case 320008-D 6-2-2008

44 See CBS News httpwwwcbsnewscomnewstext-of-clintons-rwanda-speech

45 Schaefer 2000 The Keys to an African Economic Renaissance httpwwwheritageorgresearchreports200005the-keys-to-an-african-economic-renaissance

46 See US Dept of State 2014 Press Availability on the DRC and theGreat Lakes Region httpwwwstategovsecretaryremarks201405225587htm

25

2 MINERALS AND WARS AT THE GREAT LAKES

of those problems in the Great Lakes Indeed achieving peaceand reconciliation in the Great Lakes Region in countriesthat had suffered like DRC is a difficult and cumbersometask and making it by finding the ldquorealrdquo root causes can bea very complex and lengthy exercise taking decades orlonger

The situation remains tense We recall that in 2006 theUN Security Council issued a resolution condemning ldquotheactivities of militias and armed groups operating in the GreatLakes regionrdquo47 Almost a decade later those armed groupsare still there and despite the efforts made the situationremains tense and insecure A report of the Group of Expertson the RDC published in 2015 by the United Nations SecurityCouncil concludes that in DRC despite a defeat of one of therebel groups ndash the Movement of 23 March ndash at the end of2013 this ldquofailed to translate into significant gains in securityand security and stability in 2014rdquo48 For example in thebeginning of 2015 a rebel group from Uganda the AlliedDemocratic Forces (ADF) created havoc in North Kivuwhere 17 people were hacked to death with machetes49

47 UN Security Council 2006 Resolution 1653 (2006) SRES165348 UN Security Council 2015 Final report of the Group of Experts on

the DRC S20151949 UN Security Council 2015 March 2015 monthly forecast http

wwwsecuritycouncilreportorgmonthly-forecast2015-03democratic_republic_of_the_congo_7phpVP-BX5Sm4agmailto

26

LIVING IN FEAR

Armed groups militias and criminal networkswithin the military structure making a lucrativebusiness out of minerals

The UN has solidly demonstrated that natural resources areused to finance armed groups and therefore to fuel war inthe region 50 The UN concludes that ldquoarmed groups continueto control many mining sites and to profit from mining andthe minerals traderdquo51 Later on those minerals particularlytin tungsten and tantalum are smuggled to neighbouringcountries For example one of the armed groups theMovement of 23 March (M23) responsible for taking Gomaat the end of 2012 was financing its organisation fromnatural resources in Eastern Congo In relation to thisparticular case the UN asserts that ldquoseveral traders havecontributed to financing M23 rebels using profits resultingfrom the smuggling of Congolese minerals into Rwandardquo52

Besides the rebel groups a criminal network within theArmed Forces of the DRC (FARDC) was involved in the illegalexploitation of natural resources The types of involvementinclude illegal taxation protection rackets and indirectcommercial control to more direct coercive control53

For some top army officials their military work wasconverted into economic businesses Indeed the existing

50 UN Security Council 2014 Final report of the Group of Experts onthe Democratic Republic of the Congo

51 Ibidem52 Ibidem53 UN Security Council 2010 Letter dated 26 October 2010 from the

Group of Experts on the DRC addressed to the Chair of the SecurityCouncil Committee established pursuant resolution 1533 (2004) S2010596

27

2 MINERALS AND WARS AT THE GREAT LAKES

practices made the UN qualify the war as a ldquolucrativebusinessrdquo

illegal exploitation of resources by BurundiRwanda and Uganda took different forms includingconfiscation extraction forced monopoly andprice-fixing The first two forms reachedproportions that made the war in the DRC a verylucrative business There are strong indicationsthat even if security and political reasons werethe professed motivation to move into the easternDRC some top army officials clearly had economicand financial objectives54

The most UN recent reports affirm that ldquomany armed groupsin Eastern Democratic Republic of the Congo have derivedtheir revenue from the production of and trade in naturalresourcesrdquo55

54 UN Security Council 2001 Security Council condemns ilegal exploitationof Democratic Republic of Congoacutes natural resources Press Releasehttpwwwunorgpressen2001sc7057dochtm

55 UN Security Council 2014 Final report of the Group of Experts on theDRC S201442

28

LIVING IN FEAR

Insecurity still booming in Eastern Congo

As already mentioned the momentum created bythe defeat of the Movement of 23 March inNovember 2013 failed to translate into significantgains in security and stability in 2014 in EasternDemocratic Republic of the Congo A militaryoperation against the Allied Democratic Forces(ADF) significantly weakened but did not defeatthe sanctioned armed group An expected militaryoperation against the Forces deacutemocratiques delibeacuteration du Rwanda (FDLR) did not materializeand as of the end of November 2014 efforts tonegotiate the disarmament of this sanctionedarmed group failed to produce meaningful resultsIn addition numerous Congolese and foreignarmed groups contributed to instability inOrientale North Kivu South Kivu and KatangaprovincesADF FDLR Nduma Defence for Congo (led bysanctioned individual Sheka Ntabo Ntaberi) andother armed groups continued to recruit train anduse child soldiers in 2014 Armed groups alsocommitted a variety of other abuses includingtorture enslavement and sexual violence Therewere mass killings in June in Mutarule (South Kivu)and in October and November in Beni territory(North Kivu)

Source United Nations Security Council 201556

29

2 MINERALS AND WARS AT THE GREAT LAKES

One of the problems the existing insecurity and conflicts havecreated is the proliferation of internally displaced peopleestimated in September 2014 at 27 million people57

UN peacekeeping operation in Congo

In July1999 Heads of State of Angola DRC NamibiaRwanda Uganda Zambia and Zimbabwe signed the Lusakaagreement focusing on the establishment of a ceasefire asone of the other components necessary for the deploymentof a UN peacekeeping force

The first UN Peacekeeping operation in DRC wasestablished in November 1999 after the Lusaka Ceasefireagreement It was called the UN Mission in the DRC(MONUC) In 2010 it was renamed the UN OrganizationStabilization Mission in the DRC (MONUSCO)

Ten years later despite the deployment of MONUC thesecurity challenges in DRC ndash particularly in the Eastern Partof the country ndash remain high58 There is still a strong presenceof armed groups chronic humanitarian crisis continuoushuman rights violations and continued illegal exploitationof natural resources In the light of this context the UNcreated an ldquoIntervention brigaderdquo with a key objective ofneutralizing armed groups59 As of today the MONUSCOand the intervention brigade are operational but are theresignificant security changes

56 Ibidem57 See global humanitarian assistance webpage http

wwwglobalhumanitarianassistanceorgcountryprofiledemocratic-republic-of-congo

58 UN Security Council 2010 Resolution 192559 UN Security Council 2013 Resolution 2098

30

LIVING IN FEAR

60 UN Security Council 2014 Final report of the Group of Experts on theDRC S201442

61 PR Newswire 2014 Rwanda has become worldacutes largest coltanexporterhttpwwwprnewswirecomnews-releasesrwanda-has-become-worlds-largest-coltan-exporter-reports-kt-press-300010371html

62 PR Newswire 2014 Rwanda has become worldacutes largest coltanexporter

63 Africa Briefing 2015 Rwanda has abundant deposits of best qualitycoltan Kagame affirms httpafricabriefingorgp=478

Legitimate exports or smuggling conflictminerals

It is well known that many of the minerals in Eastern Congoare smuggled and do not follow legal channels For instancethe UN estimates that 98 of the gold produced in DRC issmuggled out of the DRC making the country lose millionsof dollars in tax revenue60

In December 2014 numerous media covered a story onRwanda and coltan PR Newswire affirmed that ldquoRwandahas become worldacutes largest coltan exporterrdquo61 The dataprovided concluded that in 2013 Rwanda exported around2500000 kg of tantalum which constituted 28 of the total8807232Kg of tantalum produced globally The overallrevenue from the coltan was estimated at around $140 M62

Rwandese President Paul Kagame was quoted as affirmingthat the production was local and dismissed all possibleallegations of plundering the coltan from Congo He affirmedldquoRwanda has not only enough coltan but of a very highquality (hellip) we can even pay for a ticket give them a visaand take them to the minesrdquo63

Contrary to such statements there are many reports thatcoltan is smuggled from Congo to Rwanda and that Rwandadoes not have significant coltan mining on its own For

31

2 MINERALS AND WARS AT THE GREAT LAKES

instance a 2012 report prepared by a European Foundationaffirmed that ldquoRwanda does not house any industrial coltanmines which would suggest legitimate Rwandan coltanproductionrdquo64 A US governmental agency which analyzesthe mining sector in Congo made a table with coltan exportedfrom Rwanda qualifying it as ldquoconflict mineralsrdquo as seen inTable 165 Since there is no known conflict in Rwanda it canonly refer to Rwanda exports of minerals originating froman external conflict zone the DRC

Table 1 Estimates of exports of conflictminerals from Rwanda for Fiscal years2009-2013 in Metric Tons

Year Tantalum

FY 2009 958

FY 2010 827

FY2011 915

FY2012 1139

FY 2013 2466

Source Based on United States Government Accountability Office 2014

64 Van Teeffelen 2012 The EU raw materials policy and mining in RwandaEvert Vermeer Foundation

65 United States Government Accountability Office 2014 Conflictminerals stakeholder options for responsible sourcing are expandingbut more information on smelters is needed

32

LIVING IN FEAR

In this particular situation either somebody is wrong orsomebody is lying Hopefully future events will unveil thetruth around the nature of the coltan exports from Rwandato clarify whether they are a legitimate export or theconsequence of smuggling conflict minerals

Greed for minerals everybody wants a pieceof Congo66

What is at the origin of those wars and instability of theCongo While there could be diverse factors for conflictthere is one that seems to be always recurrent and is recog-nized by most authors and by relevant UN reports the racefor minerals and natural resources The UN recognized thatin the Second Congo War minerals were the coveted trophyand that all actors ldquobuilt up a self-financing war economycentred on mineral exploitationrdquo67 The conflicts that con-tinued after the Second Congo War like those in Kivu andIturi provinces are recognized as well to be fuelled by tradein minerals Along the same lines Palou underlines the causesof the conflict by stating that ldquoalthough from that time un-til the present day the Rwandan regime has expressed itsconcern about the security of its border with the then Zaireobjectively the reality is that control over this strategic areandash Eastern Congo ndash and its valuable mineral resources has

66 See video at Congo Justice httpcongojusticeorg67 UN 2002 Final report of the Panel of Experts on the illegal exploitation

of natural resources and other forms of wealth of the DemocraticRepublic of the Congo S20021146

33

2 MINERALS AND WARS AT THE GREAT LAKES

proved to be at the heart of two wars that have left a hugenumber of victimsrdquo68 In conclusion a 2001 UN report as-serted that ldquothe conflict of DRC has become mainly aboutaccess control and trade of five key mineral resourcescoltan diamond copper cobalt and gold The wealth of thecountry is appealing and hard to resist in the context oflawlessness and the weakness of the central authorityrdquo69

Congolese and regional elite have also profited from thissituation as well and the appalling quantum of the plunderare reflected in the following report from UN

The elite network of Congolese and Zimbabweanpolitical military and commercial interests seeksto maintain its grip on the main mineral resourcesmdash diamonds cobalt copper germanium mdash of theGovernment-controlled area This network hastransferred ownership of at least US$ 5 billion ofassets from the State mining sector to privatecompanies under its control in the past three yearswith no compensation or benefit for the Statetreasury of the Democratic Republic of the Congo70

Funds that could have been used for public services havebeen diverted from the public coffers by fraud or by theexcuse of war effort71 The Congolese population has paid

68 Palou 2010 International Justice plunder in war human rights andmultinationals

69 UN Security Council 2001 Report of the Panel of Experts on theillegal exploitation of natural resources and other forms of wealth ofthe Democratic Republic of the Congo S2001357

70 UN Security Council 2002 Final report of the Panel of Experts on theilegal exploitation of natural resources and other forms of wealth ofthe Democratic Republic of the Congo S20021146

71 Ibidem

34

LIVING IN FEAR

dearly in this situation In terms of human development it isinstructive that the UNDP estimated in 2013 that RDCwas in the low human development category ndash positioningthe country at 186 out of 187 countries and territories72

The Role of Transnational Corporations (Tncs)and the private sector

Other key players involved in the conflict are Transnationalsand the private sector A UN Report published a few yearsafter the Second Congo War started affirmed that ldquothe roleof the private sector in the exploitation of natural resourcesand the continuation of the war has been vitalrdquo73 The reportalso added that ldquoa number of companies have been involvedand have fuelled the war directly trading arms for naturalresourcesrdquo74 Other observers share the view that ldquoWesternMultinationals have been one group responsible for thepillage and illegal exploitation of Congo mineral resourcesrdquo75

There are a large number of big foreign corporationsinvolved in mining in DRC including those from CanadaSouth Africa UK USA and others Despite the opacity ofmost of the activities of the private sector numerousexamples have been reported of how TNCs are responsiblefor human rights abuses and other illegal activites Thereare also many reports of the dangerous connectionsestablished with the political and military elite in order tofacilitate their businesses These are some examples

72 UNDP 2014 Sustaining human progress reducing vulnerabilities andbuilding resilience Congo (Democratic Republic of the) httphdrundporgsitesallthemeshdr_themecountry-notesCODpdf

73 UN 2001 Report of the Panel of Experts on the illegal exploitation ofnatural resources and other forms of wealth of the Democratic Republicof the Congo S2001357

74 UN 2001 Ibidem75 Palou Ibidem

35

2 MINERALS AND WARS AT THE GREAT LAKES

bull Glencore Anglo-Swiss giant in the raw material sectorwith a turnover of US $ 2397 billion in 2013 was beingaccused in 2014 of adopting a military-style response tothe problem of artisanal mining close to its mines ldquoonseveral occasions over the past 18 months mine policehave fired live ammunition in pursuit of artisanal minerson Glencorersquos site resulting in deaths and seriousinjuriesrdquo76 They are as well responsible forcontamination of the water supply with acid content andvery high and concentrations of copper and cobaltFinally the company operates some of its concessionsinside a reserve ndashndash something that in principle is illegalaccording to the RDC Mining Code77

bull An independent investigation unveiled that two miningcompanies Glencore and the Eurasian Natural ResourcesCorporation were involved in underpricing assets incomplex deals featuring offshore companies causinglosses to the DRC of no less than $136 billionIntermediary companies in the deals were linked to DanGerler78 In addition the DRC public prosecutorreportedly told mining companies that they had toreimburse $37 billion in taxes duties and fines79

bull AngloGold Ashanti part of the AngloAmericancorporation was accused of establishing links and

76 Peyer et al 2014 PR or Progress Glencoreacutes corporate responsibility inthe DRC Bread for all RAID Fastenopfer

77 Ibidem78 CRS 2014 Democratic Republic of Congo Background and US Policy79 Reuters 2014 Disputed Congo report says miners owe $37 billion in

tax fines httpwwwreuterscomarticle20140130us-congo-democratic-mining-idUSBREA0T12L20140130

36

LIVING IN FEAR

supporting one armed group the Nationalist andIntegrationist Front (FNI)80

bull In 2004 fighting between soldiers and rebels in Kilwaended in serious human rights violations againstcivilians including summary executions arbitraryarrests rape and torture Anvil Mining operated theDikulushi copper mine near Kilwa and was accused ofproviding vehicles and planes to the Congolese armedforces during this event The legal case ended in theCanadian Supreme Court in 2012 which ruled that itwould not hear the plaintiff rsquos appeal ndash they were led bythe Canadian Association Against Impunity (anassociation representing survivors of the incidents inOctober 2004)81

bull In May 1997 Citibank NY a financial institution hasbeen accused of giving $5 million loan to a Congolesemilitia allied with Rwanda82

bull American Mineral Fields (AMF) cut a $1 billion dealwith Kabila immediately after his forces captured GomaThe negotiations were led by ldquoKabilarsquos US-trainedfinance ministerrdquo who gave ldquoAMF exclusive explorationrights to zinc copper and cobalt mines in the area MikeMcMurrough a friend of US President Bill Clinton wasthen the chair of AMF83

80 Human rights watch 2005 DRC Gold fuels massive human rightsatrocities httpwwwhrworgennews20050601dr-congo-gold-fuels-massive-human-rights-atrocities

81 Business and human rights resource center 2012 Anvil Mining Lawsuit(re DRC) httpbusiness-humanrightsorgenanvil-mining-lawsuit-re-dem-rep-of-congo

82 Global research 2008 Congo Resource wars httpwwwglobalresearchcacongo-resource-wars8310

83 Global research 2008 Ibidem

37

2 MINERALS AND WARS AT THE GREAT LAKES

UN and some other independent reports generally makebroad statements about the role of corporations includingciting some of the companies however they fall short ofproviding details of the modus operandi of those companiesand in establishing or suggesting concrete measures to stopthe conflicts and solve the negative impacts on the DRCpopulation and environment A 2002 UN Report listed 85companies considered by the Panel to be in violation of theOECD Guidelines for Multinational Enterprises84 Very littlehas been done after the UN report was published

A poor country Until when

In 1969 World Bank President Robert McNamara embarkedon a trip to Africa to try to discover ldquowhat are therequirements for developmentrdquo85 At that time the WorldBank in its information document described the country asrich in natural resources but at the same time poor and witha strong mining sector

In spite of its rich natural resources and greatpotential the Congo is still a poor country (hellip)Mining and metallurgy play a leading role in theeconomy86

84 UN 2002 Final Report of the Panel of Experts on the Illegal Exploitationof Natural Resources and other Forms of Wealth of the DemocraticRepublic of the Congo S20021146

85 Records of President Robert S McNamara Travel briefs CongoKinshasa (01021969-03031969) 1772506 Reference Code WBIBRDIDA 03 EXC-10-4540S World Bank Group archives WashingtonDC United States

86 Ibidem

38

LIVING IN FEAR

More than forty years later not much has changed asupdated data shows In DRC seven out of ten householdsare poor87 Most of its nearly 60 million people areldquodesperately poor living on less than $1 a dayrdquo88 DRC is aleast developed country a fragile State that has been in thetop 10 recipients of humanitarian assistance in nine of thelast 10 years Between 2003 and 2012 DRC received US$176billion in official development assistance (ODA) making itthe 10th largest recipient89In 2012 the Democratic Republicof Congo (DRC) received US$286 billion in net officialdevelopment assistance90

With so many natural resources isnrsquot there money to getpeople out of poverty The mining sector is oftenacknowledged as being capable of contributing to povertyreduction However those mineral benefits are oftencreamed off by powerful interests and do not get to thehands of the majority of the population According to DFIDldquofiscal receipts from the minerals sector are siphoned off bypowerful interest groups instead of being used in the publicsectorrdquo91

The analysis of Mr Antonino Giambrone sheds more lightabout the earnings and who profits from mining

While the average Congolese worker earns $10 permonth the average Congolese coltan-miner earnsanywhere from $10 to $50 per week Uganda

87 IMF 2013 DRC Poverty reduction strategy paper N 1322688 DFID 2008 Democratic Republic of Congo Country Plan89 View global humanitarian assistance webpage http

wwwglobalhumanitarianassistanceorgcountryprofiledemocratic-republic-of-congo

90 CRS 2014 Democratic Republic of Congo Background and US Policy91 DFID 2008 Democratic Republic of Congo Country Plan

39

2 MINERALS AND WARS AT THE GREAT LAKES

Rwandan and Congolese rebels have earned manymillions of dollars in sales of coltan which theyhave used to finance their war efforts in the CongoBetweeen 1999 and 2000 the Rwandan army aloneearned at least $20 million a month from coltan92

Food insecurity is often a consequence of poverty One ofthe causes of existing food insecurity is the abandonment ofthe agriculture sector partly due to conflicts The governmentstated that it would like to strengthen the smallholdersldquowhile ensuring at the same time the protection of thecountryrsquos natural resourcesrdquo93

War impacts on the environment

The wars have had devastating impact on the environmentNational parks for instance home of many endangeredspecies are also affected by the exploitation of minerals94

There are numerous reports on the precarious situation ofwildlife in the region For instance between 1995 and 19994000 out of 12000 elephants were killed in the GarambaPark in North-eastern DRC95 The situation was also seriousin other parks For instance in Kahuzi-Biega Park a zonerich in coltan only 2 out of 350 elephant families remained

92 Giambrone 2006 The extraction of natural resources as a source ofconflict Etfo voice

93 IMF 2013 DRC Poverty reduction strategy paper N 1322694 Seeh ttpwww lenntech comenv ironmental -ef fec ts -

warhtmixzz3CuGZqE3M95 UN 2001 Report of the Panel of Experts on the illegal exploitation of

natural resources and other forms of wealth of the Democratic Republicof the Congo S2001357

40

LIVING IN FEAR

in 200096 Mountain gorillas are also under threat due tocontinued civil unrest and the presence of armed militiasmakes survey and conservation work difficult in the DRCrsquosprotected areas97

Deforestation is also one of the common impactsWorldwatch explains the implication of having refugeespopulation inhabiting RDC degraded forest areas

For two years beginning in late 1994 for exampleabout 720000 Rwandans inhabited refugee campson the fringes of Virunga National Park They allneeded wood for cooking fires and for buildingshelters and some also earned extra money bymanufacturing charcoal As a result up to 80000people entered the park and carted away up to1000 tons of wood every day By mid-1996 105square kilometers of forest had been affected toone degree or another by their activities 35 squarekilometers had been stripped bare98

Besides the need for fuelwood by refugees movement ofmilitary hardware through forests and woodlands also causeserious damage to forests and the landscape generally

96 Ibidem97 See WWF webpage httpwwfpandaorgwhat_we_doendangered_species

great_apesgorillasmountain_gorilla98 Worldwatch 2008 War and Environment httpwwwworldwatchorg

node5520

3South Sudan The Oil Way

99 Washington Post 2012 lsquoSouth Sudan civilians are trapped in conflictover oilrsquo httpwwwwashingtonpostcomworldsouth-sudan-civi l i ans-are- trapped-in-conf l ict -over-o i l20120501gIQAUX6buT_storyhtml

100 See UN Mission in South Sudan web page httpwwwunmultimediaorgtvunifeed201404south-sudan-bentiu-massacre

101 Reuters 2014 Bentiu massacre is game-changer in South Sudanconflict says UN official httpwwwtheguardiancomworld2014apr22bentiu-massacre-south-sudan-united-nations

41

ldquoIf we had no oil we would not be attackedrdquo

Nyak a 27-year-old sitting outside herhut in Bentiu South Sudan 201299

In April 2014 Bentiu the capital of the oil producing UnityState was the scenario of one of the worst massacres of thecivil war between South Sudanese forces100 Hundreds ofpeople were killed in the fighting that took place betweenthe Sudan Peoplersquos Liberation Army (SPLA) and anti-government forces in the oil-rich State101

42

LIVING IN FEAR

Civil wars and conflict

Since its independence in 1956 Sudan has been at war andconflict for most of its modern history Specialists in conflictand security have described the history of modern Sudan asldquoan unremitting sequence of wars punctuated by oft-violatedpeace agreementsrdquo102 The First Sudanese Civil War (1955ndash1972) was followed by a Second Sudanese Civil War (1983ndash2005) with barely 11 years breathing space of tenuoussecurity

The Second Civil War ended when both sides signed theComprehensive Peace Agreement in 2005 That agreementgave autonomy to South Sudan within Sudan However areferendum held in January 2011 moved the region towardsecession and then in July 2011 independence was achievedand South Sudan became an autonomous nation103 Theprocess that led to South Sudanrsquos independence was stronglysupported by the US government which backed Juba in itstwo decades struggle against Khartoum104 It should be notedthat even during the 11 years of supposed peace there wereconflicts on a regular basis particularly in the border areasbetween South Sudan and Sudan105 Two years after theindependence the first South Sudanese Civil War started inDecember 2013 The civil war erupted as a result of a power

102 Cox and Snapper 2013 The Strategic Importance of South Sudan TelAviv University

103 National Geographic 2013 South Sudan oil the environment andborder conflicts httpvoicesnationalgeographiccom2013032286550

104 See webpagehttpwwwworkersorgarticles20140101south-sudan-yet-another-oil-war

105 International Crisis Group 2006 Sudan Saving peace in the Easthttpwwwcrisisgrouporgenregionsafricahorn-of-africasudan102-sudan-saving-peace-in-the-eastaspx BBC 2015 South SudanProfile httpwwwbbccomnewsworld-africa-14019202

43

3 SOUTH SUDAN THE OIL WAY

struggle between president Salva Kiir from the Dinka ethnicgroup and his deputy Riek Machar from the Nuer ethnicgroup whom he had sacked As at the time of this writingthe civil war continues

Sudan vs South Sudan

The tensions and conflicts after the independence of SouthSudan from its neighbour Sudan did not stop in 2011 Topleaders from both sides accuse and threaten each other innumerous occasions For instance Sudanese President Bashirpromised to teach South Sudan a ldquofinal lesson by forcerdquo106

South Sudan President firmly swore that ldquowhether Umar al-Bashir likes it or not one day Abyei will rejoin the southrdquo107

Abyei

Abyei is traditionally the home of the Ngok Dinka asubdivision of the Dinka tribe with strong links to the Dinkain South Sudan Besides the Dinka Misseriya herders aremembers of nomadic Arab tribes that seasonally cross Abyeiand other nearby areas with their cattle in search of waterand pasture108

Since the signing of the Peace Agreement in 2005 betweenthe Government of Sudan and the SPLM the dispute over

106 The Washington Post 2012 lsquoSudanese president vows war againstSouth Sudanrsquo httpwwwwashingtonpostcomworldsudanese-president-threatens-force-against-south-sudan-over-oil-field20120419gIQAJ0G8ST_storyhtml

107 The Global Intelligence Files 2013 Sudan- President Kiir says Abyeiwill ldquorejoinrdquo South Sudan httpssearchwikileaksorggifilesviewemailid=674314

108 Enough Project 2013 What is the Abyei Area and why is it disputedhttpwwwenoughprojectorgblogsenough-101-what-abyei-area-and-why-it-disputed

44

LIVING IN FEAR

the future status of the Abyei area has beenone of the bigbarriers to stability in the region109Abyei is an oil-rich areadisputed by Sudan and South Sudan and stands out as thehotspot of bigger tension beetween Sudan and South Sudannowadays

The conflicts over Abyei have a history of more than 50years After the First Civil war the parties signatories to thepeace pact agreed that Abyei would hold a referendum todetermine whether they would be part of Sudan or a newlyregion in the South The second war commenced in 1983and the foreseen referendum was not done

In 2009 the Permanent Court of Arbitration in the Hagueruled on Abyei territory giving concessions to the Governmentof Sudan and the Southern Sudan Heglig and other closeroil-fields remained out of Abyei area while the rest of theAbyei region remained under control of the Ngok Dinka anethnic group close to Southern Sudan and keen on voting tojoin the South in a future referendum110Another referendumwas scheduled to be done in parallel with the South Sudanreferendum in 2011 but once again this never took place

Although a series of temporary security arrangementswere agreed in January and March 2011111 in May SudaneseArmy tanks entered the town of Abyei and by the 22nd ofMay they seized control of the town112The government ofSudan launched numerous military attacks in the disputed

109 UN Security Council 2011 Report of the Secretary-General on thesituation in Abyei S2011451

110 New York Times 2009 lsquoCourt redraws disputed area in Sudanrsquo httpwwwnytimescom20090723worldafrica23sudanhtml_r=1amp

111 UN Security Council 2011 Report of the Secretary-General on thesituation in Abyei S2011451

112 Reuters 2011 North Sudan seizes disputed Abyei thousands fleehttpwwwreuterscomarticle20110522us-sudan-abyei-north-idUSTRE74L14L20110522

45

3 SOUTH SUDAN THE OIL WAY

border of area where much of Sudanacutes remaining oil fieldsare situated113 Two years later the fighting remains intensein parts of South Kordofan and Blue Nile114 More than 2million people have been internally displaced or severelyaffected by the conflict since 2011115

In addition to military attacks other actions contributedto the tension There have been cattle raids by the MissiriyandashArab nomadic cattle herders inhabiting the area ndash on theNgok Dinka ndasha subdivision of the Dinka tribe inhabitingthis area In occasions more than 200 cows were stolenwith a large part of it recovered by the UN Interim SecurityForce for Abyei(UNISFA) These raids increase further thealready tense situation in the region and in particular thevery tense situation among the Missiriya and the NgokDinka116

113 The Conversation 2012 Oil fuels the conflict between Sudan andSouth Sudan ndashand it keeps getting hotter

114 OCHA 2014 South Kordofan and Blue Nile population movementsfact sheet httpreliefwebintsitesreliefwebintfilesresourcesSouth20Kordofan20and20Blue20Nile20Population20Movements20Fact20Sheet20-201920May202014pdfReuters 2013 Khartoum says rebels based in South Sudan caused oilpipeline blast

115 OCHA 2014 Ibidem116 See Human Security baseline assessment for Sudan and South Sudan

webpage httpwwwsmallarmssurveysudanorgdefacts-figuresborderdisputed-areasabyeihtml

46

LIVING IN FEAR

An oil-centered conflict

ldquoThe violence underscores the extent to which oilis at the heart of the dispute Khartoum whichcontrols the pipelines that take oil out of SouthSudan depends heavily on oil transit fees SouthSudan which depends on oil for 98 percent of itsrevenue has refused to pay the fees which it saysare exorbitantKhartoum responded by seizing oil tankers carryingSouth Sudanese oil and imposing economicblockades That prompted South Sudan to shutdown its entire oil production in February Thatmonth Sudan allegedly bombed an oilfield inSouth Sudan that was nine miles from the borderrdquo

Washington Post 2012

Missiriya attacks continue as of today UNISFA reported thatin March 2015 100 armed Missiriya killed several peopleand burnt over 20 houses in a village in the southern part ofAbyei117 Many of those attacks occur despite the presenceof UN peacekeepers in the zone

In this context a UN force was deployed in 2011 withmore than 4000 personnel mostly Ethiopian with theobjective of ensuring the demilitarization of the Abyei areaand particularly checking the Sudan Armed Forces and theSudan Peoplersquos Liberation Army Interestingly the UN forceshad also the task to provide security for oil infrastructure inthe Abyei Area in cooperation with the Abyei PoliceService118 In February 2015 the Security Council extended

117 Sudan Tribune 2015 South Sudan condemns deadly clashes in Abyeihttpwwwsudantribunecomspipphparticle54191

118 UN Security Council 2011 Resolution 1990 (2011) SRES1990(2011)

47

3 SOUTH SUDAN THE OIL WAY

the mandate of the UNISFA again until July 2015119 The AbyeiJoint Oversight Committee (AJOC) decided in May 2013 thatAbyei should adopt a status as weapons-free area and thatonly UNISFA would be authorized to carry weapons in thearea120

The situation in the area is still very fragile121 For instancevarious resolutions have called for the redeployement of allmilitary personnel from Abyei including those protecting itsoil infrastructure However the Sudanese Governmentskeeps at the Diffra oil complex around 150 Sudan oil policein a clear violation of an agreement and Security Councilresolutions adopted in 2011122 The UN Security council ina recent resolution

Condemns the presence of Diffra Oil Police unitsdeployed in the Abyei Area as well as the repeatedentry of armed militias into the territory andreiterates its demands that immediately andwithout preconditions the Government of Sudanredeploy the Oil Police in Diffra from the AbyeiArea ()123

Conflicts escalating over oil Heglig battles

In 2012 despite the Permanent Court of Arbitration ruling124

which placed Heglig oilfields in the Sudanese territories

119 UN News Center 2015 Security Council extends UN peacekeepingforce in Abyei through July 2015

120 UN Security Council 2015 Ibidem121 UN Security Council 2015 Security Council adopting resolution 2205

(2015) extends interim force in Abyei until 15 july voicing concernover delays in Borde Mechanismrsquos operation httpwwwunorgpressen2015sc11800dochtm

122 UN Security Council 2014 Report of the Secretary-General on thesituation in Abyei S2014518

123 UN Security Council 2015 Ibidem124 See Permanent Court of Arbritation webpage httpwwwlocgov

lawwebservletlloc_newsdisp3_l205401463_text

48

LIVING IN FEAR

the South Sudanese army launched an attack over Heglig125

South Sudanrsquos army took control of the oil-producing townof Heglig The South Sudan move did not enjoy sympathyfrom many countries including its allies such as the US andBritain126 The African Unionrsquos (AU) Peace and SecurityCouncil considered Sudanrsquos occupation of Heglig as illegal127

At the end after a few days South Sudan pulled back itstroops from Heglig even though President Salva Kiir stillclaims that Heglig is a part of South Sudan and is expectinginternational arbitration

Oil and geopolitics

The implications of the oil economy are self-telling Prior tothe separation of Sudan from South Sudan in 2011 theunified Sudan was the second-largest non-OPEC oil producerin Africa in 2010 When they separated Sudan and SouthSudanrsquos production diminished and together they rankedas the fourth-largest non-OPEC African oil producer in 2013Particularly the split of the country in oil revenues economicterms was a huge blow to Sudan with its crude oil exportrevenues falling from almost $11 billion in 2010 to around$18 billion in 2012128 It has been estimated that oilcontributes 98 of South Sudan government income morethan for any other government in the world129

125 Wall Street Journal 2012 Sudan escalates fight over oil httpwwwwsjcomarticlesSB10001424052702304444604577339461981143808

126 The Guardian 2012 South Sudan to withdraw from disputed oiltownhttpwwwtheguardiancomworld2012apr20south-sudan-withdraw-oil-town

127 IRIN 2012 Sudan-South Sudan Heglig and the border128 US Energy Information Administration 2014 Country analysis brief

Sudan and South SudanhttpwwweiagovcountriesanalysisbriefsSudansudanpdf

129 Global Witness 2009 Fuelling mistrust

49

3 SOUTH SUDAN THE OIL WAY

Although oil exploration started at the end of the 1950showever no success was achieved with the activities of Italianoil company Agip130 Discoveries were found in the years tofollow The first oil discovery was made in 1979 when theAmerican company Chevron found oil near the Darfur-Kordofan boundary Three years later Chevron made twolarger discoveries the Heglig and Unity oilfields which asof today are the most productive However by 1984 Chevronstopped its operations when some of its workers were killedby an armed group By 1988 the company dismantled all ofits operations in Bentiu and Unity provinces131

As a landlocked country all the oil in South Sudan had tobe extracted and exported via a pipeline The pipeline wasconstructed by China National Petroleum Corporation andit covered a length of around 1600 kilometers132 Ittransports the oil from South Sudan to the Red Sea Thecost of the pipeline was estimated at $1 billion and it wasfinished in 1999133At the time of the construction of thepipeline Sudan provided less than 1 of Chinarsquos oil importsbut a few years later by 2009 the investments of Chinatotalled more than $8 billion134

130 Understanding Sudan 2009 Fact sheet two A history of oil in theSudan httpunderstandingsudanorgOilOilResourcesL2FS2-HistoryofOilinSudanpdf

131 Understanding Sudan Ibidem132 The Conversation 2012 Oil fuels the conflict between Sudan and

South Sudan ndashand it keeps getting hotter133 Sitarek 2001 The human price of oil ICE Case Studies Number 83

httpwww1americanedutedicesudansanctionshtm16134 The Conversation 2012 Ibidem

50

LIVING IN FEAR

Source US Energy Information Administration 2014

South Sudan becameindependenth in July2011 Taking aboutthree-quarters of theproduction A disputeover transit fees ledSouth Sudan to haltproduction for most of2012

Oil production inSudan and South Sudan

thousand barrels per day

51

3 SOUTH SUDAN THE OIL WAY

Main oil companies in Sudan and South Sudan

While initially many companies involved were of Westernorigin most of the companies now involved in the oil sectorare from China and Malaysia

Source US Energy Information Administration 2014 Countryanalysis Brief Sudan and South Sudan

Row over oil tariffs

By 2011 both countries did not agree on how much SouthSudan should pay to export its oil through the pipelines inSudan Sudan requested a fee of 33 dollars a barrel whileSouth Sudan said the highest fee they could afford was 2

Table 2 Main oil companies in Sudan and South Sudan

52

LIVING IN FEAR

dollars a barrel135 Following this lack of agreement SouthSudan halted crude oil production in early 2012

This decision worsened the economic situation in bothcountries as both depend hugely on money from oil exportsfor their revenues However an agreement was reached andin April 2013 South Sudan restarted oil production136

Causes of the Sudanese Civil War

Wars in Sudan have been often portrayed quite simplisticallyas an ArabMuslim north versus and an AfricanCristiansouth While certainly ethnicity and religion played a rolethe conflict has been mainly fought over natural resources137

Today oil is the countryrsquos main natural resource and ithas been estimated that it accounts for 98 of South Sudanrsquosrevenue138 The multibillion potential of their revenuehowever has not translated into wealth and benefits for themajority of the population of South Sudan First of all it hasnot solved the problem of security as since the very inceptionof the State of South Sudan in 2011 there were conflicts inmany areas of the country particularly in the borderline withSudan A 2013 report from the World Bank illustrates thisby asserting that ldquodespite South Sudanrsquos great resourcewealth its population is one of the most deprived due todecades of neglect and war and the distortions of the oil

135 IPS 2011 South Sudan rows over exorbitant fees for pipeline use136 Reuters 2013 South Sudan resumes oil output after ending row with

Sudan over transit fees137 Caas 2007 Natural resources and conflict in Sudan138 See World Bank webpagehttpwwwworldbankorgencountry

southsudanoverview

53

3 SOUTH SUDAN THE OIL WAY

economyrdquo139 Indeed oil reserves sitting on a disputed borderbetween Sudan and South Sudan have not translated yetinto wealth for the majority of citizens of South SudanInstead most of the inhabitants of the country remain deeplypoor and do not enjoy even basic rights to access potablewater and adequate sanitation140

Oil has been a main cause for the war and conflicts inSudan For instance it influenced the end of the peaceagreement obtained after the first civil war This first civilwar ended in 1972 with the Addis Ababa Agreement Theagreement established a system of peaceful co-existence witha single country by guaranteeing aNorthern basedgovernment but granted at the same time autonomy in theSouth This however was not going to last long as thediscovery of oil at the end of the 1970s in Southern Sudanchanged the ldquocoexistencerdquo idea In 1978 Sudanese PresidentNimeiry decided to embark on oil exploration project thatwould lead to the finding of oil in commercial quantities Inorder to control the oil within the hands of the Northernbased Government military force was used and in additionto imposing islamic law which led to the new civil warstarting in 1983141

139 World Bank 2013 Interim Strategy Note (FY 2013-2014) httpwww-wdsworldbankorgexternaldefaultWDSContentServerWDSPIB20130207000333037_20130207110223RenderedPDF747670ISN0P1290Official0Use0Only090pdf

140 National Geographic 2013 South Sudan oil the environment andborder conflicts httpvoicesnationalgeographiccom2013032286550

141 Sitarek 2001 The human price of oil ICE Case Studies Number 83httpwww1americanedutedicesudansanctionshtm16

54

LIVING IN FEAR

Numerous authors have identified natural resources ashaving a direct correlation with wars and conflicts142 Ananalysis by Ross of the University of California (UCLA) ofthirteen wars and conflicts concluded that in the case ofSudan oil was one of the key causes of the second civil warand an incentive for advancing the independence of SouthSudan143 Ross describes his conclusion in the followingmanner

War in Sudan began in 1983 when SudanesePresident Nimeiry took a series of measures thatupset the delicate balance between thepredominantly Muslim north and the heavilyChristian and Animist south among these measureswas his decision to place newly discovered oil inthe countryrsquos south under the jurisdiction of thenorth and to build an oil refinery in the northinstead of the south The Sudan Peoplersquos LiberationArmy (SPLA) subsequently complained that thenorth was stealing the resources of the southincluding oil demanded that work cease on apipeline to take oil from the south to the refineryin the north and in February 1984 attacked an oilexploration base killing three foreign workers andbringing the project to a halt144

142 Varisco 2010 lsquoA study on the inter-relation between armed conflictand natural resources and its implications for conflict resolution andpeace buildingrsquo Journal of Peace Conflict and Development issue 15Ross 2003 How do natural resources influence civil war Evidencefrom 13 cases httpwwwsscnetuclaedupoliscifacultyrossHowDoesNat3pdf

143 Ross Ibidem144 Ross Ibidem

55

3 SOUTH SUDAN THE OIL WAY

Even when the different parties were discussing an agreementon ldquono attacks on civilians or civilian objectsrdquo oil was playinga central role It is instructive to note that the Sudanesegovernment desired language in the text stating that oilinstallations were ldquocivilian objectsrdquo while the SPLA wantedthe contrary145

Human Rights Watch reached the same conclusion thatoil without doubt has been a key fuel for war particularlysince the end of the 90s when crude oil was first exportedfrom Sudan in 1999146

Oil became the main objective and a principal causeof war (hellip) The large-scale exploitation of oil byforeign companies operating in the theatre of warin Southern Sudan has increased human rightsabuses there and has exacerbated the long-runningconflict in Sudan a conflict marked by gross rightsabuses ndashtwo million dead four million displacedsince 1983 ndashand recurring famine and epidemics147

Also the UN makes clear statements on the issue Specialenvoy Leonardo Franco expressed in a report that oilexacerbated the conflict

the economic political and strategic implicationssurrounding oil exploitation in western Upper Nilewhich have seriously exacerbated the conflictthereby causing a deterioration in the overall

145 Ibidem146 Human Rights Watch 2003 Sudan oil and human rights147 Human Rights Watch 2003 Sudan oil and human rights

56

LIVING IN FEAR

situation of human rights and respect forhumanitarian law and narrowing the slim chancesfor peace148

Indeed multiple causes and elements contributed to theconflicts It was recognized that ethnicity and religion wereimportant elements however the key dimension is controlover natural resources particularly oil Added to this are alsotensions over land and resources and the promotion by thegovernment of crops like cotton and sugar which displacedcertain groups of people149 Similar conclusions were reachedyears back by a Canadian Government Mission in Sudanwhich fully recognized some ethnic disputes as well asdisputes over other natural resources however oil was thekey factor which made things really dramatic

148 UN 2000 Interim report of the Special Rapporteur of the Commissionon human rights on the situation of human rights in the Sudan A55374 httpwwwunorgdocumentsgadocs55a55374pdf Seealso UN 1999 Situation of human rights in Sudan UN Doc A54467

149 University of Massachusetts (undated) Modern conflicts conflictprofile SudanhttpwwwperiumassedufileadminpdfSudan1pdf

57

3 SOUTH SUDAN THE OIL WAY

The Harker mission pointed out that while therehave always been pressures on the Dinka in theHeglig- Ruweng area as a result of inter-tribalfighting with Arab nomads for grazing areas anddry-season water the situation had worsened withthe beginning of oilexploration and had continuedto deteriorate over theyears because of the periodicoffensives launched by the Government and itsallies resulting in destructionand mass populationdisplacement150

South Sudan has one of the largest oil reserves inSub Saharan Africa and the commodity is thelifeline of the countryrsquos economy accounting for98 percent of the governmentrsquos financial resources

Whoever controls South Sudanrsquos oil thereforecould seize the upper hand in the battle for power

Source France 24 2013 lsquoBattle for oil adds newdimension to South Sudan conflictrsquo

Whoever controls South Sudanrsquos oil therefore could seizethe upper hand in the battle for power

The same scenario applies to the South Sudan Civil Warwhich initially was also portrayed along ethnic line TheDinka ethnic group of President Salva Kiir has fought rebelsallied with former vice president Riek Machar of the Nuer

150 UN 2000 Interim report of the Special Rapporteur of the Commissionon human rights on the situation of human rights in the Sudan A55374 Ibidem

58

LIVING IN FEAR

ethnic group However increasingly ldquothe focus of the fightingis shifting to the battle to control the countryrsquos mostimportant natural resource ndash oilrdquo151 The oilfields haveliterally become the battlefields

Consequences of war and conflict

The damage inflicted on people as a consequence of war ishuge Back in 2001 US Secretary of State Colin Powellqualified the war in Sudan in the following terms ldquoThere isperhaps no greater tragedy on the face of the earth todaythan the tragedy that is unfolding in the Sudanrdquo152 Firstthere is a large number of deaths due to war and war relatedcauses and also a huge number of displaced people Thedeath toll derived from the Second Civil Sudanese War isestimated at two million The US Commitee for refugeesasserted that ldquothis massive loss of life surpasses the civiliandeath toll in any war since World War IIrdquo153 In the mostrecent civil war the South Sudanese Civil War that startedin December 2013 by April 2014 the death toll wasestimated to be at 10000154

Besides the death toll there are estimated more than fourmillion people of the Southern Sudanese population forced

151 France 24 2013 Battle for oil adds new dimension to South Sudanconflicthttpwwwfrance24comen20131227-battle-oil-adds-new-dimension-south-sudan-conflict

152 Human Rights Watch 2003 Ibidem153 See US Committee for Refugees webpage in 2001 http

webarchiveorgweb20041210024759httpwwwrefugeesorgnewscrisissudanhtm

154 International crisis group 2014 South Sudan a civil war by any othernamehttpwwwcrisisgrouporg~mediaFilesafricahorn-of-africasouth20sudan217-south-sudan-a-civil-war-by-any-other-namepdf

59

3 SOUTH SUDAN THE OIL WAY

to flee their homes at one time or another It has also beenargued that the development of oilfields has led to the forcedremoval of the local population In the words of the lateJohn Garang oil was a ldquokiller itrsquos evicting our civilianpopulationrdquo claiming 100 000 people displaced due to thiscause155

Children are some of the main victims of conflict beingrecruited for instance for war and suffering sexual violenceFrom March 2011 to September 2014 the UN estimatesthat there were 1243 incidents affecting 68776 children156

UN reports indicate that both armed groups have usedchildren ldquoon a large scale and committed other graveviolations including killing maiming and sexual violencerdquo157

For instance in 2015 an incident was reported where closeto 100 children were abducted some as young as 13 Armedsoldiers were advancing house to house looking for boysand taking them by force158 According to UNICEF this occuredin Wau Shilluk close to the city of Malakal in Upper NileState159

Not surprisingly as put by a high UN representativepeople are desperate for peace

155 BBC 2001 Garang Oil firms are targetshttpnewsbbccouk2hiafrica1393481stm

156 UN Security Council 2014 Report of the Secretary-General on childrenand armed conflict in South Sudan S2014884

157 Ibidem158 The Guardian 2015 South Sudan gunmen kidnap at least 89 boys

from village near Malakal httpwwwtheguardiancomworld2015feb22south-sudan-gunmen-kidnap-89-boys-village-malakal-child-soldiers

159 The Guardian 2015 South Sudan gunmen kidnap at least 89 boysfrom village near Malakal

60

LIVING IN FEAR

People are desperate for peace They are tired ofliving in fear Many have had to flee several timesThey are exhausted They lack water they areextremely worried for their children who are notin school and at risk of being recruited into armedgroups Sexual violence is rife All people want isto live in safety security and stability160

Wars have also an impact on food security and nutrition Asof February 2015 there was an alert that the food situationwas critical in South Sudan for more than 25 millionpeople161 This was famine related to war Ulrika BlomCountry Director for Norwegian Refugee Council in 2015succinctly stated ldquoThere is an urgent need for a solution onthe conflict so that people are able to resume their dailylives in dignity and not be dependent on massive foodassistancerdquo162

The harsh consequences of war are inevitable and occurfrom a systematic destruction of infrastructure erosion ofthe human capital and weakening of essential institutions

Besides causing an appalling loss of life Sudanrsquoslong civil war eroded the capital base The wardepleted the labour force while roads irrigationsystems and other key components of rural

160 Under-Secretary-General for Humanitarian Affairs and Emergency ReliefCoordinator Valerie Amos remarks to the press Juba South Sudan 9February 2015 httpreliefwebintreportsouth-sudanunder-secretary-general-humanitarian-affairs-and-emergency-relief-coordinator-1

161 UN Security Council 2015 Reports of the Secretary-General on theSudan and South Sudan SPV7392

162 Norwegian Refugee Council 2015 Conflict a cause of hunger in SouthSudan httpwwwnrcnodid=9192498

61

3 SOUTH SUDAN THE OIL WAY

infrastructure were destroyed damaged orneglected It also weakened institutions divertedfinancial capital from economic development andundermined interpersonal trust which is criticalto productive business dealings163

Some have tried to put a figure on the costs of war A recentreport estimates that the cost of the civil war may be between$223 and $28 billion over the next five years for SouthSudan alone if the factions fail to bring peace to the worldrsquosnewest country164

UN peacekeeping operations

In July 2011 the Security Council determined that thesituation in South Sudan constituted a threat to internationalpeace and security in the region and established the UNMission in the Republic of South Sudan (UNMISS)165 Thekey elements of the mandate is to consolidate peace andsecurity However after the civil war broke in July 2013 inthe light of significant human rights violations the large-scale displacement of persons the UNMISS mandate wasreshaped and a focus was given to the protection of civiliansand creation of the conditions for delivery of humanitarianassistance166

163 IFAD 2013 Enabling poor rural people to overcome poverty in SouthSudan

164 Frontier Economics 2015 South Sudan the cost of war httpwwwfrontier-economicscomdocuments201501south-sudan-cost-warpdf

165 UN Security Council 2011 Resolution 1996166 UN Security Council 2014 Resolution 2155

62

LIVING IN FEAR

In June 2011 a month before the establishement ofUNMISS a second UN peacekeeping operation wasestablished in the disputed border between Sudan and SouthSudan The United Nations Interim Security Force for Abyei(UNISFA) was created in a context of escalating violenceand tensions and population displacement167 One of the topobjectives was to achieve the demilitarization of the Abyeifrom any force other than UNISFA and the Abyei PoliceService facilitate the delivery of humanitarian aidstrenghten the capacity of the Abyei Police Service and incooperation with the police provide security for oilinfrastructure in the Abyei area168

Corporations and conflicts with communities

Since the conclusion of the 2005 Peace Agreement betweenthe Government of Sudan (GoS) and Sudan PeoplersquosLiberation MovementArmy (SPLM) negative impacts ofoil exploration and extraction have continued to ignitemistrust among local communities towards the oilcompanies Many problems from the oil activities wereidentified such as water pollution and uncompensateddispossession of land However oil companies or thegovernment did little to assess correct and reduce suchimpacts169 In this context many communities chose the ldquopath

167 UN Security Council 2011 Resolution 1990168 UN Security Council 2011 Resolution 1990169 ECOS 2014 Scrutiny of South Sudanacutes oil industry http

w w w e c o s o n l i n e o r g r e p o r t s 2 0 1 4 Scrutiny_of_South_Sudans_Oil_Industrypdf

63

3 SOUTH SUDAN THE OIL WAY

of confrontation with oil companiesrdquo170 For instance byblocking and interfering in oil operations by truck blockagesand other stoppages171

Resentment of local communities againstoil companies

The negative consequences of oil developmenthave been causing deep resentment against oilcompanies in many oil-rich parts of SouthernSudan Arriving in any oil area where activeexploitation is ongoing one is often confrontedwith persistent complaints from local people aboutpoor management of ldquoproduced waterrdquo which isblamed for pollution of the environment This isoften linked to unexplained deaths of animals andstrange or new human ailments Moreover the oilinfrastructure such as oil roads wells and pipesare frequently blamed for disrupting the means oflivelihoods of local people as well as destructionof property

Source ECOS

170 ECOS 2014 Ibidem171 ECOS 2014 Ibidem

64

LIVING IN FEAR

Lundin Oil Consortium facing war and violencein their work territory

In 2010 the European Coalition on Oil in Sudan (ECOS)requested an investigation on the activities of the LundinGroup and its connection with the conflict in Sudan and thepossible ldquocomplicity in the commission of war crimes andcrimes against humanityrdquo172 During the Second Civil War in1997 a consortium of oil companies led by the Swedish oilcompany Lundin Oil AB (ldquoLundinrdquo) signed a contract withthe Government for the exploration of oil in the concessionarea called Block 5A that was not at that time under fullGovernment control The other members of the Consortiumwere Petronas Carigali Overseas Sdn Bhd (ldquoPetronasrdquo) fromMalaysia OMV (Sudan) Exploration GmbH (ldquoOMVrdquo) fromAustria and the Sudanese state-owned oil company SudapetLtd

Before the start of explorations the area around Block5A was relatively peaceful When the oil exploration startedthe escalation of violence and war followed suit173 Accordingto the European Coilation on oil in Sudan Block 5A ldquobecamethe scene of intense fighting and gross human rightsviolations as soon as the Lundin Consortium started oilexploration activities on the groundrdquo Right from thebeginning there are reports of significant war and violence

172 ECOS 2010 Unpaid debt The Legacy of Lundin Petronas and OMV inSudan 1997-2003 Press Release httpwwwecosonlineorgreports2010Press_release_UNPAID_DEBT

173 ECOS 2010 Unpaid debt The Legacy of Lundin Petronas and OMV inSudan 1997-2003 httpwwwecosonlineorgreports2010UNPAID_DEBT_textonlywebpdf

65

3 SOUTH SUDAN THE OIL WAY

where villages and towns were burnt and looted Tens ofthousands of people in Block 5A were also moved out fromthe exploration areas

In 1999 the Lundin Group discovered major reserves ofoil This accelerated the Government desire to control allthe areas surrounding the well and the infighting intensifiedLundinrsquos explorations in Block 5A had to be suspended twicedue to insecurity174

The consequences of all the violence towards thepopulation which were in the middle of the power battlefor controlling Block 5A were severe abuse of all humanrights and war crimes More than 10000 people were killedalmost 160000 displaced with thousands of peoplepermanently uprooted from their villages hundreds ofthousands of cattle lost or looted destruction of churchesschools markets medical clinics and many otherincalculable moral damage and inmense loss of income175

Talisman Energy accused of complicity with forceddisplacements

A Canadian company Talisman Energy which at that timewas considered to be the largest independent oil and gascompany in Canada has been accused of indirectly helpingto exacerbate the war and of being complicit in human rightsabuses and crimes against humanity176 Talisman has a 25

174 HRW 2003 Ibidem175 ECOS 2010 Unpaid debt Ibidem See also Medecins sans frontieres

2002 Violence health and access to aid in Unity Statewestern uppernile Sudan httpwwwdoctorswithoutbordersorgsitesusafilessudan_04-2002pdf

176 Africa files 2000 Corporate immunity for oiling repression Talismanin Sudan httpwwwafricafilesorgarticleaspID=621

66

LIVING IN FEAR

stake in the Greater Nile Oil Project Company (GNOPC) aninitiative located in south-central Sudan with threeadditional partners the national petroleum company ofChina (40) the national oil company of Malaysia (30)and the national petroleum company of Sudan (5)177

There were many allegations that people were forcefullydisplaced in the area of the oil field ran by Talisman UNreported that accusations were made on Talisman of ldquobeingaccomplice of human rights abuses in Upper Nile so as toguarantee security for its oil operationsrdquo178

Moreover a report from the Canadian Foreign AffairsMnistry ndashthe Harker Report ndash which undertook a mission toSudan described with concern that fighting was intense inthe areas of oil development in general and that oilextraction may have contributed to relocation of civiliansby force179

Violence and the fear of it impact immediatelyon the peoplersquos use of the land and result in foodinsecurity which in turn propels movement ordisplacement

Contradicting that oil is at stake in the displacement issueTalisman explained that displacement was a result of an inter-tribal issue Once again the Harker report concluded thatthe displacement was because of oil

177 Africa files 2000 Ibidem178 UN Security Council 2000 Interim report of the Special Rapporteur of

the Commission on Human Rights on the situation of human rights inthe Sudan A55374

179 Canadian Ministry of Foreign Affairs 2000 Human Security in SudanThe Report of Canadian Assessment Mission httpwwwecosonlineorgreports2000Human20Security20in20Sudanpdf

67

3 SOUTH SUDAN THE OIL WAY

ldquoFor Talisman so very much seems to be explained as merelyan inter-tribal problem but displacement has gone on andis still going on and in Ruweng County it is hard to denythat displacement is now and has been for some timebecause of oilrdquo180

Talisman Energy decided in 2002 to end its controversialfour-year investment in Sudan by selling its 25 percent stakein the Greater Nile Petroleum Operating Company to anIndian firm Most of the rumours is that the reasons for thiswas the strong pressure from the US particularly to end itswork in Sudan in order to stop indirectly supporting theGovernment in Sudan with its oil revenue181

The oil way developing what

Sharing the wealth with the Sudanese people The resourcecurse again

As said before 98 of the governmentrsquos revenue comesfrom oil production royalties and South Sudan sits on thethird-largest oil reserves in Africa182 It was estimated in 2011that South Sudan controlled 75 of the overall oil productionof Sudan and South Sudan altogether ndasharound 500000barrels per day However South Sudan remains dependenton the North for processing refinement and export to theRed Sea

180 Canadian Ministry of Foreign Affairs 2000 Ibidem181 New York Times 2002 Talisman to sell its stake in company in Sudan

httpwwwnytimescom20021031businesstalisman-to-sell-its-stake-in-company-in-sudanhtml

182 Africa Business Initiative 2011 Investment climate upate Sudanhttpswwwuschambercomsitesdefaultfileslegacyinternationalafricafiles16920_AfricaNewsletter_Sudanpdf

68

LIVING IN FEAR

Paradoxically South Sudan is considered a fragile StateSitting on oil as has occured to many other countries acrossAfrica and abroad does not guarantee wealth for the majorityof the population A 2013 report concluded that ldquoover thelast decade Sudan has been the largest recipient ofhumanitarian assistance by some distance receiving US$106 billion over the periodrdquo183 90 per cent of the populationearn less than a dollar a day184

Oil money through the State budget is expected to serveto finance all the key governmental activities of the Statesuch as agriculture health infrastructures and educationDespite the fact that the benefits from oil are substantialthere are numerous questions arising about the destiny ofall the oil money For instance how could it be explainedthat one of the sectors more financed is the military andsecurity apparatus Since South Sudanrsquos independence theGovernment has allocated 38 of oil revenue to the militaryand security services with only 10 and 7 ininfrastructures and education respectively185 In 2012 SouthSudan was the among top 8 African countries having militaryexpenditure of almost $1 billion186 For instance TheEconomist reports that South Sudan bought 100 Ukrainian

183 Global humanitarian assistance 2013 Global humanitarian assistancehttpwwwglobalhumanitarianassistanceorgwp-contentuploads201307GHA-Report-2013pdf

184 Kebede 2014 The role of oil in South Sudanhttpswwwruoruottawacabitstream10393315631KEBEDE20Solomon2020145pdf

185 The Guardian 2014 South Suan is divided by the spoils of oil notethnicity httpwwwtheguardiancomcommentisfree2014jan14south-sudan-divided-oil-ethnicity-violence

186 LAVDC 2014 Les quatre puissances militaires regionales dacuteAfriquehttpwwwlavdcnetportailles-quatre-puissances-militaires-regionales-dafrique

69

3 SOUTH SUDAN THE OIL WAY

T-72 tanks187 At the same time agriculture and livestock hasbeen completely neglected despite the fact that more than80 of the population depend on that sector for fulfiliingtheir basic needs

Where the money goes

Daniel Wuor Joak former MP in South Sudan LegislativeAssembly and Minister of Education Science and Technologyin Upper Nile State claims that between 2005 and 2014both the Government of South Sudan (GOSS) and theRepublic of South Sudan (RSS) have been receiving onaverage not less than two billion of USD per year Somehave already manifested the unclarities over the destiny ofall that money as described by Mr Wuor Joak

Since 2005 upwards both the GOSS and RSS havebeen receiving no less than 18 billion USD in oilrevenues without implementing any majordevelopmental projects like roads network linkingdifferent States in South Sudan conducive learningschools from basics to universities level referralmedical facilities clean drinking water in remoteareas throughout the country setting up vibrantand credible institutions which can adhere to rulesof law All these things have not been implementeddue to poor system of governance under leadershipof Salva Kiir Mayardit Most of the counties have

187 The Economist 2014 Arms and the African

70

LIVING IN FEAR

no roads linking them with their State capitals andlack schools health centres clean drinking wateretc South Sudanese population in the rural areasthroughout the country are still living in the sameconditions as they were under Khartoumrsquos rule interms of scarcity of development188

Speaking more directly Kebede made firm remarks aboutthe overall situation in South Sudan

In general poverty corruption bad governance andviolence characterized the resource curse in SouthSudan A relatively small group of elite capturesvast wealth while leaving much of their societywithout access to the minimum resource necessaryfor long term wellbeing As a result South Sudanremains one of the worldacutes least-developedcountries despite its oil (hellip) hellipmuch of the oilrevenue has been squandered189

188 Wuor Joak 2014 Major Causes of the Current Conflict in Sudan SouthSudan News Agency

189 Kebede 2014 The role of oil in South Sudanhttpsw w w r u o r u o t t a w a c a b i t s t r e a m 1 0 3 9 3 3 1 5 6 3 1 KEBEDE20Solomon2020145pdf

71

3 SOUTH SUDAN THE OIL WAY

Even before the current tensions Bentiu saw little benefitfrom oil The streets are unpaved and covered with trashelectricity is scarce reserved for those with privategenerators () Most expect more violence Bentiu hasbecome more militarized with armed soldiers placed atcheck points and at the bridge Troops are constantlymoving to the front Weapons are being flown into theairport

ldquoThe oil is a curse ldquoMohammed Abdurahman Kili 56mumbled from his hospital bed his body covered withburns He was inside his shop in a crowded market onthe edge of town when a Sudanese warplane attackedkilling a 9-year-old child and another person and settinghis shop on fire

Washington Post 2012

President Salva Kiir recognized in 2012 that corrupt officialshad stolen from the people of South Sudan and the amountlost or taken by lead government and military officials mightbe as much as $4 billion190 Kiir sent a letter to 75 SouthSudanese officials or individuals close to the governmentasking them return all the amount lost The letter describedin general terms how the money got ldquolostrdquo

An estimated $4 billion are unaccounted for orsimply put stolen by current and former officialsas well as corrupt individuals with close ties togovernment officials Most of these funds have beentaken out of the country and deposited in foreignaccounts Some have purchased properties oftenpaid in cash191

190 Ibidem191 Paanluel Wel South Sudanese bloggers httppaanluelwelcom2012

0601letter-from-president-kiir-on-corruption-4-billion-dollars-stolen192 Sudan Tribune 2013 South Sudanacutes Kiir accuses army of corruption

72

LIVING IN FEAR

A year later Kiir accused the armed forces of being corruptHe said that despite the big budget allocations made to thearmy there were even no ldquovehicles to transport soldiers onmissionsrdquo192 Two years later the issue remained unclearand the names of the officials referred to in the letter wereyet to be disclosed However Kiir accused Machar of beingresponsible for a lot of corrupted activities in the country193

Machar responded to Kiir by saying that his claims wereunfounded and then also accusing him of such practices194

It seems South Sudan epitomises all the features of theresource curse argued in Chapter 1195 How can the corruptionbe prevented How can the money go to the people It isalso important to note that the oil sector provides littleemployment to the people of South Sudan Most of thehousehold income and employment is generated in theagriculture and farming sector primarily196 Would investingin other sectors like agriculture that provide real wealth tothe people make a difference

193 Sudan Tribune 2014 South Sudan rebel leader should face corruptioncharges Kiir

194 Sudan Tribune 2014 South Sudan Macharacutes Rebentildes dismiss corruptionaccusations no spiritual powers httpallafricacomstories201407221384html

195 Kebede 2014 The role of oil in South Sudan Ibidem196 Tizikara et al 2012 Post-conflict development of Agriculture in South

Sudan perspective on approaches to capacity strenghtening httpwwwerailsnetimagesfarasecretariatkigali-movementfileKigali20MovementPost-Coflict20Agriculture_South20Sudanpdf

73

3 SOUTH SUDAN THE OIL WAY

Environment

As experienced in oilfileds in other parts of the world the oilfields here are also leaving a significant impact on theenvironment and local communities A three year study inThar Jath and Mala fields in Unity State show thatgroundwater is very polluted making the water unsafe forhuman consumption197 The study made by a team of SouthSudanese and German geologists concluded that water usedby 180000 people was too salty to drink and containdangerous amounts of heavy metals198

In many occasions the oil fields that causeenvironmental pollution are even abandoned due to the warSome observers identified that oil pipelines damaged duringthe conflict were leaking199

South Sudan must produce for its needs

In 2015 the Minister of Finance of South Sudan David DengAthorbei made a statement saying that the country shouldbe self-sufficient in agriculture terms and in addition itneeds to increase its non-oil revenue and to achieve peace200

197 Rueskamp et al 2014 Effect of oil exploration and production on thesalinity of a marginally permeable aquifer system in the Thar Jath-Mala- and Unity Oil fields Southern Sudan Zbl Geol Palaont Teil IJ

198 Radio Tamazuj 2015 Study Direct link between oil exploration andwater pollution in Unity httpsradiotamazujorgenarticlestudy-E28098direct-linkE28099-between-oil-exploration-and-water-pollution-unity

199 Star Africa 2014 South Sudan Oil leaks cause pollution fears httpenstarafricacomnewsssudan-oil-leaks-cause-pollution-fearshtml

200 Bloomberg 2015 South Sudan Finance Minister says food output canoffset oil httpwwwbloombergcomnewsarticles2015-01-20south-sudan-finance-minister-says-food-output-can-offset-oil-1-

74

LIVING IN FEAR

He also made a call for a reduction of the countryrsquos relianceon agriculture imports particularly in the context of aneconomy affected by the plunge in global oil prices201

Peter Biar Ajak from the Center for Strategic Analysis andResearch in Juba illustrates the macroeconomic weaknessesof South Sudan today because of its oil dependence

South Sudanrsquos oil-dependent economy is nearingcatastrophe The production of crude oil has droppedby about 35 percent since the conflict began Thatcombined with a drop of roughly 45 percent in globaloil prices since the summer has meant a substantialreduction in the governmentrsquos oil revenues andenormous fiscal and budgetary ressures

Since South Sudan exports almost nothing asidefrom oil and imports almost everything else tradeand monetary policy have also been buffeted byfalling oil revenues Access to foreign currency hasbecome extremely limited The prices of manyimported goods have risen There are shortages ofpetrol which must be imported because SouthSudan has no refinery202

Indeed a dynamic agriculture sector may be key for peaceand development in South Sudan More than 95 of thecountryrsquos population is dependent on farming fishing orherding to meet their daily food needs and income as well203

201 Bloomberg 2015 Ibidem202 Biar Ajak 2015Sanctions for peace in South Sudan The New York Times

January 7th203 FAO in emergencies httpwwwfaoorgemergenciescountries

detailenc147627

75

3 SOUTH SUDAN THE OIL WAY

204 Business Daily 2011 South Sudanrsquos vast agricultural sector potentialuntapped

205 Norwegian Refugee Council 2015 Conflict a cause of hunger in SouthSudan httpreliefwebintreportsouth-sudanconflict-cause-hunger-south-sudan OCHA 2015 South Sudan Crisis Situation reportn 74 httpreliefwebintsitesreliefwebintfilesresourcesSouth_Sudan_Situation_Report_No_74pdf

206 OECD 2014 Fragile States 2014 Domestic revenue mobilisation infragile states httpwwwoecdorgdacgovernance-peaceconflictandfragilitydocsFSR-2014pdf

South Sudan has good soil and climatic conditions and morethan 70 of its land area is suitable for crop productionThere are many that believe that the investment in theagriculture sector has more potential than oil however thisthinking has not received due attention from local andforeign investors204 Efforts towards making agriculture workare vital for peace and stabililty in the country It is urgentlyneeded to work on this area particularly when at presentthere are 25 million in Sudan at risk of starvation205 andaround one third of the population are food insecure plusmore than a million displaced

The dependency on income from natural resourcesleaves fragile states vulnerable It exposes them toshocks in commodity prices ndash as demonstrated bythe sudden fall in commodity prices in 2009following the 2002-2008 boom Neither is it asustainable source of incomeSouth Sudanrsquos oilproduction for instance is projected to decreasesteadily in future years and become negligible by2035

Source OECD206

76

LIVING IN FEAR

207 UN Security Council 2015 Resolution 2206 SRES2006(2015)httpwwwunorggasearchview_docaspsymbol=SRES2206 (2015)

208 Sudan Tribune 2015 South Sudan unhappy with US support for sanctionshttpwwwsudantribunecomspipphparticle54232

209 Washington Post 2014 US appears unable to pull South Sudan backfrom the brink of civil war httpwwwwashingtonpostcomworldus-appears-unable-to-pull-south-sudan-back-from-the-brink-of-civil-w a r 2 0 1 4 0 5 0 3 d 9 2 8 0 b d a - 3 8 6 b - 4 2 4 9 - 9 4 e 0 -b5292610e5bb_storyhtml

210 Ibidem

US fallen dream

In 2015 the UN imposed a travel ban and assets freeze againstindividuals or entities which engaged in or provided supportfor acts that threaten peace security and stability of SouthSudan207 The US was behind the draft and the submission ofthe resolution This resolution prompted an angry reactionfrom the South Sudanese The South Sudanese presidencywas said to be extremely disappointed about the US ledmove208

In the past the relationship between the US and SouthSudan was completely diferent The United States was themain promoter and supporter of the worldrsquos newest nationThe Washington Post for instance asserted that ldquoSouth Sudanowes its existence to the United Statesrdquo209 The expectationscreated were high before its started its independence andsome believed that Sudan would be able to manage thecountry breaking the so-called ldquoAfrican model of pettyrivalries corruption and oppressionrdquo210 Despite all the hopesput on the young nation as of today no solution has beenfound to the ongoing war

77

3 SOUTH SUDAN THE OIL WAY

The US was the largest donor to Sudan in the years priorto independence providing 339 of the total aid to Sudanbetween 2000 to 2009211 The United States (US$472million) was the largest donor of humanitarian assistanceto South Sudan in 2012 followed by the United Kingdom(US$96 million)212 For many years Sudan was the thirdlargest recipient of US aid only after Iraq and Afghanistan213

The inteligence and information systems of theAmericans on the ground in Sudan seemed to have beenrelatively good214hellip however how come they did not foreseethat South Sudan was quickly descending once again on theavenue of a country at civil war For instance the problemsbetween President Salva Kiir and his deputy were not newAlready more than two years before the civil war started inJune 2011 in a speech in Juba the President accused hisDeputy Riek Machar ldquoof running a parallel governmentwithin the governmentrdquo215 Couldnrsquot they have preventedanother conflict Why did they fall into ridiculouscontradictions as the one recently revealed via wikileakssuggesting that the US was funding both armies in

211 Development initiatives (undated) Sudan Aid Factsheet 1995-2009httpwwwglobalhumanitarianassistanceorgwp-contentuploads201102Sudan-Aid-Factsheet-2011pdf

212 See global humanitarian assistamce ebpage httpwwwglobalhumanitarianassistanceorgcountryprofilesouth-sudan

213 The Atlantic 2011 US played key role in Southern Sudanacutes longjourney to Independence

214 The Global Intelligence files 2013 SudanUSMIL ndash SPLA trying toget US to hook it up httpssearchwikileaksorggifilesviewemailid=5047664

215 Sudan Tribune 2011 Salva Kiir exposes his rift with Machar overSouth Sudan transitional constitution httpssearchwikileaksorggifilesviewemailid=3831682

78

LIVING IN FEAR

contention the Government force of Salva Kiir and the rebelsof Riek Machar216 Why are both paid by the UShellip to dowhat As one reporter questioned why are they ldquopaid tokill each otherrdquo217

216 RT 2015 US officials tussle over arms embargo sanctions in oil-flushSouth Sudan httprtcomusa226387-south-sudan-sanctions-war

217 RT 2015 Ibidem

Seven Million

ldquoA peaceful DR Congo could transform Africa almostovernight but is there a way outrdquo218

There is always a way out However peace is not an easything particularly under certain circunstances When youhave lost your father your mother your uncle your sisterwhat else can you lose Can you still believe in peaceTwoof the bloodiest conflicts in recent decades in the world haveoccurred in Africa The Second Civil War in Sudan has leftaproximately two million casualties and the conflict in DRCis estimated to have snuffed life out of no less than fivemillion people

How many more

How does one begin to quantify the dead when they are inthe hundreds of thousands No less than seven million livesof Congolese and South Sudanese were taken away due towars and conflicts fuelled by natural resources How many

218 African Business 2009 DR Congo $24 trillion fortune

4

79

80

LIVING IN FEAR

more How many more before the world wakes up to acteffectively towards ending all those conflictsProbably unless you are one survivor from those experiencesyou would never be truly able to understand what it meansto lose entire families and friends you would never be trulyable as well to understand what it means to feel fear foryour life and the life of your close relatives

When you start counting sometimes you forget thatpeople are not numbers There are names behind thenumbers A family A life As we write this book people aredying needlessly in the DRC and in South Sudan Calculatingdead people due to conflicts in this part of the world is verydifficult due to statistical challenges and so it is conceivablethat probably the number of victims is much larger than sevenmillion (7000000) When would the volume of bloodshedthe number of lives taken be enough for the belligerentofficials to make real peace How many more should fallAthousand more Another one million The pain sadness anddestruction that those conflicts generate should not beaccepted any more

Oil and minerals the main cause of ongoingconflicts and war

Some authors argue that minerals and oil are not a cause ofwar but ldquocompetition for them could amplify and expediteconflictrdquo219 In this book as chapter two and three haveshown oil and minerals are the main motor behind theconflict in recent decades in DRC and South Sudan It would

219 UN Security Council 2013 Natural resource wealth fails to translateinto equivalent benefits for people fuelling conflict to instability DeputySecretary-General tells Security Council httpwwwunorgpressen2013sc11037dochtm

81

4 SEVEN MILLION

be very difficult if not impossible to expect those conflictsif their territories were resource poor Oil and minerals arefull of blood An activist poet wrote We Thought it was Oilbut it was Blood220 Although he was writing about the NigerDelta situation we see a universal application in that phrase

In both countries described there were other elements andfactors to take into consideration however it can be saidthat control over natural resources was the most importantcause on both conflicts in DRC and South Sudan In bothcases oil and minerals fuelled those wars and in manyoccasions these resources have inspired fueled and sustainedarmies operating in the territories of both countries

A Statersquos wealth means nothing if not shared withthe majority of the population

DRC and South Sudan ought to be wealthy countriesUnfortunately having a wealth of natural resources doesnot mean that it belongs to the citizens or that the wealthwould be shared among the population of a given State AState is a nation or territory considered as an organizedpolitical community under one government221 A goodgovernment should be the one that takes care of its citizensand shares the wealth among its citizens and not justdistribute it among an elite Jan Eliasson Deputy Secretary-General of the United Nations stated that ldquoin too manycountries a wealth of resources including timber oil coaldiamonds and precious metals failed to translate into

220 Nnimmo Bassey 1998 We Thought it was Oil but it was Blood IbadanKraft Books

221 See httpwwwoxforddictionariescomdefinitionenglishstate

82

LIVING IN FEAR

equivalent wealth for the people Only a powerful fewbenefitrdquo222

The State is expected to perform an adequateimplementation of human rights granted by several UNdeclarations and conventions including the right to foodright to health right to shelter right to clothing right towork farmersacute rights etc Paradoxically the violations andabuses of human rights have been constant in DRC and SouthSudan Both countries have suffered from acts of war oncivilian population both have as well a large number ofdisplaced people with no access to food without healthcarewithout shelter and without any work Both countries havemore than 90 people living below one dollar per day andthey are considered among least developed countries andfragile states Due to this both are some of the biggestrecipients of humanitarian aid Moreover both have hugesecurity problems shown for instance by the presence ofUN peacekeeping operations Out of the 17th worldwideongoing peacekeeping UN operations three are in DRCSouth Sudan and in Abyeia disputed territory between Sudanand South Sudan

They possess resources that have a huge monetary valueand that in most cases have the involvement of foreigncountries and corporations and other stakeholders of theprivate sector which are ready to pay enormous sums ofmoney to gain control of the natural resources belonging toother countries If no war or significant armed conflict takes

222 UN Security Council 2013 Natural resource wealth fails to translateinto equivalent benefits for people fuelling conflict to instability DeputySecretary-General tells Security Council httpwwwunorgpressen2013sc11037dochtm

83

4 SEVEN MILLION

place common elements among those countries that possesssuch resources in Africa is the existence of massive povertyand corruption and in most cases this is contrasted withmega-rich individuals Letacutes take for instance the case ofoil-rich Angola where the president and his daughter possessmultibillionaire fortunes while at the same time the majorityof the country population is living on less than two dollarsper day223

Greed power and control over natural resources

It must be noted as well that often oil and minerals involvemillions and multibillion profits With such large sums ofmoney greed power and control take the driving seat ofwhatever country government in the world When theprospects for such money flow arrives many leaders andelites start distancing themselves from the majority of thepopulation and stop thinking about the welfare of their ownpeople

At the centre of most of the conflicts in both countriesare struggles for power and control of natural resourcesMinerals and oils are the main cause of the ongoing conflictsand wars Unfortunately most commentators qualify therecent civil war in South Sudan as a ldquopower strugglerdquo withoutfurther qualifications In South Sudan who gets the oil getsthe power Therefore the power struggle is a war overnatural resources for control of the oil in the country Areporter affirmed that ldquowhoever controls South Sudanrsquos oiltherefore could seize the upper hand in the battle for

223 Forbes 2013 Daddyacutes girl how an African ldquoprincessrdquo banked $3 billionin a country living on $2 day httpwwwforbescomsiteskerryadolan20130814how-isabel-dos-santos-took-the-short-route-to-become-africas-richest-woman

84

LIVING IN FEAR

224 France 24 2013 Battle for oil adds new dimension to South SudanConflict httpwwwfrance24comen20131227-battle-oil-adds-new-dimension-south-sudan-conflict

225 OECD 2014 Fragile States 2014 Domestic revenue mobilisation infragile states httpwwwoecdorgdacgovernance-peaceconflictandfragilitydocsFSR-2014pdf

powerrdquo224 In both countriesrsquo non-renewable natural resourcetook a dominant share of the fiscal revenue of DRC andSouth Sudan ndash 82 in the DRC and 98 in South Sudan225

Who controls those resources controls the countryThe case of South Sudan where the president has

recognized the disappearance of $4 billion by corruptindividuals is compelling President Salva Kiir pinpointed thespirit behind the rot ldquoOnce we got to power we forgot whatwe fought for and began to enrich ourselves at the expenseof our peoplerdquo This might also include him as well becauseit is difficult to imagine that such huge amount of money couldbe stolen without the leader noticing anything at all

Greed for minerals and oil is at the heart of the massivedeath toll and impoverishment of the Congolese and SouthSudanese people in recent decades It can be affirmed quitecomfortably that if the Eastern part of the DRC would havenot sat on huge mineral reserves it would be very difficultto imagine all the conflicts that have occurred in that zoneIt can be affirmed as well that without oil ongoing wars inSouth Sudan might most probably never have occured

Peace is the only way forward

Achieving peace is a complex issue To create peace thereare many issues to resolve with all stakeholders such as

85

4 SEVEN MILLION

mutual accusations of support to rebel groups226 goodgovernance transparency demobilisation and disarmamentof local militia etc227

A positive but vital first step is that there are calls at veryhigh levels in both countries and at international fora Thismust be followed with open debate on the core causes of theconflict and ways of achieving reconciliation It does notappear that lasting peace can be achieved otherwise In thatprocess the people need to be put at the centre ofdevelopment policies and actions in both countries in orderto stop the plunder reverse environmental degradation andfight poverty As long as the political military and corporateelite maintain their control of the natural resources of thecountry the devastating plunder will continue to the benefitof only such elite and a handful of corporations

226 UN Security Council 2015 Reports of the Secretary-General on theSudan and South Sudan SPV7392

227 The Guardian 2014 South Sudan is divided by the spoils of oil notethnicity httpwwwtheguardiancomcommentisfree2014jan14south-sudan-divided-oil-ethnicity-violence

INDEX

AAbyei Joint Oversight

Committee (AJOC) 47Abyei Police Service 46 62Abyei 43-home of the Ngok Dinka 43

45Africa 18 20 see minerals

-and wars at the greatlakes 20 25-armed groups in 26-criminal networks in 26-death in 20-exploitation naturalresources in 18-militias in 26-minerals in 20-poverty in 20-wealth in 20

Africarsquos wealth 14-and resource curse 14-blessing or curse 14

African Business 22African Development Bank

(AfDB) 16 17

African Unionrsquos (AU) Peaceand Security Council 48

Algeria 15Allied Democratic Forces

(ADF) 25 28-in North Kivu 25

American Mineral Fields(AMF) 36

AngloAmerican corporation35

AngloGold Ashanti 35Anvil Mining 36Armed Forces of the DRC

(FARDC) 26Athorbei David Deng 73Auty Richard 14

BBBC 18Blom Ulrika 59Blue Nile 45

CCentral African Republic 7China National Petroleum

Corporation 49

86

INDEX

87

Citibank NY 36Clinton Bill 24 36Conflict minerals 30 see

Rwanda-legitimate exports of 30-smuggling of 30

Conflicts 7-and natural resources 7-causes of 10 80-uniqueness of 10

Congolese Government 18

DDemocratic Republic of

Congo (DRC) 7-85-and (MONUC) 29-greed for minerals in 32-UN peacekeeping opera-tion in 29

Diffra oil complex 47DR Congo 79

EEastern Congo 28

-insecurity in 28Eliasson Jan 81

-Deputy Secretary-Generalof the United Nations 81

European Coalition on Oil inSudan (ECOS) 63

Exploration GmbH (OMV)64

Exxon corporate 15

FFirst Sudanese Civil War 42Forces deacutemocratiques de

libeacuteration du Rwanda(FDLR) 28

GGabon 18

-oil in 18Gertler Dan 12 13Ghana 18

-oil in 18Giambrone Antonino 38Glencore Anglo-Swiss 35Government of South Sudan

(GOSS) 69Government of Sudan (GoS)

62Great War of Africa 23Greater Nile Oil Project

Company (GNOPC) 6667

Guinea Equatorial 15

HHague 44Permanent Court of Arbitra-

tion in 44Human Rights Watch 55

IIMF 22International Rescue Commi-

ttee 23

LIVING IN FEAR

88

JJoak Daniel Wuor 69Juba 74

-Center for StrategicAnalysis and Research in74

Katanga Minister of Planning22

KKenya 19Kerry John 24Kiir Salva 43 84

LLibya 7Lumumba Patrice 13 20Lundin Oil Consortium 63

MMachar Riek 43 57 77 78Madagascar 16Mala fields 73Malakal 59Mali 7Mayardit Salva Kiir 69McKinney Cynthia Ann 23

-US Congresswomanfrom the Democratic Party23

McMurrough Mike 36McNamara Robert 37

-as World Bank President37

Minerals 20 see Africa-and death 20

-and poverty 20-and wars at the GreatLakes 20-and wealth 20

Mozambique 18-gas in 18

Muloni Irene 18

NNationalist and Integrationist

Front (FNI) 36Natural resources 8 83 see

conflicts-and conflict 8-and greed 83-and power 83-and wars 8-control over 83

Niger Delta 16-oil is a curse for 16

N o n - g o v e r n m e n t a lorganisations (NGOs) 12

Non-OPEC African oilproducer 48

Norwegian Refugee Council59

OOECD Guidelines for

Multinational Enterprises37

Oil 48-and geopolitics 48

PPeace 84

INDEX

89

-as way forward 84Petronas Carigali Overseas

Sdn Bhd (Petronas) 64Powell Colin 58PR Newswire 30President Kabila 24President Obama 24

RRDC Mining Code 35Republic of South Sudan

(RSS) 69Rio Tintorsquos QMM 16Ruweng County 67Rwanda 24 31

-conflict minerals from 31

SSecond Congo War 24 32

34Second Sudanese Civil War

42Somalia 7South Kordofan 45South Sudan Civil War 57South Sudan 11 18 19 41

-Dinka ethnic group in 4357-Nuer ethnic group in 4357the oil way 41-UN peacekeeping opera-tions 61

South Sudanese Civil War 58Sudan 79

-Second Civil War in 79

Sudan Armed Forces 46Sudan oil police 47Sudan Peoplersquos Liberation

Army (SPLA) 41 46 5462-civil wars and conflict in41

Sudan vs South Sudan 43-and Heglig battles 47-and peace agreement 43-main oil companies in 51-oil-centered conflict 46-Row over oil tariffs 51

Sudanese Civil War 52-and Addis AbabaAgreement 53-and Islamic law 53-causes of 52

Swedish oil company LundinOil AB (Lundin) 64

TTalisman Energy 65Thar Jath 73Transnational Corporations

(Tncs) 34-and the private sector 34

UUganda 19 24UN Interim Security Force for

Abyei (UNISFA)UN Mission in the Republic of

South Sudan (UNMISS)61 62

UN Organization Stabiliza-

LIVING IN FEAR

90

tion Mission in the DRC(MONUSCO) 29

UN peacekeeping operations11

UN Security Council 11UNICEF 59UNISFA 47United Nations Office of the

Special Adviser on Africa(OSAA) 8

United Nations SecurityCouncil 25

United Nations 13University of California

(UCLA) 54 55Upper Nile State 59 69US fallen dream 76

VVirunga National Park 18

WWar and conflict 58

-consequences of 58Wars and minerals 21

-cobalt 22-coltan 22-copper 22-diamond 22-gold 22-manganese 22-peace at last 21-timber 22-tin 22-zinc 22

Wau Shilluk 59We Thought it was Oil but it

was Blood 81Wealth 12 13

-for whom 13-quest for 12

World Heritage site 18Worldwatch 40

Page 14: LIVING IN FEAR - Health of Mother Earth Foundation...Les quatre puissances militaires regionales d´Afrique. 12 LAVDC. 2014. Les quatre puissances militaires regionales d´Afrique

LIVING IN FEAR

16

oil and minerals mostly fuel wars and conflicts While somedie while some are displaced while some are injured orrape Some on the contrary are making money lots andlots of money hellip and while they make money they just puta blind eye on the horrors occurring outside the fence Thisis well described in the Harker report on the Sudanese warand the role of oil corporations ldquoIf the oil companies donrsquotknow whatrsquos going on theyrsquore not looking over the fencesof their compoundsrdquo27

Although some may believe that the importance of theoil and mineral sectors is the creation of jobs for thepopulation this has been denied by several authors

The oil gas and mining sectors are notoriously poorwhen it comes to job creation An offshore platformtapping deep-sea reserves will create few if anypositions for locals Only recently protests werereported outside Rio Tintorsquos QMM mineral sandsoperation in the south of Madagascar due to highlocal unemployment The best way to convertnatural resource wealth into jobs is to take theproceeds and invest in other more labor-intensiveindustries such as agriculture or manufacturing28

Nigeria provides a good example where communities living inthe Niger Delta have not benefited from oil extraction whichon the contrary has created serious conflicts as seen in Box 1

On the question of whether oil is a blesssing or a curse toAfrica the African Development Bank concluded that it is a

26 The Economist 2005 lsquoThe paradox of plentyrsquo27 Canadian Ministry of Foreign Affairs 2000 Human Security in

Sudan The report of Canadian Assessment Mission httpw w w e c o s o n l i n e o r g r e p o r t s 2 0 0 0 Human20Security20in20Sudanpdf

28Africa progress panel 2013 Africaacutes mineral wealth eternally cursedhttpwwwafricaprogresspanelorgafricas-mineral-wealth-eternally-cursed

17

1 THE QUEST FOR WEALTH

ldquohuge blessingrdquo29 It justifies that with the following analysis

We estimate that Africa has 120bn barrels of oilreserves no less than half of Saudi Arabia and 600million hectares of uncultivated arable land halfof the world total We at the African DevelopmentBank (AfDB) estimate that the continentrsquos naturalresources will contribute over $30bn per annumin government revenues over the next 20 years30

Box 1 Oil is a curse for the Niger Delta people

Most people think of oil states as wealthy states ButNigeria proves that sometimes the opposite is true It isAfricarsquos leading oil producer and yet it is one of theworldrsquos 20 poorest countries Whatrsquos more the peopleliving in the Niger Delta the countryrsquos oil-producingregion are among Nigeriarsquos most impoverishedcommunities with a large percentage of the populationhaving to survive on less than one dollar a day For thesepeople lsquoblack goldrsquo has not brought prosperity ordevelopment Instead it has increased corruption socialproblems environmental damage and armed conflictThe many billions of US dollars in oil revenue that havepoured into the country during its oil industryrsquos 50-yearhistory have completely bypassed these communitiesSource Petra Hannen 2011 lsquoBlessing our Coursersquo GIZmagazine akzent

29 African Development Bank 2013 lsquoAfricarsquos mineral wealth a blessingor a cursersquo httpwwwafdborgenblogsafdb-president-this-is-africas-hourpostafricas-mineral-wealth-a-blessing-or-a-curse-12336

30 African Development Bank 2013 Africaacutes mineral wealth a blessingor a curse httpwwwafdborgenblogsafdb-president-this-is-africas-hourpostafricas-mineral-wealth-a-blessing-or-a-curse-12336

LIVING IN FEAR

18

Africa continues the exploitation of its naturalresources

Most of the African Governments that discover naturalresources in their territory eagerly move forward with theexploration of those Therefore natural resources areexplored all over the continent oil in Ghana manganese inGabon gas in Mozambique just to name a few Often thereis little consideration of the destruction or the conflicts theseextractive activities bring For instance according to the BBCin March 2015 the Congolese Government consideredmodifying the boundaries of the Virunga National Park homeof gorilla mountains and World Heritage site to permit oilexploration activities31

DRC and South Sudan as well are exploring a joint projectnow DRC has a frontier with South Sudan in the Northeastpart of the country While historically both ndash referring alsoto Sudan ndash did not often have a common grounds after theIndependence of South Sudan in 2011 it appears possiblethat natural resources may unite them more closely IreneMuloni Minister for Energy and Minerals Development fromUganda announced in an interview in February 2015 thatSouth Sudan and the DRC have expressed interest in theconstruction of an oil pipeline of over 1000 km to the Kenyancoast32 Although yet to be implemented there have beendiscussions and plans to construct a pipeline that would unite

31 BBC 2015 DR Congo seeks Virunga park bounary httpwwwbbccomnewsworld-africa-31876577See also New York Times2014 Oil dispute takes a page from Congoacutes bloody past httpwwwnytimescom20141116worldoil-dispute-takes-a-page-from-congos-bloody-pasthtml_r=1

32 Platts 2015 South Sudan DR Congo interested in Ugandan crudeoil export pipeline minister httpwwwplattscomlatest-newsoilkampalasouth-sudan-dr-congo-interested-in-ugandan-crude-26025080

19

1 THE QUEST FOR WEALTH

oil production and distribution in several African countriesincluding South Sudan Uganda Kenya Democratic Republicof Congo (DRC) and maybe others33

The forthcoming chapters will develop more elementsaround this topic in order to conclude some final remarkswith the particular case studies of DRC and South Sudan

33 The Economist 2013 Pipeline poacuteker httpwwweconomistcomnewsmiddle-east-and-africa21578402-east-africa-danger-throwing-away-part-its-new-found-oil

20

LIVING IN FEAR

Minerals and Wars at the GreatLakes Wealth Death and Massive

Poverty in the Heart of Africa

Our internal difficulties tribal war and the nucleiof political opposition seemed to have beenaccidentally concentrated in the regions with ourrichest mineral and power resources We know howall this was organised and in particular whosupports it today in our house

Our Katanga because of its uranium copper andgold and our Bakwanga in Kasai because of itsdiamonds have become hotbeds of imperialistintrigues The object of these intrigues is torecapture economic control of our country

Patrice Lumumba speech in Leopoldville in August 25th1960 34

34 Speech at the opening of the All-African Conference in Leopoldville in1960 See httpwwwassatashakurorgforumshoulders-our-freedom-fighters42970-collected-speeches-writings-patrice-lumumbahtml

2

21

2 MINERALS AND WARS AT THE GREAT LAKES

Lumumba the first democratically elected Prime Ministerof the Republic of Congo gave a speech in 1960 that wasremarkably prescient of the fate of Democratic Republic ofCongo (DRC) today Conflict minerals and ldquotribal warsrdquo gohand in hand in the DRC historyrsquos past decades Lumumbawas planning to get the DRCrsquos related difficulties undercontrol however he was executed a few months after thespeech by a firing squad in January 1961 The US throughthe CIA the United Kingdom through the M16 and Belgiumwere all blamed for their involvement in his death35

Paradoxically ldquothe assassinations were made by the ordersof those who proclaim themselves to be champions ofdemocracy and respecters of human rightsrdquo36 Externalmeddling and intervention in Congorsquos affairs by foreigncountries is another of the concurrent and repeated situationsthat continue in recent history of the DRC37

Wars and minerals peace at last

hellip The heart of Africa is bleeding hellip

Two wars raged in DRC from 1996-1997 and from 1998-2003 Contrary to what some affirm these were not ethnicconflicts but resource wars38 No coincidence that the

35 BBC 2013 M16 and the death of Patrice Lumumba httpwwwbbccomnewsworld-africa-22006446

36 VVAA 1992 Congo (Zaire) Democratie neo-coloniale ou deuxiemeIndependance Ed LrsquoHarmattan

37 The Guardian 2011 Patrice Lumumba the most importantassassination of the 20th centuryhttpwwwtheguardiancomglobal-developmentpoverty-matters2011jan17patrice-lumumba-50th-anniversary-assassination

38 See Friends of the Congo websitehttpwwwfriendsofthecongoorgresource-centercongo-primerhtml See also Lanotte 2003 RDCguerre sans frontiers Editions Complexe

22

LIVING IN FEAR

country possesses extraordinary mineral wealth with someof the most valuable and strategic minerals on earth suchas coltan diamond cobalt copper gold tin zincmanganese timber and others The highest concentrationof mining activities existin the Eastern part of the countryTo illustrate the predominance of mining here we wouldunderline the affirmation of the Katanga Minister ofPlanning who said that 72 of the territory of Katanga isdevoted to mining No surprise why the IMF has namedDRC one of the worldrsquos mining giants of today39 Themagazine African Business stated in 2009 that ldquothe totalmineral wealth of the DRC was estimated to be some $24trillionrdquo40 As Lumumba indicated back in 1960 the samescenario repeated in recent years ndash minerals and conflictscontinue to go hand by hand

DR Congo possesses some 80 of the worldrsquoscoltan ore reserves(hellip) Additionally the DRCongo produces significant quantities ofdiamonds gold cassiterite copper cobalt (ofwhich it has the worldrsquos largest reservesalthough the trade is largely controlled byZimbabwe) oil tin zinc gold and coffee Thecountry has large reserves of uranium it wasCongolese uranium that was used for theManhattan Project that produced the worldrsquosfirst atomic bombs dropped on Japan The vastcountry also has more than half of sub-SaharanAfricarsquos timber stocks

Source African Business

39 IMF 2013 DRC Poverty reduction strategy paper N 1322640 African Business 2009 DR Congo $24 trillion fortune

23

2 MINERALS AND WARS AT THE GREAT LAKES

The casualties over the years are overwhelming Whileeverybody is familiar with the death toll during the genocidein Rwanda estimated between 500000 and 800000 peoplethere is much less awareness about the conflict situation inCongo The International Rescue Committee has estimatedthat the conflict and humanitarian crisis in the DemocraticRepublic of Congo has taken a death toll of 54 million peoplefrom 1998 to 200741 A CNN correspondent in trying togive an illustration of the heavy toll made the followingcomparative analysis

The wars in that country ndash RD Congo ndash haveclaimed nearly the same number of lives as havinga 911 every single day for 360 days the genocidethat struck Rwanda in 1994 the ethnic cleansingthat overwhelmed Bosnia in the mid-1990s thegenocide that took place in Darfur the number ofpeople killed in the great tsunami that struck Asiain 2004 and the number of people who died inHiroshima and Nagasaki mdash all combined and thendoubled42

Rwanda and Uganda were actively involved in the invasionof Congo in both wars The second war was known as theGreat War of Africa involving nine countries and more than20 armed groups According to Cynthia Ann McKinney aUS Congresswoman from the Democratic Party and an

41 IRC 2007 IRC study shows Congorsquos neglected crisis leaves 54 milliondead httpwwwrescueorgnewsirc-study-shows-congos-neglected-crisis-leaves-54-million-dead-peace-deal-n-kivu-increased-aidmdash4331 Some groups put the death toll much higher See GlobalResearch webpage httpwwwglobalresearchcathe-war-that-did-not-make-the-headlines-over-five-million-dead-in-congo7957

42 CNN 2012 Why the world is ignoring Congo war httpeditioncnncom20121127opinioncongo-war-ignored-vava-tampa

24

LIVING IN FEAR

expert on the Great Lakes issues while invading DRC in theSecond Congo War the US continued providing financialsupport to the governments of Rwanda and Uganda43 Howwas this allowed US President Bill Clinton was personallyin Rwanda in March 1998 only a few months before theRwandese army invaded Congo44 President Clinton was inAfrica at that time addressing its presidents includingPresidents Kagame and Museveni as leaders of the ldquoAfricanRenaissancerdquo and seeing a bright future for Africa45 ThereClinton made an important call to embrace peace How wasit possible to talk about peace while these allies were directlyengaging in war Moreover with the experience of thegenocide in Rwanda how could it be that foreign powersclosely involved in the region particularly the United Stateslet this occur again How did they allow wars and conflictsthat killed millions of people How could they allow whatmany called another genocide in Congo

On a positive note at last in recent months the calls forpeace have been growing from many different stakeholdersIn May 2014 US Secretary of State John Kerry after ameeting with DRC President Kabila stated that ldquoachievinga lasting peace in the DRC is a priority of President ObamardquoHe added ldquoNow I canrsquot emphasize enough how importantthat process is in identifying and resolving the root causesof the conflict in the DRC as well as in the entire GreatLakes regionrdquo46 Not a minor task going to the roots causes

43 Order of Indictment from Juzgao de instruccion numero CuatroAudiencia Nacional Case 320008-D 6-2-2008

44 See CBS News httpwwwcbsnewscomnewstext-of-clintons-rwanda-speech

45 Schaefer 2000 The Keys to an African Economic Renaissance httpwwwheritageorgresearchreports200005the-keys-to-an-african-economic-renaissance

46 See US Dept of State 2014 Press Availability on the DRC and theGreat Lakes Region httpwwwstategovsecretaryremarks201405225587htm

25

2 MINERALS AND WARS AT THE GREAT LAKES

of those problems in the Great Lakes Indeed achieving peaceand reconciliation in the Great Lakes Region in countriesthat had suffered like DRC is a difficult and cumbersometask and making it by finding the ldquorealrdquo root causes can bea very complex and lengthy exercise taking decades orlonger

The situation remains tense We recall that in 2006 theUN Security Council issued a resolution condemning ldquotheactivities of militias and armed groups operating in the GreatLakes regionrdquo47 Almost a decade later those armed groupsare still there and despite the efforts made the situationremains tense and insecure A report of the Group of Expertson the RDC published in 2015 by the United Nations SecurityCouncil concludes that in DRC despite a defeat of one of therebel groups ndash the Movement of 23 March ndash at the end of2013 this ldquofailed to translate into significant gains in securityand security and stability in 2014rdquo48 For example in thebeginning of 2015 a rebel group from Uganda the AlliedDemocratic Forces (ADF) created havoc in North Kivuwhere 17 people were hacked to death with machetes49

47 UN Security Council 2006 Resolution 1653 (2006) SRES165348 UN Security Council 2015 Final report of the Group of Experts on

the DRC S20151949 UN Security Council 2015 March 2015 monthly forecast http

wwwsecuritycouncilreportorgmonthly-forecast2015-03democratic_republic_of_the_congo_7phpVP-BX5Sm4agmailto

26

LIVING IN FEAR

Armed groups militias and criminal networkswithin the military structure making a lucrativebusiness out of minerals

The UN has solidly demonstrated that natural resources areused to finance armed groups and therefore to fuel war inthe region 50 The UN concludes that ldquoarmed groups continueto control many mining sites and to profit from mining andthe minerals traderdquo51 Later on those minerals particularlytin tungsten and tantalum are smuggled to neighbouringcountries For example one of the armed groups theMovement of 23 March (M23) responsible for taking Gomaat the end of 2012 was financing its organisation fromnatural resources in Eastern Congo In relation to thisparticular case the UN asserts that ldquoseveral traders havecontributed to financing M23 rebels using profits resultingfrom the smuggling of Congolese minerals into Rwandardquo52

Besides the rebel groups a criminal network within theArmed Forces of the DRC (FARDC) was involved in the illegalexploitation of natural resources The types of involvementinclude illegal taxation protection rackets and indirectcommercial control to more direct coercive control53

For some top army officials their military work wasconverted into economic businesses Indeed the existing

50 UN Security Council 2014 Final report of the Group of Experts onthe Democratic Republic of the Congo

51 Ibidem52 Ibidem53 UN Security Council 2010 Letter dated 26 October 2010 from the

Group of Experts on the DRC addressed to the Chair of the SecurityCouncil Committee established pursuant resolution 1533 (2004) S2010596

27

2 MINERALS AND WARS AT THE GREAT LAKES

practices made the UN qualify the war as a ldquolucrativebusinessrdquo

illegal exploitation of resources by BurundiRwanda and Uganda took different forms includingconfiscation extraction forced monopoly andprice-fixing The first two forms reachedproportions that made the war in the DRC a verylucrative business There are strong indicationsthat even if security and political reasons werethe professed motivation to move into the easternDRC some top army officials clearly had economicand financial objectives54

The most UN recent reports affirm that ldquomany armed groupsin Eastern Democratic Republic of the Congo have derivedtheir revenue from the production of and trade in naturalresourcesrdquo55

54 UN Security Council 2001 Security Council condemns ilegal exploitationof Democratic Republic of Congoacutes natural resources Press Releasehttpwwwunorgpressen2001sc7057dochtm

55 UN Security Council 2014 Final report of the Group of Experts on theDRC S201442

28

LIVING IN FEAR

Insecurity still booming in Eastern Congo

As already mentioned the momentum created bythe defeat of the Movement of 23 March inNovember 2013 failed to translate into significantgains in security and stability in 2014 in EasternDemocratic Republic of the Congo A militaryoperation against the Allied Democratic Forces(ADF) significantly weakened but did not defeatthe sanctioned armed group An expected militaryoperation against the Forces deacutemocratiques delibeacuteration du Rwanda (FDLR) did not materializeand as of the end of November 2014 efforts tonegotiate the disarmament of this sanctionedarmed group failed to produce meaningful resultsIn addition numerous Congolese and foreignarmed groups contributed to instability inOrientale North Kivu South Kivu and KatangaprovincesADF FDLR Nduma Defence for Congo (led bysanctioned individual Sheka Ntabo Ntaberi) andother armed groups continued to recruit train anduse child soldiers in 2014 Armed groups alsocommitted a variety of other abuses includingtorture enslavement and sexual violence Therewere mass killings in June in Mutarule (South Kivu)and in October and November in Beni territory(North Kivu)

Source United Nations Security Council 201556

29

2 MINERALS AND WARS AT THE GREAT LAKES

One of the problems the existing insecurity and conflicts havecreated is the proliferation of internally displaced peopleestimated in September 2014 at 27 million people57

UN peacekeeping operation in Congo

In July1999 Heads of State of Angola DRC NamibiaRwanda Uganda Zambia and Zimbabwe signed the Lusakaagreement focusing on the establishment of a ceasefire asone of the other components necessary for the deploymentof a UN peacekeeping force

The first UN Peacekeeping operation in DRC wasestablished in November 1999 after the Lusaka Ceasefireagreement It was called the UN Mission in the DRC(MONUC) In 2010 it was renamed the UN OrganizationStabilization Mission in the DRC (MONUSCO)

Ten years later despite the deployment of MONUC thesecurity challenges in DRC ndash particularly in the Eastern Partof the country ndash remain high58 There is still a strong presenceof armed groups chronic humanitarian crisis continuoushuman rights violations and continued illegal exploitationof natural resources In the light of this context the UNcreated an ldquoIntervention brigaderdquo with a key objective ofneutralizing armed groups59 As of today the MONUSCOand the intervention brigade are operational but are theresignificant security changes

56 Ibidem57 See global humanitarian assistance webpage http

wwwglobalhumanitarianassistanceorgcountryprofiledemocratic-republic-of-congo

58 UN Security Council 2010 Resolution 192559 UN Security Council 2013 Resolution 2098

30

LIVING IN FEAR

60 UN Security Council 2014 Final report of the Group of Experts on theDRC S201442

61 PR Newswire 2014 Rwanda has become worldacutes largest coltanexporterhttpwwwprnewswirecomnews-releasesrwanda-has-become-worlds-largest-coltan-exporter-reports-kt-press-300010371html

62 PR Newswire 2014 Rwanda has become worldacutes largest coltanexporter

63 Africa Briefing 2015 Rwanda has abundant deposits of best qualitycoltan Kagame affirms httpafricabriefingorgp=478

Legitimate exports or smuggling conflictminerals

It is well known that many of the minerals in Eastern Congoare smuggled and do not follow legal channels For instancethe UN estimates that 98 of the gold produced in DRC issmuggled out of the DRC making the country lose millionsof dollars in tax revenue60

In December 2014 numerous media covered a story onRwanda and coltan PR Newswire affirmed that ldquoRwandahas become worldacutes largest coltan exporterrdquo61 The dataprovided concluded that in 2013 Rwanda exported around2500000 kg of tantalum which constituted 28 of the total8807232Kg of tantalum produced globally The overallrevenue from the coltan was estimated at around $140 M62

Rwandese President Paul Kagame was quoted as affirmingthat the production was local and dismissed all possibleallegations of plundering the coltan from Congo He affirmedldquoRwanda has not only enough coltan but of a very highquality (hellip) we can even pay for a ticket give them a visaand take them to the minesrdquo63

Contrary to such statements there are many reports thatcoltan is smuggled from Congo to Rwanda and that Rwandadoes not have significant coltan mining on its own For

31

2 MINERALS AND WARS AT THE GREAT LAKES

instance a 2012 report prepared by a European Foundationaffirmed that ldquoRwanda does not house any industrial coltanmines which would suggest legitimate Rwandan coltanproductionrdquo64 A US governmental agency which analyzesthe mining sector in Congo made a table with coltan exportedfrom Rwanda qualifying it as ldquoconflict mineralsrdquo as seen inTable 165 Since there is no known conflict in Rwanda it canonly refer to Rwanda exports of minerals originating froman external conflict zone the DRC

Table 1 Estimates of exports of conflictminerals from Rwanda for Fiscal years2009-2013 in Metric Tons

Year Tantalum

FY 2009 958

FY 2010 827

FY2011 915

FY2012 1139

FY 2013 2466

Source Based on United States Government Accountability Office 2014

64 Van Teeffelen 2012 The EU raw materials policy and mining in RwandaEvert Vermeer Foundation

65 United States Government Accountability Office 2014 Conflictminerals stakeholder options for responsible sourcing are expandingbut more information on smelters is needed

32

LIVING IN FEAR

In this particular situation either somebody is wrong orsomebody is lying Hopefully future events will unveil thetruth around the nature of the coltan exports from Rwandato clarify whether they are a legitimate export or theconsequence of smuggling conflict minerals

Greed for minerals everybody wants a pieceof Congo66

What is at the origin of those wars and instability of theCongo While there could be diverse factors for conflictthere is one that seems to be always recurrent and is recog-nized by most authors and by relevant UN reports the racefor minerals and natural resources The UN recognized thatin the Second Congo War minerals were the coveted trophyand that all actors ldquobuilt up a self-financing war economycentred on mineral exploitationrdquo67 The conflicts that con-tinued after the Second Congo War like those in Kivu andIturi provinces are recognized as well to be fuelled by tradein minerals Along the same lines Palou underlines the causesof the conflict by stating that ldquoalthough from that time un-til the present day the Rwandan regime has expressed itsconcern about the security of its border with the then Zaireobjectively the reality is that control over this strategic areandash Eastern Congo ndash and its valuable mineral resources has

66 See video at Congo Justice httpcongojusticeorg67 UN 2002 Final report of the Panel of Experts on the illegal exploitation

of natural resources and other forms of wealth of the DemocraticRepublic of the Congo S20021146

33

2 MINERALS AND WARS AT THE GREAT LAKES

proved to be at the heart of two wars that have left a hugenumber of victimsrdquo68 In conclusion a 2001 UN report as-serted that ldquothe conflict of DRC has become mainly aboutaccess control and trade of five key mineral resourcescoltan diamond copper cobalt and gold The wealth of thecountry is appealing and hard to resist in the context oflawlessness and the weakness of the central authorityrdquo69

Congolese and regional elite have also profited from thissituation as well and the appalling quantum of the plunderare reflected in the following report from UN

The elite network of Congolese and Zimbabweanpolitical military and commercial interests seeksto maintain its grip on the main mineral resourcesmdash diamonds cobalt copper germanium mdash of theGovernment-controlled area This network hastransferred ownership of at least US$ 5 billion ofassets from the State mining sector to privatecompanies under its control in the past three yearswith no compensation or benefit for the Statetreasury of the Democratic Republic of the Congo70

Funds that could have been used for public services havebeen diverted from the public coffers by fraud or by theexcuse of war effort71 The Congolese population has paid

68 Palou 2010 International Justice plunder in war human rights andmultinationals

69 UN Security Council 2001 Report of the Panel of Experts on theillegal exploitation of natural resources and other forms of wealth ofthe Democratic Republic of the Congo S2001357

70 UN Security Council 2002 Final report of the Panel of Experts on theilegal exploitation of natural resources and other forms of wealth ofthe Democratic Republic of the Congo S20021146

71 Ibidem

34

LIVING IN FEAR

dearly in this situation In terms of human development it isinstructive that the UNDP estimated in 2013 that RDCwas in the low human development category ndash positioningthe country at 186 out of 187 countries and territories72

The Role of Transnational Corporations (Tncs)and the private sector

Other key players involved in the conflict are Transnationalsand the private sector A UN Report published a few yearsafter the Second Congo War started affirmed that ldquothe roleof the private sector in the exploitation of natural resourcesand the continuation of the war has been vitalrdquo73 The reportalso added that ldquoa number of companies have been involvedand have fuelled the war directly trading arms for naturalresourcesrdquo74 Other observers share the view that ldquoWesternMultinationals have been one group responsible for thepillage and illegal exploitation of Congo mineral resourcesrdquo75

There are a large number of big foreign corporationsinvolved in mining in DRC including those from CanadaSouth Africa UK USA and others Despite the opacity ofmost of the activities of the private sector numerousexamples have been reported of how TNCs are responsiblefor human rights abuses and other illegal activites Thereare also many reports of the dangerous connectionsestablished with the political and military elite in order tofacilitate their businesses These are some examples

72 UNDP 2014 Sustaining human progress reducing vulnerabilities andbuilding resilience Congo (Democratic Republic of the) httphdrundporgsitesallthemeshdr_themecountry-notesCODpdf

73 UN 2001 Report of the Panel of Experts on the illegal exploitation ofnatural resources and other forms of wealth of the Democratic Republicof the Congo S2001357

74 UN 2001 Ibidem75 Palou Ibidem

35

2 MINERALS AND WARS AT THE GREAT LAKES

bull Glencore Anglo-Swiss giant in the raw material sectorwith a turnover of US $ 2397 billion in 2013 was beingaccused in 2014 of adopting a military-style response tothe problem of artisanal mining close to its mines ldquoonseveral occasions over the past 18 months mine policehave fired live ammunition in pursuit of artisanal minerson Glencorersquos site resulting in deaths and seriousinjuriesrdquo76 They are as well responsible forcontamination of the water supply with acid content andvery high and concentrations of copper and cobaltFinally the company operates some of its concessionsinside a reserve ndashndash something that in principle is illegalaccording to the RDC Mining Code77

bull An independent investigation unveiled that two miningcompanies Glencore and the Eurasian Natural ResourcesCorporation were involved in underpricing assets incomplex deals featuring offshore companies causinglosses to the DRC of no less than $136 billionIntermediary companies in the deals were linked to DanGerler78 In addition the DRC public prosecutorreportedly told mining companies that they had toreimburse $37 billion in taxes duties and fines79

bull AngloGold Ashanti part of the AngloAmericancorporation was accused of establishing links and

76 Peyer et al 2014 PR or Progress Glencoreacutes corporate responsibility inthe DRC Bread for all RAID Fastenopfer

77 Ibidem78 CRS 2014 Democratic Republic of Congo Background and US Policy79 Reuters 2014 Disputed Congo report says miners owe $37 billion in

tax fines httpwwwreuterscomarticle20140130us-congo-democratic-mining-idUSBREA0T12L20140130

36

LIVING IN FEAR

supporting one armed group the Nationalist andIntegrationist Front (FNI)80

bull In 2004 fighting between soldiers and rebels in Kilwaended in serious human rights violations againstcivilians including summary executions arbitraryarrests rape and torture Anvil Mining operated theDikulushi copper mine near Kilwa and was accused ofproviding vehicles and planes to the Congolese armedforces during this event The legal case ended in theCanadian Supreme Court in 2012 which ruled that itwould not hear the plaintiff rsquos appeal ndash they were led bythe Canadian Association Against Impunity (anassociation representing survivors of the incidents inOctober 2004)81

bull In May 1997 Citibank NY a financial institution hasbeen accused of giving $5 million loan to a Congolesemilitia allied with Rwanda82

bull American Mineral Fields (AMF) cut a $1 billion dealwith Kabila immediately after his forces captured GomaThe negotiations were led by ldquoKabilarsquos US-trainedfinance ministerrdquo who gave ldquoAMF exclusive explorationrights to zinc copper and cobalt mines in the area MikeMcMurrough a friend of US President Bill Clinton wasthen the chair of AMF83

80 Human rights watch 2005 DRC Gold fuels massive human rightsatrocities httpwwwhrworgennews20050601dr-congo-gold-fuels-massive-human-rights-atrocities

81 Business and human rights resource center 2012 Anvil Mining Lawsuit(re DRC) httpbusiness-humanrightsorgenanvil-mining-lawsuit-re-dem-rep-of-congo

82 Global research 2008 Congo Resource wars httpwwwglobalresearchcacongo-resource-wars8310

83 Global research 2008 Ibidem

37

2 MINERALS AND WARS AT THE GREAT LAKES

UN and some other independent reports generally makebroad statements about the role of corporations includingciting some of the companies however they fall short ofproviding details of the modus operandi of those companiesand in establishing or suggesting concrete measures to stopthe conflicts and solve the negative impacts on the DRCpopulation and environment A 2002 UN Report listed 85companies considered by the Panel to be in violation of theOECD Guidelines for Multinational Enterprises84 Very littlehas been done after the UN report was published

A poor country Until when

In 1969 World Bank President Robert McNamara embarkedon a trip to Africa to try to discover ldquowhat are therequirements for developmentrdquo85 At that time the WorldBank in its information document described the country asrich in natural resources but at the same time poor and witha strong mining sector

In spite of its rich natural resources and greatpotential the Congo is still a poor country (hellip)Mining and metallurgy play a leading role in theeconomy86

84 UN 2002 Final Report of the Panel of Experts on the Illegal Exploitationof Natural Resources and other Forms of Wealth of the DemocraticRepublic of the Congo S20021146

85 Records of President Robert S McNamara Travel briefs CongoKinshasa (01021969-03031969) 1772506 Reference Code WBIBRDIDA 03 EXC-10-4540S World Bank Group archives WashingtonDC United States

86 Ibidem

38

LIVING IN FEAR

More than forty years later not much has changed asupdated data shows In DRC seven out of ten householdsare poor87 Most of its nearly 60 million people areldquodesperately poor living on less than $1 a dayrdquo88 DRC is aleast developed country a fragile State that has been in thetop 10 recipients of humanitarian assistance in nine of thelast 10 years Between 2003 and 2012 DRC received US$176billion in official development assistance (ODA) making itthe 10th largest recipient89In 2012 the Democratic Republicof Congo (DRC) received US$286 billion in net officialdevelopment assistance90

With so many natural resources isnrsquot there money to getpeople out of poverty The mining sector is oftenacknowledged as being capable of contributing to povertyreduction However those mineral benefits are oftencreamed off by powerful interests and do not get to thehands of the majority of the population According to DFIDldquofiscal receipts from the minerals sector are siphoned off bypowerful interest groups instead of being used in the publicsectorrdquo91

The analysis of Mr Antonino Giambrone sheds more lightabout the earnings and who profits from mining

While the average Congolese worker earns $10 permonth the average Congolese coltan-miner earnsanywhere from $10 to $50 per week Uganda

87 IMF 2013 DRC Poverty reduction strategy paper N 1322688 DFID 2008 Democratic Republic of Congo Country Plan89 View global humanitarian assistance webpage http

wwwglobalhumanitarianassistanceorgcountryprofiledemocratic-republic-of-congo

90 CRS 2014 Democratic Republic of Congo Background and US Policy91 DFID 2008 Democratic Republic of Congo Country Plan

39

2 MINERALS AND WARS AT THE GREAT LAKES

Rwandan and Congolese rebels have earned manymillions of dollars in sales of coltan which theyhave used to finance their war efforts in the CongoBetweeen 1999 and 2000 the Rwandan army aloneearned at least $20 million a month from coltan92

Food insecurity is often a consequence of poverty One ofthe causes of existing food insecurity is the abandonment ofthe agriculture sector partly due to conflicts The governmentstated that it would like to strengthen the smallholdersldquowhile ensuring at the same time the protection of thecountryrsquos natural resourcesrdquo93

War impacts on the environment

The wars have had devastating impact on the environmentNational parks for instance home of many endangeredspecies are also affected by the exploitation of minerals94

There are numerous reports on the precarious situation ofwildlife in the region For instance between 1995 and 19994000 out of 12000 elephants were killed in the GarambaPark in North-eastern DRC95 The situation was also seriousin other parks For instance in Kahuzi-Biega Park a zonerich in coltan only 2 out of 350 elephant families remained

92 Giambrone 2006 The extraction of natural resources as a source ofconflict Etfo voice

93 IMF 2013 DRC Poverty reduction strategy paper N 1322694 Seeh ttpwww lenntech comenv ironmental -ef fec ts -

warhtmixzz3CuGZqE3M95 UN 2001 Report of the Panel of Experts on the illegal exploitation of

natural resources and other forms of wealth of the Democratic Republicof the Congo S2001357

40

LIVING IN FEAR

in 200096 Mountain gorillas are also under threat due tocontinued civil unrest and the presence of armed militiasmakes survey and conservation work difficult in the DRCrsquosprotected areas97

Deforestation is also one of the common impactsWorldwatch explains the implication of having refugeespopulation inhabiting RDC degraded forest areas

For two years beginning in late 1994 for exampleabout 720000 Rwandans inhabited refugee campson the fringes of Virunga National Park They allneeded wood for cooking fires and for buildingshelters and some also earned extra money bymanufacturing charcoal As a result up to 80000people entered the park and carted away up to1000 tons of wood every day By mid-1996 105square kilometers of forest had been affected toone degree or another by their activities 35 squarekilometers had been stripped bare98

Besides the need for fuelwood by refugees movement ofmilitary hardware through forests and woodlands also causeserious damage to forests and the landscape generally

96 Ibidem97 See WWF webpage httpwwfpandaorgwhat_we_doendangered_species

great_apesgorillasmountain_gorilla98 Worldwatch 2008 War and Environment httpwwwworldwatchorg

node5520

3South Sudan The Oil Way

99 Washington Post 2012 lsquoSouth Sudan civilians are trapped in conflictover oilrsquo httpwwwwashingtonpostcomworldsouth-sudan-civi l i ans-are- trapped-in-conf l ict -over-o i l20120501gIQAUX6buT_storyhtml

100 See UN Mission in South Sudan web page httpwwwunmultimediaorgtvunifeed201404south-sudan-bentiu-massacre

101 Reuters 2014 Bentiu massacre is game-changer in South Sudanconflict says UN official httpwwwtheguardiancomworld2014apr22bentiu-massacre-south-sudan-united-nations

41

ldquoIf we had no oil we would not be attackedrdquo

Nyak a 27-year-old sitting outside herhut in Bentiu South Sudan 201299

In April 2014 Bentiu the capital of the oil producing UnityState was the scenario of one of the worst massacres of thecivil war between South Sudanese forces100 Hundreds ofpeople were killed in the fighting that took place betweenthe Sudan Peoplersquos Liberation Army (SPLA) and anti-government forces in the oil-rich State101

42

LIVING IN FEAR

Civil wars and conflict

Since its independence in 1956 Sudan has been at war andconflict for most of its modern history Specialists in conflictand security have described the history of modern Sudan asldquoan unremitting sequence of wars punctuated by oft-violatedpeace agreementsrdquo102 The First Sudanese Civil War (1955ndash1972) was followed by a Second Sudanese Civil War (1983ndash2005) with barely 11 years breathing space of tenuoussecurity

The Second Civil War ended when both sides signed theComprehensive Peace Agreement in 2005 That agreementgave autonomy to South Sudan within Sudan However areferendum held in January 2011 moved the region towardsecession and then in July 2011 independence was achievedand South Sudan became an autonomous nation103 Theprocess that led to South Sudanrsquos independence was stronglysupported by the US government which backed Juba in itstwo decades struggle against Khartoum104 It should be notedthat even during the 11 years of supposed peace there wereconflicts on a regular basis particularly in the border areasbetween South Sudan and Sudan105 Two years after theindependence the first South Sudanese Civil War started inDecember 2013 The civil war erupted as a result of a power

102 Cox and Snapper 2013 The Strategic Importance of South Sudan TelAviv University

103 National Geographic 2013 South Sudan oil the environment andborder conflicts httpvoicesnationalgeographiccom2013032286550

104 See webpagehttpwwwworkersorgarticles20140101south-sudan-yet-another-oil-war

105 International Crisis Group 2006 Sudan Saving peace in the Easthttpwwwcrisisgrouporgenregionsafricahorn-of-africasudan102-sudan-saving-peace-in-the-eastaspx BBC 2015 South SudanProfile httpwwwbbccomnewsworld-africa-14019202

43

3 SOUTH SUDAN THE OIL WAY

struggle between president Salva Kiir from the Dinka ethnicgroup and his deputy Riek Machar from the Nuer ethnicgroup whom he had sacked As at the time of this writingthe civil war continues

Sudan vs South Sudan

The tensions and conflicts after the independence of SouthSudan from its neighbour Sudan did not stop in 2011 Topleaders from both sides accuse and threaten each other innumerous occasions For instance Sudanese President Bashirpromised to teach South Sudan a ldquofinal lesson by forcerdquo106

South Sudan President firmly swore that ldquowhether Umar al-Bashir likes it or not one day Abyei will rejoin the southrdquo107

Abyei

Abyei is traditionally the home of the Ngok Dinka asubdivision of the Dinka tribe with strong links to the Dinkain South Sudan Besides the Dinka Misseriya herders aremembers of nomadic Arab tribes that seasonally cross Abyeiand other nearby areas with their cattle in search of waterand pasture108

Since the signing of the Peace Agreement in 2005 betweenthe Government of Sudan and the SPLM the dispute over

106 The Washington Post 2012 lsquoSudanese president vows war againstSouth Sudanrsquo httpwwwwashingtonpostcomworldsudanese-president-threatens-force-against-south-sudan-over-oil-field20120419gIQAJ0G8ST_storyhtml

107 The Global Intelligence Files 2013 Sudan- President Kiir says Abyeiwill ldquorejoinrdquo South Sudan httpssearchwikileaksorggifilesviewemailid=674314

108 Enough Project 2013 What is the Abyei Area and why is it disputedhttpwwwenoughprojectorgblogsenough-101-what-abyei-area-and-why-it-disputed

44

LIVING IN FEAR

the future status of the Abyei area has beenone of the bigbarriers to stability in the region109Abyei is an oil-rich areadisputed by Sudan and South Sudan and stands out as thehotspot of bigger tension beetween Sudan and South Sudannowadays

The conflicts over Abyei have a history of more than 50years After the First Civil war the parties signatories to thepeace pact agreed that Abyei would hold a referendum todetermine whether they would be part of Sudan or a newlyregion in the South The second war commenced in 1983and the foreseen referendum was not done

In 2009 the Permanent Court of Arbitration in the Hagueruled on Abyei territory giving concessions to the Governmentof Sudan and the Southern Sudan Heglig and other closeroil-fields remained out of Abyei area while the rest of theAbyei region remained under control of the Ngok Dinka anethnic group close to Southern Sudan and keen on voting tojoin the South in a future referendum110Another referendumwas scheduled to be done in parallel with the South Sudanreferendum in 2011 but once again this never took place

Although a series of temporary security arrangementswere agreed in January and March 2011111 in May SudaneseArmy tanks entered the town of Abyei and by the 22nd ofMay they seized control of the town112The government ofSudan launched numerous military attacks in the disputed

109 UN Security Council 2011 Report of the Secretary-General on thesituation in Abyei S2011451

110 New York Times 2009 lsquoCourt redraws disputed area in Sudanrsquo httpwwwnytimescom20090723worldafrica23sudanhtml_r=1amp

111 UN Security Council 2011 Report of the Secretary-General on thesituation in Abyei S2011451

112 Reuters 2011 North Sudan seizes disputed Abyei thousands fleehttpwwwreuterscomarticle20110522us-sudan-abyei-north-idUSTRE74L14L20110522

45

3 SOUTH SUDAN THE OIL WAY

border of area where much of Sudanacutes remaining oil fieldsare situated113 Two years later the fighting remains intensein parts of South Kordofan and Blue Nile114 More than 2million people have been internally displaced or severelyaffected by the conflict since 2011115

In addition to military attacks other actions contributedto the tension There have been cattle raids by the MissiriyandashArab nomadic cattle herders inhabiting the area ndash on theNgok Dinka ndasha subdivision of the Dinka tribe inhabitingthis area In occasions more than 200 cows were stolenwith a large part of it recovered by the UN Interim SecurityForce for Abyei(UNISFA) These raids increase further thealready tense situation in the region and in particular thevery tense situation among the Missiriya and the NgokDinka116

113 The Conversation 2012 Oil fuels the conflict between Sudan andSouth Sudan ndashand it keeps getting hotter

114 OCHA 2014 South Kordofan and Blue Nile population movementsfact sheet httpreliefwebintsitesreliefwebintfilesresourcesSouth20Kordofan20and20Blue20Nile20Population20Movements20Fact20Sheet20-201920May202014pdfReuters 2013 Khartoum says rebels based in South Sudan caused oilpipeline blast

115 OCHA 2014 Ibidem116 See Human Security baseline assessment for Sudan and South Sudan

webpage httpwwwsmallarmssurveysudanorgdefacts-figuresborderdisputed-areasabyeihtml

46

LIVING IN FEAR

An oil-centered conflict

ldquoThe violence underscores the extent to which oilis at the heart of the dispute Khartoum whichcontrols the pipelines that take oil out of SouthSudan depends heavily on oil transit fees SouthSudan which depends on oil for 98 percent of itsrevenue has refused to pay the fees which it saysare exorbitantKhartoum responded by seizing oil tankers carryingSouth Sudanese oil and imposing economicblockades That prompted South Sudan to shutdown its entire oil production in February Thatmonth Sudan allegedly bombed an oilfield inSouth Sudan that was nine miles from the borderrdquo

Washington Post 2012

Missiriya attacks continue as of today UNISFA reported thatin March 2015 100 armed Missiriya killed several peopleand burnt over 20 houses in a village in the southern part ofAbyei117 Many of those attacks occur despite the presenceof UN peacekeepers in the zone

In this context a UN force was deployed in 2011 withmore than 4000 personnel mostly Ethiopian with theobjective of ensuring the demilitarization of the Abyei areaand particularly checking the Sudan Armed Forces and theSudan Peoplersquos Liberation Army Interestingly the UN forceshad also the task to provide security for oil infrastructure inthe Abyei Area in cooperation with the Abyei PoliceService118 In February 2015 the Security Council extended

117 Sudan Tribune 2015 South Sudan condemns deadly clashes in Abyeihttpwwwsudantribunecomspipphparticle54191

118 UN Security Council 2011 Resolution 1990 (2011) SRES1990(2011)

47

3 SOUTH SUDAN THE OIL WAY

the mandate of the UNISFA again until July 2015119 The AbyeiJoint Oversight Committee (AJOC) decided in May 2013 thatAbyei should adopt a status as weapons-free area and thatonly UNISFA would be authorized to carry weapons in thearea120

The situation in the area is still very fragile121 For instancevarious resolutions have called for the redeployement of allmilitary personnel from Abyei including those protecting itsoil infrastructure However the Sudanese Governmentskeeps at the Diffra oil complex around 150 Sudan oil policein a clear violation of an agreement and Security Councilresolutions adopted in 2011122 The UN Security council ina recent resolution

Condemns the presence of Diffra Oil Police unitsdeployed in the Abyei Area as well as the repeatedentry of armed militias into the territory andreiterates its demands that immediately andwithout preconditions the Government of Sudanredeploy the Oil Police in Diffra from the AbyeiArea ()123

Conflicts escalating over oil Heglig battles

In 2012 despite the Permanent Court of Arbitration ruling124

which placed Heglig oilfields in the Sudanese territories

119 UN News Center 2015 Security Council extends UN peacekeepingforce in Abyei through July 2015

120 UN Security Council 2015 Ibidem121 UN Security Council 2015 Security Council adopting resolution 2205

(2015) extends interim force in Abyei until 15 july voicing concernover delays in Borde Mechanismrsquos operation httpwwwunorgpressen2015sc11800dochtm

122 UN Security Council 2014 Report of the Secretary-General on thesituation in Abyei S2014518

123 UN Security Council 2015 Ibidem124 See Permanent Court of Arbritation webpage httpwwwlocgov

lawwebservletlloc_newsdisp3_l205401463_text

48

LIVING IN FEAR

the South Sudanese army launched an attack over Heglig125

South Sudanrsquos army took control of the oil-producing townof Heglig The South Sudan move did not enjoy sympathyfrom many countries including its allies such as the US andBritain126 The African Unionrsquos (AU) Peace and SecurityCouncil considered Sudanrsquos occupation of Heglig as illegal127

At the end after a few days South Sudan pulled back itstroops from Heglig even though President Salva Kiir stillclaims that Heglig is a part of South Sudan and is expectinginternational arbitration

Oil and geopolitics

The implications of the oil economy are self-telling Prior tothe separation of Sudan from South Sudan in 2011 theunified Sudan was the second-largest non-OPEC oil producerin Africa in 2010 When they separated Sudan and SouthSudanrsquos production diminished and together they rankedas the fourth-largest non-OPEC African oil producer in 2013Particularly the split of the country in oil revenues economicterms was a huge blow to Sudan with its crude oil exportrevenues falling from almost $11 billion in 2010 to around$18 billion in 2012128 It has been estimated that oilcontributes 98 of South Sudan government income morethan for any other government in the world129

125 Wall Street Journal 2012 Sudan escalates fight over oil httpwwwwsjcomarticlesSB10001424052702304444604577339461981143808

126 The Guardian 2012 South Sudan to withdraw from disputed oiltownhttpwwwtheguardiancomworld2012apr20south-sudan-withdraw-oil-town

127 IRIN 2012 Sudan-South Sudan Heglig and the border128 US Energy Information Administration 2014 Country analysis brief

Sudan and South SudanhttpwwweiagovcountriesanalysisbriefsSudansudanpdf

129 Global Witness 2009 Fuelling mistrust

49

3 SOUTH SUDAN THE OIL WAY

Although oil exploration started at the end of the 1950showever no success was achieved with the activities of Italianoil company Agip130 Discoveries were found in the years tofollow The first oil discovery was made in 1979 when theAmerican company Chevron found oil near the Darfur-Kordofan boundary Three years later Chevron made twolarger discoveries the Heglig and Unity oilfields which asof today are the most productive However by 1984 Chevronstopped its operations when some of its workers were killedby an armed group By 1988 the company dismantled all ofits operations in Bentiu and Unity provinces131

As a landlocked country all the oil in South Sudan had tobe extracted and exported via a pipeline The pipeline wasconstructed by China National Petroleum Corporation andit covered a length of around 1600 kilometers132 Ittransports the oil from South Sudan to the Red Sea Thecost of the pipeline was estimated at $1 billion and it wasfinished in 1999133At the time of the construction of thepipeline Sudan provided less than 1 of Chinarsquos oil importsbut a few years later by 2009 the investments of Chinatotalled more than $8 billion134

130 Understanding Sudan 2009 Fact sheet two A history of oil in theSudan httpunderstandingsudanorgOilOilResourcesL2FS2-HistoryofOilinSudanpdf

131 Understanding Sudan Ibidem132 The Conversation 2012 Oil fuels the conflict between Sudan and

South Sudan ndashand it keeps getting hotter133 Sitarek 2001 The human price of oil ICE Case Studies Number 83

httpwww1americanedutedicesudansanctionshtm16134 The Conversation 2012 Ibidem

50

LIVING IN FEAR

Source US Energy Information Administration 2014

South Sudan becameindependenth in July2011 Taking aboutthree-quarters of theproduction A disputeover transit fees ledSouth Sudan to haltproduction for most of2012

Oil production inSudan and South Sudan

thousand barrels per day

51

3 SOUTH SUDAN THE OIL WAY

Main oil companies in Sudan and South Sudan

While initially many companies involved were of Westernorigin most of the companies now involved in the oil sectorare from China and Malaysia

Source US Energy Information Administration 2014 Countryanalysis Brief Sudan and South Sudan

Row over oil tariffs

By 2011 both countries did not agree on how much SouthSudan should pay to export its oil through the pipelines inSudan Sudan requested a fee of 33 dollars a barrel whileSouth Sudan said the highest fee they could afford was 2

Table 2 Main oil companies in Sudan and South Sudan

52

LIVING IN FEAR

dollars a barrel135 Following this lack of agreement SouthSudan halted crude oil production in early 2012

This decision worsened the economic situation in bothcountries as both depend hugely on money from oil exportsfor their revenues However an agreement was reached andin April 2013 South Sudan restarted oil production136

Causes of the Sudanese Civil War

Wars in Sudan have been often portrayed quite simplisticallyas an ArabMuslim north versus and an AfricanCristiansouth While certainly ethnicity and religion played a rolethe conflict has been mainly fought over natural resources137

Today oil is the countryrsquos main natural resource and ithas been estimated that it accounts for 98 of South Sudanrsquosrevenue138 The multibillion potential of their revenuehowever has not translated into wealth and benefits for themajority of the population of South Sudan First of all it hasnot solved the problem of security as since the very inceptionof the State of South Sudan in 2011 there were conflicts inmany areas of the country particularly in the borderline withSudan A 2013 report from the World Bank illustrates thisby asserting that ldquodespite South Sudanrsquos great resourcewealth its population is one of the most deprived due todecades of neglect and war and the distortions of the oil

135 IPS 2011 South Sudan rows over exorbitant fees for pipeline use136 Reuters 2013 South Sudan resumes oil output after ending row with

Sudan over transit fees137 Caas 2007 Natural resources and conflict in Sudan138 See World Bank webpagehttpwwwworldbankorgencountry

southsudanoverview

53

3 SOUTH SUDAN THE OIL WAY

economyrdquo139 Indeed oil reserves sitting on a disputed borderbetween Sudan and South Sudan have not translated yetinto wealth for the majority of citizens of South SudanInstead most of the inhabitants of the country remain deeplypoor and do not enjoy even basic rights to access potablewater and adequate sanitation140

Oil has been a main cause for the war and conflicts inSudan For instance it influenced the end of the peaceagreement obtained after the first civil war This first civilwar ended in 1972 with the Addis Ababa Agreement Theagreement established a system of peaceful co-existence witha single country by guaranteeing aNorthern basedgovernment but granted at the same time autonomy in theSouth This however was not going to last long as thediscovery of oil at the end of the 1970s in Southern Sudanchanged the ldquocoexistencerdquo idea In 1978 Sudanese PresidentNimeiry decided to embark on oil exploration project thatwould lead to the finding of oil in commercial quantities Inorder to control the oil within the hands of the Northernbased Government military force was used and in additionto imposing islamic law which led to the new civil warstarting in 1983141

139 World Bank 2013 Interim Strategy Note (FY 2013-2014) httpwww-wdsworldbankorgexternaldefaultWDSContentServerWDSPIB20130207000333037_20130207110223RenderedPDF747670ISN0P1290Official0Use0Only090pdf

140 National Geographic 2013 South Sudan oil the environment andborder conflicts httpvoicesnationalgeographiccom2013032286550

141 Sitarek 2001 The human price of oil ICE Case Studies Number 83httpwww1americanedutedicesudansanctionshtm16

54

LIVING IN FEAR

Numerous authors have identified natural resources ashaving a direct correlation with wars and conflicts142 Ananalysis by Ross of the University of California (UCLA) ofthirteen wars and conflicts concluded that in the case ofSudan oil was one of the key causes of the second civil warand an incentive for advancing the independence of SouthSudan143 Ross describes his conclusion in the followingmanner

War in Sudan began in 1983 when SudanesePresident Nimeiry took a series of measures thatupset the delicate balance between thepredominantly Muslim north and the heavilyChristian and Animist south among these measureswas his decision to place newly discovered oil inthe countryrsquos south under the jurisdiction of thenorth and to build an oil refinery in the northinstead of the south The Sudan Peoplersquos LiberationArmy (SPLA) subsequently complained that thenorth was stealing the resources of the southincluding oil demanded that work cease on apipeline to take oil from the south to the refineryin the north and in February 1984 attacked an oilexploration base killing three foreign workers andbringing the project to a halt144

142 Varisco 2010 lsquoA study on the inter-relation between armed conflictand natural resources and its implications for conflict resolution andpeace buildingrsquo Journal of Peace Conflict and Development issue 15Ross 2003 How do natural resources influence civil war Evidencefrom 13 cases httpwwwsscnetuclaedupoliscifacultyrossHowDoesNat3pdf

143 Ross Ibidem144 Ross Ibidem

55

3 SOUTH SUDAN THE OIL WAY

Even when the different parties were discussing an agreementon ldquono attacks on civilians or civilian objectsrdquo oil was playinga central role It is instructive to note that the Sudanesegovernment desired language in the text stating that oilinstallations were ldquocivilian objectsrdquo while the SPLA wantedthe contrary145

Human Rights Watch reached the same conclusion thatoil without doubt has been a key fuel for war particularlysince the end of the 90s when crude oil was first exportedfrom Sudan in 1999146

Oil became the main objective and a principal causeof war (hellip) The large-scale exploitation of oil byforeign companies operating in the theatre of warin Southern Sudan has increased human rightsabuses there and has exacerbated the long-runningconflict in Sudan a conflict marked by gross rightsabuses ndashtwo million dead four million displacedsince 1983 ndashand recurring famine and epidemics147

Also the UN makes clear statements on the issue Specialenvoy Leonardo Franco expressed in a report that oilexacerbated the conflict

the economic political and strategic implicationssurrounding oil exploitation in western Upper Nilewhich have seriously exacerbated the conflictthereby causing a deterioration in the overall

145 Ibidem146 Human Rights Watch 2003 Sudan oil and human rights147 Human Rights Watch 2003 Sudan oil and human rights

56

LIVING IN FEAR

situation of human rights and respect forhumanitarian law and narrowing the slim chancesfor peace148

Indeed multiple causes and elements contributed to theconflicts It was recognized that ethnicity and religion wereimportant elements however the key dimension is controlover natural resources particularly oil Added to this are alsotensions over land and resources and the promotion by thegovernment of crops like cotton and sugar which displacedcertain groups of people149 Similar conclusions were reachedyears back by a Canadian Government Mission in Sudanwhich fully recognized some ethnic disputes as well asdisputes over other natural resources however oil was thekey factor which made things really dramatic

148 UN 2000 Interim report of the Special Rapporteur of the Commissionon human rights on the situation of human rights in the Sudan A55374 httpwwwunorgdocumentsgadocs55a55374pdf Seealso UN 1999 Situation of human rights in Sudan UN Doc A54467

149 University of Massachusetts (undated) Modern conflicts conflictprofile SudanhttpwwwperiumassedufileadminpdfSudan1pdf

57

3 SOUTH SUDAN THE OIL WAY

The Harker mission pointed out that while therehave always been pressures on the Dinka in theHeglig- Ruweng area as a result of inter-tribalfighting with Arab nomads for grazing areas anddry-season water the situation had worsened withthe beginning of oilexploration and had continuedto deteriorate over theyears because of the periodicoffensives launched by the Government and itsallies resulting in destructionand mass populationdisplacement150

South Sudan has one of the largest oil reserves inSub Saharan Africa and the commodity is thelifeline of the countryrsquos economy accounting for98 percent of the governmentrsquos financial resources

Whoever controls South Sudanrsquos oil thereforecould seize the upper hand in the battle for power

Source France 24 2013 lsquoBattle for oil adds newdimension to South Sudan conflictrsquo

Whoever controls South Sudanrsquos oil therefore could seizethe upper hand in the battle for power

The same scenario applies to the South Sudan Civil Warwhich initially was also portrayed along ethnic line TheDinka ethnic group of President Salva Kiir has fought rebelsallied with former vice president Riek Machar of the Nuer

150 UN 2000 Interim report of the Special Rapporteur of the Commissionon human rights on the situation of human rights in the Sudan A55374 Ibidem

58

LIVING IN FEAR

ethnic group However increasingly ldquothe focus of the fightingis shifting to the battle to control the countryrsquos mostimportant natural resource ndash oilrdquo151 The oilfields haveliterally become the battlefields

Consequences of war and conflict

The damage inflicted on people as a consequence of war ishuge Back in 2001 US Secretary of State Colin Powellqualified the war in Sudan in the following terms ldquoThere isperhaps no greater tragedy on the face of the earth todaythan the tragedy that is unfolding in the Sudanrdquo152 Firstthere is a large number of deaths due to war and war relatedcauses and also a huge number of displaced people Thedeath toll derived from the Second Civil Sudanese War isestimated at two million The US Commitee for refugeesasserted that ldquothis massive loss of life surpasses the civiliandeath toll in any war since World War IIrdquo153 In the mostrecent civil war the South Sudanese Civil War that startedin December 2013 by April 2014 the death toll wasestimated to be at 10000154

Besides the death toll there are estimated more than fourmillion people of the Southern Sudanese population forced

151 France 24 2013 Battle for oil adds new dimension to South Sudanconflicthttpwwwfrance24comen20131227-battle-oil-adds-new-dimension-south-sudan-conflict

152 Human Rights Watch 2003 Ibidem153 See US Committee for Refugees webpage in 2001 http

webarchiveorgweb20041210024759httpwwwrefugeesorgnewscrisissudanhtm

154 International crisis group 2014 South Sudan a civil war by any othernamehttpwwwcrisisgrouporg~mediaFilesafricahorn-of-africasouth20sudan217-south-sudan-a-civil-war-by-any-other-namepdf

59

3 SOUTH SUDAN THE OIL WAY

to flee their homes at one time or another It has also beenargued that the development of oilfields has led to the forcedremoval of the local population In the words of the lateJohn Garang oil was a ldquokiller itrsquos evicting our civilianpopulationrdquo claiming 100 000 people displaced due to thiscause155

Children are some of the main victims of conflict beingrecruited for instance for war and suffering sexual violenceFrom March 2011 to September 2014 the UN estimatesthat there were 1243 incidents affecting 68776 children156

UN reports indicate that both armed groups have usedchildren ldquoon a large scale and committed other graveviolations including killing maiming and sexual violencerdquo157

For instance in 2015 an incident was reported where closeto 100 children were abducted some as young as 13 Armedsoldiers were advancing house to house looking for boysand taking them by force158 According to UNICEF this occuredin Wau Shilluk close to the city of Malakal in Upper NileState159

Not surprisingly as put by a high UN representativepeople are desperate for peace

155 BBC 2001 Garang Oil firms are targetshttpnewsbbccouk2hiafrica1393481stm

156 UN Security Council 2014 Report of the Secretary-General on childrenand armed conflict in South Sudan S2014884

157 Ibidem158 The Guardian 2015 South Sudan gunmen kidnap at least 89 boys

from village near Malakal httpwwwtheguardiancomworld2015feb22south-sudan-gunmen-kidnap-89-boys-village-malakal-child-soldiers

159 The Guardian 2015 South Sudan gunmen kidnap at least 89 boysfrom village near Malakal

60

LIVING IN FEAR

People are desperate for peace They are tired ofliving in fear Many have had to flee several timesThey are exhausted They lack water they areextremely worried for their children who are notin school and at risk of being recruited into armedgroups Sexual violence is rife All people want isto live in safety security and stability160

Wars have also an impact on food security and nutrition Asof February 2015 there was an alert that the food situationwas critical in South Sudan for more than 25 millionpeople161 This was famine related to war Ulrika BlomCountry Director for Norwegian Refugee Council in 2015succinctly stated ldquoThere is an urgent need for a solution onthe conflict so that people are able to resume their dailylives in dignity and not be dependent on massive foodassistancerdquo162

The harsh consequences of war are inevitable and occurfrom a systematic destruction of infrastructure erosion ofthe human capital and weakening of essential institutions

Besides causing an appalling loss of life Sudanrsquoslong civil war eroded the capital base The wardepleted the labour force while roads irrigationsystems and other key components of rural

160 Under-Secretary-General for Humanitarian Affairs and Emergency ReliefCoordinator Valerie Amos remarks to the press Juba South Sudan 9February 2015 httpreliefwebintreportsouth-sudanunder-secretary-general-humanitarian-affairs-and-emergency-relief-coordinator-1

161 UN Security Council 2015 Reports of the Secretary-General on theSudan and South Sudan SPV7392

162 Norwegian Refugee Council 2015 Conflict a cause of hunger in SouthSudan httpwwwnrcnodid=9192498

61

3 SOUTH SUDAN THE OIL WAY

infrastructure were destroyed damaged orneglected It also weakened institutions divertedfinancial capital from economic development andundermined interpersonal trust which is criticalto productive business dealings163

Some have tried to put a figure on the costs of war A recentreport estimates that the cost of the civil war may be between$223 and $28 billion over the next five years for SouthSudan alone if the factions fail to bring peace to the worldrsquosnewest country164

UN peacekeeping operations

In July 2011 the Security Council determined that thesituation in South Sudan constituted a threat to internationalpeace and security in the region and established the UNMission in the Republic of South Sudan (UNMISS)165 Thekey elements of the mandate is to consolidate peace andsecurity However after the civil war broke in July 2013 inthe light of significant human rights violations the large-scale displacement of persons the UNMISS mandate wasreshaped and a focus was given to the protection of civiliansand creation of the conditions for delivery of humanitarianassistance166

163 IFAD 2013 Enabling poor rural people to overcome poverty in SouthSudan

164 Frontier Economics 2015 South Sudan the cost of war httpwwwfrontier-economicscomdocuments201501south-sudan-cost-warpdf

165 UN Security Council 2011 Resolution 1996166 UN Security Council 2014 Resolution 2155

62

LIVING IN FEAR

In June 2011 a month before the establishement ofUNMISS a second UN peacekeeping operation wasestablished in the disputed border between Sudan and SouthSudan The United Nations Interim Security Force for Abyei(UNISFA) was created in a context of escalating violenceand tensions and population displacement167 One of the topobjectives was to achieve the demilitarization of the Abyeifrom any force other than UNISFA and the Abyei PoliceService facilitate the delivery of humanitarian aidstrenghten the capacity of the Abyei Police Service and incooperation with the police provide security for oilinfrastructure in the Abyei area168

Corporations and conflicts with communities

Since the conclusion of the 2005 Peace Agreement betweenthe Government of Sudan (GoS) and Sudan PeoplersquosLiberation MovementArmy (SPLM) negative impacts ofoil exploration and extraction have continued to ignitemistrust among local communities towards the oilcompanies Many problems from the oil activities wereidentified such as water pollution and uncompensateddispossession of land However oil companies or thegovernment did little to assess correct and reduce suchimpacts169 In this context many communities chose the ldquopath

167 UN Security Council 2011 Resolution 1990168 UN Security Council 2011 Resolution 1990169 ECOS 2014 Scrutiny of South Sudanacutes oil industry http

w w w e c o s o n l i n e o r g r e p o r t s 2 0 1 4 Scrutiny_of_South_Sudans_Oil_Industrypdf

63

3 SOUTH SUDAN THE OIL WAY

of confrontation with oil companiesrdquo170 For instance byblocking and interfering in oil operations by truck blockagesand other stoppages171

Resentment of local communities againstoil companies

The negative consequences of oil developmenthave been causing deep resentment against oilcompanies in many oil-rich parts of SouthernSudan Arriving in any oil area where activeexploitation is ongoing one is often confrontedwith persistent complaints from local people aboutpoor management of ldquoproduced waterrdquo which isblamed for pollution of the environment This isoften linked to unexplained deaths of animals andstrange or new human ailments Moreover the oilinfrastructure such as oil roads wells and pipesare frequently blamed for disrupting the means oflivelihoods of local people as well as destructionof property

Source ECOS

170 ECOS 2014 Ibidem171 ECOS 2014 Ibidem

64

LIVING IN FEAR

Lundin Oil Consortium facing war and violencein their work territory

In 2010 the European Coalition on Oil in Sudan (ECOS)requested an investigation on the activities of the LundinGroup and its connection with the conflict in Sudan and thepossible ldquocomplicity in the commission of war crimes andcrimes against humanityrdquo172 During the Second Civil War in1997 a consortium of oil companies led by the Swedish oilcompany Lundin Oil AB (ldquoLundinrdquo) signed a contract withthe Government for the exploration of oil in the concessionarea called Block 5A that was not at that time under fullGovernment control The other members of the Consortiumwere Petronas Carigali Overseas Sdn Bhd (ldquoPetronasrdquo) fromMalaysia OMV (Sudan) Exploration GmbH (ldquoOMVrdquo) fromAustria and the Sudanese state-owned oil company SudapetLtd

Before the start of explorations the area around Block5A was relatively peaceful When the oil exploration startedthe escalation of violence and war followed suit173 Accordingto the European Coilation on oil in Sudan Block 5A ldquobecamethe scene of intense fighting and gross human rightsviolations as soon as the Lundin Consortium started oilexploration activities on the groundrdquo Right from thebeginning there are reports of significant war and violence

172 ECOS 2010 Unpaid debt The Legacy of Lundin Petronas and OMV inSudan 1997-2003 Press Release httpwwwecosonlineorgreports2010Press_release_UNPAID_DEBT

173 ECOS 2010 Unpaid debt The Legacy of Lundin Petronas and OMV inSudan 1997-2003 httpwwwecosonlineorgreports2010UNPAID_DEBT_textonlywebpdf

65

3 SOUTH SUDAN THE OIL WAY

where villages and towns were burnt and looted Tens ofthousands of people in Block 5A were also moved out fromthe exploration areas

In 1999 the Lundin Group discovered major reserves ofoil This accelerated the Government desire to control allthe areas surrounding the well and the infighting intensifiedLundinrsquos explorations in Block 5A had to be suspended twicedue to insecurity174

The consequences of all the violence towards thepopulation which were in the middle of the power battlefor controlling Block 5A were severe abuse of all humanrights and war crimes More than 10000 people were killedalmost 160000 displaced with thousands of peoplepermanently uprooted from their villages hundreds ofthousands of cattle lost or looted destruction of churchesschools markets medical clinics and many otherincalculable moral damage and inmense loss of income175

Talisman Energy accused of complicity with forceddisplacements

A Canadian company Talisman Energy which at that timewas considered to be the largest independent oil and gascompany in Canada has been accused of indirectly helpingto exacerbate the war and of being complicit in human rightsabuses and crimes against humanity176 Talisman has a 25

174 HRW 2003 Ibidem175 ECOS 2010 Unpaid debt Ibidem See also Medecins sans frontieres

2002 Violence health and access to aid in Unity Statewestern uppernile Sudan httpwwwdoctorswithoutbordersorgsitesusafilessudan_04-2002pdf

176 Africa files 2000 Corporate immunity for oiling repression Talismanin Sudan httpwwwafricafilesorgarticleaspID=621

66

LIVING IN FEAR

stake in the Greater Nile Oil Project Company (GNOPC) aninitiative located in south-central Sudan with threeadditional partners the national petroleum company ofChina (40) the national oil company of Malaysia (30)and the national petroleum company of Sudan (5)177

There were many allegations that people were forcefullydisplaced in the area of the oil field ran by Talisman UNreported that accusations were made on Talisman of ldquobeingaccomplice of human rights abuses in Upper Nile so as toguarantee security for its oil operationsrdquo178

Moreover a report from the Canadian Foreign AffairsMnistry ndashthe Harker Report ndash which undertook a mission toSudan described with concern that fighting was intense inthe areas of oil development in general and that oilextraction may have contributed to relocation of civiliansby force179

Violence and the fear of it impact immediatelyon the peoplersquos use of the land and result in foodinsecurity which in turn propels movement ordisplacement

Contradicting that oil is at stake in the displacement issueTalisman explained that displacement was a result of an inter-tribal issue Once again the Harker report concluded thatthe displacement was because of oil

177 Africa files 2000 Ibidem178 UN Security Council 2000 Interim report of the Special Rapporteur of

the Commission on Human Rights on the situation of human rights inthe Sudan A55374

179 Canadian Ministry of Foreign Affairs 2000 Human Security in SudanThe Report of Canadian Assessment Mission httpwwwecosonlineorgreports2000Human20Security20in20Sudanpdf

67

3 SOUTH SUDAN THE OIL WAY

ldquoFor Talisman so very much seems to be explained as merelyan inter-tribal problem but displacement has gone on andis still going on and in Ruweng County it is hard to denythat displacement is now and has been for some timebecause of oilrdquo180

Talisman Energy decided in 2002 to end its controversialfour-year investment in Sudan by selling its 25 percent stakein the Greater Nile Petroleum Operating Company to anIndian firm Most of the rumours is that the reasons for thiswas the strong pressure from the US particularly to end itswork in Sudan in order to stop indirectly supporting theGovernment in Sudan with its oil revenue181

The oil way developing what

Sharing the wealth with the Sudanese people The resourcecurse again

As said before 98 of the governmentrsquos revenue comesfrom oil production royalties and South Sudan sits on thethird-largest oil reserves in Africa182 It was estimated in 2011that South Sudan controlled 75 of the overall oil productionof Sudan and South Sudan altogether ndasharound 500000barrels per day However South Sudan remains dependenton the North for processing refinement and export to theRed Sea

180 Canadian Ministry of Foreign Affairs 2000 Ibidem181 New York Times 2002 Talisman to sell its stake in company in Sudan

httpwwwnytimescom20021031businesstalisman-to-sell-its-stake-in-company-in-sudanhtml

182 Africa Business Initiative 2011 Investment climate upate Sudanhttpswwwuschambercomsitesdefaultfileslegacyinternationalafricafiles16920_AfricaNewsletter_Sudanpdf

68

LIVING IN FEAR

Paradoxically South Sudan is considered a fragile StateSitting on oil as has occured to many other countries acrossAfrica and abroad does not guarantee wealth for the majorityof the population A 2013 report concluded that ldquoover thelast decade Sudan has been the largest recipient ofhumanitarian assistance by some distance receiving US$106 billion over the periodrdquo183 90 per cent of the populationearn less than a dollar a day184

Oil money through the State budget is expected to serveto finance all the key governmental activities of the Statesuch as agriculture health infrastructures and educationDespite the fact that the benefits from oil are substantialthere are numerous questions arising about the destiny ofall the oil money For instance how could it be explainedthat one of the sectors more financed is the military andsecurity apparatus Since South Sudanrsquos independence theGovernment has allocated 38 of oil revenue to the militaryand security services with only 10 and 7 ininfrastructures and education respectively185 In 2012 SouthSudan was the among top 8 African countries having militaryexpenditure of almost $1 billion186 For instance TheEconomist reports that South Sudan bought 100 Ukrainian

183 Global humanitarian assistance 2013 Global humanitarian assistancehttpwwwglobalhumanitarianassistanceorgwp-contentuploads201307GHA-Report-2013pdf

184 Kebede 2014 The role of oil in South Sudanhttpswwwruoruottawacabitstream10393315631KEBEDE20Solomon2020145pdf

185 The Guardian 2014 South Suan is divided by the spoils of oil notethnicity httpwwwtheguardiancomcommentisfree2014jan14south-sudan-divided-oil-ethnicity-violence

186 LAVDC 2014 Les quatre puissances militaires regionales dacuteAfriquehttpwwwlavdcnetportailles-quatre-puissances-militaires-regionales-dafrique

69

3 SOUTH SUDAN THE OIL WAY

T-72 tanks187 At the same time agriculture and livestock hasbeen completely neglected despite the fact that more than80 of the population depend on that sector for fulfiliingtheir basic needs

Where the money goes

Daniel Wuor Joak former MP in South Sudan LegislativeAssembly and Minister of Education Science and Technologyin Upper Nile State claims that between 2005 and 2014both the Government of South Sudan (GOSS) and theRepublic of South Sudan (RSS) have been receiving onaverage not less than two billion of USD per year Somehave already manifested the unclarities over the destiny ofall that money as described by Mr Wuor Joak

Since 2005 upwards both the GOSS and RSS havebeen receiving no less than 18 billion USD in oilrevenues without implementing any majordevelopmental projects like roads network linkingdifferent States in South Sudan conducive learningschools from basics to universities level referralmedical facilities clean drinking water in remoteareas throughout the country setting up vibrantand credible institutions which can adhere to rulesof law All these things have not been implementeddue to poor system of governance under leadershipof Salva Kiir Mayardit Most of the counties have

187 The Economist 2014 Arms and the African

70

LIVING IN FEAR

no roads linking them with their State capitals andlack schools health centres clean drinking wateretc South Sudanese population in the rural areasthroughout the country are still living in the sameconditions as they were under Khartoumrsquos rule interms of scarcity of development188

Speaking more directly Kebede made firm remarks aboutthe overall situation in South Sudan

In general poverty corruption bad governance andviolence characterized the resource curse in SouthSudan A relatively small group of elite capturesvast wealth while leaving much of their societywithout access to the minimum resource necessaryfor long term wellbeing As a result South Sudanremains one of the worldacutes least-developedcountries despite its oil (hellip) hellipmuch of the oilrevenue has been squandered189

188 Wuor Joak 2014 Major Causes of the Current Conflict in Sudan SouthSudan News Agency

189 Kebede 2014 The role of oil in South Sudanhttpsw w w r u o r u o t t a w a c a b i t s t r e a m 1 0 3 9 3 3 1 5 6 3 1 KEBEDE20Solomon2020145pdf

71

3 SOUTH SUDAN THE OIL WAY

Even before the current tensions Bentiu saw little benefitfrom oil The streets are unpaved and covered with trashelectricity is scarce reserved for those with privategenerators () Most expect more violence Bentiu hasbecome more militarized with armed soldiers placed atcheck points and at the bridge Troops are constantlymoving to the front Weapons are being flown into theairport

ldquoThe oil is a curse ldquoMohammed Abdurahman Kili 56mumbled from his hospital bed his body covered withburns He was inside his shop in a crowded market onthe edge of town when a Sudanese warplane attackedkilling a 9-year-old child and another person and settinghis shop on fire

Washington Post 2012

President Salva Kiir recognized in 2012 that corrupt officialshad stolen from the people of South Sudan and the amountlost or taken by lead government and military officials mightbe as much as $4 billion190 Kiir sent a letter to 75 SouthSudanese officials or individuals close to the governmentasking them return all the amount lost The letter describedin general terms how the money got ldquolostrdquo

An estimated $4 billion are unaccounted for orsimply put stolen by current and former officialsas well as corrupt individuals with close ties togovernment officials Most of these funds have beentaken out of the country and deposited in foreignaccounts Some have purchased properties oftenpaid in cash191

190 Ibidem191 Paanluel Wel South Sudanese bloggers httppaanluelwelcom2012

0601letter-from-president-kiir-on-corruption-4-billion-dollars-stolen192 Sudan Tribune 2013 South Sudanacutes Kiir accuses army of corruption

72

LIVING IN FEAR

A year later Kiir accused the armed forces of being corruptHe said that despite the big budget allocations made to thearmy there were even no ldquovehicles to transport soldiers onmissionsrdquo192 Two years later the issue remained unclearand the names of the officials referred to in the letter wereyet to be disclosed However Kiir accused Machar of beingresponsible for a lot of corrupted activities in the country193

Machar responded to Kiir by saying that his claims wereunfounded and then also accusing him of such practices194

It seems South Sudan epitomises all the features of theresource curse argued in Chapter 1195 How can the corruptionbe prevented How can the money go to the people It isalso important to note that the oil sector provides littleemployment to the people of South Sudan Most of thehousehold income and employment is generated in theagriculture and farming sector primarily196 Would investingin other sectors like agriculture that provide real wealth tothe people make a difference

193 Sudan Tribune 2014 South Sudan rebel leader should face corruptioncharges Kiir

194 Sudan Tribune 2014 South Sudan Macharacutes Rebentildes dismiss corruptionaccusations no spiritual powers httpallafricacomstories201407221384html

195 Kebede 2014 The role of oil in South Sudan Ibidem196 Tizikara et al 2012 Post-conflict development of Agriculture in South

Sudan perspective on approaches to capacity strenghtening httpwwwerailsnetimagesfarasecretariatkigali-movementfileKigali20MovementPost-Coflict20Agriculture_South20Sudanpdf

73

3 SOUTH SUDAN THE OIL WAY

Environment

As experienced in oilfileds in other parts of the world the oilfields here are also leaving a significant impact on theenvironment and local communities A three year study inThar Jath and Mala fields in Unity State show thatgroundwater is very polluted making the water unsafe forhuman consumption197 The study made by a team of SouthSudanese and German geologists concluded that water usedby 180000 people was too salty to drink and containdangerous amounts of heavy metals198

In many occasions the oil fields that causeenvironmental pollution are even abandoned due to the warSome observers identified that oil pipelines damaged duringthe conflict were leaking199

South Sudan must produce for its needs

In 2015 the Minister of Finance of South Sudan David DengAthorbei made a statement saying that the country shouldbe self-sufficient in agriculture terms and in addition itneeds to increase its non-oil revenue and to achieve peace200

197 Rueskamp et al 2014 Effect of oil exploration and production on thesalinity of a marginally permeable aquifer system in the Thar Jath-Mala- and Unity Oil fields Southern Sudan Zbl Geol Palaont Teil IJ

198 Radio Tamazuj 2015 Study Direct link between oil exploration andwater pollution in Unity httpsradiotamazujorgenarticlestudy-E28098direct-linkE28099-between-oil-exploration-and-water-pollution-unity

199 Star Africa 2014 South Sudan Oil leaks cause pollution fears httpenstarafricacomnewsssudan-oil-leaks-cause-pollution-fearshtml

200 Bloomberg 2015 South Sudan Finance Minister says food output canoffset oil httpwwwbloombergcomnewsarticles2015-01-20south-sudan-finance-minister-says-food-output-can-offset-oil-1-

74

LIVING IN FEAR

He also made a call for a reduction of the countryrsquos relianceon agriculture imports particularly in the context of aneconomy affected by the plunge in global oil prices201

Peter Biar Ajak from the Center for Strategic Analysis andResearch in Juba illustrates the macroeconomic weaknessesof South Sudan today because of its oil dependence

South Sudanrsquos oil-dependent economy is nearingcatastrophe The production of crude oil has droppedby about 35 percent since the conflict began Thatcombined with a drop of roughly 45 percent in globaloil prices since the summer has meant a substantialreduction in the governmentrsquos oil revenues andenormous fiscal and budgetary ressures

Since South Sudan exports almost nothing asidefrom oil and imports almost everything else tradeand monetary policy have also been buffeted byfalling oil revenues Access to foreign currency hasbecome extremely limited The prices of manyimported goods have risen There are shortages ofpetrol which must be imported because SouthSudan has no refinery202

Indeed a dynamic agriculture sector may be key for peaceand development in South Sudan More than 95 of thecountryrsquos population is dependent on farming fishing orherding to meet their daily food needs and income as well203

201 Bloomberg 2015 Ibidem202 Biar Ajak 2015Sanctions for peace in South Sudan The New York Times

January 7th203 FAO in emergencies httpwwwfaoorgemergenciescountries

detailenc147627

75

3 SOUTH SUDAN THE OIL WAY

204 Business Daily 2011 South Sudanrsquos vast agricultural sector potentialuntapped

205 Norwegian Refugee Council 2015 Conflict a cause of hunger in SouthSudan httpreliefwebintreportsouth-sudanconflict-cause-hunger-south-sudan OCHA 2015 South Sudan Crisis Situation reportn 74 httpreliefwebintsitesreliefwebintfilesresourcesSouth_Sudan_Situation_Report_No_74pdf

206 OECD 2014 Fragile States 2014 Domestic revenue mobilisation infragile states httpwwwoecdorgdacgovernance-peaceconflictandfragilitydocsFSR-2014pdf

South Sudan has good soil and climatic conditions and morethan 70 of its land area is suitable for crop productionThere are many that believe that the investment in theagriculture sector has more potential than oil however thisthinking has not received due attention from local andforeign investors204 Efforts towards making agriculture workare vital for peace and stabililty in the country It is urgentlyneeded to work on this area particularly when at presentthere are 25 million in Sudan at risk of starvation205 andaround one third of the population are food insecure plusmore than a million displaced

The dependency on income from natural resourcesleaves fragile states vulnerable It exposes them toshocks in commodity prices ndash as demonstrated bythe sudden fall in commodity prices in 2009following the 2002-2008 boom Neither is it asustainable source of incomeSouth Sudanrsquos oilproduction for instance is projected to decreasesteadily in future years and become negligible by2035

Source OECD206

76

LIVING IN FEAR

207 UN Security Council 2015 Resolution 2206 SRES2006(2015)httpwwwunorggasearchview_docaspsymbol=SRES2206 (2015)

208 Sudan Tribune 2015 South Sudan unhappy with US support for sanctionshttpwwwsudantribunecomspipphparticle54232

209 Washington Post 2014 US appears unable to pull South Sudan backfrom the brink of civil war httpwwwwashingtonpostcomworldus-appears-unable-to-pull-south-sudan-back-from-the-brink-of-civil-w a r 2 0 1 4 0 5 0 3 d 9 2 8 0 b d a - 3 8 6 b - 4 2 4 9 - 9 4 e 0 -b5292610e5bb_storyhtml

210 Ibidem

US fallen dream

In 2015 the UN imposed a travel ban and assets freeze againstindividuals or entities which engaged in or provided supportfor acts that threaten peace security and stability of SouthSudan207 The US was behind the draft and the submission ofthe resolution This resolution prompted an angry reactionfrom the South Sudanese The South Sudanese presidencywas said to be extremely disappointed about the US ledmove208

In the past the relationship between the US and SouthSudan was completely diferent The United States was themain promoter and supporter of the worldrsquos newest nationThe Washington Post for instance asserted that ldquoSouth Sudanowes its existence to the United Statesrdquo209 The expectationscreated were high before its started its independence andsome believed that Sudan would be able to manage thecountry breaking the so-called ldquoAfrican model of pettyrivalries corruption and oppressionrdquo210 Despite all the hopesput on the young nation as of today no solution has beenfound to the ongoing war

77

3 SOUTH SUDAN THE OIL WAY

The US was the largest donor to Sudan in the years priorto independence providing 339 of the total aid to Sudanbetween 2000 to 2009211 The United States (US$472million) was the largest donor of humanitarian assistanceto South Sudan in 2012 followed by the United Kingdom(US$96 million)212 For many years Sudan was the thirdlargest recipient of US aid only after Iraq and Afghanistan213

The inteligence and information systems of theAmericans on the ground in Sudan seemed to have beenrelatively good214hellip however how come they did not foreseethat South Sudan was quickly descending once again on theavenue of a country at civil war For instance the problemsbetween President Salva Kiir and his deputy were not newAlready more than two years before the civil war started inJune 2011 in a speech in Juba the President accused hisDeputy Riek Machar ldquoof running a parallel governmentwithin the governmentrdquo215 Couldnrsquot they have preventedanother conflict Why did they fall into ridiculouscontradictions as the one recently revealed via wikileakssuggesting that the US was funding both armies in

211 Development initiatives (undated) Sudan Aid Factsheet 1995-2009httpwwwglobalhumanitarianassistanceorgwp-contentuploads201102Sudan-Aid-Factsheet-2011pdf

212 See global humanitarian assistamce ebpage httpwwwglobalhumanitarianassistanceorgcountryprofilesouth-sudan

213 The Atlantic 2011 US played key role in Southern Sudanacutes longjourney to Independence

214 The Global Intelligence files 2013 SudanUSMIL ndash SPLA trying toget US to hook it up httpssearchwikileaksorggifilesviewemailid=5047664

215 Sudan Tribune 2011 Salva Kiir exposes his rift with Machar overSouth Sudan transitional constitution httpssearchwikileaksorggifilesviewemailid=3831682

78

LIVING IN FEAR

contention the Government force of Salva Kiir and the rebelsof Riek Machar216 Why are both paid by the UShellip to dowhat As one reporter questioned why are they ldquopaid tokill each otherrdquo217

216 RT 2015 US officials tussle over arms embargo sanctions in oil-flushSouth Sudan httprtcomusa226387-south-sudan-sanctions-war

217 RT 2015 Ibidem

Seven Million

ldquoA peaceful DR Congo could transform Africa almostovernight but is there a way outrdquo218

There is always a way out However peace is not an easything particularly under certain circunstances When youhave lost your father your mother your uncle your sisterwhat else can you lose Can you still believe in peaceTwoof the bloodiest conflicts in recent decades in the world haveoccurred in Africa The Second Civil War in Sudan has leftaproximately two million casualties and the conflict in DRCis estimated to have snuffed life out of no less than fivemillion people

How many more

How does one begin to quantify the dead when they are inthe hundreds of thousands No less than seven million livesof Congolese and South Sudanese were taken away due towars and conflicts fuelled by natural resources How many

218 African Business 2009 DR Congo $24 trillion fortune

4

79

80

LIVING IN FEAR

more How many more before the world wakes up to acteffectively towards ending all those conflictsProbably unless you are one survivor from those experiencesyou would never be truly able to understand what it meansto lose entire families and friends you would never be trulyable as well to understand what it means to feel fear foryour life and the life of your close relatives

When you start counting sometimes you forget thatpeople are not numbers There are names behind thenumbers A family A life As we write this book people aredying needlessly in the DRC and in South Sudan Calculatingdead people due to conflicts in this part of the world is verydifficult due to statistical challenges and so it is conceivablethat probably the number of victims is much larger than sevenmillion (7000000) When would the volume of bloodshedthe number of lives taken be enough for the belligerentofficials to make real peace How many more should fallAthousand more Another one million The pain sadness anddestruction that those conflicts generate should not beaccepted any more

Oil and minerals the main cause of ongoingconflicts and war

Some authors argue that minerals and oil are not a cause ofwar but ldquocompetition for them could amplify and expediteconflictrdquo219 In this book as chapter two and three haveshown oil and minerals are the main motor behind theconflict in recent decades in DRC and South Sudan It would

219 UN Security Council 2013 Natural resource wealth fails to translateinto equivalent benefits for people fuelling conflict to instability DeputySecretary-General tells Security Council httpwwwunorgpressen2013sc11037dochtm

81

4 SEVEN MILLION

be very difficult if not impossible to expect those conflictsif their territories were resource poor Oil and minerals arefull of blood An activist poet wrote We Thought it was Oilbut it was Blood220 Although he was writing about the NigerDelta situation we see a universal application in that phrase

In both countries described there were other elements andfactors to take into consideration however it can be saidthat control over natural resources was the most importantcause on both conflicts in DRC and South Sudan In bothcases oil and minerals fuelled those wars and in manyoccasions these resources have inspired fueled and sustainedarmies operating in the territories of both countries

A Statersquos wealth means nothing if not shared withthe majority of the population

DRC and South Sudan ought to be wealthy countriesUnfortunately having a wealth of natural resources doesnot mean that it belongs to the citizens or that the wealthwould be shared among the population of a given State AState is a nation or territory considered as an organizedpolitical community under one government221 A goodgovernment should be the one that takes care of its citizensand shares the wealth among its citizens and not justdistribute it among an elite Jan Eliasson Deputy Secretary-General of the United Nations stated that ldquoin too manycountries a wealth of resources including timber oil coaldiamonds and precious metals failed to translate into

220 Nnimmo Bassey 1998 We Thought it was Oil but it was Blood IbadanKraft Books

221 See httpwwwoxforddictionariescomdefinitionenglishstate

82

LIVING IN FEAR

equivalent wealth for the people Only a powerful fewbenefitrdquo222

The State is expected to perform an adequateimplementation of human rights granted by several UNdeclarations and conventions including the right to foodright to health right to shelter right to clothing right towork farmersacute rights etc Paradoxically the violations andabuses of human rights have been constant in DRC and SouthSudan Both countries have suffered from acts of war oncivilian population both have as well a large number ofdisplaced people with no access to food without healthcarewithout shelter and without any work Both countries havemore than 90 people living below one dollar per day andthey are considered among least developed countries andfragile states Due to this both are some of the biggestrecipients of humanitarian aid Moreover both have hugesecurity problems shown for instance by the presence ofUN peacekeeping operations Out of the 17th worldwideongoing peacekeeping UN operations three are in DRCSouth Sudan and in Abyeia disputed territory between Sudanand South Sudan

They possess resources that have a huge monetary valueand that in most cases have the involvement of foreigncountries and corporations and other stakeholders of theprivate sector which are ready to pay enormous sums ofmoney to gain control of the natural resources belonging toother countries If no war or significant armed conflict takes

222 UN Security Council 2013 Natural resource wealth fails to translateinto equivalent benefits for people fuelling conflict to instability DeputySecretary-General tells Security Council httpwwwunorgpressen2013sc11037dochtm

83

4 SEVEN MILLION

place common elements among those countries that possesssuch resources in Africa is the existence of massive povertyand corruption and in most cases this is contrasted withmega-rich individuals Letacutes take for instance the case ofoil-rich Angola where the president and his daughter possessmultibillionaire fortunes while at the same time the majorityof the country population is living on less than two dollarsper day223

Greed power and control over natural resources

It must be noted as well that often oil and minerals involvemillions and multibillion profits With such large sums ofmoney greed power and control take the driving seat ofwhatever country government in the world When theprospects for such money flow arrives many leaders andelites start distancing themselves from the majority of thepopulation and stop thinking about the welfare of their ownpeople

At the centre of most of the conflicts in both countriesare struggles for power and control of natural resourcesMinerals and oils are the main cause of the ongoing conflictsand wars Unfortunately most commentators qualify therecent civil war in South Sudan as a ldquopower strugglerdquo withoutfurther qualifications In South Sudan who gets the oil getsthe power Therefore the power struggle is a war overnatural resources for control of the oil in the country Areporter affirmed that ldquowhoever controls South Sudanrsquos oiltherefore could seize the upper hand in the battle for

223 Forbes 2013 Daddyacutes girl how an African ldquoprincessrdquo banked $3 billionin a country living on $2 day httpwwwforbescomsiteskerryadolan20130814how-isabel-dos-santos-took-the-short-route-to-become-africas-richest-woman

84

LIVING IN FEAR

224 France 24 2013 Battle for oil adds new dimension to South SudanConflict httpwwwfrance24comen20131227-battle-oil-adds-new-dimension-south-sudan-conflict

225 OECD 2014 Fragile States 2014 Domestic revenue mobilisation infragile states httpwwwoecdorgdacgovernance-peaceconflictandfragilitydocsFSR-2014pdf

powerrdquo224 In both countriesrsquo non-renewable natural resourcetook a dominant share of the fiscal revenue of DRC andSouth Sudan ndash 82 in the DRC and 98 in South Sudan225

Who controls those resources controls the countryThe case of South Sudan where the president has

recognized the disappearance of $4 billion by corruptindividuals is compelling President Salva Kiir pinpointed thespirit behind the rot ldquoOnce we got to power we forgot whatwe fought for and began to enrich ourselves at the expenseof our peoplerdquo This might also include him as well becauseit is difficult to imagine that such huge amount of money couldbe stolen without the leader noticing anything at all

Greed for minerals and oil is at the heart of the massivedeath toll and impoverishment of the Congolese and SouthSudanese people in recent decades It can be affirmed quitecomfortably that if the Eastern part of the DRC would havenot sat on huge mineral reserves it would be very difficultto imagine all the conflicts that have occurred in that zoneIt can be affirmed as well that without oil ongoing wars inSouth Sudan might most probably never have occured

Peace is the only way forward

Achieving peace is a complex issue To create peace thereare many issues to resolve with all stakeholders such as

85

4 SEVEN MILLION

mutual accusations of support to rebel groups226 goodgovernance transparency demobilisation and disarmamentof local militia etc227

A positive but vital first step is that there are calls at veryhigh levels in both countries and at international fora Thismust be followed with open debate on the core causes of theconflict and ways of achieving reconciliation It does notappear that lasting peace can be achieved otherwise In thatprocess the people need to be put at the centre ofdevelopment policies and actions in both countries in orderto stop the plunder reverse environmental degradation andfight poverty As long as the political military and corporateelite maintain their control of the natural resources of thecountry the devastating plunder will continue to the benefitof only such elite and a handful of corporations

226 UN Security Council 2015 Reports of the Secretary-General on theSudan and South Sudan SPV7392

227 The Guardian 2014 South Sudan is divided by the spoils of oil notethnicity httpwwwtheguardiancomcommentisfree2014jan14south-sudan-divided-oil-ethnicity-violence

INDEX

AAbyei Joint Oversight

Committee (AJOC) 47Abyei Police Service 46 62Abyei 43-home of the Ngok Dinka 43

45Africa 18 20 see minerals

-and wars at the greatlakes 20 25-armed groups in 26-criminal networks in 26-death in 20-exploitation naturalresources in 18-militias in 26-minerals in 20-poverty in 20-wealth in 20

Africarsquos wealth 14-and resource curse 14-blessing or curse 14

African Business 22African Development Bank

(AfDB) 16 17

African Unionrsquos (AU) Peaceand Security Council 48

Algeria 15Allied Democratic Forces

(ADF) 25 28-in North Kivu 25

American Mineral Fields(AMF) 36

AngloAmerican corporation35

AngloGold Ashanti 35Anvil Mining 36Armed Forces of the DRC

(FARDC) 26Athorbei David Deng 73Auty Richard 14

BBBC 18Blom Ulrika 59Blue Nile 45

CCentral African Republic 7China National Petroleum

Corporation 49

86

INDEX

87

Citibank NY 36Clinton Bill 24 36Conflict minerals 30 see

Rwanda-legitimate exports of 30-smuggling of 30

Conflicts 7-and natural resources 7-causes of 10 80-uniqueness of 10

Congolese Government 18

DDemocratic Republic of

Congo (DRC) 7-85-and (MONUC) 29-greed for minerals in 32-UN peacekeeping opera-tion in 29

Diffra oil complex 47DR Congo 79

EEastern Congo 28

-insecurity in 28Eliasson Jan 81

-Deputy Secretary-Generalof the United Nations 81

European Coalition on Oil inSudan (ECOS) 63

Exploration GmbH (OMV)64

Exxon corporate 15

FFirst Sudanese Civil War 42Forces deacutemocratiques de

libeacuteration du Rwanda(FDLR) 28

GGabon 18

-oil in 18Gertler Dan 12 13Ghana 18

-oil in 18Giambrone Antonino 38Glencore Anglo-Swiss 35Government of South Sudan

(GOSS) 69Government of Sudan (GoS)

62Great War of Africa 23Greater Nile Oil Project

Company (GNOPC) 6667

Guinea Equatorial 15

HHague 44Permanent Court of Arbitra-

tion in 44Human Rights Watch 55

IIMF 22International Rescue Commi-

ttee 23

LIVING IN FEAR

88

JJoak Daniel Wuor 69Juba 74

-Center for StrategicAnalysis and Research in74

Katanga Minister of Planning22

KKenya 19Kerry John 24Kiir Salva 43 84

LLibya 7Lumumba Patrice 13 20Lundin Oil Consortium 63

MMachar Riek 43 57 77 78Madagascar 16Mala fields 73Malakal 59Mali 7Mayardit Salva Kiir 69McKinney Cynthia Ann 23

-US Congresswomanfrom the Democratic Party23

McMurrough Mike 36McNamara Robert 37

-as World Bank President37

Minerals 20 see Africa-and death 20

-and poverty 20-and wars at the GreatLakes 20-and wealth 20

Mozambique 18-gas in 18

Muloni Irene 18

NNationalist and Integrationist

Front (FNI) 36Natural resources 8 83 see

conflicts-and conflict 8-and greed 83-and power 83-and wars 8-control over 83

Niger Delta 16-oil is a curse for 16

N o n - g o v e r n m e n t a lorganisations (NGOs) 12

Non-OPEC African oilproducer 48

Norwegian Refugee Council59

OOECD Guidelines for

Multinational Enterprises37

Oil 48-and geopolitics 48

PPeace 84

INDEX

89

-as way forward 84Petronas Carigali Overseas

Sdn Bhd (Petronas) 64Powell Colin 58PR Newswire 30President Kabila 24President Obama 24

RRDC Mining Code 35Republic of South Sudan

(RSS) 69Rio Tintorsquos QMM 16Ruweng County 67Rwanda 24 31

-conflict minerals from 31

SSecond Congo War 24 32

34Second Sudanese Civil War

42Somalia 7South Kordofan 45South Sudan Civil War 57South Sudan 11 18 19 41

-Dinka ethnic group in 4357-Nuer ethnic group in 4357the oil way 41-UN peacekeeping opera-tions 61

South Sudanese Civil War 58Sudan 79

-Second Civil War in 79

Sudan Armed Forces 46Sudan oil police 47Sudan Peoplersquos Liberation

Army (SPLA) 41 46 5462-civil wars and conflict in41

Sudan vs South Sudan 43-and Heglig battles 47-and peace agreement 43-main oil companies in 51-oil-centered conflict 46-Row over oil tariffs 51

Sudanese Civil War 52-and Addis AbabaAgreement 53-and Islamic law 53-causes of 52

Swedish oil company LundinOil AB (Lundin) 64

TTalisman Energy 65Thar Jath 73Transnational Corporations

(Tncs) 34-and the private sector 34

UUganda 19 24UN Interim Security Force for

Abyei (UNISFA)UN Mission in the Republic of

South Sudan (UNMISS)61 62

UN Organization Stabiliza-

LIVING IN FEAR

90

tion Mission in the DRC(MONUSCO) 29

UN peacekeeping operations11

UN Security Council 11UNICEF 59UNISFA 47United Nations Office of the

Special Adviser on Africa(OSAA) 8

United Nations SecurityCouncil 25

United Nations 13University of California

(UCLA) 54 55Upper Nile State 59 69US fallen dream 76

VVirunga National Park 18

WWar and conflict 58

-consequences of 58Wars and minerals 21

-cobalt 22-coltan 22-copper 22-diamond 22-gold 22-manganese 22-peace at last 21-timber 22-tin 22-zinc 22

Wau Shilluk 59We Thought it was Oil but it

was Blood 81Wealth 12 13

-for whom 13-quest for 12

World Heritage site 18Worldwatch 40

Page 15: LIVING IN FEAR - Health of Mother Earth Foundation...Les quatre puissances militaires regionales d´Afrique. 12 LAVDC. 2014. Les quatre puissances militaires regionales d´Afrique

17

1 THE QUEST FOR WEALTH

ldquohuge blessingrdquo29 It justifies that with the following analysis

We estimate that Africa has 120bn barrels of oilreserves no less than half of Saudi Arabia and 600million hectares of uncultivated arable land halfof the world total We at the African DevelopmentBank (AfDB) estimate that the continentrsquos naturalresources will contribute over $30bn per annumin government revenues over the next 20 years30

Box 1 Oil is a curse for the Niger Delta people

Most people think of oil states as wealthy states ButNigeria proves that sometimes the opposite is true It isAfricarsquos leading oil producer and yet it is one of theworldrsquos 20 poorest countries Whatrsquos more the peopleliving in the Niger Delta the countryrsquos oil-producingregion are among Nigeriarsquos most impoverishedcommunities with a large percentage of the populationhaving to survive on less than one dollar a day For thesepeople lsquoblack goldrsquo has not brought prosperity ordevelopment Instead it has increased corruption socialproblems environmental damage and armed conflictThe many billions of US dollars in oil revenue that havepoured into the country during its oil industryrsquos 50-yearhistory have completely bypassed these communitiesSource Petra Hannen 2011 lsquoBlessing our Coursersquo GIZmagazine akzent

29 African Development Bank 2013 lsquoAfricarsquos mineral wealth a blessingor a cursersquo httpwwwafdborgenblogsafdb-president-this-is-africas-hourpostafricas-mineral-wealth-a-blessing-or-a-curse-12336

30 African Development Bank 2013 Africaacutes mineral wealth a blessingor a curse httpwwwafdborgenblogsafdb-president-this-is-africas-hourpostafricas-mineral-wealth-a-blessing-or-a-curse-12336

LIVING IN FEAR

18

Africa continues the exploitation of its naturalresources

Most of the African Governments that discover naturalresources in their territory eagerly move forward with theexploration of those Therefore natural resources areexplored all over the continent oil in Ghana manganese inGabon gas in Mozambique just to name a few Often thereis little consideration of the destruction or the conflicts theseextractive activities bring For instance according to the BBCin March 2015 the Congolese Government consideredmodifying the boundaries of the Virunga National Park homeof gorilla mountains and World Heritage site to permit oilexploration activities31

DRC and South Sudan as well are exploring a joint projectnow DRC has a frontier with South Sudan in the Northeastpart of the country While historically both ndash referring alsoto Sudan ndash did not often have a common grounds after theIndependence of South Sudan in 2011 it appears possiblethat natural resources may unite them more closely IreneMuloni Minister for Energy and Minerals Development fromUganda announced in an interview in February 2015 thatSouth Sudan and the DRC have expressed interest in theconstruction of an oil pipeline of over 1000 km to the Kenyancoast32 Although yet to be implemented there have beendiscussions and plans to construct a pipeline that would unite

31 BBC 2015 DR Congo seeks Virunga park bounary httpwwwbbccomnewsworld-africa-31876577See also New York Times2014 Oil dispute takes a page from Congoacutes bloody past httpwwwnytimescom20141116worldoil-dispute-takes-a-page-from-congos-bloody-pasthtml_r=1

32 Platts 2015 South Sudan DR Congo interested in Ugandan crudeoil export pipeline minister httpwwwplattscomlatest-newsoilkampalasouth-sudan-dr-congo-interested-in-ugandan-crude-26025080

19

1 THE QUEST FOR WEALTH

oil production and distribution in several African countriesincluding South Sudan Uganda Kenya Democratic Republicof Congo (DRC) and maybe others33

The forthcoming chapters will develop more elementsaround this topic in order to conclude some final remarkswith the particular case studies of DRC and South Sudan

33 The Economist 2013 Pipeline poacuteker httpwwweconomistcomnewsmiddle-east-and-africa21578402-east-africa-danger-throwing-away-part-its-new-found-oil

20

LIVING IN FEAR

Minerals and Wars at the GreatLakes Wealth Death and Massive

Poverty in the Heart of Africa

Our internal difficulties tribal war and the nucleiof political opposition seemed to have beenaccidentally concentrated in the regions with ourrichest mineral and power resources We know howall this was organised and in particular whosupports it today in our house

Our Katanga because of its uranium copper andgold and our Bakwanga in Kasai because of itsdiamonds have become hotbeds of imperialistintrigues The object of these intrigues is torecapture economic control of our country

Patrice Lumumba speech in Leopoldville in August 25th1960 34

34 Speech at the opening of the All-African Conference in Leopoldville in1960 See httpwwwassatashakurorgforumshoulders-our-freedom-fighters42970-collected-speeches-writings-patrice-lumumbahtml

2

21

2 MINERALS AND WARS AT THE GREAT LAKES

Lumumba the first democratically elected Prime Ministerof the Republic of Congo gave a speech in 1960 that wasremarkably prescient of the fate of Democratic Republic ofCongo (DRC) today Conflict minerals and ldquotribal warsrdquo gohand in hand in the DRC historyrsquos past decades Lumumbawas planning to get the DRCrsquos related difficulties undercontrol however he was executed a few months after thespeech by a firing squad in January 1961 The US throughthe CIA the United Kingdom through the M16 and Belgiumwere all blamed for their involvement in his death35

Paradoxically ldquothe assassinations were made by the ordersof those who proclaim themselves to be champions ofdemocracy and respecters of human rightsrdquo36 Externalmeddling and intervention in Congorsquos affairs by foreigncountries is another of the concurrent and repeated situationsthat continue in recent history of the DRC37

Wars and minerals peace at last

hellip The heart of Africa is bleeding hellip

Two wars raged in DRC from 1996-1997 and from 1998-2003 Contrary to what some affirm these were not ethnicconflicts but resource wars38 No coincidence that the

35 BBC 2013 M16 and the death of Patrice Lumumba httpwwwbbccomnewsworld-africa-22006446

36 VVAA 1992 Congo (Zaire) Democratie neo-coloniale ou deuxiemeIndependance Ed LrsquoHarmattan

37 The Guardian 2011 Patrice Lumumba the most importantassassination of the 20th centuryhttpwwwtheguardiancomglobal-developmentpoverty-matters2011jan17patrice-lumumba-50th-anniversary-assassination

38 See Friends of the Congo websitehttpwwwfriendsofthecongoorgresource-centercongo-primerhtml See also Lanotte 2003 RDCguerre sans frontiers Editions Complexe

22

LIVING IN FEAR

country possesses extraordinary mineral wealth with someof the most valuable and strategic minerals on earth suchas coltan diamond cobalt copper gold tin zincmanganese timber and others The highest concentrationof mining activities existin the Eastern part of the countryTo illustrate the predominance of mining here we wouldunderline the affirmation of the Katanga Minister ofPlanning who said that 72 of the territory of Katanga isdevoted to mining No surprise why the IMF has namedDRC one of the worldrsquos mining giants of today39 Themagazine African Business stated in 2009 that ldquothe totalmineral wealth of the DRC was estimated to be some $24trillionrdquo40 As Lumumba indicated back in 1960 the samescenario repeated in recent years ndash minerals and conflictscontinue to go hand by hand

DR Congo possesses some 80 of the worldrsquoscoltan ore reserves(hellip) Additionally the DRCongo produces significant quantities ofdiamonds gold cassiterite copper cobalt (ofwhich it has the worldrsquos largest reservesalthough the trade is largely controlled byZimbabwe) oil tin zinc gold and coffee Thecountry has large reserves of uranium it wasCongolese uranium that was used for theManhattan Project that produced the worldrsquosfirst atomic bombs dropped on Japan The vastcountry also has more than half of sub-SaharanAfricarsquos timber stocks

Source African Business

39 IMF 2013 DRC Poverty reduction strategy paper N 1322640 African Business 2009 DR Congo $24 trillion fortune

23

2 MINERALS AND WARS AT THE GREAT LAKES

The casualties over the years are overwhelming Whileeverybody is familiar with the death toll during the genocidein Rwanda estimated between 500000 and 800000 peoplethere is much less awareness about the conflict situation inCongo The International Rescue Committee has estimatedthat the conflict and humanitarian crisis in the DemocraticRepublic of Congo has taken a death toll of 54 million peoplefrom 1998 to 200741 A CNN correspondent in trying togive an illustration of the heavy toll made the followingcomparative analysis

The wars in that country ndash RD Congo ndash haveclaimed nearly the same number of lives as havinga 911 every single day for 360 days the genocidethat struck Rwanda in 1994 the ethnic cleansingthat overwhelmed Bosnia in the mid-1990s thegenocide that took place in Darfur the number ofpeople killed in the great tsunami that struck Asiain 2004 and the number of people who died inHiroshima and Nagasaki mdash all combined and thendoubled42

Rwanda and Uganda were actively involved in the invasionof Congo in both wars The second war was known as theGreat War of Africa involving nine countries and more than20 armed groups According to Cynthia Ann McKinney aUS Congresswoman from the Democratic Party and an

41 IRC 2007 IRC study shows Congorsquos neglected crisis leaves 54 milliondead httpwwwrescueorgnewsirc-study-shows-congos-neglected-crisis-leaves-54-million-dead-peace-deal-n-kivu-increased-aidmdash4331 Some groups put the death toll much higher See GlobalResearch webpage httpwwwglobalresearchcathe-war-that-did-not-make-the-headlines-over-five-million-dead-in-congo7957

42 CNN 2012 Why the world is ignoring Congo war httpeditioncnncom20121127opinioncongo-war-ignored-vava-tampa

24

LIVING IN FEAR

expert on the Great Lakes issues while invading DRC in theSecond Congo War the US continued providing financialsupport to the governments of Rwanda and Uganda43 Howwas this allowed US President Bill Clinton was personallyin Rwanda in March 1998 only a few months before theRwandese army invaded Congo44 President Clinton was inAfrica at that time addressing its presidents includingPresidents Kagame and Museveni as leaders of the ldquoAfricanRenaissancerdquo and seeing a bright future for Africa45 ThereClinton made an important call to embrace peace How wasit possible to talk about peace while these allies were directlyengaging in war Moreover with the experience of thegenocide in Rwanda how could it be that foreign powersclosely involved in the region particularly the United Stateslet this occur again How did they allow wars and conflictsthat killed millions of people How could they allow whatmany called another genocide in Congo

On a positive note at last in recent months the calls forpeace have been growing from many different stakeholdersIn May 2014 US Secretary of State John Kerry after ameeting with DRC President Kabila stated that ldquoachievinga lasting peace in the DRC is a priority of President ObamardquoHe added ldquoNow I canrsquot emphasize enough how importantthat process is in identifying and resolving the root causesof the conflict in the DRC as well as in the entire GreatLakes regionrdquo46 Not a minor task going to the roots causes

43 Order of Indictment from Juzgao de instruccion numero CuatroAudiencia Nacional Case 320008-D 6-2-2008

44 See CBS News httpwwwcbsnewscomnewstext-of-clintons-rwanda-speech

45 Schaefer 2000 The Keys to an African Economic Renaissance httpwwwheritageorgresearchreports200005the-keys-to-an-african-economic-renaissance

46 See US Dept of State 2014 Press Availability on the DRC and theGreat Lakes Region httpwwwstategovsecretaryremarks201405225587htm

25

2 MINERALS AND WARS AT THE GREAT LAKES

of those problems in the Great Lakes Indeed achieving peaceand reconciliation in the Great Lakes Region in countriesthat had suffered like DRC is a difficult and cumbersometask and making it by finding the ldquorealrdquo root causes can bea very complex and lengthy exercise taking decades orlonger

The situation remains tense We recall that in 2006 theUN Security Council issued a resolution condemning ldquotheactivities of militias and armed groups operating in the GreatLakes regionrdquo47 Almost a decade later those armed groupsare still there and despite the efforts made the situationremains tense and insecure A report of the Group of Expertson the RDC published in 2015 by the United Nations SecurityCouncil concludes that in DRC despite a defeat of one of therebel groups ndash the Movement of 23 March ndash at the end of2013 this ldquofailed to translate into significant gains in securityand security and stability in 2014rdquo48 For example in thebeginning of 2015 a rebel group from Uganda the AlliedDemocratic Forces (ADF) created havoc in North Kivuwhere 17 people were hacked to death with machetes49

47 UN Security Council 2006 Resolution 1653 (2006) SRES165348 UN Security Council 2015 Final report of the Group of Experts on

the DRC S20151949 UN Security Council 2015 March 2015 monthly forecast http

wwwsecuritycouncilreportorgmonthly-forecast2015-03democratic_republic_of_the_congo_7phpVP-BX5Sm4agmailto

26

LIVING IN FEAR

Armed groups militias and criminal networkswithin the military structure making a lucrativebusiness out of minerals

The UN has solidly demonstrated that natural resources areused to finance armed groups and therefore to fuel war inthe region 50 The UN concludes that ldquoarmed groups continueto control many mining sites and to profit from mining andthe minerals traderdquo51 Later on those minerals particularlytin tungsten and tantalum are smuggled to neighbouringcountries For example one of the armed groups theMovement of 23 March (M23) responsible for taking Gomaat the end of 2012 was financing its organisation fromnatural resources in Eastern Congo In relation to thisparticular case the UN asserts that ldquoseveral traders havecontributed to financing M23 rebels using profits resultingfrom the smuggling of Congolese minerals into Rwandardquo52

Besides the rebel groups a criminal network within theArmed Forces of the DRC (FARDC) was involved in the illegalexploitation of natural resources The types of involvementinclude illegal taxation protection rackets and indirectcommercial control to more direct coercive control53

For some top army officials their military work wasconverted into economic businesses Indeed the existing

50 UN Security Council 2014 Final report of the Group of Experts onthe Democratic Republic of the Congo

51 Ibidem52 Ibidem53 UN Security Council 2010 Letter dated 26 October 2010 from the

Group of Experts on the DRC addressed to the Chair of the SecurityCouncil Committee established pursuant resolution 1533 (2004) S2010596

27

2 MINERALS AND WARS AT THE GREAT LAKES

practices made the UN qualify the war as a ldquolucrativebusinessrdquo

illegal exploitation of resources by BurundiRwanda and Uganda took different forms includingconfiscation extraction forced monopoly andprice-fixing The first two forms reachedproportions that made the war in the DRC a verylucrative business There are strong indicationsthat even if security and political reasons werethe professed motivation to move into the easternDRC some top army officials clearly had economicand financial objectives54

The most UN recent reports affirm that ldquomany armed groupsin Eastern Democratic Republic of the Congo have derivedtheir revenue from the production of and trade in naturalresourcesrdquo55

54 UN Security Council 2001 Security Council condemns ilegal exploitationof Democratic Republic of Congoacutes natural resources Press Releasehttpwwwunorgpressen2001sc7057dochtm

55 UN Security Council 2014 Final report of the Group of Experts on theDRC S201442

28

LIVING IN FEAR

Insecurity still booming in Eastern Congo

As already mentioned the momentum created bythe defeat of the Movement of 23 March inNovember 2013 failed to translate into significantgains in security and stability in 2014 in EasternDemocratic Republic of the Congo A militaryoperation against the Allied Democratic Forces(ADF) significantly weakened but did not defeatthe sanctioned armed group An expected militaryoperation against the Forces deacutemocratiques delibeacuteration du Rwanda (FDLR) did not materializeand as of the end of November 2014 efforts tonegotiate the disarmament of this sanctionedarmed group failed to produce meaningful resultsIn addition numerous Congolese and foreignarmed groups contributed to instability inOrientale North Kivu South Kivu and KatangaprovincesADF FDLR Nduma Defence for Congo (led bysanctioned individual Sheka Ntabo Ntaberi) andother armed groups continued to recruit train anduse child soldiers in 2014 Armed groups alsocommitted a variety of other abuses includingtorture enslavement and sexual violence Therewere mass killings in June in Mutarule (South Kivu)and in October and November in Beni territory(North Kivu)

Source United Nations Security Council 201556

29

2 MINERALS AND WARS AT THE GREAT LAKES

One of the problems the existing insecurity and conflicts havecreated is the proliferation of internally displaced peopleestimated in September 2014 at 27 million people57

UN peacekeeping operation in Congo

In July1999 Heads of State of Angola DRC NamibiaRwanda Uganda Zambia and Zimbabwe signed the Lusakaagreement focusing on the establishment of a ceasefire asone of the other components necessary for the deploymentof a UN peacekeeping force

The first UN Peacekeeping operation in DRC wasestablished in November 1999 after the Lusaka Ceasefireagreement It was called the UN Mission in the DRC(MONUC) In 2010 it was renamed the UN OrganizationStabilization Mission in the DRC (MONUSCO)

Ten years later despite the deployment of MONUC thesecurity challenges in DRC ndash particularly in the Eastern Partof the country ndash remain high58 There is still a strong presenceof armed groups chronic humanitarian crisis continuoushuman rights violations and continued illegal exploitationof natural resources In the light of this context the UNcreated an ldquoIntervention brigaderdquo with a key objective ofneutralizing armed groups59 As of today the MONUSCOand the intervention brigade are operational but are theresignificant security changes

56 Ibidem57 See global humanitarian assistance webpage http

wwwglobalhumanitarianassistanceorgcountryprofiledemocratic-republic-of-congo

58 UN Security Council 2010 Resolution 192559 UN Security Council 2013 Resolution 2098

30

LIVING IN FEAR

60 UN Security Council 2014 Final report of the Group of Experts on theDRC S201442

61 PR Newswire 2014 Rwanda has become worldacutes largest coltanexporterhttpwwwprnewswirecomnews-releasesrwanda-has-become-worlds-largest-coltan-exporter-reports-kt-press-300010371html

62 PR Newswire 2014 Rwanda has become worldacutes largest coltanexporter

63 Africa Briefing 2015 Rwanda has abundant deposits of best qualitycoltan Kagame affirms httpafricabriefingorgp=478

Legitimate exports or smuggling conflictminerals

It is well known that many of the minerals in Eastern Congoare smuggled and do not follow legal channels For instancethe UN estimates that 98 of the gold produced in DRC issmuggled out of the DRC making the country lose millionsof dollars in tax revenue60

In December 2014 numerous media covered a story onRwanda and coltan PR Newswire affirmed that ldquoRwandahas become worldacutes largest coltan exporterrdquo61 The dataprovided concluded that in 2013 Rwanda exported around2500000 kg of tantalum which constituted 28 of the total8807232Kg of tantalum produced globally The overallrevenue from the coltan was estimated at around $140 M62

Rwandese President Paul Kagame was quoted as affirmingthat the production was local and dismissed all possibleallegations of plundering the coltan from Congo He affirmedldquoRwanda has not only enough coltan but of a very highquality (hellip) we can even pay for a ticket give them a visaand take them to the minesrdquo63

Contrary to such statements there are many reports thatcoltan is smuggled from Congo to Rwanda and that Rwandadoes not have significant coltan mining on its own For

31

2 MINERALS AND WARS AT THE GREAT LAKES

instance a 2012 report prepared by a European Foundationaffirmed that ldquoRwanda does not house any industrial coltanmines which would suggest legitimate Rwandan coltanproductionrdquo64 A US governmental agency which analyzesthe mining sector in Congo made a table with coltan exportedfrom Rwanda qualifying it as ldquoconflict mineralsrdquo as seen inTable 165 Since there is no known conflict in Rwanda it canonly refer to Rwanda exports of minerals originating froman external conflict zone the DRC

Table 1 Estimates of exports of conflictminerals from Rwanda for Fiscal years2009-2013 in Metric Tons

Year Tantalum

FY 2009 958

FY 2010 827

FY2011 915

FY2012 1139

FY 2013 2466

Source Based on United States Government Accountability Office 2014

64 Van Teeffelen 2012 The EU raw materials policy and mining in RwandaEvert Vermeer Foundation

65 United States Government Accountability Office 2014 Conflictminerals stakeholder options for responsible sourcing are expandingbut more information on smelters is needed

32

LIVING IN FEAR

In this particular situation either somebody is wrong orsomebody is lying Hopefully future events will unveil thetruth around the nature of the coltan exports from Rwandato clarify whether they are a legitimate export or theconsequence of smuggling conflict minerals

Greed for minerals everybody wants a pieceof Congo66

What is at the origin of those wars and instability of theCongo While there could be diverse factors for conflictthere is one that seems to be always recurrent and is recog-nized by most authors and by relevant UN reports the racefor minerals and natural resources The UN recognized thatin the Second Congo War minerals were the coveted trophyand that all actors ldquobuilt up a self-financing war economycentred on mineral exploitationrdquo67 The conflicts that con-tinued after the Second Congo War like those in Kivu andIturi provinces are recognized as well to be fuelled by tradein minerals Along the same lines Palou underlines the causesof the conflict by stating that ldquoalthough from that time un-til the present day the Rwandan regime has expressed itsconcern about the security of its border with the then Zaireobjectively the reality is that control over this strategic areandash Eastern Congo ndash and its valuable mineral resources has

66 See video at Congo Justice httpcongojusticeorg67 UN 2002 Final report of the Panel of Experts on the illegal exploitation

of natural resources and other forms of wealth of the DemocraticRepublic of the Congo S20021146

33

2 MINERALS AND WARS AT THE GREAT LAKES

proved to be at the heart of two wars that have left a hugenumber of victimsrdquo68 In conclusion a 2001 UN report as-serted that ldquothe conflict of DRC has become mainly aboutaccess control and trade of five key mineral resourcescoltan diamond copper cobalt and gold The wealth of thecountry is appealing and hard to resist in the context oflawlessness and the weakness of the central authorityrdquo69

Congolese and regional elite have also profited from thissituation as well and the appalling quantum of the plunderare reflected in the following report from UN

The elite network of Congolese and Zimbabweanpolitical military and commercial interests seeksto maintain its grip on the main mineral resourcesmdash diamonds cobalt copper germanium mdash of theGovernment-controlled area This network hastransferred ownership of at least US$ 5 billion ofassets from the State mining sector to privatecompanies under its control in the past three yearswith no compensation or benefit for the Statetreasury of the Democratic Republic of the Congo70

Funds that could have been used for public services havebeen diverted from the public coffers by fraud or by theexcuse of war effort71 The Congolese population has paid

68 Palou 2010 International Justice plunder in war human rights andmultinationals

69 UN Security Council 2001 Report of the Panel of Experts on theillegal exploitation of natural resources and other forms of wealth ofthe Democratic Republic of the Congo S2001357

70 UN Security Council 2002 Final report of the Panel of Experts on theilegal exploitation of natural resources and other forms of wealth ofthe Democratic Republic of the Congo S20021146

71 Ibidem

34

LIVING IN FEAR

dearly in this situation In terms of human development it isinstructive that the UNDP estimated in 2013 that RDCwas in the low human development category ndash positioningthe country at 186 out of 187 countries and territories72

The Role of Transnational Corporations (Tncs)and the private sector

Other key players involved in the conflict are Transnationalsand the private sector A UN Report published a few yearsafter the Second Congo War started affirmed that ldquothe roleof the private sector in the exploitation of natural resourcesand the continuation of the war has been vitalrdquo73 The reportalso added that ldquoa number of companies have been involvedand have fuelled the war directly trading arms for naturalresourcesrdquo74 Other observers share the view that ldquoWesternMultinationals have been one group responsible for thepillage and illegal exploitation of Congo mineral resourcesrdquo75

There are a large number of big foreign corporationsinvolved in mining in DRC including those from CanadaSouth Africa UK USA and others Despite the opacity ofmost of the activities of the private sector numerousexamples have been reported of how TNCs are responsiblefor human rights abuses and other illegal activites Thereare also many reports of the dangerous connectionsestablished with the political and military elite in order tofacilitate their businesses These are some examples

72 UNDP 2014 Sustaining human progress reducing vulnerabilities andbuilding resilience Congo (Democratic Republic of the) httphdrundporgsitesallthemeshdr_themecountry-notesCODpdf

73 UN 2001 Report of the Panel of Experts on the illegal exploitation ofnatural resources and other forms of wealth of the Democratic Republicof the Congo S2001357

74 UN 2001 Ibidem75 Palou Ibidem

35

2 MINERALS AND WARS AT THE GREAT LAKES

bull Glencore Anglo-Swiss giant in the raw material sectorwith a turnover of US $ 2397 billion in 2013 was beingaccused in 2014 of adopting a military-style response tothe problem of artisanal mining close to its mines ldquoonseveral occasions over the past 18 months mine policehave fired live ammunition in pursuit of artisanal minerson Glencorersquos site resulting in deaths and seriousinjuriesrdquo76 They are as well responsible forcontamination of the water supply with acid content andvery high and concentrations of copper and cobaltFinally the company operates some of its concessionsinside a reserve ndashndash something that in principle is illegalaccording to the RDC Mining Code77

bull An independent investigation unveiled that two miningcompanies Glencore and the Eurasian Natural ResourcesCorporation were involved in underpricing assets incomplex deals featuring offshore companies causinglosses to the DRC of no less than $136 billionIntermediary companies in the deals were linked to DanGerler78 In addition the DRC public prosecutorreportedly told mining companies that they had toreimburse $37 billion in taxes duties and fines79

bull AngloGold Ashanti part of the AngloAmericancorporation was accused of establishing links and

76 Peyer et al 2014 PR or Progress Glencoreacutes corporate responsibility inthe DRC Bread for all RAID Fastenopfer

77 Ibidem78 CRS 2014 Democratic Republic of Congo Background and US Policy79 Reuters 2014 Disputed Congo report says miners owe $37 billion in

tax fines httpwwwreuterscomarticle20140130us-congo-democratic-mining-idUSBREA0T12L20140130

36

LIVING IN FEAR

supporting one armed group the Nationalist andIntegrationist Front (FNI)80

bull In 2004 fighting between soldiers and rebels in Kilwaended in serious human rights violations againstcivilians including summary executions arbitraryarrests rape and torture Anvil Mining operated theDikulushi copper mine near Kilwa and was accused ofproviding vehicles and planes to the Congolese armedforces during this event The legal case ended in theCanadian Supreme Court in 2012 which ruled that itwould not hear the plaintiff rsquos appeal ndash they were led bythe Canadian Association Against Impunity (anassociation representing survivors of the incidents inOctober 2004)81

bull In May 1997 Citibank NY a financial institution hasbeen accused of giving $5 million loan to a Congolesemilitia allied with Rwanda82

bull American Mineral Fields (AMF) cut a $1 billion dealwith Kabila immediately after his forces captured GomaThe negotiations were led by ldquoKabilarsquos US-trainedfinance ministerrdquo who gave ldquoAMF exclusive explorationrights to zinc copper and cobalt mines in the area MikeMcMurrough a friend of US President Bill Clinton wasthen the chair of AMF83

80 Human rights watch 2005 DRC Gold fuels massive human rightsatrocities httpwwwhrworgennews20050601dr-congo-gold-fuels-massive-human-rights-atrocities

81 Business and human rights resource center 2012 Anvil Mining Lawsuit(re DRC) httpbusiness-humanrightsorgenanvil-mining-lawsuit-re-dem-rep-of-congo

82 Global research 2008 Congo Resource wars httpwwwglobalresearchcacongo-resource-wars8310

83 Global research 2008 Ibidem

37

2 MINERALS AND WARS AT THE GREAT LAKES

UN and some other independent reports generally makebroad statements about the role of corporations includingciting some of the companies however they fall short ofproviding details of the modus operandi of those companiesand in establishing or suggesting concrete measures to stopthe conflicts and solve the negative impacts on the DRCpopulation and environment A 2002 UN Report listed 85companies considered by the Panel to be in violation of theOECD Guidelines for Multinational Enterprises84 Very littlehas been done after the UN report was published

A poor country Until when

In 1969 World Bank President Robert McNamara embarkedon a trip to Africa to try to discover ldquowhat are therequirements for developmentrdquo85 At that time the WorldBank in its information document described the country asrich in natural resources but at the same time poor and witha strong mining sector

In spite of its rich natural resources and greatpotential the Congo is still a poor country (hellip)Mining and metallurgy play a leading role in theeconomy86

84 UN 2002 Final Report of the Panel of Experts on the Illegal Exploitationof Natural Resources and other Forms of Wealth of the DemocraticRepublic of the Congo S20021146

85 Records of President Robert S McNamara Travel briefs CongoKinshasa (01021969-03031969) 1772506 Reference Code WBIBRDIDA 03 EXC-10-4540S World Bank Group archives WashingtonDC United States

86 Ibidem

38

LIVING IN FEAR

More than forty years later not much has changed asupdated data shows In DRC seven out of ten householdsare poor87 Most of its nearly 60 million people areldquodesperately poor living on less than $1 a dayrdquo88 DRC is aleast developed country a fragile State that has been in thetop 10 recipients of humanitarian assistance in nine of thelast 10 years Between 2003 and 2012 DRC received US$176billion in official development assistance (ODA) making itthe 10th largest recipient89In 2012 the Democratic Republicof Congo (DRC) received US$286 billion in net officialdevelopment assistance90

With so many natural resources isnrsquot there money to getpeople out of poverty The mining sector is oftenacknowledged as being capable of contributing to povertyreduction However those mineral benefits are oftencreamed off by powerful interests and do not get to thehands of the majority of the population According to DFIDldquofiscal receipts from the minerals sector are siphoned off bypowerful interest groups instead of being used in the publicsectorrdquo91

The analysis of Mr Antonino Giambrone sheds more lightabout the earnings and who profits from mining

While the average Congolese worker earns $10 permonth the average Congolese coltan-miner earnsanywhere from $10 to $50 per week Uganda

87 IMF 2013 DRC Poverty reduction strategy paper N 1322688 DFID 2008 Democratic Republic of Congo Country Plan89 View global humanitarian assistance webpage http

wwwglobalhumanitarianassistanceorgcountryprofiledemocratic-republic-of-congo

90 CRS 2014 Democratic Republic of Congo Background and US Policy91 DFID 2008 Democratic Republic of Congo Country Plan

39

2 MINERALS AND WARS AT THE GREAT LAKES

Rwandan and Congolese rebels have earned manymillions of dollars in sales of coltan which theyhave used to finance their war efforts in the CongoBetweeen 1999 and 2000 the Rwandan army aloneearned at least $20 million a month from coltan92

Food insecurity is often a consequence of poverty One ofthe causes of existing food insecurity is the abandonment ofthe agriculture sector partly due to conflicts The governmentstated that it would like to strengthen the smallholdersldquowhile ensuring at the same time the protection of thecountryrsquos natural resourcesrdquo93

War impacts on the environment

The wars have had devastating impact on the environmentNational parks for instance home of many endangeredspecies are also affected by the exploitation of minerals94

There are numerous reports on the precarious situation ofwildlife in the region For instance between 1995 and 19994000 out of 12000 elephants were killed in the GarambaPark in North-eastern DRC95 The situation was also seriousin other parks For instance in Kahuzi-Biega Park a zonerich in coltan only 2 out of 350 elephant families remained

92 Giambrone 2006 The extraction of natural resources as a source ofconflict Etfo voice

93 IMF 2013 DRC Poverty reduction strategy paper N 1322694 Seeh ttpwww lenntech comenv ironmental -ef fec ts -

warhtmixzz3CuGZqE3M95 UN 2001 Report of the Panel of Experts on the illegal exploitation of

natural resources and other forms of wealth of the Democratic Republicof the Congo S2001357

40

LIVING IN FEAR

in 200096 Mountain gorillas are also under threat due tocontinued civil unrest and the presence of armed militiasmakes survey and conservation work difficult in the DRCrsquosprotected areas97

Deforestation is also one of the common impactsWorldwatch explains the implication of having refugeespopulation inhabiting RDC degraded forest areas

For two years beginning in late 1994 for exampleabout 720000 Rwandans inhabited refugee campson the fringes of Virunga National Park They allneeded wood for cooking fires and for buildingshelters and some also earned extra money bymanufacturing charcoal As a result up to 80000people entered the park and carted away up to1000 tons of wood every day By mid-1996 105square kilometers of forest had been affected toone degree or another by their activities 35 squarekilometers had been stripped bare98

Besides the need for fuelwood by refugees movement ofmilitary hardware through forests and woodlands also causeserious damage to forests and the landscape generally

96 Ibidem97 See WWF webpage httpwwfpandaorgwhat_we_doendangered_species

great_apesgorillasmountain_gorilla98 Worldwatch 2008 War and Environment httpwwwworldwatchorg

node5520

3South Sudan The Oil Way

99 Washington Post 2012 lsquoSouth Sudan civilians are trapped in conflictover oilrsquo httpwwwwashingtonpostcomworldsouth-sudan-civi l i ans-are- trapped-in-conf l ict -over-o i l20120501gIQAUX6buT_storyhtml

100 See UN Mission in South Sudan web page httpwwwunmultimediaorgtvunifeed201404south-sudan-bentiu-massacre

101 Reuters 2014 Bentiu massacre is game-changer in South Sudanconflict says UN official httpwwwtheguardiancomworld2014apr22bentiu-massacre-south-sudan-united-nations

41

ldquoIf we had no oil we would not be attackedrdquo

Nyak a 27-year-old sitting outside herhut in Bentiu South Sudan 201299

In April 2014 Bentiu the capital of the oil producing UnityState was the scenario of one of the worst massacres of thecivil war between South Sudanese forces100 Hundreds ofpeople were killed in the fighting that took place betweenthe Sudan Peoplersquos Liberation Army (SPLA) and anti-government forces in the oil-rich State101

42

LIVING IN FEAR

Civil wars and conflict

Since its independence in 1956 Sudan has been at war andconflict for most of its modern history Specialists in conflictand security have described the history of modern Sudan asldquoan unremitting sequence of wars punctuated by oft-violatedpeace agreementsrdquo102 The First Sudanese Civil War (1955ndash1972) was followed by a Second Sudanese Civil War (1983ndash2005) with barely 11 years breathing space of tenuoussecurity

The Second Civil War ended when both sides signed theComprehensive Peace Agreement in 2005 That agreementgave autonomy to South Sudan within Sudan However areferendum held in January 2011 moved the region towardsecession and then in July 2011 independence was achievedand South Sudan became an autonomous nation103 Theprocess that led to South Sudanrsquos independence was stronglysupported by the US government which backed Juba in itstwo decades struggle against Khartoum104 It should be notedthat even during the 11 years of supposed peace there wereconflicts on a regular basis particularly in the border areasbetween South Sudan and Sudan105 Two years after theindependence the first South Sudanese Civil War started inDecember 2013 The civil war erupted as a result of a power

102 Cox and Snapper 2013 The Strategic Importance of South Sudan TelAviv University

103 National Geographic 2013 South Sudan oil the environment andborder conflicts httpvoicesnationalgeographiccom2013032286550

104 See webpagehttpwwwworkersorgarticles20140101south-sudan-yet-another-oil-war

105 International Crisis Group 2006 Sudan Saving peace in the Easthttpwwwcrisisgrouporgenregionsafricahorn-of-africasudan102-sudan-saving-peace-in-the-eastaspx BBC 2015 South SudanProfile httpwwwbbccomnewsworld-africa-14019202

43

3 SOUTH SUDAN THE OIL WAY

struggle between president Salva Kiir from the Dinka ethnicgroup and his deputy Riek Machar from the Nuer ethnicgroup whom he had sacked As at the time of this writingthe civil war continues

Sudan vs South Sudan

The tensions and conflicts after the independence of SouthSudan from its neighbour Sudan did not stop in 2011 Topleaders from both sides accuse and threaten each other innumerous occasions For instance Sudanese President Bashirpromised to teach South Sudan a ldquofinal lesson by forcerdquo106

South Sudan President firmly swore that ldquowhether Umar al-Bashir likes it or not one day Abyei will rejoin the southrdquo107

Abyei

Abyei is traditionally the home of the Ngok Dinka asubdivision of the Dinka tribe with strong links to the Dinkain South Sudan Besides the Dinka Misseriya herders aremembers of nomadic Arab tribes that seasonally cross Abyeiand other nearby areas with their cattle in search of waterand pasture108

Since the signing of the Peace Agreement in 2005 betweenthe Government of Sudan and the SPLM the dispute over

106 The Washington Post 2012 lsquoSudanese president vows war againstSouth Sudanrsquo httpwwwwashingtonpostcomworldsudanese-president-threatens-force-against-south-sudan-over-oil-field20120419gIQAJ0G8ST_storyhtml

107 The Global Intelligence Files 2013 Sudan- President Kiir says Abyeiwill ldquorejoinrdquo South Sudan httpssearchwikileaksorggifilesviewemailid=674314

108 Enough Project 2013 What is the Abyei Area and why is it disputedhttpwwwenoughprojectorgblogsenough-101-what-abyei-area-and-why-it-disputed

44

LIVING IN FEAR

the future status of the Abyei area has beenone of the bigbarriers to stability in the region109Abyei is an oil-rich areadisputed by Sudan and South Sudan and stands out as thehotspot of bigger tension beetween Sudan and South Sudannowadays

The conflicts over Abyei have a history of more than 50years After the First Civil war the parties signatories to thepeace pact agreed that Abyei would hold a referendum todetermine whether they would be part of Sudan or a newlyregion in the South The second war commenced in 1983and the foreseen referendum was not done

In 2009 the Permanent Court of Arbitration in the Hagueruled on Abyei territory giving concessions to the Governmentof Sudan and the Southern Sudan Heglig and other closeroil-fields remained out of Abyei area while the rest of theAbyei region remained under control of the Ngok Dinka anethnic group close to Southern Sudan and keen on voting tojoin the South in a future referendum110Another referendumwas scheduled to be done in parallel with the South Sudanreferendum in 2011 but once again this never took place

Although a series of temporary security arrangementswere agreed in January and March 2011111 in May SudaneseArmy tanks entered the town of Abyei and by the 22nd ofMay they seized control of the town112The government ofSudan launched numerous military attacks in the disputed

109 UN Security Council 2011 Report of the Secretary-General on thesituation in Abyei S2011451

110 New York Times 2009 lsquoCourt redraws disputed area in Sudanrsquo httpwwwnytimescom20090723worldafrica23sudanhtml_r=1amp

111 UN Security Council 2011 Report of the Secretary-General on thesituation in Abyei S2011451

112 Reuters 2011 North Sudan seizes disputed Abyei thousands fleehttpwwwreuterscomarticle20110522us-sudan-abyei-north-idUSTRE74L14L20110522

45

3 SOUTH SUDAN THE OIL WAY

border of area where much of Sudanacutes remaining oil fieldsare situated113 Two years later the fighting remains intensein parts of South Kordofan and Blue Nile114 More than 2million people have been internally displaced or severelyaffected by the conflict since 2011115

In addition to military attacks other actions contributedto the tension There have been cattle raids by the MissiriyandashArab nomadic cattle herders inhabiting the area ndash on theNgok Dinka ndasha subdivision of the Dinka tribe inhabitingthis area In occasions more than 200 cows were stolenwith a large part of it recovered by the UN Interim SecurityForce for Abyei(UNISFA) These raids increase further thealready tense situation in the region and in particular thevery tense situation among the Missiriya and the NgokDinka116

113 The Conversation 2012 Oil fuels the conflict between Sudan andSouth Sudan ndashand it keeps getting hotter

114 OCHA 2014 South Kordofan and Blue Nile population movementsfact sheet httpreliefwebintsitesreliefwebintfilesresourcesSouth20Kordofan20and20Blue20Nile20Population20Movements20Fact20Sheet20-201920May202014pdfReuters 2013 Khartoum says rebels based in South Sudan caused oilpipeline blast

115 OCHA 2014 Ibidem116 See Human Security baseline assessment for Sudan and South Sudan

webpage httpwwwsmallarmssurveysudanorgdefacts-figuresborderdisputed-areasabyeihtml

46

LIVING IN FEAR

An oil-centered conflict

ldquoThe violence underscores the extent to which oilis at the heart of the dispute Khartoum whichcontrols the pipelines that take oil out of SouthSudan depends heavily on oil transit fees SouthSudan which depends on oil for 98 percent of itsrevenue has refused to pay the fees which it saysare exorbitantKhartoum responded by seizing oil tankers carryingSouth Sudanese oil and imposing economicblockades That prompted South Sudan to shutdown its entire oil production in February Thatmonth Sudan allegedly bombed an oilfield inSouth Sudan that was nine miles from the borderrdquo

Washington Post 2012

Missiriya attacks continue as of today UNISFA reported thatin March 2015 100 armed Missiriya killed several peopleand burnt over 20 houses in a village in the southern part ofAbyei117 Many of those attacks occur despite the presenceof UN peacekeepers in the zone

In this context a UN force was deployed in 2011 withmore than 4000 personnel mostly Ethiopian with theobjective of ensuring the demilitarization of the Abyei areaand particularly checking the Sudan Armed Forces and theSudan Peoplersquos Liberation Army Interestingly the UN forceshad also the task to provide security for oil infrastructure inthe Abyei Area in cooperation with the Abyei PoliceService118 In February 2015 the Security Council extended

117 Sudan Tribune 2015 South Sudan condemns deadly clashes in Abyeihttpwwwsudantribunecomspipphparticle54191

118 UN Security Council 2011 Resolution 1990 (2011) SRES1990(2011)

47

3 SOUTH SUDAN THE OIL WAY

the mandate of the UNISFA again until July 2015119 The AbyeiJoint Oversight Committee (AJOC) decided in May 2013 thatAbyei should adopt a status as weapons-free area and thatonly UNISFA would be authorized to carry weapons in thearea120

The situation in the area is still very fragile121 For instancevarious resolutions have called for the redeployement of allmilitary personnel from Abyei including those protecting itsoil infrastructure However the Sudanese Governmentskeeps at the Diffra oil complex around 150 Sudan oil policein a clear violation of an agreement and Security Councilresolutions adopted in 2011122 The UN Security council ina recent resolution

Condemns the presence of Diffra Oil Police unitsdeployed in the Abyei Area as well as the repeatedentry of armed militias into the territory andreiterates its demands that immediately andwithout preconditions the Government of Sudanredeploy the Oil Police in Diffra from the AbyeiArea ()123

Conflicts escalating over oil Heglig battles

In 2012 despite the Permanent Court of Arbitration ruling124

which placed Heglig oilfields in the Sudanese territories

119 UN News Center 2015 Security Council extends UN peacekeepingforce in Abyei through July 2015

120 UN Security Council 2015 Ibidem121 UN Security Council 2015 Security Council adopting resolution 2205

(2015) extends interim force in Abyei until 15 july voicing concernover delays in Borde Mechanismrsquos operation httpwwwunorgpressen2015sc11800dochtm

122 UN Security Council 2014 Report of the Secretary-General on thesituation in Abyei S2014518

123 UN Security Council 2015 Ibidem124 See Permanent Court of Arbritation webpage httpwwwlocgov

lawwebservletlloc_newsdisp3_l205401463_text

48

LIVING IN FEAR

the South Sudanese army launched an attack over Heglig125

South Sudanrsquos army took control of the oil-producing townof Heglig The South Sudan move did not enjoy sympathyfrom many countries including its allies such as the US andBritain126 The African Unionrsquos (AU) Peace and SecurityCouncil considered Sudanrsquos occupation of Heglig as illegal127

At the end after a few days South Sudan pulled back itstroops from Heglig even though President Salva Kiir stillclaims that Heglig is a part of South Sudan and is expectinginternational arbitration

Oil and geopolitics

The implications of the oil economy are self-telling Prior tothe separation of Sudan from South Sudan in 2011 theunified Sudan was the second-largest non-OPEC oil producerin Africa in 2010 When they separated Sudan and SouthSudanrsquos production diminished and together they rankedas the fourth-largest non-OPEC African oil producer in 2013Particularly the split of the country in oil revenues economicterms was a huge blow to Sudan with its crude oil exportrevenues falling from almost $11 billion in 2010 to around$18 billion in 2012128 It has been estimated that oilcontributes 98 of South Sudan government income morethan for any other government in the world129

125 Wall Street Journal 2012 Sudan escalates fight over oil httpwwwwsjcomarticlesSB10001424052702304444604577339461981143808

126 The Guardian 2012 South Sudan to withdraw from disputed oiltownhttpwwwtheguardiancomworld2012apr20south-sudan-withdraw-oil-town

127 IRIN 2012 Sudan-South Sudan Heglig and the border128 US Energy Information Administration 2014 Country analysis brief

Sudan and South SudanhttpwwweiagovcountriesanalysisbriefsSudansudanpdf

129 Global Witness 2009 Fuelling mistrust

49

3 SOUTH SUDAN THE OIL WAY

Although oil exploration started at the end of the 1950showever no success was achieved with the activities of Italianoil company Agip130 Discoveries were found in the years tofollow The first oil discovery was made in 1979 when theAmerican company Chevron found oil near the Darfur-Kordofan boundary Three years later Chevron made twolarger discoveries the Heglig and Unity oilfields which asof today are the most productive However by 1984 Chevronstopped its operations when some of its workers were killedby an armed group By 1988 the company dismantled all ofits operations in Bentiu and Unity provinces131

As a landlocked country all the oil in South Sudan had tobe extracted and exported via a pipeline The pipeline wasconstructed by China National Petroleum Corporation andit covered a length of around 1600 kilometers132 Ittransports the oil from South Sudan to the Red Sea Thecost of the pipeline was estimated at $1 billion and it wasfinished in 1999133At the time of the construction of thepipeline Sudan provided less than 1 of Chinarsquos oil importsbut a few years later by 2009 the investments of Chinatotalled more than $8 billion134

130 Understanding Sudan 2009 Fact sheet two A history of oil in theSudan httpunderstandingsudanorgOilOilResourcesL2FS2-HistoryofOilinSudanpdf

131 Understanding Sudan Ibidem132 The Conversation 2012 Oil fuels the conflict between Sudan and

South Sudan ndashand it keeps getting hotter133 Sitarek 2001 The human price of oil ICE Case Studies Number 83

httpwww1americanedutedicesudansanctionshtm16134 The Conversation 2012 Ibidem

50

LIVING IN FEAR

Source US Energy Information Administration 2014

South Sudan becameindependenth in July2011 Taking aboutthree-quarters of theproduction A disputeover transit fees ledSouth Sudan to haltproduction for most of2012

Oil production inSudan and South Sudan

thousand barrels per day

51

3 SOUTH SUDAN THE OIL WAY

Main oil companies in Sudan and South Sudan

While initially many companies involved were of Westernorigin most of the companies now involved in the oil sectorare from China and Malaysia

Source US Energy Information Administration 2014 Countryanalysis Brief Sudan and South Sudan

Row over oil tariffs

By 2011 both countries did not agree on how much SouthSudan should pay to export its oil through the pipelines inSudan Sudan requested a fee of 33 dollars a barrel whileSouth Sudan said the highest fee they could afford was 2

Table 2 Main oil companies in Sudan and South Sudan

52

LIVING IN FEAR

dollars a barrel135 Following this lack of agreement SouthSudan halted crude oil production in early 2012

This decision worsened the economic situation in bothcountries as both depend hugely on money from oil exportsfor their revenues However an agreement was reached andin April 2013 South Sudan restarted oil production136

Causes of the Sudanese Civil War

Wars in Sudan have been often portrayed quite simplisticallyas an ArabMuslim north versus and an AfricanCristiansouth While certainly ethnicity and religion played a rolethe conflict has been mainly fought over natural resources137

Today oil is the countryrsquos main natural resource and ithas been estimated that it accounts for 98 of South Sudanrsquosrevenue138 The multibillion potential of their revenuehowever has not translated into wealth and benefits for themajority of the population of South Sudan First of all it hasnot solved the problem of security as since the very inceptionof the State of South Sudan in 2011 there were conflicts inmany areas of the country particularly in the borderline withSudan A 2013 report from the World Bank illustrates thisby asserting that ldquodespite South Sudanrsquos great resourcewealth its population is one of the most deprived due todecades of neglect and war and the distortions of the oil

135 IPS 2011 South Sudan rows over exorbitant fees for pipeline use136 Reuters 2013 South Sudan resumes oil output after ending row with

Sudan over transit fees137 Caas 2007 Natural resources and conflict in Sudan138 See World Bank webpagehttpwwwworldbankorgencountry

southsudanoverview

53

3 SOUTH SUDAN THE OIL WAY

economyrdquo139 Indeed oil reserves sitting on a disputed borderbetween Sudan and South Sudan have not translated yetinto wealth for the majority of citizens of South SudanInstead most of the inhabitants of the country remain deeplypoor and do not enjoy even basic rights to access potablewater and adequate sanitation140

Oil has been a main cause for the war and conflicts inSudan For instance it influenced the end of the peaceagreement obtained after the first civil war This first civilwar ended in 1972 with the Addis Ababa Agreement Theagreement established a system of peaceful co-existence witha single country by guaranteeing aNorthern basedgovernment but granted at the same time autonomy in theSouth This however was not going to last long as thediscovery of oil at the end of the 1970s in Southern Sudanchanged the ldquocoexistencerdquo idea In 1978 Sudanese PresidentNimeiry decided to embark on oil exploration project thatwould lead to the finding of oil in commercial quantities Inorder to control the oil within the hands of the Northernbased Government military force was used and in additionto imposing islamic law which led to the new civil warstarting in 1983141

139 World Bank 2013 Interim Strategy Note (FY 2013-2014) httpwww-wdsworldbankorgexternaldefaultWDSContentServerWDSPIB20130207000333037_20130207110223RenderedPDF747670ISN0P1290Official0Use0Only090pdf

140 National Geographic 2013 South Sudan oil the environment andborder conflicts httpvoicesnationalgeographiccom2013032286550

141 Sitarek 2001 The human price of oil ICE Case Studies Number 83httpwww1americanedutedicesudansanctionshtm16

54

LIVING IN FEAR

Numerous authors have identified natural resources ashaving a direct correlation with wars and conflicts142 Ananalysis by Ross of the University of California (UCLA) ofthirteen wars and conflicts concluded that in the case ofSudan oil was one of the key causes of the second civil warand an incentive for advancing the independence of SouthSudan143 Ross describes his conclusion in the followingmanner

War in Sudan began in 1983 when SudanesePresident Nimeiry took a series of measures thatupset the delicate balance between thepredominantly Muslim north and the heavilyChristian and Animist south among these measureswas his decision to place newly discovered oil inthe countryrsquos south under the jurisdiction of thenorth and to build an oil refinery in the northinstead of the south The Sudan Peoplersquos LiberationArmy (SPLA) subsequently complained that thenorth was stealing the resources of the southincluding oil demanded that work cease on apipeline to take oil from the south to the refineryin the north and in February 1984 attacked an oilexploration base killing three foreign workers andbringing the project to a halt144

142 Varisco 2010 lsquoA study on the inter-relation between armed conflictand natural resources and its implications for conflict resolution andpeace buildingrsquo Journal of Peace Conflict and Development issue 15Ross 2003 How do natural resources influence civil war Evidencefrom 13 cases httpwwwsscnetuclaedupoliscifacultyrossHowDoesNat3pdf

143 Ross Ibidem144 Ross Ibidem

55

3 SOUTH SUDAN THE OIL WAY

Even when the different parties were discussing an agreementon ldquono attacks on civilians or civilian objectsrdquo oil was playinga central role It is instructive to note that the Sudanesegovernment desired language in the text stating that oilinstallations were ldquocivilian objectsrdquo while the SPLA wantedthe contrary145

Human Rights Watch reached the same conclusion thatoil without doubt has been a key fuel for war particularlysince the end of the 90s when crude oil was first exportedfrom Sudan in 1999146

Oil became the main objective and a principal causeof war (hellip) The large-scale exploitation of oil byforeign companies operating in the theatre of warin Southern Sudan has increased human rightsabuses there and has exacerbated the long-runningconflict in Sudan a conflict marked by gross rightsabuses ndashtwo million dead four million displacedsince 1983 ndashand recurring famine and epidemics147

Also the UN makes clear statements on the issue Specialenvoy Leonardo Franco expressed in a report that oilexacerbated the conflict

the economic political and strategic implicationssurrounding oil exploitation in western Upper Nilewhich have seriously exacerbated the conflictthereby causing a deterioration in the overall

145 Ibidem146 Human Rights Watch 2003 Sudan oil and human rights147 Human Rights Watch 2003 Sudan oil and human rights

56

LIVING IN FEAR

situation of human rights and respect forhumanitarian law and narrowing the slim chancesfor peace148

Indeed multiple causes and elements contributed to theconflicts It was recognized that ethnicity and religion wereimportant elements however the key dimension is controlover natural resources particularly oil Added to this are alsotensions over land and resources and the promotion by thegovernment of crops like cotton and sugar which displacedcertain groups of people149 Similar conclusions were reachedyears back by a Canadian Government Mission in Sudanwhich fully recognized some ethnic disputes as well asdisputes over other natural resources however oil was thekey factor which made things really dramatic

148 UN 2000 Interim report of the Special Rapporteur of the Commissionon human rights on the situation of human rights in the Sudan A55374 httpwwwunorgdocumentsgadocs55a55374pdf Seealso UN 1999 Situation of human rights in Sudan UN Doc A54467

149 University of Massachusetts (undated) Modern conflicts conflictprofile SudanhttpwwwperiumassedufileadminpdfSudan1pdf

57

3 SOUTH SUDAN THE OIL WAY

The Harker mission pointed out that while therehave always been pressures on the Dinka in theHeglig- Ruweng area as a result of inter-tribalfighting with Arab nomads for grazing areas anddry-season water the situation had worsened withthe beginning of oilexploration and had continuedto deteriorate over theyears because of the periodicoffensives launched by the Government and itsallies resulting in destructionand mass populationdisplacement150

South Sudan has one of the largest oil reserves inSub Saharan Africa and the commodity is thelifeline of the countryrsquos economy accounting for98 percent of the governmentrsquos financial resources

Whoever controls South Sudanrsquos oil thereforecould seize the upper hand in the battle for power

Source France 24 2013 lsquoBattle for oil adds newdimension to South Sudan conflictrsquo

Whoever controls South Sudanrsquos oil therefore could seizethe upper hand in the battle for power

The same scenario applies to the South Sudan Civil Warwhich initially was also portrayed along ethnic line TheDinka ethnic group of President Salva Kiir has fought rebelsallied with former vice president Riek Machar of the Nuer

150 UN 2000 Interim report of the Special Rapporteur of the Commissionon human rights on the situation of human rights in the Sudan A55374 Ibidem

58

LIVING IN FEAR

ethnic group However increasingly ldquothe focus of the fightingis shifting to the battle to control the countryrsquos mostimportant natural resource ndash oilrdquo151 The oilfields haveliterally become the battlefields

Consequences of war and conflict

The damage inflicted on people as a consequence of war ishuge Back in 2001 US Secretary of State Colin Powellqualified the war in Sudan in the following terms ldquoThere isperhaps no greater tragedy on the face of the earth todaythan the tragedy that is unfolding in the Sudanrdquo152 Firstthere is a large number of deaths due to war and war relatedcauses and also a huge number of displaced people Thedeath toll derived from the Second Civil Sudanese War isestimated at two million The US Commitee for refugeesasserted that ldquothis massive loss of life surpasses the civiliandeath toll in any war since World War IIrdquo153 In the mostrecent civil war the South Sudanese Civil War that startedin December 2013 by April 2014 the death toll wasestimated to be at 10000154

Besides the death toll there are estimated more than fourmillion people of the Southern Sudanese population forced

151 France 24 2013 Battle for oil adds new dimension to South Sudanconflicthttpwwwfrance24comen20131227-battle-oil-adds-new-dimension-south-sudan-conflict

152 Human Rights Watch 2003 Ibidem153 See US Committee for Refugees webpage in 2001 http

webarchiveorgweb20041210024759httpwwwrefugeesorgnewscrisissudanhtm

154 International crisis group 2014 South Sudan a civil war by any othernamehttpwwwcrisisgrouporg~mediaFilesafricahorn-of-africasouth20sudan217-south-sudan-a-civil-war-by-any-other-namepdf

59

3 SOUTH SUDAN THE OIL WAY

to flee their homes at one time or another It has also beenargued that the development of oilfields has led to the forcedremoval of the local population In the words of the lateJohn Garang oil was a ldquokiller itrsquos evicting our civilianpopulationrdquo claiming 100 000 people displaced due to thiscause155

Children are some of the main victims of conflict beingrecruited for instance for war and suffering sexual violenceFrom March 2011 to September 2014 the UN estimatesthat there were 1243 incidents affecting 68776 children156

UN reports indicate that both armed groups have usedchildren ldquoon a large scale and committed other graveviolations including killing maiming and sexual violencerdquo157

For instance in 2015 an incident was reported where closeto 100 children were abducted some as young as 13 Armedsoldiers were advancing house to house looking for boysand taking them by force158 According to UNICEF this occuredin Wau Shilluk close to the city of Malakal in Upper NileState159

Not surprisingly as put by a high UN representativepeople are desperate for peace

155 BBC 2001 Garang Oil firms are targetshttpnewsbbccouk2hiafrica1393481stm

156 UN Security Council 2014 Report of the Secretary-General on childrenand armed conflict in South Sudan S2014884

157 Ibidem158 The Guardian 2015 South Sudan gunmen kidnap at least 89 boys

from village near Malakal httpwwwtheguardiancomworld2015feb22south-sudan-gunmen-kidnap-89-boys-village-malakal-child-soldiers

159 The Guardian 2015 South Sudan gunmen kidnap at least 89 boysfrom village near Malakal

60

LIVING IN FEAR

People are desperate for peace They are tired ofliving in fear Many have had to flee several timesThey are exhausted They lack water they areextremely worried for their children who are notin school and at risk of being recruited into armedgroups Sexual violence is rife All people want isto live in safety security and stability160

Wars have also an impact on food security and nutrition Asof February 2015 there was an alert that the food situationwas critical in South Sudan for more than 25 millionpeople161 This was famine related to war Ulrika BlomCountry Director for Norwegian Refugee Council in 2015succinctly stated ldquoThere is an urgent need for a solution onthe conflict so that people are able to resume their dailylives in dignity and not be dependent on massive foodassistancerdquo162

The harsh consequences of war are inevitable and occurfrom a systematic destruction of infrastructure erosion ofthe human capital and weakening of essential institutions

Besides causing an appalling loss of life Sudanrsquoslong civil war eroded the capital base The wardepleted the labour force while roads irrigationsystems and other key components of rural

160 Under-Secretary-General for Humanitarian Affairs and Emergency ReliefCoordinator Valerie Amos remarks to the press Juba South Sudan 9February 2015 httpreliefwebintreportsouth-sudanunder-secretary-general-humanitarian-affairs-and-emergency-relief-coordinator-1

161 UN Security Council 2015 Reports of the Secretary-General on theSudan and South Sudan SPV7392

162 Norwegian Refugee Council 2015 Conflict a cause of hunger in SouthSudan httpwwwnrcnodid=9192498

61

3 SOUTH SUDAN THE OIL WAY

infrastructure were destroyed damaged orneglected It also weakened institutions divertedfinancial capital from economic development andundermined interpersonal trust which is criticalto productive business dealings163

Some have tried to put a figure on the costs of war A recentreport estimates that the cost of the civil war may be between$223 and $28 billion over the next five years for SouthSudan alone if the factions fail to bring peace to the worldrsquosnewest country164

UN peacekeeping operations

In July 2011 the Security Council determined that thesituation in South Sudan constituted a threat to internationalpeace and security in the region and established the UNMission in the Republic of South Sudan (UNMISS)165 Thekey elements of the mandate is to consolidate peace andsecurity However after the civil war broke in July 2013 inthe light of significant human rights violations the large-scale displacement of persons the UNMISS mandate wasreshaped and a focus was given to the protection of civiliansand creation of the conditions for delivery of humanitarianassistance166

163 IFAD 2013 Enabling poor rural people to overcome poverty in SouthSudan

164 Frontier Economics 2015 South Sudan the cost of war httpwwwfrontier-economicscomdocuments201501south-sudan-cost-warpdf

165 UN Security Council 2011 Resolution 1996166 UN Security Council 2014 Resolution 2155

62

LIVING IN FEAR

In June 2011 a month before the establishement ofUNMISS a second UN peacekeeping operation wasestablished in the disputed border between Sudan and SouthSudan The United Nations Interim Security Force for Abyei(UNISFA) was created in a context of escalating violenceand tensions and population displacement167 One of the topobjectives was to achieve the demilitarization of the Abyeifrom any force other than UNISFA and the Abyei PoliceService facilitate the delivery of humanitarian aidstrenghten the capacity of the Abyei Police Service and incooperation with the police provide security for oilinfrastructure in the Abyei area168

Corporations and conflicts with communities

Since the conclusion of the 2005 Peace Agreement betweenthe Government of Sudan (GoS) and Sudan PeoplersquosLiberation MovementArmy (SPLM) negative impacts ofoil exploration and extraction have continued to ignitemistrust among local communities towards the oilcompanies Many problems from the oil activities wereidentified such as water pollution and uncompensateddispossession of land However oil companies or thegovernment did little to assess correct and reduce suchimpacts169 In this context many communities chose the ldquopath

167 UN Security Council 2011 Resolution 1990168 UN Security Council 2011 Resolution 1990169 ECOS 2014 Scrutiny of South Sudanacutes oil industry http

w w w e c o s o n l i n e o r g r e p o r t s 2 0 1 4 Scrutiny_of_South_Sudans_Oil_Industrypdf

63

3 SOUTH SUDAN THE OIL WAY

of confrontation with oil companiesrdquo170 For instance byblocking and interfering in oil operations by truck blockagesand other stoppages171

Resentment of local communities againstoil companies

The negative consequences of oil developmenthave been causing deep resentment against oilcompanies in many oil-rich parts of SouthernSudan Arriving in any oil area where activeexploitation is ongoing one is often confrontedwith persistent complaints from local people aboutpoor management of ldquoproduced waterrdquo which isblamed for pollution of the environment This isoften linked to unexplained deaths of animals andstrange or new human ailments Moreover the oilinfrastructure such as oil roads wells and pipesare frequently blamed for disrupting the means oflivelihoods of local people as well as destructionof property

Source ECOS

170 ECOS 2014 Ibidem171 ECOS 2014 Ibidem

64

LIVING IN FEAR

Lundin Oil Consortium facing war and violencein their work territory

In 2010 the European Coalition on Oil in Sudan (ECOS)requested an investigation on the activities of the LundinGroup and its connection with the conflict in Sudan and thepossible ldquocomplicity in the commission of war crimes andcrimes against humanityrdquo172 During the Second Civil War in1997 a consortium of oil companies led by the Swedish oilcompany Lundin Oil AB (ldquoLundinrdquo) signed a contract withthe Government for the exploration of oil in the concessionarea called Block 5A that was not at that time under fullGovernment control The other members of the Consortiumwere Petronas Carigali Overseas Sdn Bhd (ldquoPetronasrdquo) fromMalaysia OMV (Sudan) Exploration GmbH (ldquoOMVrdquo) fromAustria and the Sudanese state-owned oil company SudapetLtd

Before the start of explorations the area around Block5A was relatively peaceful When the oil exploration startedthe escalation of violence and war followed suit173 Accordingto the European Coilation on oil in Sudan Block 5A ldquobecamethe scene of intense fighting and gross human rightsviolations as soon as the Lundin Consortium started oilexploration activities on the groundrdquo Right from thebeginning there are reports of significant war and violence

172 ECOS 2010 Unpaid debt The Legacy of Lundin Petronas and OMV inSudan 1997-2003 Press Release httpwwwecosonlineorgreports2010Press_release_UNPAID_DEBT

173 ECOS 2010 Unpaid debt The Legacy of Lundin Petronas and OMV inSudan 1997-2003 httpwwwecosonlineorgreports2010UNPAID_DEBT_textonlywebpdf

65

3 SOUTH SUDAN THE OIL WAY

where villages and towns were burnt and looted Tens ofthousands of people in Block 5A were also moved out fromthe exploration areas

In 1999 the Lundin Group discovered major reserves ofoil This accelerated the Government desire to control allthe areas surrounding the well and the infighting intensifiedLundinrsquos explorations in Block 5A had to be suspended twicedue to insecurity174

The consequences of all the violence towards thepopulation which were in the middle of the power battlefor controlling Block 5A were severe abuse of all humanrights and war crimes More than 10000 people were killedalmost 160000 displaced with thousands of peoplepermanently uprooted from their villages hundreds ofthousands of cattle lost or looted destruction of churchesschools markets medical clinics and many otherincalculable moral damage and inmense loss of income175

Talisman Energy accused of complicity with forceddisplacements

A Canadian company Talisman Energy which at that timewas considered to be the largest independent oil and gascompany in Canada has been accused of indirectly helpingto exacerbate the war and of being complicit in human rightsabuses and crimes against humanity176 Talisman has a 25

174 HRW 2003 Ibidem175 ECOS 2010 Unpaid debt Ibidem See also Medecins sans frontieres

2002 Violence health and access to aid in Unity Statewestern uppernile Sudan httpwwwdoctorswithoutbordersorgsitesusafilessudan_04-2002pdf

176 Africa files 2000 Corporate immunity for oiling repression Talismanin Sudan httpwwwafricafilesorgarticleaspID=621

66

LIVING IN FEAR

stake in the Greater Nile Oil Project Company (GNOPC) aninitiative located in south-central Sudan with threeadditional partners the national petroleum company ofChina (40) the national oil company of Malaysia (30)and the national petroleum company of Sudan (5)177

There were many allegations that people were forcefullydisplaced in the area of the oil field ran by Talisman UNreported that accusations were made on Talisman of ldquobeingaccomplice of human rights abuses in Upper Nile so as toguarantee security for its oil operationsrdquo178

Moreover a report from the Canadian Foreign AffairsMnistry ndashthe Harker Report ndash which undertook a mission toSudan described with concern that fighting was intense inthe areas of oil development in general and that oilextraction may have contributed to relocation of civiliansby force179

Violence and the fear of it impact immediatelyon the peoplersquos use of the land and result in foodinsecurity which in turn propels movement ordisplacement

Contradicting that oil is at stake in the displacement issueTalisman explained that displacement was a result of an inter-tribal issue Once again the Harker report concluded thatthe displacement was because of oil

177 Africa files 2000 Ibidem178 UN Security Council 2000 Interim report of the Special Rapporteur of

the Commission on Human Rights on the situation of human rights inthe Sudan A55374

179 Canadian Ministry of Foreign Affairs 2000 Human Security in SudanThe Report of Canadian Assessment Mission httpwwwecosonlineorgreports2000Human20Security20in20Sudanpdf

67

3 SOUTH SUDAN THE OIL WAY

ldquoFor Talisman so very much seems to be explained as merelyan inter-tribal problem but displacement has gone on andis still going on and in Ruweng County it is hard to denythat displacement is now and has been for some timebecause of oilrdquo180

Talisman Energy decided in 2002 to end its controversialfour-year investment in Sudan by selling its 25 percent stakein the Greater Nile Petroleum Operating Company to anIndian firm Most of the rumours is that the reasons for thiswas the strong pressure from the US particularly to end itswork in Sudan in order to stop indirectly supporting theGovernment in Sudan with its oil revenue181

The oil way developing what

Sharing the wealth with the Sudanese people The resourcecurse again

As said before 98 of the governmentrsquos revenue comesfrom oil production royalties and South Sudan sits on thethird-largest oil reserves in Africa182 It was estimated in 2011that South Sudan controlled 75 of the overall oil productionof Sudan and South Sudan altogether ndasharound 500000barrels per day However South Sudan remains dependenton the North for processing refinement and export to theRed Sea

180 Canadian Ministry of Foreign Affairs 2000 Ibidem181 New York Times 2002 Talisman to sell its stake in company in Sudan

httpwwwnytimescom20021031businesstalisman-to-sell-its-stake-in-company-in-sudanhtml

182 Africa Business Initiative 2011 Investment climate upate Sudanhttpswwwuschambercomsitesdefaultfileslegacyinternationalafricafiles16920_AfricaNewsletter_Sudanpdf

68

LIVING IN FEAR

Paradoxically South Sudan is considered a fragile StateSitting on oil as has occured to many other countries acrossAfrica and abroad does not guarantee wealth for the majorityof the population A 2013 report concluded that ldquoover thelast decade Sudan has been the largest recipient ofhumanitarian assistance by some distance receiving US$106 billion over the periodrdquo183 90 per cent of the populationearn less than a dollar a day184

Oil money through the State budget is expected to serveto finance all the key governmental activities of the Statesuch as agriculture health infrastructures and educationDespite the fact that the benefits from oil are substantialthere are numerous questions arising about the destiny ofall the oil money For instance how could it be explainedthat one of the sectors more financed is the military andsecurity apparatus Since South Sudanrsquos independence theGovernment has allocated 38 of oil revenue to the militaryand security services with only 10 and 7 ininfrastructures and education respectively185 In 2012 SouthSudan was the among top 8 African countries having militaryexpenditure of almost $1 billion186 For instance TheEconomist reports that South Sudan bought 100 Ukrainian

183 Global humanitarian assistance 2013 Global humanitarian assistancehttpwwwglobalhumanitarianassistanceorgwp-contentuploads201307GHA-Report-2013pdf

184 Kebede 2014 The role of oil in South Sudanhttpswwwruoruottawacabitstream10393315631KEBEDE20Solomon2020145pdf

185 The Guardian 2014 South Suan is divided by the spoils of oil notethnicity httpwwwtheguardiancomcommentisfree2014jan14south-sudan-divided-oil-ethnicity-violence

186 LAVDC 2014 Les quatre puissances militaires regionales dacuteAfriquehttpwwwlavdcnetportailles-quatre-puissances-militaires-regionales-dafrique

69

3 SOUTH SUDAN THE OIL WAY

T-72 tanks187 At the same time agriculture and livestock hasbeen completely neglected despite the fact that more than80 of the population depend on that sector for fulfiliingtheir basic needs

Where the money goes

Daniel Wuor Joak former MP in South Sudan LegislativeAssembly and Minister of Education Science and Technologyin Upper Nile State claims that between 2005 and 2014both the Government of South Sudan (GOSS) and theRepublic of South Sudan (RSS) have been receiving onaverage not less than two billion of USD per year Somehave already manifested the unclarities over the destiny ofall that money as described by Mr Wuor Joak

Since 2005 upwards both the GOSS and RSS havebeen receiving no less than 18 billion USD in oilrevenues without implementing any majordevelopmental projects like roads network linkingdifferent States in South Sudan conducive learningschools from basics to universities level referralmedical facilities clean drinking water in remoteareas throughout the country setting up vibrantand credible institutions which can adhere to rulesof law All these things have not been implementeddue to poor system of governance under leadershipof Salva Kiir Mayardit Most of the counties have

187 The Economist 2014 Arms and the African

70

LIVING IN FEAR

no roads linking them with their State capitals andlack schools health centres clean drinking wateretc South Sudanese population in the rural areasthroughout the country are still living in the sameconditions as they were under Khartoumrsquos rule interms of scarcity of development188

Speaking more directly Kebede made firm remarks aboutthe overall situation in South Sudan

In general poverty corruption bad governance andviolence characterized the resource curse in SouthSudan A relatively small group of elite capturesvast wealth while leaving much of their societywithout access to the minimum resource necessaryfor long term wellbeing As a result South Sudanremains one of the worldacutes least-developedcountries despite its oil (hellip) hellipmuch of the oilrevenue has been squandered189

188 Wuor Joak 2014 Major Causes of the Current Conflict in Sudan SouthSudan News Agency

189 Kebede 2014 The role of oil in South Sudanhttpsw w w r u o r u o t t a w a c a b i t s t r e a m 1 0 3 9 3 3 1 5 6 3 1 KEBEDE20Solomon2020145pdf

71

3 SOUTH SUDAN THE OIL WAY

Even before the current tensions Bentiu saw little benefitfrom oil The streets are unpaved and covered with trashelectricity is scarce reserved for those with privategenerators () Most expect more violence Bentiu hasbecome more militarized with armed soldiers placed atcheck points and at the bridge Troops are constantlymoving to the front Weapons are being flown into theairport

ldquoThe oil is a curse ldquoMohammed Abdurahman Kili 56mumbled from his hospital bed his body covered withburns He was inside his shop in a crowded market onthe edge of town when a Sudanese warplane attackedkilling a 9-year-old child and another person and settinghis shop on fire

Washington Post 2012

President Salva Kiir recognized in 2012 that corrupt officialshad stolen from the people of South Sudan and the amountlost or taken by lead government and military officials mightbe as much as $4 billion190 Kiir sent a letter to 75 SouthSudanese officials or individuals close to the governmentasking them return all the amount lost The letter describedin general terms how the money got ldquolostrdquo

An estimated $4 billion are unaccounted for orsimply put stolen by current and former officialsas well as corrupt individuals with close ties togovernment officials Most of these funds have beentaken out of the country and deposited in foreignaccounts Some have purchased properties oftenpaid in cash191

190 Ibidem191 Paanluel Wel South Sudanese bloggers httppaanluelwelcom2012

0601letter-from-president-kiir-on-corruption-4-billion-dollars-stolen192 Sudan Tribune 2013 South Sudanacutes Kiir accuses army of corruption

72

LIVING IN FEAR

A year later Kiir accused the armed forces of being corruptHe said that despite the big budget allocations made to thearmy there were even no ldquovehicles to transport soldiers onmissionsrdquo192 Two years later the issue remained unclearand the names of the officials referred to in the letter wereyet to be disclosed However Kiir accused Machar of beingresponsible for a lot of corrupted activities in the country193

Machar responded to Kiir by saying that his claims wereunfounded and then also accusing him of such practices194

It seems South Sudan epitomises all the features of theresource curse argued in Chapter 1195 How can the corruptionbe prevented How can the money go to the people It isalso important to note that the oil sector provides littleemployment to the people of South Sudan Most of thehousehold income and employment is generated in theagriculture and farming sector primarily196 Would investingin other sectors like agriculture that provide real wealth tothe people make a difference

193 Sudan Tribune 2014 South Sudan rebel leader should face corruptioncharges Kiir

194 Sudan Tribune 2014 South Sudan Macharacutes Rebentildes dismiss corruptionaccusations no spiritual powers httpallafricacomstories201407221384html

195 Kebede 2014 The role of oil in South Sudan Ibidem196 Tizikara et al 2012 Post-conflict development of Agriculture in South

Sudan perspective on approaches to capacity strenghtening httpwwwerailsnetimagesfarasecretariatkigali-movementfileKigali20MovementPost-Coflict20Agriculture_South20Sudanpdf

73

3 SOUTH SUDAN THE OIL WAY

Environment

As experienced in oilfileds in other parts of the world the oilfields here are also leaving a significant impact on theenvironment and local communities A three year study inThar Jath and Mala fields in Unity State show thatgroundwater is very polluted making the water unsafe forhuman consumption197 The study made by a team of SouthSudanese and German geologists concluded that water usedby 180000 people was too salty to drink and containdangerous amounts of heavy metals198

In many occasions the oil fields that causeenvironmental pollution are even abandoned due to the warSome observers identified that oil pipelines damaged duringthe conflict were leaking199

South Sudan must produce for its needs

In 2015 the Minister of Finance of South Sudan David DengAthorbei made a statement saying that the country shouldbe self-sufficient in agriculture terms and in addition itneeds to increase its non-oil revenue and to achieve peace200

197 Rueskamp et al 2014 Effect of oil exploration and production on thesalinity of a marginally permeable aquifer system in the Thar Jath-Mala- and Unity Oil fields Southern Sudan Zbl Geol Palaont Teil IJ

198 Radio Tamazuj 2015 Study Direct link between oil exploration andwater pollution in Unity httpsradiotamazujorgenarticlestudy-E28098direct-linkE28099-between-oil-exploration-and-water-pollution-unity

199 Star Africa 2014 South Sudan Oil leaks cause pollution fears httpenstarafricacomnewsssudan-oil-leaks-cause-pollution-fearshtml

200 Bloomberg 2015 South Sudan Finance Minister says food output canoffset oil httpwwwbloombergcomnewsarticles2015-01-20south-sudan-finance-minister-says-food-output-can-offset-oil-1-

74

LIVING IN FEAR

He also made a call for a reduction of the countryrsquos relianceon agriculture imports particularly in the context of aneconomy affected by the plunge in global oil prices201

Peter Biar Ajak from the Center for Strategic Analysis andResearch in Juba illustrates the macroeconomic weaknessesof South Sudan today because of its oil dependence

South Sudanrsquos oil-dependent economy is nearingcatastrophe The production of crude oil has droppedby about 35 percent since the conflict began Thatcombined with a drop of roughly 45 percent in globaloil prices since the summer has meant a substantialreduction in the governmentrsquos oil revenues andenormous fiscal and budgetary ressures

Since South Sudan exports almost nothing asidefrom oil and imports almost everything else tradeand monetary policy have also been buffeted byfalling oil revenues Access to foreign currency hasbecome extremely limited The prices of manyimported goods have risen There are shortages ofpetrol which must be imported because SouthSudan has no refinery202

Indeed a dynamic agriculture sector may be key for peaceand development in South Sudan More than 95 of thecountryrsquos population is dependent on farming fishing orherding to meet their daily food needs and income as well203

201 Bloomberg 2015 Ibidem202 Biar Ajak 2015Sanctions for peace in South Sudan The New York Times

January 7th203 FAO in emergencies httpwwwfaoorgemergenciescountries

detailenc147627

75

3 SOUTH SUDAN THE OIL WAY

204 Business Daily 2011 South Sudanrsquos vast agricultural sector potentialuntapped

205 Norwegian Refugee Council 2015 Conflict a cause of hunger in SouthSudan httpreliefwebintreportsouth-sudanconflict-cause-hunger-south-sudan OCHA 2015 South Sudan Crisis Situation reportn 74 httpreliefwebintsitesreliefwebintfilesresourcesSouth_Sudan_Situation_Report_No_74pdf

206 OECD 2014 Fragile States 2014 Domestic revenue mobilisation infragile states httpwwwoecdorgdacgovernance-peaceconflictandfragilitydocsFSR-2014pdf

South Sudan has good soil and climatic conditions and morethan 70 of its land area is suitable for crop productionThere are many that believe that the investment in theagriculture sector has more potential than oil however thisthinking has not received due attention from local andforeign investors204 Efforts towards making agriculture workare vital for peace and stabililty in the country It is urgentlyneeded to work on this area particularly when at presentthere are 25 million in Sudan at risk of starvation205 andaround one third of the population are food insecure plusmore than a million displaced

The dependency on income from natural resourcesleaves fragile states vulnerable It exposes them toshocks in commodity prices ndash as demonstrated bythe sudden fall in commodity prices in 2009following the 2002-2008 boom Neither is it asustainable source of incomeSouth Sudanrsquos oilproduction for instance is projected to decreasesteadily in future years and become negligible by2035

Source OECD206

76

LIVING IN FEAR

207 UN Security Council 2015 Resolution 2206 SRES2006(2015)httpwwwunorggasearchview_docaspsymbol=SRES2206 (2015)

208 Sudan Tribune 2015 South Sudan unhappy with US support for sanctionshttpwwwsudantribunecomspipphparticle54232

209 Washington Post 2014 US appears unable to pull South Sudan backfrom the brink of civil war httpwwwwashingtonpostcomworldus-appears-unable-to-pull-south-sudan-back-from-the-brink-of-civil-w a r 2 0 1 4 0 5 0 3 d 9 2 8 0 b d a - 3 8 6 b - 4 2 4 9 - 9 4 e 0 -b5292610e5bb_storyhtml

210 Ibidem

US fallen dream

In 2015 the UN imposed a travel ban and assets freeze againstindividuals or entities which engaged in or provided supportfor acts that threaten peace security and stability of SouthSudan207 The US was behind the draft and the submission ofthe resolution This resolution prompted an angry reactionfrom the South Sudanese The South Sudanese presidencywas said to be extremely disappointed about the US ledmove208

In the past the relationship between the US and SouthSudan was completely diferent The United States was themain promoter and supporter of the worldrsquos newest nationThe Washington Post for instance asserted that ldquoSouth Sudanowes its existence to the United Statesrdquo209 The expectationscreated were high before its started its independence andsome believed that Sudan would be able to manage thecountry breaking the so-called ldquoAfrican model of pettyrivalries corruption and oppressionrdquo210 Despite all the hopesput on the young nation as of today no solution has beenfound to the ongoing war

77

3 SOUTH SUDAN THE OIL WAY

The US was the largest donor to Sudan in the years priorto independence providing 339 of the total aid to Sudanbetween 2000 to 2009211 The United States (US$472million) was the largest donor of humanitarian assistanceto South Sudan in 2012 followed by the United Kingdom(US$96 million)212 For many years Sudan was the thirdlargest recipient of US aid only after Iraq and Afghanistan213

The inteligence and information systems of theAmericans on the ground in Sudan seemed to have beenrelatively good214hellip however how come they did not foreseethat South Sudan was quickly descending once again on theavenue of a country at civil war For instance the problemsbetween President Salva Kiir and his deputy were not newAlready more than two years before the civil war started inJune 2011 in a speech in Juba the President accused hisDeputy Riek Machar ldquoof running a parallel governmentwithin the governmentrdquo215 Couldnrsquot they have preventedanother conflict Why did they fall into ridiculouscontradictions as the one recently revealed via wikileakssuggesting that the US was funding both armies in

211 Development initiatives (undated) Sudan Aid Factsheet 1995-2009httpwwwglobalhumanitarianassistanceorgwp-contentuploads201102Sudan-Aid-Factsheet-2011pdf

212 See global humanitarian assistamce ebpage httpwwwglobalhumanitarianassistanceorgcountryprofilesouth-sudan

213 The Atlantic 2011 US played key role in Southern Sudanacutes longjourney to Independence

214 The Global Intelligence files 2013 SudanUSMIL ndash SPLA trying toget US to hook it up httpssearchwikileaksorggifilesviewemailid=5047664

215 Sudan Tribune 2011 Salva Kiir exposes his rift with Machar overSouth Sudan transitional constitution httpssearchwikileaksorggifilesviewemailid=3831682

78

LIVING IN FEAR

contention the Government force of Salva Kiir and the rebelsof Riek Machar216 Why are both paid by the UShellip to dowhat As one reporter questioned why are they ldquopaid tokill each otherrdquo217

216 RT 2015 US officials tussle over arms embargo sanctions in oil-flushSouth Sudan httprtcomusa226387-south-sudan-sanctions-war

217 RT 2015 Ibidem

Seven Million

ldquoA peaceful DR Congo could transform Africa almostovernight but is there a way outrdquo218

There is always a way out However peace is not an easything particularly under certain circunstances When youhave lost your father your mother your uncle your sisterwhat else can you lose Can you still believe in peaceTwoof the bloodiest conflicts in recent decades in the world haveoccurred in Africa The Second Civil War in Sudan has leftaproximately two million casualties and the conflict in DRCis estimated to have snuffed life out of no less than fivemillion people

How many more

How does one begin to quantify the dead when they are inthe hundreds of thousands No less than seven million livesof Congolese and South Sudanese were taken away due towars and conflicts fuelled by natural resources How many

218 African Business 2009 DR Congo $24 trillion fortune

4

79

80

LIVING IN FEAR

more How many more before the world wakes up to acteffectively towards ending all those conflictsProbably unless you are one survivor from those experiencesyou would never be truly able to understand what it meansto lose entire families and friends you would never be trulyable as well to understand what it means to feel fear foryour life and the life of your close relatives

When you start counting sometimes you forget thatpeople are not numbers There are names behind thenumbers A family A life As we write this book people aredying needlessly in the DRC and in South Sudan Calculatingdead people due to conflicts in this part of the world is verydifficult due to statistical challenges and so it is conceivablethat probably the number of victims is much larger than sevenmillion (7000000) When would the volume of bloodshedthe number of lives taken be enough for the belligerentofficials to make real peace How many more should fallAthousand more Another one million The pain sadness anddestruction that those conflicts generate should not beaccepted any more

Oil and minerals the main cause of ongoingconflicts and war

Some authors argue that minerals and oil are not a cause ofwar but ldquocompetition for them could amplify and expediteconflictrdquo219 In this book as chapter two and three haveshown oil and minerals are the main motor behind theconflict in recent decades in DRC and South Sudan It would

219 UN Security Council 2013 Natural resource wealth fails to translateinto equivalent benefits for people fuelling conflict to instability DeputySecretary-General tells Security Council httpwwwunorgpressen2013sc11037dochtm

81

4 SEVEN MILLION

be very difficult if not impossible to expect those conflictsif their territories were resource poor Oil and minerals arefull of blood An activist poet wrote We Thought it was Oilbut it was Blood220 Although he was writing about the NigerDelta situation we see a universal application in that phrase

In both countries described there were other elements andfactors to take into consideration however it can be saidthat control over natural resources was the most importantcause on both conflicts in DRC and South Sudan In bothcases oil and minerals fuelled those wars and in manyoccasions these resources have inspired fueled and sustainedarmies operating in the territories of both countries

A Statersquos wealth means nothing if not shared withthe majority of the population

DRC and South Sudan ought to be wealthy countriesUnfortunately having a wealth of natural resources doesnot mean that it belongs to the citizens or that the wealthwould be shared among the population of a given State AState is a nation or territory considered as an organizedpolitical community under one government221 A goodgovernment should be the one that takes care of its citizensand shares the wealth among its citizens and not justdistribute it among an elite Jan Eliasson Deputy Secretary-General of the United Nations stated that ldquoin too manycountries a wealth of resources including timber oil coaldiamonds and precious metals failed to translate into

220 Nnimmo Bassey 1998 We Thought it was Oil but it was Blood IbadanKraft Books

221 See httpwwwoxforddictionariescomdefinitionenglishstate

82

LIVING IN FEAR

equivalent wealth for the people Only a powerful fewbenefitrdquo222

The State is expected to perform an adequateimplementation of human rights granted by several UNdeclarations and conventions including the right to foodright to health right to shelter right to clothing right towork farmersacute rights etc Paradoxically the violations andabuses of human rights have been constant in DRC and SouthSudan Both countries have suffered from acts of war oncivilian population both have as well a large number ofdisplaced people with no access to food without healthcarewithout shelter and without any work Both countries havemore than 90 people living below one dollar per day andthey are considered among least developed countries andfragile states Due to this both are some of the biggestrecipients of humanitarian aid Moreover both have hugesecurity problems shown for instance by the presence ofUN peacekeeping operations Out of the 17th worldwideongoing peacekeeping UN operations three are in DRCSouth Sudan and in Abyeia disputed territory between Sudanand South Sudan

They possess resources that have a huge monetary valueand that in most cases have the involvement of foreigncountries and corporations and other stakeholders of theprivate sector which are ready to pay enormous sums ofmoney to gain control of the natural resources belonging toother countries If no war or significant armed conflict takes

222 UN Security Council 2013 Natural resource wealth fails to translateinto equivalent benefits for people fuelling conflict to instability DeputySecretary-General tells Security Council httpwwwunorgpressen2013sc11037dochtm

83

4 SEVEN MILLION

place common elements among those countries that possesssuch resources in Africa is the existence of massive povertyand corruption and in most cases this is contrasted withmega-rich individuals Letacutes take for instance the case ofoil-rich Angola where the president and his daughter possessmultibillionaire fortunes while at the same time the majorityof the country population is living on less than two dollarsper day223

Greed power and control over natural resources

It must be noted as well that often oil and minerals involvemillions and multibillion profits With such large sums ofmoney greed power and control take the driving seat ofwhatever country government in the world When theprospects for such money flow arrives many leaders andelites start distancing themselves from the majority of thepopulation and stop thinking about the welfare of their ownpeople

At the centre of most of the conflicts in both countriesare struggles for power and control of natural resourcesMinerals and oils are the main cause of the ongoing conflictsand wars Unfortunately most commentators qualify therecent civil war in South Sudan as a ldquopower strugglerdquo withoutfurther qualifications In South Sudan who gets the oil getsthe power Therefore the power struggle is a war overnatural resources for control of the oil in the country Areporter affirmed that ldquowhoever controls South Sudanrsquos oiltherefore could seize the upper hand in the battle for

223 Forbes 2013 Daddyacutes girl how an African ldquoprincessrdquo banked $3 billionin a country living on $2 day httpwwwforbescomsiteskerryadolan20130814how-isabel-dos-santos-took-the-short-route-to-become-africas-richest-woman

84

LIVING IN FEAR

224 France 24 2013 Battle for oil adds new dimension to South SudanConflict httpwwwfrance24comen20131227-battle-oil-adds-new-dimension-south-sudan-conflict

225 OECD 2014 Fragile States 2014 Domestic revenue mobilisation infragile states httpwwwoecdorgdacgovernance-peaceconflictandfragilitydocsFSR-2014pdf

powerrdquo224 In both countriesrsquo non-renewable natural resourcetook a dominant share of the fiscal revenue of DRC andSouth Sudan ndash 82 in the DRC and 98 in South Sudan225

Who controls those resources controls the countryThe case of South Sudan where the president has

recognized the disappearance of $4 billion by corruptindividuals is compelling President Salva Kiir pinpointed thespirit behind the rot ldquoOnce we got to power we forgot whatwe fought for and began to enrich ourselves at the expenseof our peoplerdquo This might also include him as well becauseit is difficult to imagine that such huge amount of money couldbe stolen without the leader noticing anything at all

Greed for minerals and oil is at the heart of the massivedeath toll and impoverishment of the Congolese and SouthSudanese people in recent decades It can be affirmed quitecomfortably that if the Eastern part of the DRC would havenot sat on huge mineral reserves it would be very difficultto imagine all the conflicts that have occurred in that zoneIt can be affirmed as well that without oil ongoing wars inSouth Sudan might most probably never have occured

Peace is the only way forward

Achieving peace is a complex issue To create peace thereare many issues to resolve with all stakeholders such as

85

4 SEVEN MILLION

mutual accusations of support to rebel groups226 goodgovernance transparency demobilisation and disarmamentof local militia etc227

A positive but vital first step is that there are calls at veryhigh levels in both countries and at international fora Thismust be followed with open debate on the core causes of theconflict and ways of achieving reconciliation It does notappear that lasting peace can be achieved otherwise In thatprocess the people need to be put at the centre ofdevelopment policies and actions in both countries in orderto stop the plunder reverse environmental degradation andfight poverty As long as the political military and corporateelite maintain their control of the natural resources of thecountry the devastating plunder will continue to the benefitof only such elite and a handful of corporations

226 UN Security Council 2015 Reports of the Secretary-General on theSudan and South Sudan SPV7392

227 The Guardian 2014 South Sudan is divided by the spoils of oil notethnicity httpwwwtheguardiancomcommentisfree2014jan14south-sudan-divided-oil-ethnicity-violence

INDEX

AAbyei Joint Oversight

Committee (AJOC) 47Abyei Police Service 46 62Abyei 43-home of the Ngok Dinka 43

45Africa 18 20 see minerals

-and wars at the greatlakes 20 25-armed groups in 26-criminal networks in 26-death in 20-exploitation naturalresources in 18-militias in 26-minerals in 20-poverty in 20-wealth in 20

Africarsquos wealth 14-and resource curse 14-blessing or curse 14

African Business 22African Development Bank

(AfDB) 16 17

African Unionrsquos (AU) Peaceand Security Council 48

Algeria 15Allied Democratic Forces

(ADF) 25 28-in North Kivu 25

American Mineral Fields(AMF) 36

AngloAmerican corporation35

AngloGold Ashanti 35Anvil Mining 36Armed Forces of the DRC

(FARDC) 26Athorbei David Deng 73Auty Richard 14

BBBC 18Blom Ulrika 59Blue Nile 45

CCentral African Republic 7China National Petroleum

Corporation 49

86

INDEX

87

Citibank NY 36Clinton Bill 24 36Conflict minerals 30 see

Rwanda-legitimate exports of 30-smuggling of 30

Conflicts 7-and natural resources 7-causes of 10 80-uniqueness of 10

Congolese Government 18

DDemocratic Republic of

Congo (DRC) 7-85-and (MONUC) 29-greed for minerals in 32-UN peacekeeping opera-tion in 29

Diffra oil complex 47DR Congo 79

EEastern Congo 28

-insecurity in 28Eliasson Jan 81

-Deputy Secretary-Generalof the United Nations 81

European Coalition on Oil inSudan (ECOS) 63

Exploration GmbH (OMV)64

Exxon corporate 15

FFirst Sudanese Civil War 42Forces deacutemocratiques de

libeacuteration du Rwanda(FDLR) 28

GGabon 18

-oil in 18Gertler Dan 12 13Ghana 18

-oil in 18Giambrone Antonino 38Glencore Anglo-Swiss 35Government of South Sudan

(GOSS) 69Government of Sudan (GoS)

62Great War of Africa 23Greater Nile Oil Project

Company (GNOPC) 6667

Guinea Equatorial 15

HHague 44Permanent Court of Arbitra-

tion in 44Human Rights Watch 55

IIMF 22International Rescue Commi-

ttee 23

LIVING IN FEAR

88

JJoak Daniel Wuor 69Juba 74

-Center for StrategicAnalysis and Research in74

Katanga Minister of Planning22

KKenya 19Kerry John 24Kiir Salva 43 84

LLibya 7Lumumba Patrice 13 20Lundin Oil Consortium 63

MMachar Riek 43 57 77 78Madagascar 16Mala fields 73Malakal 59Mali 7Mayardit Salva Kiir 69McKinney Cynthia Ann 23

-US Congresswomanfrom the Democratic Party23

McMurrough Mike 36McNamara Robert 37

-as World Bank President37

Minerals 20 see Africa-and death 20

-and poverty 20-and wars at the GreatLakes 20-and wealth 20

Mozambique 18-gas in 18

Muloni Irene 18

NNationalist and Integrationist

Front (FNI) 36Natural resources 8 83 see

conflicts-and conflict 8-and greed 83-and power 83-and wars 8-control over 83

Niger Delta 16-oil is a curse for 16

N o n - g o v e r n m e n t a lorganisations (NGOs) 12

Non-OPEC African oilproducer 48

Norwegian Refugee Council59

OOECD Guidelines for

Multinational Enterprises37

Oil 48-and geopolitics 48

PPeace 84

INDEX

89

-as way forward 84Petronas Carigali Overseas

Sdn Bhd (Petronas) 64Powell Colin 58PR Newswire 30President Kabila 24President Obama 24

RRDC Mining Code 35Republic of South Sudan

(RSS) 69Rio Tintorsquos QMM 16Ruweng County 67Rwanda 24 31

-conflict minerals from 31

SSecond Congo War 24 32

34Second Sudanese Civil War

42Somalia 7South Kordofan 45South Sudan Civil War 57South Sudan 11 18 19 41

-Dinka ethnic group in 4357-Nuer ethnic group in 4357the oil way 41-UN peacekeeping opera-tions 61

South Sudanese Civil War 58Sudan 79

-Second Civil War in 79

Sudan Armed Forces 46Sudan oil police 47Sudan Peoplersquos Liberation

Army (SPLA) 41 46 5462-civil wars and conflict in41

Sudan vs South Sudan 43-and Heglig battles 47-and peace agreement 43-main oil companies in 51-oil-centered conflict 46-Row over oil tariffs 51

Sudanese Civil War 52-and Addis AbabaAgreement 53-and Islamic law 53-causes of 52

Swedish oil company LundinOil AB (Lundin) 64

TTalisman Energy 65Thar Jath 73Transnational Corporations

(Tncs) 34-and the private sector 34

UUganda 19 24UN Interim Security Force for

Abyei (UNISFA)UN Mission in the Republic of

South Sudan (UNMISS)61 62

UN Organization Stabiliza-

LIVING IN FEAR

90

tion Mission in the DRC(MONUSCO) 29

UN peacekeeping operations11

UN Security Council 11UNICEF 59UNISFA 47United Nations Office of the

Special Adviser on Africa(OSAA) 8

United Nations SecurityCouncil 25

United Nations 13University of California

(UCLA) 54 55Upper Nile State 59 69US fallen dream 76

VVirunga National Park 18

WWar and conflict 58

-consequences of 58Wars and minerals 21

-cobalt 22-coltan 22-copper 22-diamond 22-gold 22-manganese 22-peace at last 21-timber 22-tin 22-zinc 22

Wau Shilluk 59We Thought it was Oil but it

was Blood 81Wealth 12 13

-for whom 13-quest for 12

World Heritage site 18Worldwatch 40

Page 16: LIVING IN FEAR - Health of Mother Earth Foundation...Les quatre puissances militaires regionales d´Afrique. 12 LAVDC. 2014. Les quatre puissances militaires regionales d´Afrique

LIVING IN FEAR

18

Africa continues the exploitation of its naturalresources

Most of the African Governments that discover naturalresources in their territory eagerly move forward with theexploration of those Therefore natural resources areexplored all over the continent oil in Ghana manganese inGabon gas in Mozambique just to name a few Often thereis little consideration of the destruction or the conflicts theseextractive activities bring For instance according to the BBCin March 2015 the Congolese Government consideredmodifying the boundaries of the Virunga National Park homeof gorilla mountains and World Heritage site to permit oilexploration activities31

DRC and South Sudan as well are exploring a joint projectnow DRC has a frontier with South Sudan in the Northeastpart of the country While historically both ndash referring alsoto Sudan ndash did not often have a common grounds after theIndependence of South Sudan in 2011 it appears possiblethat natural resources may unite them more closely IreneMuloni Minister for Energy and Minerals Development fromUganda announced in an interview in February 2015 thatSouth Sudan and the DRC have expressed interest in theconstruction of an oil pipeline of over 1000 km to the Kenyancoast32 Although yet to be implemented there have beendiscussions and plans to construct a pipeline that would unite

31 BBC 2015 DR Congo seeks Virunga park bounary httpwwwbbccomnewsworld-africa-31876577See also New York Times2014 Oil dispute takes a page from Congoacutes bloody past httpwwwnytimescom20141116worldoil-dispute-takes-a-page-from-congos-bloody-pasthtml_r=1

32 Platts 2015 South Sudan DR Congo interested in Ugandan crudeoil export pipeline minister httpwwwplattscomlatest-newsoilkampalasouth-sudan-dr-congo-interested-in-ugandan-crude-26025080

19

1 THE QUEST FOR WEALTH

oil production and distribution in several African countriesincluding South Sudan Uganda Kenya Democratic Republicof Congo (DRC) and maybe others33

The forthcoming chapters will develop more elementsaround this topic in order to conclude some final remarkswith the particular case studies of DRC and South Sudan

33 The Economist 2013 Pipeline poacuteker httpwwweconomistcomnewsmiddle-east-and-africa21578402-east-africa-danger-throwing-away-part-its-new-found-oil

20

LIVING IN FEAR

Minerals and Wars at the GreatLakes Wealth Death and Massive

Poverty in the Heart of Africa

Our internal difficulties tribal war and the nucleiof political opposition seemed to have beenaccidentally concentrated in the regions with ourrichest mineral and power resources We know howall this was organised and in particular whosupports it today in our house

Our Katanga because of its uranium copper andgold and our Bakwanga in Kasai because of itsdiamonds have become hotbeds of imperialistintrigues The object of these intrigues is torecapture economic control of our country

Patrice Lumumba speech in Leopoldville in August 25th1960 34

34 Speech at the opening of the All-African Conference in Leopoldville in1960 See httpwwwassatashakurorgforumshoulders-our-freedom-fighters42970-collected-speeches-writings-patrice-lumumbahtml

2

21

2 MINERALS AND WARS AT THE GREAT LAKES

Lumumba the first democratically elected Prime Ministerof the Republic of Congo gave a speech in 1960 that wasremarkably prescient of the fate of Democratic Republic ofCongo (DRC) today Conflict minerals and ldquotribal warsrdquo gohand in hand in the DRC historyrsquos past decades Lumumbawas planning to get the DRCrsquos related difficulties undercontrol however he was executed a few months after thespeech by a firing squad in January 1961 The US throughthe CIA the United Kingdom through the M16 and Belgiumwere all blamed for their involvement in his death35

Paradoxically ldquothe assassinations were made by the ordersof those who proclaim themselves to be champions ofdemocracy and respecters of human rightsrdquo36 Externalmeddling and intervention in Congorsquos affairs by foreigncountries is another of the concurrent and repeated situationsthat continue in recent history of the DRC37

Wars and minerals peace at last

hellip The heart of Africa is bleeding hellip

Two wars raged in DRC from 1996-1997 and from 1998-2003 Contrary to what some affirm these were not ethnicconflicts but resource wars38 No coincidence that the

35 BBC 2013 M16 and the death of Patrice Lumumba httpwwwbbccomnewsworld-africa-22006446

36 VVAA 1992 Congo (Zaire) Democratie neo-coloniale ou deuxiemeIndependance Ed LrsquoHarmattan

37 The Guardian 2011 Patrice Lumumba the most importantassassination of the 20th centuryhttpwwwtheguardiancomglobal-developmentpoverty-matters2011jan17patrice-lumumba-50th-anniversary-assassination

38 See Friends of the Congo websitehttpwwwfriendsofthecongoorgresource-centercongo-primerhtml See also Lanotte 2003 RDCguerre sans frontiers Editions Complexe

22

LIVING IN FEAR

country possesses extraordinary mineral wealth with someof the most valuable and strategic minerals on earth suchas coltan diamond cobalt copper gold tin zincmanganese timber and others The highest concentrationof mining activities existin the Eastern part of the countryTo illustrate the predominance of mining here we wouldunderline the affirmation of the Katanga Minister ofPlanning who said that 72 of the territory of Katanga isdevoted to mining No surprise why the IMF has namedDRC one of the worldrsquos mining giants of today39 Themagazine African Business stated in 2009 that ldquothe totalmineral wealth of the DRC was estimated to be some $24trillionrdquo40 As Lumumba indicated back in 1960 the samescenario repeated in recent years ndash minerals and conflictscontinue to go hand by hand

DR Congo possesses some 80 of the worldrsquoscoltan ore reserves(hellip) Additionally the DRCongo produces significant quantities ofdiamonds gold cassiterite copper cobalt (ofwhich it has the worldrsquos largest reservesalthough the trade is largely controlled byZimbabwe) oil tin zinc gold and coffee Thecountry has large reserves of uranium it wasCongolese uranium that was used for theManhattan Project that produced the worldrsquosfirst atomic bombs dropped on Japan The vastcountry also has more than half of sub-SaharanAfricarsquos timber stocks

Source African Business

39 IMF 2013 DRC Poverty reduction strategy paper N 1322640 African Business 2009 DR Congo $24 trillion fortune

23

2 MINERALS AND WARS AT THE GREAT LAKES

The casualties over the years are overwhelming Whileeverybody is familiar with the death toll during the genocidein Rwanda estimated between 500000 and 800000 peoplethere is much less awareness about the conflict situation inCongo The International Rescue Committee has estimatedthat the conflict and humanitarian crisis in the DemocraticRepublic of Congo has taken a death toll of 54 million peoplefrom 1998 to 200741 A CNN correspondent in trying togive an illustration of the heavy toll made the followingcomparative analysis

The wars in that country ndash RD Congo ndash haveclaimed nearly the same number of lives as havinga 911 every single day for 360 days the genocidethat struck Rwanda in 1994 the ethnic cleansingthat overwhelmed Bosnia in the mid-1990s thegenocide that took place in Darfur the number ofpeople killed in the great tsunami that struck Asiain 2004 and the number of people who died inHiroshima and Nagasaki mdash all combined and thendoubled42

Rwanda and Uganda were actively involved in the invasionof Congo in both wars The second war was known as theGreat War of Africa involving nine countries and more than20 armed groups According to Cynthia Ann McKinney aUS Congresswoman from the Democratic Party and an

41 IRC 2007 IRC study shows Congorsquos neglected crisis leaves 54 milliondead httpwwwrescueorgnewsirc-study-shows-congos-neglected-crisis-leaves-54-million-dead-peace-deal-n-kivu-increased-aidmdash4331 Some groups put the death toll much higher See GlobalResearch webpage httpwwwglobalresearchcathe-war-that-did-not-make-the-headlines-over-five-million-dead-in-congo7957

42 CNN 2012 Why the world is ignoring Congo war httpeditioncnncom20121127opinioncongo-war-ignored-vava-tampa

24

LIVING IN FEAR

expert on the Great Lakes issues while invading DRC in theSecond Congo War the US continued providing financialsupport to the governments of Rwanda and Uganda43 Howwas this allowed US President Bill Clinton was personallyin Rwanda in March 1998 only a few months before theRwandese army invaded Congo44 President Clinton was inAfrica at that time addressing its presidents includingPresidents Kagame and Museveni as leaders of the ldquoAfricanRenaissancerdquo and seeing a bright future for Africa45 ThereClinton made an important call to embrace peace How wasit possible to talk about peace while these allies were directlyengaging in war Moreover with the experience of thegenocide in Rwanda how could it be that foreign powersclosely involved in the region particularly the United Stateslet this occur again How did they allow wars and conflictsthat killed millions of people How could they allow whatmany called another genocide in Congo

On a positive note at last in recent months the calls forpeace have been growing from many different stakeholdersIn May 2014 US Secretary of State John Kerry after ameeting with DRC President Kabila stated that ldquoachievinga lasting peace in the DRC is a priority of President ObamardquoHe added ldquoNow I canrsquot emphasize enough how importantthat process is in identifying and resolving the root causesof the conflict in the DRC as well as in the entire GreatLakes regionrdquo46 Not a minor task going to the roots causes

43 Order of Indictment from Juzgao de instruccion numero CuatroAudiencia Nacional Case 320008-D 6-2-2008

44 See CBS News httpwwwcbsnewscomnewstext-of-clintons-rwanda-speech

45 Schaefer 2000 The Keys to an African Economic Renaissance httpwwwheritageorgresearchreports200005the-keys-to-an-african-economic-renaissance

46 See US Dept of State 2014 Press Availability on the DRC and theGreat Lakes Region httpwwwstategovsecretaryremarks201405225587htm

25

2 MINERALS AND WARS AT THE GREAT LAKES

of those problems in the Great Lakes Indeed achieving peaceand reconciliation in the Great Lakes Region in countriesthat had suffered like DRC is a difficult and cumbersometask and making it by finding the ldquorealrdquo root causes can bea very complex and lengthy exercise taking decades orlonger

The situation remains tense We recall that in 2006 theUN Security Council issued a resolution condemning ldquotheactivities of militias and armed groups operating in the GreatLakes regionrdquo47 Almost a decade later those armed groupsare still there and despite the efforts made the situationremains tense and insecure A report of the Group of Expertson the RDC published in 2015 by the United Nations SecurityCouncil concludes that in DRC despite a defeat of one of therebel groups ndash the Movement of 23 March ndash at the end of2013 this ldquofailed to translate into significant gains in securityand security and stability in 2014rdquo48 For example in thebeginning of 2015 a rebel group from Uganda the AlliedDemocratic Forces (ADF) created havoc in North Kivuwhere 17 people were hacked to death with machetes49

47 UN Security Council 2006 Resolution 1653 (2006) SRES165348 UN Security Council 2015 Final report of the Group of Experts on

the DRC S20151949 UN Security Council 2015 March 2015 monthly forecast http

wwwsecuritycouncilreportorgmonthly-forecast2015-03democratic_republic_of_the_congo_7phpVP-BX5Sm4agmailto

26

LIVING IN FEAR

Armed groups militias and criminal networkswithin the military structure making a lucrativebusiness out of minerals

The UN has solidly demonstrated that natural resources areused to finance armed groups and therefore to fuel war inthe region 50 The UN concludes that ldquoarmed groups continueto control many mining sites and to profit from mining andthe minerals traderdquo51 Later on those minerals particularlytin tungsten and tantalum are smuggled to neighbouringcountries For example one of the armed groups theMovement of 23 March (M23) responsible for taking Gomaat the end of 2012 was financing its organisation fromnatural resources in Eastern Congo In relation to thisparticular case the UN asserts that ldquoseveral traders havecontributed to financing M23 rebels using profits resultingfrom the smuggling of Congolese minerals into Rwandardquo52

Besides the rebel groups a criminal network within theArmed Forces of the DRC (FARDC) was involved in the illegalexploitation of natural resources The types of involvementinclude illegal taxation protection rackets and indirectcommercial control to more direct coercive control53

For some top army officials their military work wasconverted into economic businesses Indeed the existing

50 UN Security Council 2014 Final report of the Group of Experts onthe Democratic Republic of the Congo

51 Ibidem52 Ibidem53 UN Security Council 2010 Letter dated 26 October 2010 from the

Group of Experts on the DRC addressed to the Chair of the SecurityCouncil Committee established pursuant resolution 1533 (2004) S2010596

27

2 MINERALS AND WARS AT THE GREAT LAKES

practices made the UN qualify the war as a ldquolucrativebusinessrdquo

illegal exploitation of resources by BurundiRwanda and Uganda took different forms includingconfiscation extraction forced monopoly andprice-fixing The first two forms reachedproportions that made the war in the DRC a verylucrative business There are strong indicationsthat even if security and political reasons werethe professed motivation to move into the easternDRC some top army officials clearly had economicand financial objectives54

The most UN recent reports affirm that ldquomany armed groupsin Eastern Democratic Republic of the Congo have derivedtheir revenue from the production of and trade in naturalresourcesrdquo55

54 UN Security Council 2001 Security Council condemns ilegal exploitationof Democratic Republic of Congoacutes natural resources Press Releasehttpwwwunorgpressen2001sc7057dochtm

55 UN Security Council 2014 Final report of the Group of Experts on theDRC S201442

28

LIVING IN FEAR

Insecurity still booming in Eastern Congo

As already mentioned the momentum created bythe defeat of the Movement of 23 March inNovember 2013 failed to translate into significantgains in security and stability in 2014 in EasternDemocratic Republic of the Congo A militaryoperation against the Allied Democratic Forces(ADF) significantly weakened but did not defeatthe sanctioned armed group An expected militaryoperation against the Forces deacutemocratiques delibeacuteration du Rwanda (FDLR) did not materializeand as of the end of November 2014 efforts tonegotiate the disarmament of this sanctionedarmed group failed to produce meaningful resultsIn addition numerous Congolese and foreignarmed groups contributed to instability inOrientale North Kivu South Kivu and KatangaprovincesADF FDLR Nduma Defence for Congo (led bysanctioned individual Sheka Ntabo Ntaberi) andother armed groups continued to recruit train anduse child soldiers in 2014 Armed groups alsocommitted a variety of other abuses includingtorture enslavement and sexual violence Therewere mass killings in June in Mutarule (South Kivu)and in October and November in Beni territory(North Kivu)

Source United Nations Security Council 201556

29

2 MINERALS AND WARS AT THE GREAT LAKES

One of the problems the existing insecurity and conflicts havecreated is the proliferation of internally displaced peopleestimated in September 2014 at 27 million people57

UN peacekeeping operation in Congo

In July1999 Heads of State of Angola DRC NamibiaRwanda Uganda Zambia and Zimbabwe signed the Lusakaagreement focusing on the establishment of a ceasefire asone of the other components necessary for the deploymentof a UN peacekeeping force

The first UN Peacekeeping operation in DRC wasestablished in November 1999 after the Lusaka Ceasefireagreement It was called the UN Mission in the DRC(MONUC) In 2010 it was renamed the UN OrganizationStabilization Mission in the DRC (MONUSCO)

Ten years later despite the deployment of MONUC thesecurity challenges in DRC ndash particularly in the Eastern Partof the country ndash remain high58 There is still a strong presenceof armed groups chronic humanitarian crisis continuoushuman rights violations and continued illegal exploitationof natural resources In the light of this context the UNcreated an ldquoIntervention brigaderdquo with a key objective ofneutralizing armed groups59 As of today the MONUSCOand the intervention brigade are operational but are theresignificant security changes

56 Ibidem57 See global humanitarian assistance webpage http

wwwglobalhumanitarianassistanceorgcountryprofiledemocratic-republic-of-congo

58 UN Security Council 2010 Resolution 192559 UN Security Council 2013 Resolution 2098

30

LIVING IN FEAR

60 UN Security Council 2014 Final report of the Group of Experts on theDRC S201442

61 PR Newswire 2014 Rwanda has become worldacutes largest coltanexporterhttpwwwprnewswirecomnews-releasesrwanda-has-become-worlds-largest-coltan-exporter-reports-kt-press-300010371html

62 PR Newswire 2014 Rwanda has become worldacutes largest coltanexporter

63 Africa Briefing 2015 Rwanda has abundant deposits of best qualitycoltan Kagame affirms httpafricabriefingorgp=478

Legitimate exports or smuggling conflictminerals

It is well known that many of the minerals in Eastern Congoare smuggled and do not follow legal channels For instancethe UN estimates that 98 of the gold produced in DRC issmuggled out of the DRC making the country lose millionsof dollars in tax revenue60

In December 2014 numerous media covered a story onRwanda and coltan PR Newswire affirmed that ldquoRwandahas become worldacutes largest coltan exporterrdquo61 The dataprovided concluded that in 2013 Rwanda exported around2500000 kg of tantalum which constituted 28 of the total8807232Kg of tantalum produced globally The overallrevenue from the coltan was estimated at around $140 M62

Rwandese President Paul Kagame was quoted as affirmingthat the production was local and dismissed all possibleallegations of plundering the coltan from Congo He affirmedldquoRwanda has not only enough coltan but of a very highquality (hellip) we can even pay for a ticket give them a visaand take them to the minesrdquo63

Contrary to such statements there are many reports thatcoltan is smuggled from Congo to Rwanda and that Rwandadoes not have significant coltan mining on its own For

31

2 MINERALS AND WARS AT THE GREAT LAKES

instance a 2012 report prepared by a European Foundationaffirmed that ldquoRwanda does not house any industrial coltanmines which would suggest legitimate Rwandan coltanproductionrdquo64 A US governmental agency which analyzesthe mining sector in Congo made a table with coltan exportedfrom Rwanda qualifying it as ldquoconflict mineralsrdquo as seen inTable 165 Since there is no known conflict in Rwanda it canonly refer to Rwanda exports of minerals originating froman external conflict zone the DRC

Table 1 Estimates of exports of conflictminerals from Rwanda for Fiscal years2009-2013 in Metric Tons

Year Tantalum

FY 2009 958

FY 2010 827

FY2011 915

FY2012 1139

FY 2013 2466

Source Based on United States Government Accountability Office 2014

64 Van Teeffelen 2012 The EU raw materials policy and mining in RwandaEvert Vermeer Foundation

65 United States Government Accountability Office 2014 Conflictminerals stakeholder options for responsible sourcing are expandingbut more information on smelters is needed

32

LIVING IN FEAR

In this particular situation either somebody is wrong orsomebody is lying Hopefully future events will unveil thetruth around the nature of the coltan exports from Rwandato clarify whether they are a legitimate export or theconsequence of smuggling conflict minerals

Greed for minerals everybody wants a pieceof Congo66

What is at the origin of those wars and instability of theCongo While there could be diverse factors for conflictthere is one that seems to be always recurrent and is recog-nized by most authors and by relevant UN reports the racefor minerals and natural resources The UN recognized thatin the Second Congo War minerals were the coveted trophyand that all actors ldquobuilt up a self-financing war economycentred on mineral exploitationrdquo67 The conflicts that con-tinued after the Second Congo War like those in Kivu andIturi provinces are recognized as well to be fuelled by tradein minerals Along the same lines Palou underlines the causesof the conflict by stating that ldquoalthough from that time un-til the present day the Rwandan regime has expressed itsconcern about the security of its border with the then Zaireobjectively the reality is that control over this strategic areandash Eastern Congo ndash and its valuable mineral resources has

66 See video at Congo Justice httpcongojusticeorg67 UN 2002 Final report of the Panel of Experts on the illegal exploitation

of natural resources and other forms of wealth of the DemocraticRepublic of the Congo S20021146

33

2 MINERALS AND WARS AT THE GREAT LAKES

proved to be at the heart of two wars that have left a hugenumber of victimsrdquo68 In conclusion a 2001 UN report as-serted that ldquothe conflict of DRC has become mainly aboutaccess control and trade of five key mineral resourcescoltan diamond copper cobalt and gold The wealth of thecountry is appealing and hard to resist in the context oflawlessness and the weakness of the central authorityrdquo69

Congolese and regional elite have also profited from thissituation as well and the appalling quantum of the plunderare reflected in the following report from UN

The elite network of Congolese and Zimbabweanpolitical military and commercial interests seeksto maintain its grip on the main mineral resourcesmdash diamonds cobalt copper germanium mdash of theGovernment-controlled area This network hastransferred ownership of at least US$ 5 billion ofassets from the State mining sector to privatecompanies under its control in the past three yearswith no compensation or benefit for the Statetreasury of the Democratic Republic of the Congo70

Funds that could have been used for public services havebeen diverted from the public coffers by fraud or by theexcuse of war effort71 The Congolese population has paid

68 Palou 2010 International Justice plunder in war human rights andmultinationals

69 UN Security Council 2001 Report of the Panel of Experts on theillegal exploitation of natural resources and other forms of wealth ofthe Democratic Republic of the Congo S2001357

70 UN Security Council 2002 Final report of the Panel of Experts on theilegal exploitation of natural resources and other forms of wealth ofthe Democratic Republic of the Congo S20021146

71 Ibidem

34

LIVING IN FEAR

dearly in this situation In terms of human development it isinstructive that the UNDP estimated in 2013 that RDCwas in the low human development category ndash positioningthe country at 186 out of 187 countries and territories72

The Role of Transnational Corporations (Tncs)and the private sector

Other key players involved in the conflict are Transnationalsand the private sector A UN Report published a few yearsafter the Second Congo War started affirmed that ldquothe roleof the private sector in the exploitation of natural resourcesand the continuation of the war has been vitalrdquo73 The reportalso added that ldquoa number of companies have been involvedand have fuelled the war directly trading arms for naturalresourcesrdquo74 Other observers share the view that ldquoWesternMultinationals have been one group responsible for thepillage and illegal exploitation of Congo mineral resourcesrdquo75

There are a large number of big foreign corporationsinvolved in mining in DRC including those from CanadaSouth Africa UK USA and others Despite the opacity ofmost of the activities of the private sector numerousexamples have been reported of how TNCs are responsiblefor human rights abuses and other illegal activites Thereare also many reports of the dangerous connectionsestablished with the political and military elite in order tofacilitate their businesses These are some examples

72 UNDP 2014 Sustaining human progress reducing vulnerabilities andbuilding resilience Congo (Democratic Republic of the) httphdrundporgsitesallthemeshdr_themecountry-notesCODpdf

73 UN 2001 Report of the Panel of Experts on the illegal exploitation ofnatural resources and other forms of wealth of the Democratic Republicof the Congo S2001357

74 UN 2001 Ibidem75 Palou Ibidem

35

2 MINERALS AND WARS AT THE GREAT LAKES

bull Glencore Anglo-Swiss giant in the raw material sectorwith a turnover of US $ 2397 billion in 2013 was beingaccused in 2014 of adopting a military-style response tothe problem of artisanal mining close to its mines ldquoonseveral occasions over the past 18 months mine policehave fired live ammunition in pursuit of artisanal minerson Glencorersquos site resulting in deaths and seriousinjuriesrdquo76 They are as well responsible forcontamination of the water supply with acid content andvery high and concentrations of copper and cobaltFinally the company operates some of its concessionsinside a reserve ndashndash something that in principle is illegalaccording to the RDC Mining Code77

bull An independent investigation unveiled that two miningcompanies Glencore and the Eurasian Natural ResourcesCorporation were involved in underpricing assets incomplex deals featuring offshore companies causinglosses to the DRC of no less than $136 billionIntermediary companies in the deals were linked to DanGerler78 In addition the DRC public prosecutorreportedly told mining companies that they had toreimburse $37 billion in taxes duties and fines79

bull AngloGold Ashanti part of the AngloAmericancorporation was accused of establishing links and

76 Peyer et al 2014 PR or Progress Glencoreacutes corporate responsibility inthe DRC Bread for all RAID Fastenopfer

77 Ibidem78 CRS 2014 Democratic Republic of Congo Background and US Policy79 Reuters 2014 Disputed Congo report says miners owe $37 billion in

tax fines httpwwwreuterscomarticle20140130us-congo-democratic-mining-idUSBREA0T12L20140130

36

LIVING IN FEAR

supporting one armed group the Nationalist andIntegrationist Front (FNI)80

bull In 2004 fighting between soldiers and rebels in Kilwaended in serious human rights violations againstcivilians including summary executions arbitraryarrests rape and torture Anvil Mining operated theDikulushi copper mine near Kilwa and was accused ofproviding vehicles and planes to the Congolese armedforces during this event The legal case ended in theCanadian Supreme Court in 2012 which ruled that itwould not hear the plaintiff rsquos appeal ndash they were led bythe Canadian Association Against Impunity (anassociation representing survivors of the incidents inOctober 2004)81

bull In May 1997 Citibank NY a financial institution hasbeen accused of giving $5 million loan to a Congolesemilitia allied with Rwanda82

bull American Mineral Fields (AMF) cut a $1 billion dealwith Kabila immediately after his forces captured GomaThe negotiations were led by ldquoKabilarsquos US-trainedfinance ministerrdquo who gave ldquoAMF exclusive explorationrights to zinc copper and cobalt mines in the area MikeMcMurrough a friend of US President Bill Clinton wasthen the chair of AMF83

80 Human rights watch 2005 DRC Gold fuels massive human rightsatrocities httpwwwhrworgennews20050601dr-congo-gold-fuels-massive-human-rights-atrocities

81 Business and human rights resource center 2012 Anvil Mining Lawsuit(re DRC) httpbusiness-humanrightsorgenanvil-mining-lawsuit-re-dem-rep-of-congo

82 Global research 2008 Congo Resource wars httpwwwglobalresearchcacongo-resource-wars8310

83 Global research 2008 Ibidem

37

2 MINERALS AND WARS AT THE GREAT LAKES

UN and some other independent reports generally makebroad statements about the role of corporations includingciting some of the companies however they fall short ofproviding details of the modus operandi of those companiesand in establishing or suggesting concrete measures to stopthe conflicts and solve the negative impacts on the DRCpopulation and environment A 2002 UN Report listed 85companies considered by the Panel to be in violation of theOECD Guidelines for Multinational Enterprises84 Very littlehas been done after the UN report was published

A poor country Until when

In 1969 World Bank President Robert McNamara embarkedon a trip to Africa to try to discover ldquowhat are therequirements for developmentrdquo85 At that time the WorldBank in its information document described the country asrich in natural resources but at the same time poor and witha strong mining sector

In spite of its rich natural resources and greatpotential the Congo is still a poor country (hellip)Mining and metallurgy play a leading role in theeconomy86

84 UN 2002 Final Report of the Panel of Experts on the Illegal Exploitationof Natural Resources and other Forms of Wealth of the DemocraticRepublic of the Congo S20021146

85 Records of President Robert S McNamara Travel briefs CongoKinshasa (01021969-03031969) 1772506 Reference Code WBIBRDIDA 03 EXC-10-4540S World Bank Group archives WashingtonDC United States

86 Ibidem

38

LIVING IN FEAR

More than forty years later not much has changed asupdated data shows In DRC seven out of ten householdsare poor87 Most of its nearly 60 million people areldquodesperately poor living on less than $1 a dayrdquo88 DRC is aleast developed country a fragile State that has been in thetop 10 recipients of humanitarian assistance in nine of thelast 10 years Between 2003 and 2012 DRC received US$176billion in official development assistance (ODA) making itthe 10th largest recipient89In 2012 the Democratic Republicof Congo (DRC) received US$286 billion in net officialdevelopment assistance90

With so many natural resources isnrsquot there money to getpeople out of poverty The mining sector is oftenacknowledged as being capable of contributing to povertyreduction However those mineral benefits are oftencreamed off by powerful interests and do not get to thehands of the majority of the population According to DFIDldquofiscal receipts from the minerals sector are siphoned off bypowerful interest groups instead of being used in the publicsectorrdquo91

The analysis of Mr Antonino Giambrone sheds more lightabout the earnings and who profits from mining

While the average Congolese worker earns $10 permonth the average Congolese coltan-miner earnsanywhere from $10 to $50 per week Uganda

87 IMF 2013 DRC Poverty reduction strategy paper N 1322688 DFID 2008 Democratic Republic of Congo Country Plan89 View global humanitarian assistance webpage http

wwwglobalhumanitarianassistanceorgcountryprofiledemocratic-republic-of-congo

90 CRS 2014 Democratic Republic of Congo Background and US Policy91 DFID 2008 Democratic Republic of Congo Country Plan

39

2 MINERALS AND WARS AT THE GREAT LAKES

Rwandan and Congolese rebels have earned manymillions of dollars in sales of coltan which theyhave used to finance their war efforts in the CongoBetweeen 1999 and 2000 the Rwandan army aloneearned at least $20 million a month from coltan92

Food insecurity is often a consequence of poverty One ofthe causes of existing food insecurity is the abandonment ofthe agriculture sector partly due to conflicts The governmentstated that it would like to strengthen the smallholdersldquowhile ensuring at the same time the protection of thecountryrsquos natural resourcesrdquo93

War impacts on the environment

The wars have had devastating impact on the environmentNational parks for instance home of many endangeredspecies are also affected by the exploitation of minerals94

There are numerous reports on the precarious situation ofwildlife in the region For instance between 1995 and 19994000 out of 12000 elephants were killed in the GarambaPark in North-eastern DRC95 The situation was also seriousin other parks For instance in Kahuzi-Biega Park a zonerich in coltan only 2 out of 350 elephant families remained

92 Giambrone 2006 The extraction of natural resources as a source ofconflict Etfo voice

93 IMF 2013 DRC Poverty reduction strategy paper N 1322694 Seeh ttpwww lenntech comenv ironmental -ef fec ts -

warhtmixzz3CuGZqE3M95 UN 2001 Report of the Panel of Experts on the illegal exploitation of

natural resources and other forms of wealth of the Democratic Republicof the Congo S2001357

40

LIVING IN FEAR

in 200096 Mountain gorillas are also under threat due tocontinued civil unrest and the presence of armed militiasmakes survey and conservation work difficult in the DRCrsquosprotected areas97

Deforestation is also one of the common impactsWorldwatch explains the implication of having refugeespopulation inhabiting RDC degraded forest areas

For two years beginning in late 1994 for exampleabout 720000 Rwandans inhabited refugee campson the fringes of Virunga National Park They allneeded wood for cooking fires and for buildingshelters and some also earned extra money bymanufacturing charcoal As a result up to 80000people entered the park and carted away up to1000 tons of wood every day By mid-1996 105square kilometers of forest had been affected toone degree or another by their activities 35 squarekilometers had been stripped bare98

Besides the need for fuelwood by refugees movement ofmilitary hardware through forests and woodlands also causeserious damage to forests and the landscape generally

96 Ibidem97 See WWF webpage httpwwfpandaorgwhat_we_doendangered_species

great_apesgorillasmountain_gorilla98 Worldwatch 2008 War and Environment httpwwwworldwatchorg

node5520

3South Sudan The Oil Way

99 Washington Post 2012 lsquoSouth Sudan civilians are trapped in conflictover oilrsquo httpwwwwashingtonpostcomworldsouth-sudan-civi l i ans-are- trapped-in-conf l ict -over-o i l20120501gIQAUX6buT_storyhtml

100 See UN Mission in South Sudan web page httpwwwunmultimediaorgtvunifeed201404south-sudan-bentiu-massacre

101 Reuters 2014 Bentiu massacre is game-changer in South Sudanconflict says UN official httpwwwtheguardiancomworld2014apr22bentiu-massacre-south-sudan-united-nations

41

ldquoIf we had no oil we would not be attackedrdquo

Nyak a 27-year-old sitting outside herhut in Bentiu South Sudan 201299

In April 2014 Bentiu the capital of the oil producing UnityState was the scenario of one of the worst massacres of thecivil war between South Sudanese forces100 Hundreds ofpeople were killed in the fighting that took place betweenthe Sudan Peoplersquos Liberation Army (SPLA) and anti-government forces in the oil-rich State101

42

LIVING IN FEAR

Civil wars and conflict

Since its independence in 1956 Sudan has been at war andconflict for most of its modern history Specialists in conflictand security have described the history of modern Sudan asldquoan unremitting sequence of wars punctuated by oft-violatedpeace agreementsrdquo102 The First Sudanese Civil War (1955ndash1972) was followed by a Second Sudanese Civil War (1983ndash2005) with barely 11 years breathing space of tenuoussecurity

The Second Civil War ended when both sides signed theComprehensive Peace Agreement in 2005 That agreementgave autonomy to South Sudan within Sudan However areferendum held in January 2011 moved the region towardsecession and then in July 2011 independence was achievedand South Sudan became an autonomous nation103 Theprocess that led to South Sudanrsquos independence was stronglysupported by the US government which backed Juba in itstwo decades struggle against Khartoum104 It should be notedthat even during the 11 years of supposed peace there wereconflicts on a regular basis particularly in the border areasbetween South Sudan and Sudan105 Two years after theindependence the first South Sudanese Civil War started inDecember 2013 The civil war erupted as a result of a power

102 Cox and Snapper 2013 The Strategic Importance of South Sudan TelAviv University

103 National Geographic 2013 South Sudan oil the environment andborder conflicts httpvoicesnationalgeographiccom2013032286550

104 See webpagehttpwwwworkersorgarticles20140101south-sudan-yet-another-oil-war

105 International Crisis Group 2006 Sudan Saving peace in the Easthttpwwwcrisisgrouporgenregionsafricahorn-of-africasudan102-sudan-saving-peace-in-the-eastaspx BBC 2015 South SudanProfile httpwwwbbccomnewsworld-africa-14019202

43

3 SOUTH SUDAN THE OIL WAY

struggle between president Salva Kiir from the Dinka ethnicgroup and his deputy Riek Machar from the Nuer ethnicgroup whom he had sacked As at the time of this writingthe civil war continues

Sudan vs South Sudan

The tensions and conflicts after the independence of SouthSudan from its neighbour Sudan did not stop in 2011 Topleaders from both sides accuse and threaten each other innumerous occasions For instance Sudanese President Bashirpromised to teach South Sudan a ldquofinal lesson by forcerdquo106

South Sudan President firmly swore that ldquowhether Umar al-Bashir likes it or not one day Abyei will rejoin the southrdquo107

Abyei

Abyei is traditionally the home of the Ngok Dinka asubdivision of the Dinka tribe with strong links to the Dinkain South Sudan Besides the Dinka Misseriya herders aremembers of nomadic Arab tribes that seasonally cross Abyeiand other nearby areas with their cattle in search of waterand pasture108

Since the signing of the Peace Agreement in 2005 betweenthe Government of Sudan and the SPLM the dispute over

106 The Washington Post 2012 lsquoSudanese president vows war againstSouth Sudanrsquo httpwwwwashingtonpostcomworldsudanese-president-threatens-force-against-south-sudan-over-oil-field20120419gIQAJ0G8ST_storyhtml

107 The Global Intelligence Files 2013 Sudan- President Kiir says Abyeiwill ldquorejoinrdquo South Sudan httpssearchwikileaksorggifilesviewemailid=674314

108 Enough Project 2013 What is the Abyei Area and why is it disputedhttpwwwenoughprojectorgblogsenough-101-what-abyei-area-and-why-it-disputed

44

LIVING IN FEAR

the future status of the Abyei area has beenone of the bigbarriers to stability in the region109Abyei is an oil-rich areadisputed by Sudan and South Sudan and stands out as thehotspot of bigger tension beetween Sudan and South Sudannowadays

The conflicts over Abyei have a history of more than 50years After the First Civil war the parties signatories to thepeace pact agreed that Abyei would hold a referendum todetermine whether they would be part of Sudan or a newlyregion in the South The second war commenced in 1983and the foreseen referendum was not done

In 2009 the Permanent Court of Arbitration in the Hagueruled on Abyei territory giving concessions to the Governmentof Sudan and the Southern Sudan Heglig and other closeroil-fields remained out of Abyei area while the rest of theAbyei region remained under control of the Ngok Dinka anethnic group close to Southern Sudan and keen on voting tojoin the South in a future referendum110Another referendumwas scheduled to be done in parallel with the South Sudanreferendum in 2011 but once again this never took place

Although a series of temporary security arrangementswere agreed in January and March 2011111 in May SudaneseArmy tanks entered the town of Abyei and by the 22nd ofMay they seized control of the town112The government ofSudan launched numerous military attacks in the disputed

109 UN Security Council 2011 Report of the Secretary-General on thesituation in Abyei S2011451

110 New York Times 2009 lsquoCourt redraws disputed area in Sudanrsquo httpwwwnytimescom20090723worldafrica23sudanhtml_r=1amp

111 UN Security Council 2011 Report of the Secretary-General on thesituation in Abyei S2011451

112 Reuters 2011 North Sudan seizes disputed Abyei thousands fleehttpwwwreuterscomarticle20110522us-sudan-abyei-north-idUSTRE74L14L20110522

45

3 SOUTH SUDAN THE OIL WAY

border of area where much of Sudanacutes remaining oil fieldsare situated113 Two years later the fighting remains intensein parts of South Kordofan and Blue Nile114 More than 2million people have been internally displaced or severelyaffected by the conflict since 2011115

In addition to military attacks other actions contributedto the tension There have been cattle raids by the MissiriyandashArab nomadic cattle herders inhabiting the area ndash on theNgok Dinka ndasha subdivision of the Dinka tribe inhabitingthis area In occasions more than 200 cows were stolenwith a large part of it recovered by the UN Interim SecurityForce for Abyei(UNISFA) These raids increase further thealready tense situation in the region and in particular thevery tense situation among the Missiriya and the NgokDinka116

113 The Conversation 2012 Oil fuels the conflict between Sudan andSouth Sudan ndashand it keeps getting hotter

114 OCHA 2014 South Kordofan and Blue Nile population movementsfact sheet httpreliefwebintsitesreliefwebintfilesresourcesSouth20Kordofan20and20Blue20Nile20Population20Movements20Fact20Sheet20-201920May202014pdfReuters 2013 Khartoum says rebels based in South Sudan caused oilpipeline blast

115 OCHA 2014 Ibidem116 See Human Security baseline assessment for Sudan and South Sudan

webpage httpwwwsmallarmssurveysudanorgdefacts-figuresborderdisputed-areasabyeihtml

46

LIVING IN FEAR

An oil-centered conflict

ldquoThe violence underscores the extent to which oilis at the heart of the dispute Khartoum whichcontrols the pipelines that take oil out of SouthSudan depends heavily on oil transit fees SouthSudan which depends on oil for 98 percent of itsrevenue has refused to pay the fees which it saysare exorbitantKhartoum responded by seizing oil tankers carryingSouth Sudanese oil and imposing economicblockades That prompted South Sudan to shutdown its entire oil production in February Thatmonth Sudan allegedly bombed an oilfield inSouth Sudan that was nine miles from the borderrdquo

Washington Post 2012

Missiriya attacks continue as of today UNISFA reported thatin March 2015 100 armed Missiriya killed several peopleand burnt over 20 houses in a village in the southern part ofAbyei117 Many of those attacks occur despite the presenceof UN peacekeepers in the zone

In this context a UN force was deployed in 2011 withmore than 4000 personnel mostly Ethiopian with theobjective of ensuring the demilitarization of the Abyei areaand particularly checking the Sudan Armed Forces and theSudan Peoplersquos Liberation Army Interestingly the UN forceshad also the task to provide security for oil infrastructure inthe Abyei Area in cooperation with the Abyei PoliceService118 In February 2015 the Security Council extended

117 Sudan Tribune 2015 South Sudan condemns deadly clashes in Abyeihttpwwwsudantribunecomspipphparticle54191

118 UN Security Council 2011 Resolution 1990 (2011) SRES1990(2011)

47

3 SOUTH SUDAN THE OIL WAY

the mandate of the UNISFA again until July 2015119 The AbyeiJoint Oversight Committee (AJOC) decided in May 2013 thatAbyei should adopt a status as weapons-free area and thatonly UNISFA would be authorized to carry weapons in thearea120

The situation in the area is still very fragile121 For instancevarious resolutions have called for the redeployement of allmilitary personnel from Abyei including those protecting itsoil infrastructure However the Sudanese Governmentskeeps at the Diffra oil complex around 150 Sudan oil policein a clear violation of an agreement and Security Councilresolutions adopted in 2011122 The UN Security council ina recent resolution

Condemns the presence of Diffra Oil Police unitsdeployed in the Abyei Area as well as the repeatedentry of armed militias into the territory andreiterates its demands that immediately andwithout preconditions the Government of Sudanredeploy the Oil Police in Diffra from the AbyeiArea ()123

Conflicts escalating over oil Heglig battles

In 2012 despite the Permanent Court of Arbitration ruling124

which placed Heglig oilfields in the Sudanese territories

119 UN News Center 2015 Security Council extends UN peacekeepingforce in Abyei through July 2015

120 UN Security Council 2015 Ibidem121 UN Security Council 2015 Security Council adopting resolution 2205

(2015) extends interim force in Abyei until 15 july voicing concernover delays in Borde Mechanismrsquos operation httpwwwunorgpressen2015sc11800dochtm

122 UN Security Council 2014 Report of the Secretary-General on thesituation in Abyei S2014518

123 UN Security Council 2015 Ibidem124 See Permanent Court of Arbritation webpage httpwwwlocgov

lawwebservletlloc_newsdisp3_l205401463_text

48

LIVING IN FEAR

the South Sudanese army launched an attack over Heglig125

South Sudanrsquos army took control of the oil-producing townof Heglig The South Sudan move did not enjoy sympathyfrom many countries including its allies such as the US andBritain126 The African Unionrsquos (AU) Peace and SecurityCouncil considered Sudanrsquos occupation of Heglig as illegal127

At the end after a few days South Sudan pulled back itstroops from Heglig even though President Salva Kiir stillclaims that Heglig is a part of South Sudan and is expectinginternational arbitration

Oil and geopolitics

The implications of the oil economy are self-telling Prior tothe separation of Sudan from South Sudan in 2011 theunified Sudan was the second-largest non-OPEC oil producerin Africa in 2010 When they separated Sudan and SouthSudanrsquos production diminished and together they rankedas the fourth-largest non-OPEC African oil producer in 2013Particularly the split of the country in oil revenues economicterms was a huge blow to Sudan with its crude oil exportrevenues falling from almost $11 billion in 2010 to around$18 billion in 2012128 It has been estimated that oilcontributes 98 of South Sudan government income morethan for any other government in the world129

125 Wall Street Journal 2012 Sudan escalates fight over oil httpwwwwsjcomarticlesSB10001424052702304444604577339461981143808

126 The Guardian 2012 South Sudan to withdraw from disputed oiltownhttpwwwtheguardiancomworld2012apr20south-sudan-withdraw-oil-town

127 IRIN 2012 Sudan-South Sudan Heglig and the border128 US Energy Information Administration 2014 Country analysis brief

Sudan and South SudanhttpwwweiagovcountriesanalysisbriefsSudansudanpdf

129 Global Witness 2009 Fuelling mistrust

49

3 SOUTH SUDAN THE OIL WAY

Although oil exploration started at the end of the 1950showever no success was achieved with the activities of Italianoil company Agip130 Discoveries were found in the years tofollow The first oil discovery was made in 1979 when theAmerican company Chevron found oil near the Darfur-Kordofan boundary Three years later Chevron made twolarger discoveries the Heglig and Unity oilfields which asof today are the most productive However by 1984 Chevronstopped its operations when some of its workers were killedby an armed group By 1988 the company dismantled all ofits operations in Bentiu and Unity provinces131

As a landlocked country all the oil in South Sudan had tobe extracted and exported via a pipeline The pipeline wasconstructed by China National Petroleum Corporation andit covered a length of around 1600 kilometers132 Ittransports the oil from South Sudan to the Red Sea Thecost of the pipeline was estimated at $1 billion and it wasfinished in 1999133At the time of the construction of thepipeline Sudan provided less than 1 of Chinarsquos oil importsbut a few years later by 2009 the investments of Chinatotalled more than $8 billion134

130 Understanding Sudan 2009 Fact sheet two A history of oil in theSudan httpunderstandingsudanorgOilOilResourcesL2FS2-HistoryofOilinSudanpdf

131 Understanding Sudan Ibidem132 The Conversation 2012 Oil fuels the conflict between Sudan and

South Sudan ndashand it keeps getting hotter133 Sitarek 2001 The human price of oil ICE Case Studies Number 83

httpwww1americanedutedicesudansanctionshtm16134 The Conversation 2012 Ibidem

50

LIVING IN FEAR

Source US Energy Information Administration 2014

South Sudan becameindependenth in July2011 Taking aboutthree-quarters of theproduction A disputeover transit fees ledSouth Sudan to haltproduction for most of2012

Oil production inSudan and South Sudan

thousand barrels per day

51

3 SOUTH SUDAN THE OIL WAY

Main oil companies in Sudan and South Sudan

While initially many companies involved were of Westernorigin most of the companies now involved in the oil sectorare from China and Malaysia

Source US Energy Information Administration 2014 Countryanalysis Brief Sudan and South Sudan

Row over oil tariffs

By 2011 both countries did not agree on how much SouthSudan should pay to export its oil through the pipelines inSudan Sudan requested a fee of 33 dollars a barrel whileSouth Sudan said the highest fee they could afford was 2

Table 2 Main oil companies in Sudan and South Sudan

52

LIVING IN FEAR

dollars a barrel135 Following this lack of agreement SouthSudan halted crude oil production in early 2012

This decision worsened the economic situation in bothcountries as both depend hugely on money from oil exportsfor their revenues However an agreement was reached andin April 2013 South Sudan restarted oil production136

Causes of the Sudanese Civil War

Wars in Sudan have been often portrayed quite simplisticallyas an ArabMuslim north versus and an AfricanCristiansouth While certainly ethnicity and religion played a rolethe conflict has been mainly fought over natural resources137

Today oil is the countryrsquos main natural resource and ithas been estimated that it accounts for 98 of South Sudanrsquosrevenue138 The multibillion potential of their revenuehowever has not translated into wealth and benefits for themajority of the population of South Sudan First of all it hasnot solved the problem of security as since the very inceptionof the State of South Sudan in 2011 there were conflicts inmany areas of the country particularly in the borderline withSudan A 2013 report from the World Bank illustrates thisby asserting that ldquodespite South Sudanrsquos great resourcewealth its population is one of the most deprived due todecades of neglect and war and the distortions of the oil

135 IPS 2011 South Sudan rows over exorbitant fees for pipeline use136 Reuters 2013 South Sudan resumes oil output after ending row with

Sudan over transit fees137 Caas 2007 Natural resources and conflict in Sudan138 See World Bank webpagehttpwwwworldbankorgencountry

southsudanoverview

53

3 SOUTH SUDAN THE OIL WAY

economyrdquo139 Indeed oil reserves sitting on a disputed borderbetween Sudan and South Sudan have not translated yetinto wealth for the majority of citizens of South SudanInstead most of the inhabitants of the country remain deeplypoor and do not enjoy even basic rights to access potablewater and adequate sanitation140

Oil has been a main cause for the war and conflicts inSudan For instance it influenced the end of the peaceagreement obtained after the first civil war This first civilwar ended in 1972 with the Addis Ababa Agreement Theagreement established a system of peaceful co-existence witha single country by guaranteeing aNorthern basedgovernment but granted at the same time autonomy in theSouth This however was not going to last long as thediscovery of oil at the end of the 1970s in Southern Sudanchanged the ldquocoexistencerdquo idea In 1978 Sudanese PresidentNimeiry decided to embark on oil exploration project thatwould lead to the finding of oil in commercial quantities Inorder to control the oil within the hands of the Northernbased Government military force was used and in additionto imposing islamic law which led to the new civil warstarting in 1983141

139 World Bank 2013 Interim Strategy Note (FY 2013-2014) httpwww-wdsworldbankorgexternaldefaultWDSContentServerWDSPIB20130207000333037_20130207110223RenderedPDF747670ISN0P1290Official0Use0Only090pdf

140 National Geographic 2013 South Sudan oil the environment andborder conflicts httpvoicesnationalgeographiccom2013032286550

141 Sitarek 2001 The human price of oil ICE Case Studies Number 83httpwww1americanedutedicesudansanctionshtm16

54

LIVING IN FEAR

Numerous authors have identified natural resources ashaving a direct correlation with wars and conflicts142 Ananalysis by Ross of the University of California (UCLA) ofthirteen wars and conflicts concluded that in the case ofSudan oil was one of the key causes of the second civil warand an incentive for advancing the independence of SouthSudan143 Ross describes his conclusion in the followingmanner

War in Sudan began in 1983 when SudanesePresident Nimeiry took a series of measures thatupset the delicate balance between thepredominantly Muslim north and the heavilyChristian and Animist south among these measureswas his decision to place newly discovered oil inthe countryrsquos south under the jurisdiction of thenorth and to build an oil refinery in the northinstead of the south The Sudan Peoplersquos LiberationArmy (SPLA) subsequently complained that thenorth was stealing the resources of the southincluding oil demanded that work cease on apipeline to take oil from the south to the refineryin the north and in February 1984 attacked an oilexploration base killing three foreign workers andbringing the project to a halt144

142 Varisco 2010 lsquoA study on the inter-relation between armed conflictand natural resources and its implications for conflict resolution andpeace buildingrsquo Journal of Peace Conflict and Development issue 15Ross 2003 How do natural resources influence civil war Evidencefrom 13 cases httpwwwsscnetuclaedupoliscifacultyrossHowDoesNat3pdf

143 Ross Ibidem144 Ross Ibidem

55

3 SOUTH SUDAN THE OIL WAY

Even when the different parties were discussing an agreementon ldquono attacks on civilians or civilian objectsrdquo oil was playinga central role It is instructive to note that the Sudanesegovernment desired language in the text stating that oilinstallations were ldquocivilian objectsrdquo while the SPLA wantedthe contrary145

Human Rights Watch reached the same conclusion thatoil without doubt has been a key fuel for war particularlysince the end of the 90s when crude oil was first exportedfrom Sudan in 1999146

Oil became the main objective and a principal causeof war (hellip) The large-scale exploitation of oil byforeign companies operating in the theatre of warin Southern Sudan has increased human rightsabuses there and has exacerbated the long-runningconflict in Sudan a conflict marked by gross rightsabuses ndashtwo million dead four million displacedsince 1983 ndashand recurring famine and epidemics147

Also the UN makes clear statements on the issue Specialenvoy Leonardo Franco expressed in a report that oilexacerbated the conflict

the economic political and strategic implicationssurrounding oil exploitation in western Upper Nilewhich have seriously exacerbated the conflictthereby causing a deterioration in the overall

145 Ibidem146 Human Rights Watch 2003 Sudan oil and human rights147 Human Rights Watch 2003 Sudan oil and human rights

56

LIVING IN FEAR

situation of human rights and respect forhumanitarian law and narrowing the slim chancesfor peace148

Indeed multiple causes and elements contributed to theconflicts It was recognized that ethnicity and religion wereimportant elements however the key dimension is controlover natural resources particularly oil Added to this are alsotensions over land and resources and the promotion by thegovernment of crops like cotton and sugar which displacedcertain groups of people149 Similar conclusions were reachedyears back by a Canadian Government Mission in Sudanwhich fully recognized some ethnic disputes as well asdisputes over other natural resources however oil was thekey factor which made things really dramatic

148 UN 2000 Interim report of the Special Rapporteur of the Commissionon human rights on the situation of human rights in the Sudan A55374 httpwwwunorgdocumentsgadocs55a55374pdf Seealso UN 1999 Situation of human rights in Sudan UN Doc A54467

149 University of Massachusetts (undated) Modern conflicts conflictprofile SudanhttpwwwperiumassedufileadminpdfSudan1pdf

57

3 SOUTH SUDAN THE OIL WAY

The Harker mission pointed out that while therehave always been pressures on the Dinka in theHeglig- Ruweng area as a result of inter-tribalfighting with Arab nomads for grazing areas anddry-season water the situation had worsened withthe beginning of oilexploration and had continuedto deteriorate over theyears because of the periodicoffensives launched by the Government and itsallies resulting in destructionand mass populationdisplacement150

South Sudan has one of the largest oil reserves inSub Saharan Africa and the commodity is thelifeline of the countryrsquos economy accounting for98 percent of the governmentrsquos financial resources

Whoever controls South Sudanrsquos oil thereforecould seize the upper hand in the battle for power

Source France 24 2013 lsquoBattle for oil adds newdimension to South Sudan conflictrsquo

Whoever controls South Sudanrsquos oil therefore could seizethe upper hand in the battle for power

The same scenario applies to the South Sudan Civil Warwhich initially was also portrayed along ethnic line TheDinka ethnic group of President Salva Kiir has fought rebelsallied with former vice president Riek Machar of the Nuer

150 UN 2000 Interim report of the Special Rapporteur of the Commissionon human rights on the situation of human rights in the Sudan A55374 Ibidem

58

LIVING IN FEAR

ethnic group However increasingly ldquothe focus of the fightingis shifting to the battle to control the countryrsquos mostimportant natural resource ndash oilrdquo151 The oilfields haveliterally become the battlefields

Consequences of war and conflict

The damage inflicted on people as a consequence of war ishuge Back in 2001 US Secretary of State Colin Powellqualified the war in Sudan in the following terms ldquoThere isperhaps no greater tragedy on the face of the earth todaythan the tragedy that is unfolding in the Sudanrdquo152 Firstthere is a large number of deaths due to war and war relatedcauses and also a huge number of displaced people Thedeath toll derived from the Second Civil Sudanese War isestimated at two million The US Commitee for refugeesasserted that ldquothis massive loss of life surpasses the civiliandeath toll in any war since World War IIrdquo153 In the mostrecent civil war the South Sudanese Civil War that startedin December 2013 by April 2014 the death toll wasestimated to be at 10000154

Besides the death toll there are estimated more than fourmillion people of the Southern Sudanese population forced

151 France 24 2013 Battle for oil adds new dimension to South Sudanconflicthttpwwwfrance24comen20131227-battle-oil-adds-new-dimension-south-sudan-conflict

152 Human Rights Watch 2003 Ibidem153 See US Committee for Refugees webpage in 2001 http

webarchiveorgweb20041210024759httpwwwrefugeesorgnewscrisissudanhtm

154 International crisis group 2014 South Sudan a civil war by any othernamehttpwwwcrisisgrouporg~mediaFilesafricahorn-of-africasouth20sudan217-south-sudan-a-civil-war-by-any-other-namepdf

59

3 SOUTH SUDAN THE OIL WAY

to flee their homes at one time or another It has also beenargued that the development of oilfields has led to the forcedremoval of the local population In the words of the lateJohn Garang oil was a ldquokiller itrsquos evicting our civilianpopulationrdquo claiming 100 000 people displaced due to thiscause155

Children are some of the main victims of conflict beingrecruited for instance for war and suffering sexual violenceFrom March 2011 to September 2014 the UN estimatesthat there were 1243 incidents affecting 68776 children156

UN reports indicate that both armed groups have usedchildren ldquoon a large scale and committed other graveviolations including killing maiming and sexual violencerdquo157

For instance in 2015 an incident was reported where closeto 100 children were abducted some as young as 13 Armedsoldiers were advancing house to house looking for boysand taking them by force158 According to UNICEF this occuredin Wau Shilluk close to the city of Malakal in Upper NileState159

Not surprisingly as put by a high UN representativepeople are desperate for peace

155 BBC 2001 Garang Oil firms are targetshttpnewsbbccouk2hiafrica1393481stm

156 UN Security Council 2014 Report of the Secretary-General on childrenand armed conflict in South Sudan S2014884

157 Ibidem158 The Guardian 2015 South Sudan gunmen kidnap at least 89 boys

from village near Malakal httpwwwtheguardiancomworld2015feb22south-sudan-gunmen-kidnap-89-boys-village-malakal-child-soldiers

159 The Guardian 2015 South Sudan gunmen kidnap at least 89 boysfrom village near Malakal

60

LIVING IN FEAR

People are desperate for peace They are tired ofliving in fear Many have had to flee several timesThey are exhausted They lack water they areextremely worried for their children who are notin school and at risk of being recruited into armedgroups Sexual violence is rife All people want isto live in safety security and stability160

Wars have also an impact on food security and nutrition Asof February 2015 there was an alert that the food situationwas critical in South Sudan for more than 25 millionpeople161 This was famine related to war Ulrika BlomCountry Director for Norwegian Refugee Council in 2015succinctly stated ldquoThere is an urgent need for a solution onthe conflict so that people are able to resume their dailylives in dignity and not be dependent on massive foodassistancerdquo162

The harsh consequences of war are inevitable and occurfrom a systematic destruction of infrastructure erosion ofthe human capital and weakening of essential institutions

Besides causing an appalling loss of life Sudanrsquoslong civil war eroded the capital base The wardepleted the labour force while roads irrigationsystems and other key components of rural

160 Under-Secretary-General for Humanitarian Affairs and Emergency ReliefCoordinator Valerie Amos remarks to the press Juba South Sudan 9February 2015 httpreliefwebintreportsouth-sudanunder-secretary-general-humanitarian-affairs-and-emergency-relief-coordinator-1

161 UN Security Council 2015 Reports of the Secretary-General on theSudan and South Sudan SPV7392

162 Norwegian Refugee Council 2015 Conflict a cause of hunger in SouthSudan httpwwwnrcnodid=9192498

61

3 SOUTH SUDAN THE OIL WAY

infrastructure were destroyed damaged orneglected It also weakened institutions divertedfinancial capital from economic development andundermined interpersonal trust which is criticalto productive business dealings163

Some have tried to put a figure on the costs of war A recentreport estimates that the cost of the civil war may be between$223 and $28 billion over the next five years for SouthSudan alone if the factions fail to bring peace to the worldrsquosnewest country164

UN peacekeeping operations

In July 2011 the Security Council determined that thesituation in South Sudan constituted a threat to internationalpeace and security in the region and established the UNMission in the Republic of South Sudan (UNMISS)165 Thekey elements of the mandate is to consolidate peace andsecurity However after the civil war broke in July 2013 inthe light of significant human rights violations the large-scale displacement of persons the UNMISS mandate wasreshaped and a focus was given to the protection of civiliansand creation of the conditions for delivery of humanitarianassistance166

163 IFAD 2013 Enabling poor rural people to overcome poverty in SouthSudan

164 Frontier Economics 2015 South Sudan the cost of war httpwwwfrontier-economicscomdocuments201501south-sudan-cost-warpdf

165 UN Security Council 2011 Resolution 1996166 UN Security Council 2014 Resolution 2155

62

LIVING IN FEAR

In June 2011 a month before the establishement ofUNMISS a second UN peacekeeping operation wasestablished in the disputed border between Sudan and SouthSudan The United Nations Interim Security Force for Abyei(UNISFA) was created in a context of escalating violenceand tensions and population displacement167 One of the topobjectives was to achieve the demilitarization of the Abyeifrom any force other than UNISFA and the Abyei PoliceService facilitate the delivery of humanitarian aidstrenghten the capacity of the Abyei Police Service and incooperation with the police provide security for oilinfrastructure in the Abyei area168

Corporations and conflicts with communities

Since the conclusion of the 2005 Peace Agreement betweenthe Government of Sudan (GoS) and Sudan PeoplersquosLiberation MovementArmy (SPLM) negative impacts ofoil exploration and extraction have continued to ignitemistrust among local communities towards the oilcompanies Many problems from the oil activities wereidentified such as water pollution and uncompensateddispossession of land However oil companies or thegovernment did little to assess correct and reduce suchimpacts169 In this context many communities chose the ldquopath

167 UN Security Council 2011 Resolution 1990168 UN Security Council 2011 Resolution 1990169 ECOS 2014 Scrutiny of South Sudanacutes oil industry http

w w w e c o s o n l i n e o r g r e p o r t s 2 0 1 4 Scrutiny_of_South_Sudans_Oil_Industrypdf

63

3 SOUTH SUDAN THE OIL WAY

of confrontation with oil companiesrdquo170 For instance byblocking and interfering in oil operations by truck blockagesand other stoppages171

Resentment of local communities againstoil companies

The negative consequences of oil developmenthave been causing deep resentment against oilcompanies in many oil-rich parts of SouthernSudan Arriving in any oil area where activeexploitation is ongoing one is often confrontedwith persistent complaints from local people aboutpoor management of ldquoproduced waterrdquo which isblamed for pollution of the environment This isoften linked to unexplained deaths of animals andstrange or new human ailments Moreover the oilinfrastructure such as oil roads wells and pipesare frequently blamed for disrupting the means oflivelihoods of local people as well as destructionof property

Source ECOS

170 ECOS 2014 Ibidem171 ECOS 2014 Ibidem

64

LIVING IN FEAR

Lundin Oil Consortium facing war and violencein their work territory

In 2010 the European Coalition on Oil in Sudan (ECOS)requested an investigation on the activities of the LundinGroup and its connection with the conflict in Sudan and thepossible ldquocomplicity in the commission of war crimes andcrimes against humanityrdquo172 During the Second Civil War in1997 a consortium of oil companies led by the Swedish oilcompany Lundin Oil AB (ldquoLundinrdquo) signed a contract withthe Government for the exploration of oil in the concessionarea called Block 5A that was not at that time under fullGovernment control The other members of the Consortiumwere Petronas Carigali Overseas Sdn Bhd (ldquoPetronasrdquo) fromMalaysia OMV (Sudan) Exploration GmbH (ldquoOMVrdquo) fromAustria and the Sudanese state-owned oil company SudapetLtd

Before the start of explorations the area around Block5A was relatively peaceful When the oil exploration startedthe escalation of violence and war followed suit173 Accordingto the European Coilation on oil in Sudan Block 5A ldquobecamethe scene of intense fighting and gross human rightsviolations as soon as the Lundin Consortium started oilexploration activities on the groundrdquo Right from thebeginning there are reports of significant war and violence

172 ECOS 2010 Unpaid debt The Legacy of Lundin Petronas and OMV inSudan 1997-2003 Press Release httpwwwecosonlineorgreports2010Press_release_UNPAID_DEBT

173 ECOS 2010 Unpaid debt The Legacy of Lundin Petronas and OMV inSudan 1997-2003 httpwwwecosonlineorgreports2010UNPAID_DEBT_textonlywebpdf

65

3 SOUTH SUDAN THE OIL WAY

where villages and towns were burnt and looted Tens ofthousands of people in Block 5A were also moved out fromthe exploration areas

In 1999 the Lundin Group discovered major reserves ofoil This accelerated the Government desire to control allthe areas surrounding the well and the infighting intensifiedLundinrsquos explorations in Block 5A had to be suspended twicedue to insecurity174

The consequences of all the violence towards thepopulation which were in the middle of the power battlefor controlling Block 5A were severe abuse of all humanrights and war crimes More than 10000 people were killedalmost 160000 displaced with thousands of peoplepermanently uprooted from their villages hundreds ofthousands of cattle lost or looted destruction of churchesschools markets medical clinics and many otherincalculable moral damage and inmense loss of income175

Talisman Energy accused of complicity with forceddisplacements

A Canadian company Talisman Energy which at that timewas considered to be the largest independent oil and gascompany in Canada has been accused of indirectly helpingto exacerbate the war and of being complicit in human rightsabuses and crimes against humanity176 Talisman has a 25

174 HRW 2003 Ibidem175 ECOS 2010 Unpaid debt Ibidem See also Medecins sans frontieres

2002 Violence health and access to aid in Unity Statewestern uppernile Sudan httpwwwdoctorswithoutbordersorgsitesusafilessudan_04-2002pdf

176 Africa files 2000 Corporate immunity for oiling repression Talismanin Sudan httpwwwafricafilesorgarticleaspID=621

66

LIVING IN FEAR

stake in the Greater Nile Oil Project Company (GNOPC) aninitiative located in south-central Sudan with threeadditional partners the national petroleum company ofChina (40) the national oil company of Malaysia (30)and the national petroleum company of Sudan (5)177

There were many allegations that people were forcefullydisplaced in the area of the oil field ran by Talisman UNreported that accusations were made on Talisman of ldquobeingaccomplice of human rights abuses in Upper Nile so as toguarantee security for its oil operationsrdquo178

Moreover a report from the Canadian Foreign AffairsMnistry ndashthe Harker Report ndash which undertook a mission toSudan described with concern that fighting was intense inthe areas of oil development in general and that oilextraction may have contributed to relocation of civiliansby force179

Violence and the fear of it impact immediatelyon the peoplersquos use of the land and result in foodinsecurity which in turn propels movement ordisplacement

Contradicting that oil is at stake in the displacement issueTalisman explained that displacement was a result of an inter-tribal issue Once again the Harker report concluded thatthe displacement was because of oil

177 Africa files 2000 Ibidem178 UN Security Council 2000 Interim report of the Special Rapporteur of

the Commission on Human Rights on the situation of human rights inthe Sudan A55374

179 Canadian Ministry of Foreign Affairs 2000 Human Security in SudanThe Report of Canadian Assessment Mission httpwwwecosonlineorgreports2000Human20Security20in20Sudanpdf

67

3 SOUTH SUDAN THE OIL WAY

ldquoFor Talisman so very much seems to be explained as merelyan inter-tribal problem but displacement has gone on andis still going on and in Ruweng County it is hard to denythat displacement is now and has been for some timebecause of oilrdquo180

Talisman Energy decided in 2002 to end its controversialfour-year investment in Sudan by selling its 25 percent stakein the Greater Nile Petroleum Operating Company to anIndian firm Most of the rumours is that the reasons for thiswas the strong pressure from the US particularly to end itswork in Sudan in order to stop indirectly supporting theGovernment in Sudan with its oil revenue181

The oil way developing what

Sharing the wealth with the Sudanese people The resourcecurse again

As said before 98 of the governmentrsquos revenue comesfrom oil production royalties and South Sudan sits on thethird-largest oil reserves in Africa182 It was estimated in 2011that South Sudan controlled 75 of the overall oil productionof Sudan and South Sudan altogether ndasharound 500000barrels per day However South Sudan remains dependenton the North for processing refinement and export to theRed Sea

180 Canadian Ministry of Foreign Affairs 2000 Ibidem181 New York Times 2002 Talisman to sell its stake in company in Sudan

httpwwwnytimescom20021031businesstalisman-to-sell-its-stake-in-company-in-sudanhtml

182 Africa Business Initiative 2011 Investment climate upate Sudanhttpswwwuschambercomsitesdefaultfileslegacyinternationalafricafiles16920_AfricaNewsletter_Sudanpdf

68

LIVING IN FEAR

Paradoxically South Sudan is considered a fragile StateSitting on oil as has occured to many other countries acrossAfrica and abroad does not guarantee wealth for the majorityof the population A 2013 report concluded that ldquoover thelast decade Sudan has been the largest recipient ofhumanitarian assistance by some distance receiving US$106 billion over the periodrdquo183 90 per cent of the populationearn less than a dollar a day184

Oil money through the State budget is expected to serveto finance all the key governmental activities of the Statesuch as agriculture health infrastructures and educationDespite the fact that the benefits from oil are substantialthere are numerous questions arising about the destiny ofall the oil money For instance how could it be explainedthat one of the sectors more financed is the military andsecurity apparatus Since South Sudanrsquos independence theGovernment has allocated 38 of oil revenue to the militaryand security services with only 10 and 7 ininfrastructures and education respectively185 In 2012 SouthSudan was the among top 8 African countries having militaryexpenditure of almost $1 billion186 For instance TheEconomist reports that South Sudan bought 100 Ukrainian

183 Global humanitarian assistance 2013 Global humanitarian assistancehttpwwwglobalhumanitarianassistanceorgwp-contentuploads201307GHA-Report-2013pdf

184 Kebede 2014 The role of oil in South Sudanhttpswwwruoruottawacabitstream10393315631KEBEDE20Solomon2020145pdf

185 The Guardian 2014 South Suan is divided by the spoils of oil notethnicity httpwwwtheguardiancomcommentisfree2014jan14south-sudan-divided-oil-ethnicity-violence

186 LAVDC 2014 Les quatre puissances militaires regionales dacuteAfriquehttpwwwlavdcnetportailles-quatre-puissances-militaires-regionales-dafrique

69

3 SOUTH SUDAN THE OIL WAY

T-72 tanks187 At the same time agriculture and livestock hasbeen completely neglected despite the fact that more than80 of the population depend on that sector for fulfiliingtheir basic needs

Where the money goes

Daniel Wuor Joak former MP in South Sudan LegislativeAssembly and Minister of Education Science and Technologyin Upper Nile State claims that between 2005 and 2014both the Government of South Sudan (GOSS) and theRepublic of South Sudan (RSS) have been receiving onaverage not less than two billion of USD per year Somehave already manifested the unclarities over the destiny ofall that money as described by Mr Wuor Joak

Since 2005 upwards both the GOSS and RSS havebeen receiving no less than 18 billion USD in oilrevenues without implementing any majordevelopmental projects like roads network linkingdifferent States in South Sudan conducive learningschools from basics to universities level referralmedical facilities clean drinking water in remoteareas throughout the country setting up vibrantand credible institutions which can adhere to rulesof law All these things have not been implementeddue to poor system of governance under leadershipof Salva Kiir Mayardit Most of the counties have

187 The Economist 2014 Arms and the African

70

LIVING IN FEAR

no roads linking them with their State capitals andlack schools health centres clean drinking wateretc South Sudanese population in the rural areasthroughout the country are still living in the sameconditions as they were under Khartoumrsquos rule interms of scarcity of development188

Speaking more directly Kebede made firm remarks aboutthe overall situation in South Sudan

In general poverty corruption bad governance andviolence characterized the resource curse in SouthSudan A relatively small group of elite capturesvast wealth while leaving much of their societywithout access to the minimum resource necessaryfor long term wellbeing As a result South Sudanremains one of the worldacutes least-developedcountries despite its oil (hellip) hellipmuch of the oilrevenue has been squandered189

188 Wuor Joak 2014 Major Causes of the Current Conflict in Sudan SouthSudan News Agency

189 Kebede 2014 The role of oil in South Sudanhttpsw w w r u o r u o t t a w a c a b i t s t r e a m 1 0 3 9 3 3 1 5 6 3 1 KEBEDE20Solomon2020145pdf

71

3 SOUTH SUDAN THE OIL WAY

Even before the current tensions Bentiu saw little benefitfrom oil The streets are unpaved and covered with trashelectricity is scarce reserved for those with privategenerators () Most expect more violence Bentiu hasbecome more militarized with armed soldiers placed atcheck points and at the bridge Troops are constantlymoving to the front Weapons are being flown into theairport

ldquoThe oil is a curse ldquoMohammed Abdurahman Kili 56mumbled from his hospital bed his body covered withburns He was inside his shop in a crowded market onthe edge of town when a Sudanese warplane attackedkilling a 9-year-old child and another person and settinghis shop on fire

Washington Post 2012

President Salva Kiir recognized in 2012 that corrupt officialshad stolen from the people of South Sudan and the amountlost or taken by lead government and military officials mightbe as much as $4 billion190 Kiir sent a letter to 75 SouthSudanese officials or individuals close to the governmentasking them return all the amount lost The letter describedin general terms how the money got ldquolostrdquo

An estimated $4 billion are unaccounted for orsimply put stolen by current and former officialsas well as corrupt individuals with close ties togovernment officials Most of these funds have beentaken out of the country and deposited in foreignaccounts Some have purchased properties oftenpaid in cash191

190 Ibidem191 Paanluel Wel South Sudanese bloggers httppaanluelwelcom2012

0601letter-from-president-kiir-on-corruption-4-billion-dollars-stolen192 Sudan Tribune 2013 South Sudanacutes Kiir accuses army of corruption

72

LIVING IN FEAR

A year later Kiir accused the armed forces of being corruptHe said that despite the big budget allocations made to thearmy there were even no ldquovehicles to transport soldiers onmissionsrdquo192 Two years later the issue remained unclearand the names of the officials referred to in the letter wereyet to be disclosed However Kiir accused Machar of beingresponsible for a lot of corrupted activities in the country193

Machar responded to Kiir by saying that his claims wereunfounded and then also accusing him of such practices194

It seems South Sudan epitomises all the features of theresource curse argued in Chapter 1195 How can the corruptionbe prevented How can the money go to the people It isalso important to note that the oil sector provides littleemployment to the people of South Sudan Most of thehousehold income and employment is generated in theagriculture and farming sector primarily196 Would investingin other sectors like agriculture that provide real wealth tothe people make a difference

193 Sudan Tribune 2014 South Sudan rebel leader should face corruptioncharges Kiir

194 Sudan Tribune 2014 South Sudan Macharacutes Rebentildes dismiss corruptionaccusations no spiritual powers httpallafricacomstories201407221384html

195 Kebede 2014 The role of oil in South Sudan Ibidem196 Tizikara et al 2012 Post-conflict development of Agriculture in South

Sudan perspective on approaches to capacity strenghtening httpwwwerailsnetimagesfarasecretariatkigali-movementfileKigali20MovementPost-Coflict20Agriculture_South20Sudanpdf

73

3 SOUTH SUDAN THE OIL WAY

Environment

As experienced in oilfileds in other parts of the world the oilfields here are also leaving a significant impact on theenvironment and local communities A three year study inThar Jath and Mala fields in Unity State show thatgroundwater is very polluted making the water unsafe forhuman consumption197 The study made by a team of SouthSudanese and German geologists concluded that water usedby 180000 people was too salty to drink and containdangerous amounts of heavy metals198

In many occasions the oil fields that causeenvironmental pollution are even abandoned due to the warSome observers identified that oil pipelines damaged duringthe conflict were leaking199

South Sudan must produce for its needs

In 2015 the Minister of Finance of South Sudan David DengAthorbei made a statement saying that the country shouldbe self-sufficient in agriculture terms and in addition itneeds to increase its non-oil revenue and to achieve peace200

197 Rueskamp et al 2014 Effect of oil exploration and production on thesalinity of a marginally permeable aquifer system in the Thar Jath-Mala- and Unity Oil fields Southern Sudan Zbl Geol Palaont Teil IJ

198 Radio Tamazuj 2015 Study Direct link between oil exploration andwater pollution in Unity httpsradiotamazujorgenarticlestudy-E28098direct-linkE28099-between-oil-exploration-and-water-pollution-unity

199 Star Africa 2014 South Sudan Oil leaks cause pollution fears httpenstarafricacomnewsssudan-oil-leaks-cause-pollution-fearshtml

200 Bloomberg 2015 South Sudan Finance Minister says food output canoffset oil httpwwwbloombergcomnewsarticles2015-01-20south-sudan-finance-minister-says-food-output-can-offset-oil-1-

74

LIVING IN FEAR

He also made a call for a reduction of the countryrsquos relianceon agriculture imports particularly in the context of aneconomy affected by the plunge in global oil prices201

Peter Biar Ajak from the Center for Strategic Analysis andResearch in Juba illustrates the macroeconomic weaknessesof South Sudan today because of its oil dependence

South Sudanrsquos oil-dependent economy is nearingcatastrophe The production of crude oil has droppedby about 35 percent since the conflict began Thatcombined with a drop of roughly 45 percent in globaloil prices since the summer has meant a substantialreduction in the governmentrsquos oil revenues andenormous fiscal and budgetary ressures

Since South Sudan exports almost nothing asidefrom oil and imports almost everything else tradeand monetary policy have also been buffeted byfalling oil revenues Access to foreign currency hasbecome extremely limited The prices of manyimported goods have risen There are shortages ofpetrol which must be imported because SouthSudan has no refinery202

Indeed a dynamic agriculture sector may be key for peaceand development in South Sudan More than 95 of thecountryrsquos population is dependent on farming fishing orherding to meet their daily food needs and income as well203

201 Bloomberg 2015 Ibidem202 Biar Ajak 2015Sanctions for peace in South Sudan The New York Times

January 7th203 FAO in emergencies httpwwwfaoorgemergenciescountries

detailenc147627

75

3 SOUTH SUDAN THE OIL WAY

204 Business Daily 2011 South Sudanrsquos vast agricultural sector potentialuntapped

205 Norwegian Refugee Council 2015 Conflict a cause of hunger in SouthSudan httpreliefwebintreportsouth-sudanconflict-cause-hunger-south-sudan OCHA 2015 South Sudan Crisis Situation reportn 74 httpreliefwebintsitesreliefwebintfilesresourcesSouth_Sudan_Situation_Report_No_74pdf

206 OECD 2014 Fragile States 2014 Domestic revenue mobilisation infragile states httpwwwoecdorgdacgovernance-peaceconflictandfragilitydocsFSR-2014pdf

South Sudan has good soil and climatic conditions and morethan 70 of its land area is suitable for crop productionThere are many that believe that the investment in theagriculture sector has more potential than oil however thisthinking has not received due attention from local andforeign investors204 Efforts towards making agriculture workare vital for peace and stabililty in the country It is urgentlyneeded to work on this area particularly when at presentthere are 25 million in Sudan at risk of starvation205 andaround one third of the population are food insecure plusmore than a million displaced

The dependency on income from natural resourcesleaves fragile states vulnerable It exposes them toshocks in commodity prices ndash as demonstrated bythe sudden fall in commodity prices in 2009following the 2002-2008 boom Neither is it asustainable source of incomeSouth Sudanrsquos oilproduction for instance is projected to decreasesteadily in future years and become negligible by2035

Source OECD206

76

LIVING IN FEAR

207 UN Security Council 2015 Resolution 2206 SRES2006(2015)httpwwwunorggasearchview_docaspsymbol=SRES2206 (2015)

208 Sudan Tribune 2015 South Sudan unhappy with US support for sanctionshttpwwwsudantribunecomspipphparticle54232

209 Washington Post 2014 US appears unable to pull South Sudan backfrom the brink of civil war httpwwwwashingtonpostcomworldus-appears-unable-to-pull-south-sudan-back-from-the-brink-of-civil-w a r 2 0 1 4 0 5 0 3 d 9 2 8 0 b d a - 3 8 6 b - 4 2 4 9 - 9 4 e 0 -b5292610e5bb_storyhtml

210 Ibidem

US fallen dream

In 2015 the UN imposed a travel ban and assets freeze againstindividuals or entities which engaged in or provided supportfor acts that threaten peace security and stability of SouthSudan207 The US was behind the draft and the submission ofthe resolution This resolution prompted an angry reactionfrom the South Sudanese The South Sudanese presidencywas said to be extremely disappointed about the US ledmove208

In the past the relationship between the US and SouthSudan was completely diferent The United States was themain promoter and supporter of the worldrsquos newest nationThe Washington Post for instance asserted that ldquoSouth Sudanowes its existence to the United Statesrdquo209 The expectationscreated were high before its started its independence andsome believed that Sudan would be able to manage thecountry breaking the so-called ldquoAfrican model of pettyrivalries corruption and oppressionrdquo210 Despite all the hopesput on the young nation as of today no solution has beenfound to the ongoing war

77

3 SOUTH SUDAN THE OIL WAY

The US was the largest donor to Sudan in the years priorto independence providing 339 of the total aid to Sudanbetween 2000 to 2009211 The United States (US$472million) was the largest donor of humanitarian assistanceto South Sudan in 2012 followed by the United Kingdom(US$96 million)212 For many years Sudan was the thirdlargest recipient of US aid only after Iraq and Afghanistan213

The inteligence and information systems of theAmericans on the ground in Sudan seemed to have beenrelatively good214hellip however how come they did not foreseethat South Sudan was quickly descending once again on theavenue of a country at civil war For instance the problemsbetween President Salva Kiir and his deputy were not newAlready more than two years before the civil war started inJune 2011 in a speech in Juba the President accused hisDeputy Riek Machar ldquoof running a parallel governmentwithin the governmentrdquo215 Couldnrsquot they have preventedanother conflict Why did they fall into ridiculouscontradictions as the one recently revealed via wikileakssuggesting that the US was funding both armies in

211 Development initiatives (undated) Sudan Aid Factsheet 1995-2009httpwwwglobalhumanitarianassistanceorgwp-contentuploads201102Sudan-Aid-Factsheet-2011pdf

212 See global humanitarian assistamce ebpage httpwwwglobalhumanitarianassistanceorgcountryprofilesouth-sudan

213 The Atlantic 2011 US played key role in Southern Sudanacutes longjourney to Independence

214 The Global Intelligence files 2013 SudanUSMIL ndash SPLA trying toget US to hook it up httpssearchwikileaksorggifilesviewemailid=5047664

215 Sudan Tribune 2011 Salva Kiir exposes his rift with Machar overSouth Sudan transitional constitution httpssearchwikileaksorggifilesviewemailid=3831682

78

LIVING IN FEAR

contention the Government force of Salva Kiir and the rebelsof Riek Machar216 Why are both paid by the UShellip to dowhat As one reporter questioned why are they ldquopaid tokill each otherrdquo217

216 RT 2015 US officials tussle over arms embargo sanctions in oil-flushSouth Sudan httprtcomusa226387-south-sudan-sanctions-war

217 RT 2015 Ibidem

Seven Million

ldquoA peaceful DR Congo could transform Africa almostovernight but is there a way outrdquo218

There is always a way out However peace is not an easything particularly under certain circunstances When youhave lost your father your mother your uncle your sisterwhat else can you lose Can you still believe in peaceTwoof the bloodiest conflicts in recent decades in the world haveoccurred in Africa The Second Civil War in Sudan has leftaproximately two million casualties and the conflict in DRCis estimated to have snuffed life out of no less than fivemillion people

How many more

How does one begin to quantify the dead when they are inthe hundreds of thousands No less than seven million livesof Congolese and South Sudanese were taken away due towars and conflicts fuelled by natural resources How many

218 African Business 2009 DR Congo $24 trillion fortune

4

79

80

LIVING IN FEAR

more How many more before the world wakes up to acteffectively towards ending all those conflictsProbably unless you are one survivor from those experiencesyou would never be truly able to understand what it meansto lose entire families and friends you would never be trulyable as well to understand what it means to feel fear foryour life and the life of your close relatives

When you start counting sometimes you forget thatpeople are not numbers There are names behind thenumbers A family A life As we write this book people aredying needlessly in the DRC and in South Sudan Calculatingdead people due to conflicts in this part of the world is verydifficult due to statistical challenges and so it is conceivablethat probably the number of victims is much larger than sevenmillion (7000000) When would the volume of bloodshedthe number of lives taken be enough for the belligerentofficials to make real peace How many more should fallAthousand more Another one million The pain sadness anddestruction that those conflicts generate should not beaccepted any more

Oil and minerals the main cause of ongoingconflicts and war

Some authors argue that minerals and oil are not a cause ofwar but ldquocompetition for them could amplify and expediteconflictrdquo219 In this book as chapter two and three haveshown oil and minerals are the main motor behind theconflict in recent decades in DRC and South Sudan It would

219 UN Security Council 2013 Natural resource wealth fails to translateinto equivalent benefits for people fuelling conflict to instability DeputySecretary-General tells Security Council httpwwwunorgpressen2013sc11037dochtm

81

4 SEVEN MILLION

be very difficult if not impossible to expect those conflictsif their territories were resource poor Oil and minerals arefull of blood An activist poet wrote We Thought it was Oilbut it was Blood220 Although he was writing about the NigerDelta situation we see a universal application in that phrase

In both countries described there were other elements andfactors to take into consideration however it can be saidthat control over natural resources was the most importantcause on both conflicts in DRC and South Sudan In bothcases oil and minerals fuelled those wars and in manyoccasions these resources have inspired fueled and sustainedarmies operating in the territories of both countries

A Statersquos wealth means nothing if not shared withthe majority of the population

DRC and South Sudan ought to be wealthy countriesUnfortunately having a wealth of natural resources doesnot mean that it belongs to the citizens or that the wealthwould be shared among the population of a given State AState is a nation or territory considered as an organizedpolitical community under one government221 A goodgovernment should be the one that takes care of its citizensand shares the wealth among its citizens and not justdistribute it among an elite Jan Eliasson Deputy Secretary-General of the United Nations stated that ldquoin too manycountries a wealth of resources including timber oil coaldiamonds and precious metals failed to translate into

220 Nnimmo Bassey 1998 We Thought it was Oil but it was Blood IbadanKraft Books

221 See httpwwwoxforddictionariescomdefinitionenglishstate

82

LIVING IN FEAR

equivalent wealth for the people Only a powerful fewbenefitrdquo222

The State is expected to perform an adequateimplementation of human rights granted by several UNdeclarations and conventions including the right to foodright to health right to shelter right to clothing right towork farmersacute rights etc Paradoxically the violations andabuses of human rights have been constant in DRC and SouthSudan Both countries have suffered from acts of war oncivilian population both have as well a large number ofdisplaced people with no access to food without healthcarewithout shelter and without any work Both countries havemore than 90 people living below one dollar per day andthey are considered among least developed countries andfragile states Due to this both are some of the biggestrecipients of humanitarian aid Moreover both have hugesecurity problems shown for instance by the presence ofUN peacekeeping operations Out of the 17th worldwideongoing peacekeeping UN operations three are in DRCSouth Sudan and in Abyeia disputed territory between Sudanand South Sudan

They possess resources that have a huge monetary valueand that in most cases have the involvement of foreigncountries and corporations and other stakeholders of theprivate sector which are ready to pay enormous sums ofmoney to gain control of the natural resources belonging toother countries If no war or significant armed conflict takes

222 UN Security Council 2013 Natural resource wealth fails to translateinto equivalent benefits for people fuelling conflict to instability DeputySecretary-General tells Security Council httpwwwunorgpressen2013sc11037dochtm

83

4 SEVEN MILLION

place common elements among those countries that possesssuch resources in Africa is the existence of massive povertyand corruption and in most cases this is contrasted withmega-rich individuals Letacutes take for instance the case ofoil-rich Angola where the president and his daughter possessmultibillionaire fortunes while at the same time the majorityof the country population is living on less than two dollarsper day223

Greed power and control over natural resources

It must be noted as well that often oil and minerals involvemillions and multibillion profits With such large sums ofmoney greed power and control take the driving seat ofwhatever country government in the world When theprospects for such money flow arrives many leaders andelites start distancing themselves from the majority of thepopulation and stop thinking about the welfare of their ownpeople

At the centre of most of the conflicts in both countriesare struggles for power and control of natural resourcesMinerals and oils are the main cause of the ongoing conflictsand wars Unfortunately most commentators qualify therecent civil war in South Sudan as a ldquopower strugglerdquo withoutfurther qualifications In South Sudan who gets the oil getsthe power Therefore the power struggle is a war overnatural resources for control of the oil in the country Areporter affirmed that ldquowhoever controls South Sudanrsquos oiltherefore could seize the upper hand in the battle for

223 Forbes 2013 Daddyacutes girl how an African ldquoprincessrdquo banked $3 billionin a country living on $2 day httpwwwforbescomsiteskerryadolan20130814how-isabel-dos-santos-took-the-short-route-to-become-africas-richest-woman

84

LIVING IN FEAR

224 France 24 2013 Battle for oil adds new dimension to South SudanConflict httpwwwfrance24comen20131227-battle-oil-adds-new-dimension-south-sudan-conflict

225 OECD 2014 Fragile States 2014 Domestic revenue mobilisation infragile states httpwwwoecdorgdacgovernance-peaceconflictandfragilitydocsFSR-2014pdf

powerrdquo224 In both countriesrsquo non-renewable natural resourcetook a dominant share of the fiscal revenue of DRC andSouth Sudan ndash 82 in the DRC and 98 in South Sudan225

Who controls those resources controls the countryThe case of South Sudan where the president has

recognized the disappearance of $4 billion by corruptindividuals is compelling President Salva Kiir pinpointed thespirit behind the rot ldquoOnce we got to power we forgot whatwe fought for and began to enrich ourselves at the expenseof our peoplerdquo This might also include him as well becauseit is difficult to imagine that such huge amount of money couldbe stolen without the leader noticing anything at all

Greed for minerals and oil is at the heart of the massivedeath toll and impoverishment of the Congolese and SouthSudanese people in recent decades It can be affirmed quitecomfortably that if the Eastern part of the DRC would havenot sat on huge mineral reserves it would be very difficultto imagine all the conflicts that have occurred in that zoneIt can be affirmed as well that without oil ongoing wars inSouth Sudan might most probably never have occured

Peace is the only way forward

Achieving peace is a complex issue To create peace thereare many issues to resolve with all stakeholders such as

85

4 SEVEN MILLION

mutual accusations of support to rebel groups226 goodgovernance transparency demobilisation and disarmamentof local militia etc227

A positive but vital first step is that there are calls at veryhigh levels in both countries and at international fora Thismust be followed with open debate on the core causes of theconflict and ways of achieving reconciliation It does notappear that lasting peace can be achieved otherwise In thatprocess the people need to be put at the centre ofdevelopment policies and actions in both countries in orderto stop the plunder reverse environmental degradation andfight poverty As long as the political military and corporateelite maintain their control of the natural resources of thecountry the devastating plunder will continue to the benefitof only such elite and a handful of corporations

226 UN Security Council 2015 Reports of the Secretary-General on theSudan and South Sudan SPV7392

227 The Guardian 2014 South Sudan is divided by the spoils of oil notethnicity httpwwwtheguardiancomcommentisfree2014jan14south-sudan-divided-oil-ethnicity-violence

INDEX

AAbyei Joint Oversight

Committee (AJOC) 47Abyei Police Service 46 62Abyei 43-home of the Ngok Dinka 43

45Africa 18 20 see minerals

-and wars at the greatlakes 20 25-armed groups in 26-criminal networks in 26-death in 20-exploitation naturalresources in 18-militias in 26-minerals in 20-poverty in 20-wealth in 20

Africarsquos wealth 14-and resource curse 14-blessing or curse 14

African Business 22African Development Bank

(AfDB) 16 17

African Unionrsquos (AU) Peaceand Security Council 48

Algeria 15Allied Democratic Forces

(ADF) 25 28-in North Kivu 25

American Mineral Fields(AMF) 36

AngloAmerican corporation35

AngloGold Ashanti 35Anvil Mining 36Armed Forces of the DRC

(FARDC) 26Athorbei David Deng 73Auty Richard 14

BBBC 18Blom Ulrika 59Blue Nile 45

CCentral African Republic 7China National Petroleum

Corporation 49

86

INDEX

87

Citibank NY 36Clinton Bill 24 36Conflict minerals 30 see

Rwanda-legitimate exports of 30-smuggling of 30

Conflicts 7-and natural resources 7-causes of 10 80-uniqueness of 10

Congolese Government 18

DDemocratic Republic of

Congo (DRC) 7-85-and (MONUC) 29-greed for minerals in 32-UN peacekeeping opera-tion in 29

Diffra oil complex 47DR Congo 79

EEastern Congo 28

-insecurity in 28Eliasson Jan 81

-Deputy Secretary-Generalof the United Nations 81

European Coalition on Oil inSudan (ECOS) 63

Exploration GmbH (OMV)64

Exxon corporate 15

FFirst Sudanese Civil War 42Forces deacutemocratiques de

libeacuteration du Rwanda(FDLR) 28

GGabon 18

-oil in 18Gertler Dan 12 13Ghana 18

-oil in 18Giambrone Antonino 38Glencore Anglo-Swiss 35Government of South Sudan

(GOSS) 69Government of Sudan (GoS)

62Great War of Africa 23Greater Nile Oil Project

Company (GNOPC) 6667

Guinea Equatorial 15

HHague 44Permanent Court of Arbitra-

tion in 44Human Rights Watch 55

IIMF 22International Rescue Commi-

ttee 23

LIVING IN FEAR

88

JJoak Daniel Wuor 69Juba 74

-Center for StrategicAnalysis and Research in74

Katanga Minister of Planning22

KKenya 19Kerry John 24Kiir Salva 43 84

LLibya 7Lumumba Patrice 13 20Lundin Oil Consortium 63

MMachar Riek 43 57 77 78Madagascar 16Mala fields 73Malakal 59Mali 7Mayardit Salva Kiir 69McKinney Cynthia Ann 23

-US Congresswomanfrom the Democratic Party23

McMurrough Mike 36McNamara Robert 37

-as World Bank President37

Minerals 20 see Africa-and death 20

-and poverty 20-and wars at the GreatLakes 20-and wealth 20

Mozambique 18-gas in 18

Muloni Irene 18

NNationalist and Integrationist

Front (FNI) 36Natural resources 8 83 see

conflicts-and conflict 8-and greed 83-and power 83-and wars 8-control over 83

Niger Delta 16-oil is a curse for 16

N o n - g o v e r n m e n t a lorganisations (NGOs) 12

Non-OPEC African oilproducer 48

Norwegian Refugee Council59

OOECD Guidelines for

Multinational Enterprises37

Oil 48-and geopolitics 48

PPeace 84

INDEX

89

-as way forward 84Petronas Carigali Overseas

Sdn Bhd (Petronas) 64Powell Colin 58PR Newswire 30President Kabila 24President Obama 24

RRDC Mining Code 35Republic of South Sudan

(RSS) 69Rio Tintorsquos QMM 16Ruweng County 67Rwanda 24 31

-conflict minerals from 31

SSecond Congo War 24 32

34Second Sudanese Civil War

42Somalia 7South Kordofan 45South Sudan Civil War 57South Sudan 11 18 19 41

-Dinka ethnic group in 4357-Nuer ethnic group in 4357the oil way 41-UN peacekeeping opera-tions 61

South Sudanese Civil War 58Sudan 79

-Second Civil War in 79

Sudan Armed Forces 46Sudan oil police 47Sudan Peoplersquos Liberation

Army (SPLA) 41 46 5462-civil wars and conflict in41

Sudan vs South Sudan 43-and Heglig battles 47-and peace agreement 43-main oil companies in 51-oil-centered conflict 46-Row over oil tariffs 51

Sudanese Civil War 52-and Addis AbabaAgreement 53-and Islamic law 53-causes of 52

Swedish oil company LundinOil AB (Lundin) 64

TTalisman Energy 65Thar Jath 73Transnational Corporations

(Tncs) 34-and the private sector 34

UUganda 19 24UN Interim Security Force for

Abyei (UNISFA)UN Mission in the Republic of

South Sudan (UNMISS)61 62

UN Organization Stabiliza-

LIVING IN FEAR

90

tion Mission in the DRC(MONUSCO) 29

UN peacekeeping operations11

UN Security Council 11UNICEF 59UNISFA 47United Nations Office of the

Special Adviser on Africa(OSAA) 8

United Nations SecurityCouncil 25

United Nations 13University of California

(UCLA) 54 55Upper Nile State 59 69US fallen dream 76

VVirunga National Park 18

WWar and conflict 58

-consequences of 58Wars and minerals 21

-cobalt 22-coltan 22-copper 22-diamond 22-gold 22-manganese 22-peace at last 21-timber 22-tin 22-zinc 22

Wau Shilluk 59We Thought it was Oil but it

was Blood 81Wealth 12 13

-for whom 13-quest for 12

World Heritage site 18Worldwatch 40

Page 17: LIVING IN FEAR - Health of Mother Earth Foundation...Les quatre puissances militaires regionales d´Afrique. 12 LAVDC. 2014. Les quatre puissances militaires regionales d´Afrique

19

1 THE QUEST FOR WEALTH

oil production and distribution in several African countriesincluding South Sudan Uganda Kenya Democratic Republicof Congo (DRC) and maybe others33

The forthcoming chapters will develop more elementsaround this topic in order to conclude some final remarkswith the particular case studies of DRC and South Sudan

33 The Economist 2013 Pipeline poacuteker httpwwweconomistcomnewsmiddle-east-and-africa21578402-east-africa-danger-throwing-away-part-its-new-found-oil

20

LIVING IN FEAR

Minerals and Wars at the GreatLakes Wealth Death and Massive

Poverty in the Heart of Africa

Our internal difficulties tribal war and the nucleiof political opposition seemed to have beenaccidentally concentrated in the regions with ourrichest mineral and power resources We know howall this was organised and in particular whosupports it today in our house

Our Katanga because of its uranium copper andgold and our Bakwanga in Kasai because of itsdiamonds have become hotbeds of imperialistintrigues The object of these intrigues is torecapture economic control of our country

Patrice Lumumba speech in Leopoldville in August 25th1960 34

34 Speech at the opening of the All-African Conference in Leopoldville in1960 See httpwwwassatashakurorgforumshoulders-our-freedom-fighters42970-collected-speeches-writings-patrice-lumumbahtml

2

21

2 MINERALS AND WARS AT THE GREAT LAKES

Lumumba the first democratically elected Prime Ministerof the Republic of Congo gave a speech in 1960 that wasremarkably prescient of the fate of Democratic Republic ofCongo (DRC) today Conflict minerals and ldquotribal warsrdquo gohand in hand in the DRC historyrsquos past decades Lumumbawas planning to get the DRCrsquos related difficulties undercontrol however he was executed a few months after thespeech by a firing squad in January 1961 The US throughthe CIA the United Kingdom through the M16 and Belgiumwere all blamed for their involvement in his death35

Paradoxically ldquothe assassinations were made by the ordersof those who proclaim themselves to be champions ofdemocracy and respecters of human rightsrdquo36 Externalmeddling and intervention in Congorsquos affairs by foreigncountries is another of the concurrent and repeated situationsthat continue in recent history of the DRC37

Wars and minerals peace at last

hellip The heart of Africa is bleeding hellip

Two wars raged in DRC from 1996-1997 and from 1998-2003 Contrary to what some affirm these were not ethnicconflicts but resource wars38 No coincidence that the

35 BBC 2013 M16 and the death of Patrice Lumumba httpwwwbbccomnewsworld-africa-22006446

36 VVAA 1992 Congo (Zaire) Democratie neo-coloniale ou deuxiemeIndependance Ed LrsquoHarmattan

37 The Guardian 2011 Patrice Lumumba the most importantassassination of the 20th centuryhttpwwwtheguardiancomglobal-developmentpoverty-matters2011jan17patrice-lumumba-50th-anniversary-assassination

38 See Friends of the Congo websitehttpwwwfriendsofthecongoorgresource-centercongo-primerhtml See also Lanotte 2003 RDCguerre sans frontiers Editions Complexe

22

LIVING IN FEAR

country possesses extraordinary mineral wealth with someof the most valuable and strategic minerals on earth suchas coltan diamond cobalt copper gold tin zincmanganese timber and others The highest concentrationof mining activities existin the Eastern part of the countryTo illustrate the predominance of mining here we wouldunderline the affirmation of the Katanga Minister ofPlanning who said that 72 of the territory of Katanga isdevoted to mining No surprise why the IMF has namedDRC one of the worldrsquos mining giants of today39 Themagazine African Business stated in 2009 that ldquothe totalmineral wealth of the DRC was estimated to be some $24trillionrdquo40 As Lumumba indicated back in 1960 the samescenario repeated in recent years ndash minerals and conflictscontinue to go hand by hand

DR Congo possesses some 80 of the worldrsquoscoltan ore reserves(hellip) Additionally the DRCongo produces significant quantities ofdiamonds gold cassiterite copper cobalt (ofwhich it has the worldrsquos largest reservesalthough the trade is largely controlled byZimbabwe) oil tin zinc gold and coffee Thecountry has large reserves of uranium it wasCongolese uranium that was used for theManhattan Project that produced the worldrsquosfirst atomic bombs dropped on Japan The vastcountry also has more than half of sub-SaharanAfricarsquos timber stocks

Source African Business

39 IMF 2013 DRC Poverty reduction strategy paper N 1322640 African Business 2009 DR Congo $24 trillion fortune

23

2 MINERALS AND WARS AT THE GREAT LAKES

The casualties over the years are overwhelming Whileeverybody is familiar with the death toll during the genocidein Rwanda estimated between 500000 and 800000 peoplethere is much less awareness about the conflict situation inCongo The International Rescue Committee has estimatedthat the conflict and humanitarian crisis in the DemocraticRepublic of Congo has taken a death toll of 54 million peoplefrom 1998 to 200741 A CNN correspondent in trying togive an illustration of the heavy toll made the followingcomparative analysis

The wars in that country ndash RD Congo ndash haveclaimed nearly the same number of lives as havinga 911 every single day for 360 days the genocidethat struck Rwanda in 1994 the ethnic cleansingthat overwhelmed Bosnia in the mid-1990s thegenocide that took place in Darfur the number ofpeople killed in the great tsunami that struck Asiain 2004 and the number of people who died inHiroshima and Nagasaki mdash all combined and thendoubled42

Rwanda and Uganda were actively involved in the invasionof Congo in both wars The second war was known as theGreat War of Africa involving nine countries and more than20 armed groups According to Cynthia Ann McKinney aUS Congresswoman from the Democratic Party and an

41 IRC 2007 IRC study shows Congorsquos neglected crisis leaves 54 milliondead httpwwwrescueorgnewsirc-study-shows-congos-neglected-crisis-leaves-54-million-dead-peace-deal-n-kivu-increased-aidmdash4331 Some groups put the death toll much higher See GlobalResearch webpage httpwwwglobalresearchcathe-war-that-did-not-make-the-headlines-over-five-million-dead-in-congo7957

42 CNN 2012 Why the world is ignoring Congo war httpeditioncnncom20121127opinioncongo-war-ignored-vava-tampa

24

LIVING IN FEAR

expert on the Great Lakes issues while invading DRC in theSecond Congo War the US continued providing financialsupport to the governments of Rwanda and Uganda43 Howwas this allowed US President Bill Clinton was personallyin Rwanda in March 1998 only a few months before theRwandese army invaded Congo44 President Clinton was inAfrica at that time addressing its presidents includingPresidents Kagame and Museveni as leaders of the ldquoAfricanRenaissancerdquo and seeing a bright future for Africa45 ThereClinton made an important call to embrace peace How wasit possible to talk about peace while these allies were directlyengaging in war Moreover with the experience of thegenocide in Rwanda how could it be that foreign powersclosely involved in the region particularly the United Stateslet this occur again How did they allow wars and conflictsthat killed millions of people How could they allow whatmany called another genocide in Congo

On a positive note at last in recent months the calls forpeace have been growing from many different stakeholdersIn May 2014 US Secretary of State John Kerry after ameeting with DRC President Kabila stated that ldquoachievinga lasting peace in the DRC is a priority of President ObamardquoHe added ldquoNow I canrsquot emphasize enough how importantthat process is in identifying and resolving the root causesof the conflict in the DRC as well as in the entire GreatLakes regionrdquo46 Not a minor task going to the roots causes

43 Order of Indictment from Juzgao de instruccion numero CuatroAudiencia Nacional Case 320008-D 6-2-2008

44 See CBS News httpwwwcbsnewscomnewstext-of-clintons-rwanda-speech

45 Schaefer 2000 The Keys to an African Economic Renaissance httpwwwheritageorgresearchreports200005the-keys-to-an-african-economic-renaissance

46 See US Dept of State 2014 Press Availability on the DRC and theGreat Lakes Region httpwwwstategovsecretaryremarks201405225587htm

25

2 MINERALS AND WARS AT THE GREAT LAKES

of those problems in the Great Lakes Indeed achieving peaceand reconciliation in the Great Lakes Region in countriesthat had suffered like DRC is a difficult and cumbersometask and making it by finding the ldquorealrdquo root causes can bea very complex and lengthy exercise taking decades orlonger

The situation remains tense We recall that in 2006 theUN Security Council issued a resolution condemning ldquotheactivities of militias and armed groups operating in the GreatLakes regionrdquo47 Almost a decade later those armed groupsare still there and despite the efforts made the situationremains tense and insecure A report of the Group of Expertson the RDC published in 2015 by the United Nations SecurityCouncil concludes that in DRC despite a defeat of one of therebel groups ndash the Movement of 23 March ndash at the end of2013 this ldquofailed to translate into significant gains in securityand security and stability in 2014rdquo48 For example in thebeginning of 2015 a rebel group from Uganda the AlliedDemocratic Forces (ADF) created havoc in North Kivuwhere 17 people were hacked to death with machetes49

47 UN Security Council 2006 Resolution 1653 (2006) SRES165348 UN Security Council 2015 Final report of the Group of Experts on

the DRC S20151949 UN Security Council 2015 March 2015 monthly forecast http

wwwsecuritycouncilreportorgmonthly-forecast2015-03democratic_republic_of_the_congo_7phpVP-BX5Sm4agmailto

26

LIVING IN FEAR

Armed groups militias and criminal networkswithin the military structure making a lucrativebusiness out of minerals

The UN has solidly demonstrated that natural resources areused to finance armed groups and therefore to fuel war inthe region 50 The UN concludes that ldquoarmed groups continueto control many mining sites and to profit from mining andthe minerals traderdquo51 Later on those minerals particularlytin tungsten and tantalum are smuggled to neighbouringcountries For example one of the armed groups theMovement of 23 March (M23) responsible for taking Gomaat the end of 2012 was financing its organisation fromnatural resources in Eastern Congo In relation to thisparticular case the UN asserts that ldquoseveral traders havecontributed to financing M23 rebels using profits resultingfrom the smuggling of Congolese minerals into Rwandardquo52

Besides the rebel groups a criminal network within theArmed Forces of the DRC (FARDC) was involved in the illegalexploitation of natural resources The types of involvementinclude illegal taxation protection rackets and indirectcommercial control to more direct coercive control53

For some top army officials their military work wasconverted into economic businesses Indeed the existing

50 UN Security Council 2014 Final report of the Group of Experts onthe Democratic Republic of the Congo

51 Ibidem52 Ibidem53 UN Security Council 2010 Letter dated 26 October 2010 from the

Group of Experts on the DRC addressed to the Chair of the SecurityCouncil Committee established pursuant resolution 1533 (2004) S2010596

27

2 MINERALS AND WARS AT THE GREAT LAKES

practices made the UN qualify the war as a ldquolucrativebusinessrdquo

illegal exploitation of resources by BurundiRwanda and Uganda took different forms includingconfiscation extraction forced monopoly andprice-fixing The first two forms reachedproportions that made the war in the DRC a verylucrative business There are strong indicationsthat even if security and political reasons werethe professed motivation to move into the easternDRC some top army officials clearly had economicand financial objectives54

The most UN recent reports affirm that ldquomany armed groupsin Eastern Democratic Republic of the Congo have derivedtheir revenue from the production of and trade in naturalresourcesrdquo55

54 UN Security Council 2001 Security Council condemns ilegal exploitationof Democratic Republic of Congoacutes natural resources Press Releasehttpwwwunorgpressen2001sc7057dochtm

55 UN Security Council 2014 Final report of the Group of Experts on theDRC S201442

28

LIVING IN FEAR

Insecurity still booming in Eastern Congo

As already mentioned the momentum created bythe defeat of the Movement of 23 March inNovember 2013 failed to translate into significantgains in security and stability in 2014 in EasternDemocratic Republic of the Congo A militaryoperation against the Allied Democratic Forces(ADF) significantly weakened but did not defeatthe sanctioned armed group An expected militaryoperation against the Forces deacutemocratiques delibeacuteration du Rwanda (FDLR) did not materializeand as of the end of November 2014 efforts tonegotiate the disarmament of this sanctionedarmed group failed to produce meaningful resultsIn addition numerous Congolese and foreignarmed groups contributed to instability inOrientale North Kivu South Kivu and KatangaprovincesADF FDLR Nduma Defence for Congo (led bysanctioned individual Sheka Ntabo Ntaberi) andother armed groups continued to recruit train anduse child soldiers in 2014 Armed groups alsocommitted a variety of other abuses includingtorture enslavement and sexual violence Therewere mass killings in June in Mutarule (South Kivu)and in October and November in Beni territory(North Kivu)

Source United Nations Security Council 201556

29

2 MINERALS AND WARS AT THE GREAT LAKES

One of the problems the existing insecurity and conflicts havecreated is the proliferation of internally displaced peopleestimated in September 2014 at 27 million people57

UN peacekeeping operation in Congo

In July1999 Heads of State of Angola DRC NamibiaRwanda Uganda Zambia and Zimbabwe signed the Lusakaagreement focusing on the establishment of a ceasefire asone of the other components necessary for the deploymentof a UN peacekeeping force

The first UN Peacekeeping operation in DRC wasestablished in November 1999 after the Lusaka Ceasefireagreement It was called the UN Mission in the DRC(MONUC) In 2010 it was renamed the UN OrganizationStabilization Mission in the DRC (MONUSCO)

Ten years later despite the deployment of MONUC thesecurity challenges in DRC ndash particularly in the Eastern Partof the country ndash remain high58 There is still a strong presenceof armed groups chronic humanitarian crisis continuoushuman rights violations and continued illegal exploitationof natural resources In the light of this context the UNcreated an ldquoIntervention brigaderdquo with a key objective ofneutralizing armed groups59 As of today the MONUSCOand the intervention brigade are operational but are theresignificant security changes

56 Ibidem57 See global humanitarian assistance webpage http

wwwglobalhumanitarianassistanceorgcountryprofiledemocratic-republic-of-congo

58 UN Security Council 2010 Resolution 192559 UN Security Council 2013 Resolution 2098

30

LIVING IN FEAR

60 UN Security Council 2014 Final report of the Group of Experts on theDRC S201442

61 PR Newswire 2014 Rwanda has become worldacutes largest coltanexporterhttpwwwprnewswirecomnews-releasesrwanda-has-become-worlds-largest-coltan-exporter-reports-kt-press-300010371html

62 PR Newswire 2014 Rwanda has become worldacutes largest coltanexporter

63 Africa Briefing 2015 Rwanda has abundant deposits of best qualitycoltan Kagame affirms httpafricabriefingorgp=478

Legitimate exports or smuggling conflictminerals

It is well known that many of the minerals in Eastern Congoare smuggled and do not follow legal channels For instancethe UN estimates that 98 of the gold produced in DRC issmuggled out of the DRC making the country lose millionsof dollars in tax revenue60

In December 2014 numerous media covered a story onRwanda and coltan PR Newswire affirmed that ldquoRwandahas become worldacutes largest coltan exporterrdquo61 The dataprovided concluded that in 2013 Rwanda exported around2500000 kg of tantalum which constituted 28 of the total8807232Kg of tantalum produced globally The overallrevenue from the coltan was estimated at around $140 M62

Rwandese President Paul Kagame was quoted as affirmingthat the production was local and dismissed all possibleallegations of plundering the coltan from Congo He affirmedldquoRwanda has not only enough coltan but of a very highquality (hellip) we can even pay for a ticket give them a visaand take them to the minesrdquo63

Contrary to such statements there are many reports thatcoltan is smuggled from Congo to Rwanda and that Rwandadoes not have significant coltan mining on its own For

31

2 MINERALS AND WARS AT THE GREAT LAKES

instance a 2012 report prepared by a European Foundationaffirmed that ldquoRwanda does not house any industrial coltanmines which would suggest legitimate Rwandan coltanproductionrdquo64 A US governmental agency which analyzesthe mining sector in Congo made a table with coltan exportedfrom Rwanda qualifying it as ldquoconflict mineralsrdquo as seen inTable 165 Since there is no known conflict in Rwanda it canonly refer to Rwanda exports of minerals originating froman external conflict zone the DRC

Table 1 Estimates of exports of conflictminerals from Rwanda for Fiscal years2009-2013 in Metric Tons

Year Tantalum

FY 2009 958

FY 2010 827

FY2011 915

FY2012 1139

FY 2013 2466

Source Based on United States Government Accountability Office 2014

64 Van Teeffelen 2012 The EU raw materials policy and mining in RwandaEvert Vermeer Foundation

65 United States Government Accountability Office 2014 Conflictminerals stakeholder options for responsible sourcing are expandingbut more information on smelters is needed

32

LIVING IN FEAR

In this particular situation either somebody is wrong orsomebody is lying Hopefully future events will unveil thetruth around the nature of the coltan exports from Rwandato clarify whether they are a legitimate export or theconsequence of smuggling conflict minerals

Greed for minerals everybody wants a pieceof Congo66

What is at the origin of those wars and instability of theCongo While there could be diverse factors for conflictthere is one that seems to be always recurrent and is recog-nized by most authors and by relevant UN reports the racefor minerals and natural resources The UN recognized thatin the Second Congo War minerals were the coveted trophyand that all actors ldquobuilt up a self-financing war economycentred on mineral exploitationrdquo67 The conflicts that con-tinued after the Second Congo War like those in Kivu andIturi provinces are recognized as well to be fuelled by tradein minerals Along the same lines Palou underlines the causesof the conflict by stating that ldquoalthough from that time un-til the present day the Rwandan regime has expressed itsconcern about the security of its border with the then Zaireobjectively the reality is that control over this strategic areandash Eastern Congo ndash and its valuable mineral resources has

66 See video at Congo Justice httpcongojusticeorg67 UN 2002 Final report of the Panel of Experts on the illegal exploitation

of natural resources and other forms of wealth of the DemocraticRepublic of the Congo S20021146

33

2 MINERALS AND WARS AT THE GREAT LAKES

proved to be at the heart of two wars that have left a hugenumber of victimsrdquo68 In conclusion a 2001 UN report as-serted that ldquothe conflict of DRC has become mainly aboutaccess control and trade of five key mineral resourcescoltan diamond copper cobalt and gold The wealth of thecountry is appealing and hard to resist in the context oflawlessness and the weakness of the central authorityrdquo69

Congolese and regional elite have also profited from thissituation as well and the appalling quantum of the plunderare reflected in the following report from UN

The elite network of Congolese and Zimbabweanpolitical military and commercial interests seeksto maintain its grip on the main mineral resourcesmdash diamonds cobalt copper germanium mdash of theGovernment-controlled area This network hastransferred ownership of at least US$ 5 billion ofassets from the State mining sector to privatecompanies under its control in the past three yearswith no compensation or benefit for the Statetreasury of the Democratic Republic of the Congo70

Funds that could have been used for public services havebeen diverted from the public coffers by fraud or by theexcuse of war effort71 The Congolese population has paid

68 Palou 2010 International Justice plunder in war human rights andmultinationals

69 UN Security Council 2001 Report of the Panel of Experts on theillegal exploitation of natural resources and other forms of wealth ofthe Democratic Republic of the Congo S2001357

70 UN Security Council 2002 Final report of the Panel of Experts on theilegal exploitation of natural resources and other forms of wealth ofthe Democratic Republic of the Congo S20021146

71 Ibidem

34

LIVING IN FEAR

dearly in this situation In terms of human development it isinstructive that the UNDP estimated in 2013 that RDCwas in the low human development category ndash positioningthe country at 186 out of 187 countries and territories72

The Role of Transnational Corporations (Tncs)and the private sector

Other key players involved in the conflict are Transnationalsand the private sector A UN Report published a few yearsafter the Second Congo War started affirmed that ldquothe roleof the private sector in the exploitation of natural resourcesand the continuation of the war has been vitalrdquo73 The reportalso added that ldquoa number of companies have been involvedand have fuelled the war directly trading arms for naturalresourcesrdquo74 Other observers share the view that ldquoWesternMultinationals have been one group responsible for thepillage and illegal exploitation of Congo mineral resourcesrdquo75

There are a large number of big foreign corporationsinvolved in mining in DRC including those from CanadaSouth Africa UK USA and others Despite the opacity ofmost of the activities of the private sector numerousexamples have been reported of how TNCs are responsiblefor human rights abuses and other illegal activites Thereare also many reports of the dangerous connectionsestablished with the political and military elite in order tofacilitate their businesses These are some examples

72 UNDP 2014 Sustaining human progress reducing vulnerabilities andbuilding resilience Congo (Democratic Republic of the) httphdrundporgsitesallthemeshdr_themecountry-notesCODpdf

73 UN 2001 Report of the Panel of Experts on the illegal exploitation ofnatural resources and other forms of wealth of the Democratic Republicof the Congo S2001357

74 UN 2001 Ibidem75 Palou Ibidem

35

2 MINERALS AND WARS AT THE GREAT LAKES

bull Glencore Anglo-Swiss giant in the raw material sectorwith a turnover of US $ 2397 billion in 2013 was beingaccused in 2014 of adopting a military-style response tothe problem of artisanal mining close to its mines ldquoonseveral occasions over the past 18 months mine policehave fired live ammunition in pursuit of artisanal minerson Glencorersquos site resulting in deaths and seriousinjuriesrdquo76 They are as well responsible forcontamination of the water supply with acid content andvery high and concentrations of copper and cobaltFinally the company operates some of its concessionsinside a reserve ndashndash something that in principle is illegalaccording to the RDC Mining Code77

bull An independent investigation unveiled that two miningcompanies Glencore and the Eurasian Natural ResourcesCorporation were involved in underpricing assets incomplex deals featuring offshore companies causinglosses to the DRC of no less than $136 billionIntermediary companies in the deals were linked to DanGerler78 In addition the DRC public prosecutorreportedly told mining companies that they had toreimburse $37 billion in taxes duties and fines79

bull AngloGold Ashanti part of the AngloAmericancorporation was accused of establishing links and

76 Peyer et al 2014 PR or Progress Glencoreacutes corporate responsibility inthe DRC Bread for all RAID Fastenopfer

77 Ibidem78 CRS 2014 Democratic Republic of Congo Background and US Policy79 Reuters 2014 Disputed Congo report says miners owe $37 billion in

tax fines httpwwwreuterscomarticle20140130us-congo-democratic-mining-idUSBREA0T12L20140130

36

LIVING IN FEAR

supporting one armed group the Nationalist andIntegrationist Front (FNI)80

bull In 2004 fighting between soldiers and rebels in Kilwaended in serious human rights violations againstcivilians including summary executions arbitraryarrests rape and torture Anvil Mining operated theDikulushi copper mine near Kilwa and was accused ofproviding vehicles and planes to the Congolese armedforces during this event The legal case ended in theCanadian Supreme Court in 2012 which ruled that itwould not hear the plaintiff rsquos appeal ndash they were led bythe Canadian Association Against Impunity (anassociation representing survivors of the incidents inOctober 2004)81

bull In May 1997 Citibank NY a financial institution hasbeen accused of giving $5 million loan to a Congolesemilitia allied with Rwanda82

bull American Mineral Fields (AMF) cut a $1 billion dealwith Kabila immediately after his forces captured GomaThe negotiations were led by ldquoKabilarsquos US-trainedfinance ministerrdquo who gave ldquoAMF exclusive explorationrights to zinc copper and cobalt mines in the area MikeMcMurrough a friend of US President Bill Clinton wasthen the chair of AMF83

80 Human rights watch 2005 DRC Gold fuels massive human rightsatrocities httpwwwhrworgennews20050601dr-congo-gold-fuels-massive-human-rights-atrocities

81 Business and human rights resource center 2012 Anvil Mining Lawsuit(re DRC) httpbusiness-humanrightsorgenanvil-mining-lawsuit-re-dem-rep-of-congo

82 Global research 2008 Congo Resource wars httpwwwglobalresearchcacongo-resource-wars8310

83 Global research 2008 Ibidem

37

2 MINERALS AND WARS AT THE GREAT LAKES

UN and some other independent reports generally makebroad statements about the role of corporations includingciting some of the companies however they fall short ofproviding details of the modus operandi of those companiesand in establishing or suggesting concrete measures to stopthe conflicts and solve the negative impacts on the DRCpopulation and environment A 2002 UN Report listed 85companies considered by the Panel to be in violation of theOECD Guidelines for Multinational Enterprises84 Very littlehas been done after the UN report was published

A poor country Until when

In 1969 World Bank President Robert McNamara embarkedon a trip to Africa to try to discover ldquowhat are therequirements for developmentrdquo85 At that time the WorldBank in its information document described the country asrich in natural resources but at the same time poor and witha strong mining sector

In spite of its rich natural resources and greatpotential the Congo is still a poor country (hellip)Mining and metallurgy play a leading role in theeconomy86

84 UN 2002 Final Report of the Panel of Experts on the Illegal Exploitationof Natural Resources and other Forms of Wealth of the DemocraticRepublic of the Congo S20021146

85 Records of President Robert S McNamara Travel briefs CongoKinshasa (01021969-03031969) 1772506 Reference Code WBIBRDIDA 03 EXC-10-4540S World Bank Group archives WashingtonDC United States

86 Ibidem

38

LIVING IN FEAR

More than forty years later not much has changed asupdated data shows In DRC seven out of ten householdsare poor87 Most of its nearly 60 million people areldquodesperately poor living on less than $1 a dayrdquo88 DRC is aleast developed country a fragile State that has been in thetop 10 recipients of humanitarian assistance in nine of thelast 10 years Between 2003 and 2012 DRC received US$176billion in official development assistance (ODA) making itthe 10th largest recipient89In 2012 the Democratic Republicof Congo (DRC) received US$286 billion in net officialdevelopment assistance90

With so many natural resources isnrsquot there money to getpeople out of poverty The mining sector is oftenacknowledged as being capable of contributing to povertyreduction However those mineral benefits are oftencreamed off by powerful interests and do not get to thehands of the majority of the population According to DFIDldquofiscal receipts from the minerals sector are siphoned off bypowerful interest groups instead of being used in the publicsectorrdquo91

The analysis of Mr Antonino Giambrone sheds more lightabout the earnings and who profits from mining

While the average Congolese worker earns $10 permonth the average Congolese coltan-miner earnsanywhere from $10 to $50 per week Uganda

87 IMF 2013 DRC Poverty reduction strategy paper N 1322688 DFID 2008 Democratic Republic of Congo Country Plan89 View global humanitarian assistance webpage http

wwwglobalhumanitarianassistanceorgcountryprofiledemocratic-republic-of-congo

90 CRS 2014 Democratic Republic of Congo Background and US Policy91 DFID 2008 Democratic Republic of Congo Country Plan

39

2 MINERALS AND WARS AT THE GREAT LAKES

Rwandan and Congolese rebels have earned manymillions of dollars in sales of coltan which theyhave used to finance their war efforts in the CongoBetweeen 1999 and 2000 the Rwandan army aloneearned at least $20 million a month from coltan92

Food insecurity is often a consequence of poverty One ofthe causes of existing food insecurity is the abandonment ofthe agriculture sector partly due to conflicts The governmentstated that it would like to strengthen the smallholdersldquowhile ensuring at the same time the protection of thecountryrsquos natural resourcesrdquo93

War impacts on the environment

The wars have had devastating impact on the environmentNational parks for instance home of many endangeredspecies are also affected by the exploitation of minerals94

There are numerous reports on the precarious situation ofwildlife in the region For instance between 1995 and 19994000 out of 12000 elephants were killed in the GarambaPark in North-eastern DRC95 The situation was also seriousin other parks For instance in Kahuzi-Biega Park a zonerich in coltan only 2 out of 350 elephant families remained

92 Giambrone 2006 The extraction of natural resources as a source ofconflict Etfo voice

93 IMF 2013 DRC Poverty reduction strategy paper N 1322694 Seeh ttpwww lenntech comenv ironmental -ef fec ts -

warhtmixzz3CuGZqE3M95 UN 2001 Report of the Panel of Experts on the illegal exploitation of

natural resources and other forms of wealth of the Democratic Republicof the Congo S2001357

40

LIVING IN FEAR

in 200096 Mountain gorillas are also under threat due tocontinued civil unrest and the presence of armed militiasmakes survey and conservation work difficult in the DRCrsquosprotected areas97

Deforestation is also one of the common impactsWorldwatch explains the implication of having refugeespopulation inhabiting RDC degraded forest areas

For two years beginning in late 1994 for exampleabout 720000 Rwandans inhabited refugee campson the fringes of Virunga National Park They allneeded wood for cooking fires and for buildingshelters and some also earned extra money bymanufacturing charcoal As a result up to 80000people entered the park and carted away up to1000 tons of wood every day By mid-1996 105square kilometers of forest had been affected toone degree or another by their activities 35 squarekilometers had been stripped bare98

Besides the need for fuelwood by refugees movement ofmilitary hardware through forests and woodlands also causeserious damage to forests and the landscape generally

96 Ibidem97 See WWF webpage httpwwfpandaorgwhat_we_doendangered_species

great_apesgorillasmountain_gorilla98 Worldwatch 2008 War and Environment httpwwwworldwatchorg

node5520

3South Sudan The Oil Way

99 Washington Post 2012 lsquoSouth Sudan civilians are trapped in conflictover oilrsquo httpwwwwashingtonpostcomworldsouth-sudan-civi l i ans-are- trapped-in-conf l ict -over-o i l20120501gIQAUX6buT_storyhtml

100 See UN Mission in South Sudan web page httpwwwunmultimediaorgtvunifeed201404south-sudan-bentiu-massacre

101 Reuters 2014 Bentiu massacre is game-changer in South Sudanconflict says UN official httpwwwtheguardiancomworld2014apr22bentiu-massacre-south-sudan-united-nations

41

ldquoIf we had no oil we would not be attackedrdquo

Nyak a 27-year-old sitting outside herhut in Bentiu South Sudan 201299

In April 2014 Bentiu the capital of the oil producing UnityState was the scenario of one of the worst massacres of thecivil war between South Sudanese forces100 Hundreds ofpeople were killed in the fighting that took place betweenthe Sudan Peoplersquos Liberation Army (SPLA) and anti-government forces in the oil-rich State101

42

LIVING IN FEAR

Civil wars and conflict

Since its independence in 1956 Sudan has been at war andconflict for most of its modern history Specialists in conflictand security have described the history of modern Sudan asldquoan unremitting sequence of wars punctuated by oft-violatedpeace agreementsrdquo102 The First Sudanese Civil War (1955ndash1972) was followed by a Second Sudanese Civil War (1983ndash2005) with barely 11 years breathing space of tenuoussecurity

The Second Civil War ended when both sides signed theComprehensive Peace Agreement in 2005 That agreementgave autonomy to South Sudan within Sudan However areferendum held in January 2011 moved the region towardsecession and then in July 2011 independence was achievedand South Sudan became an autonomous nation103 Theprocess that led to South Sudanrsquos independence was stronglysupported by the US government which backed Juba in itstwo decades struggle against Khartoum104 It should be notedthat even during the 11 years of supposed peace there wereconflicts on a regular basis particularly in the border areasbetween South Sudan and Sudan105 Two years after theindependence the first South Sudanese Civil War started inDecember 2013 The civil war erupted as a result of a power

102 Cox and Snapper 2013 The Strategic Importance of South Sudan TelAviv University

103 National Geographic 2013 South Sudan oil the environment andborder conflicts httpvoicesnationalgeographiccom2013032286550

104 See webpagehttpwwwworkersorgarticles20140101south-sudan-yet-another-oil-war

105 International Crisis Group 2006 Sudan Saving peace in the Easthttpwwwcrisisgrouporgenregionsafricahorn-of-africasudan102-sudan-saving-peace-in-the-eastaspx BBC 2015 South SudanProfile httpwwwbbccomnewsworld-africa-14019202

43

3 SOUTH SUDAN THE OIL WAY

struggle between president Salva Kiir from the Dinka ethnicgroup and his deputy Riek Machar from the Nuer ethnicgroup whom he had sacked As at the time of this writingthe civil war continues

Sudan vs South Sudan

The tensions and conflicts after the independence of SouthSudan from its neighbour Sudan did not stop in 2011 Topleaders from both sides accuse and threaten each other innumerous occasions For instance Sudanese President Bashirpromised to teach South Sudan a ldquofinal lesson by forcerdquo106

South Sudan President firmly swore that ldquowhether Umar al-Bashir likes it or not one day Abyei will rejoin the southrdquo107

Abyei

Abyei is traditionally the home of the Ngok Dinka asubdivision of the Dinka tribe with strong links to the Dinkain South Sudan Besides the Dinka Misseriya herders aremembers of nomadic Arab tribes that seasonally cross Abyeiand other nearby areas with their cattle in search of waterand pasture108

Since the signing of the Peace Agreement in 2005 betweenthe Government of Sudan and the SPLM the dispute over

106 The Washington Post 2012 lsquoSudanese president vows war againstSouth Sudanrsquo httpwwwwashingtonpostcomworldsudanese-president-threatens-force-against-south-sudan-over-oil-field20120419gIQAJ0G8ST_storyhtml

107 The Global Intelligence Files 2013 Sudan- President Kiir says Abyeiwill ldquorejoinrdquo South Sudan httpssearchwikileaksorggifilesviewemailid=674314

108 Enough Project 2013 What is the Abyei Area and why is it disputedhttpwwwenoughprojectorgblogsenough-101-what-abyei-area-and-why-it-disputed

44

LIVING IN FEAR

the future status of the Abyei area has beenone of the bigbarriers to stability in the region109Abyei is an oil-rich areadisputed by Sudan and South Sudan and stands out as thehotspot of bigger tension beetween Sudan and South Sudannowadays

The conflicts over Abyei have a history of more than 50years After the First Civil war the parties signatories to thepeace pact agreed that Abyei would hold a referendum todetermine whether they would be part of Sudan or a newlyregion in the South The second war commenced in 1983and the foreseen referendum was not done

In 2009 the Permanent Court of Arbitration in the Hagueruled on Abyei territory giving concessions to the Governmentof Sudan and the Southern Sudan Heglig and other closeroil-fields remained out of Abyei area while the rest of theAbyei region remained under control of the Ngok Dinka anethnic group close to Southern Sudan and keen on voting tojoin the South in a future referendum110Another referendumwas scheduled to be done in parallel with the South Sudanreferendum in 2011 but once again this never took place

Although a series of temporary security arrangementswere agreed in January and March 2011111 in May SudaneseArmy tanks entered the town of Abyei and by the 22nd ofMay they seized control of the town112The government ofSudan launched numerous military attacks in the disputed

109 UN Security Council 2011 Report of the Secretary-General on thesituation in Abyei S2011451

110 New York Times 2009 lsquoCourt redraws disputed area in Sudanrsquo httpwwwnytimescom20090723worldafrica23sudanhtml_r=1amp

111 UN Security Council 2011 Report of the Secretary-General on thesituation in Abyei S2011451

112 Reuters 2011 North Sudan seizes disputed Abyei thousands fleehttpwwwreuterscomarticle20110522us-sudan-abyei-north-idUSTRE74L14L20110522

45

3 SOUTH SUDAN THE OIL WAY

border of area where much of Sudanacutes remaining oil fieldsare situated113 Two years later the fighting remains intensein parts of South Kordofan and Blue Nile114 More than 2million people have been internally displaced or severelyaffected by the conflict since 2011115

In addition to military attacks other actions contributedto the tension There have been cattle raids by the MissiriyandashArab nomadic cattle herders inhabiting the area ndash on theNgok Dinka ndasha subdivision of the Dinka tribe inhabitingthis area In occasions more than 200 cows were stolenwith a large part of it recovered by the UN Interim SecurityForce for Abyei(UNISFA) These raids increase further thealready tense situation in the region and in particular thevery tense situation among the Missiriya and the NgokDinka116

113 The Conversation 2012 Oil fuels the conflict between Sudan andSouth Sudan ndashand it keeps getting hotter

114 OCHA 2014 South Kordofan and Blue Nile population movementsfact sheet httpreliefwebintsitesreliefwebintfilesresourcesSouth20Kordofan20and20Blue20Nile20Population20Movements20Fact20Sheet20-201920May202014pdfReuters 2013 Khartoum says rebels based in South Sudan caused oilpipeline blast

115 OCHA 2014 Ibidem116 See Human Security baseline assessment for Sudan and South Sudan

webpage httpwwwsmallarmssurveysudanorgdefacts-figuresborderdisputed-areasabyeihtml

46

LIVING IN FEAR

An oil-centered conflict

ldquoThe violence underscores the extent to which oilis at the heart of the dispute Khartoum whichcontrols the pipelines that take oil out of SouthSudan depends heavily on oil transit fees SouthSudan which depends on oil for 98 percent of itsrevenue has refused to pay the fees which it saysare exorbitantKhartoum responded by seizing oil tankers carryingSouth Sudanese oil and imposing economicblockades That prompted South Sudan to shutdown its entire oil production in February Thatmonth Sudan allegedly bombed an oilfield inSouth Sudan that was nine miles from the borderrdquo

Washington Post 2012

Missiriya attacks continue as of today UNISFA reported thatin March 2015 100 armed Missiriya killed several peopleand burnt over 20 houses in a village in the southern part ofAbyei117 Many of those attacks occur despite the presenceof UN peacekeepers in the zone

In this context a UN force was deployed in 2011 withmore than 4000 personnel mostly Ethiopian with theobjective of ensuring the demilitarization of the Abyei areaand particularly checking the Sudan Armed Forces and theSudan Peoplersquos Liberation Army Interestingly the UN forceshad also the task to provide security for oil infrastructure inthe Abyei Area in cooperation with the Abyei PoliceService118 In February 2015 the Security Council extended

117 Sudan Tribune 2015 South Sudan condemns deadly clashes in Abyeihttpwwwsudantribunecomspipphparticle54191

118 UN Security Council 2011 Resolution 1990 (2011) SRES1990(2011)

47

3 SOUTH SUDAN THE OIL WAY

the mandate of the UNISFA again until July 2015119 The AbyeiJoint Oversight Committee (AJOC) decided in May 2013 thatAbyei should adopt a status as weapons-free area and thatonly UNISFA would be authorized to carry weapons in thearea120

The situation in the area is still very fragile121 For instancevarious resolutions have called for the redeployement of allmilitary personnel from Abyei including those protecting itsoil infrastructure However the Sudanese Governmentskeeps at the Diffra oil complex around 150 Sudan oil policein a clear violation of an agreement and Security Councilresolutions adopted in 2011122 The UN Security council ina recent resolution

Condemns the presence of Diffra Oil Police unitsdeployed in the Abyei Area as well as the repeatedentry of armed militias into the territory andreiterates its demands that immediately andwithout preconditions the Government of Sudanredeploy the Oil Police in Diffra from the AbyeiArea ()123

Conflicts escalating over oil Heglig battles

In 2012 despite the Permanent Court of Arbitration ruling124

which placed Heglig oilfields in the Sudanese territories

119 UN News Center 2015 Security Council extends UN peacekeepingforce in Abyei through July 2015

120 UN Security Council 2015 Ibidem121 UN Security Council 2015 Security Council adopting resolution 2205

(2015) extends interim force in Abyei until 15 july voicing concernover delays in Borde Mechanismrsquos operation httpwwwunorgpressen2015sc11800dochtm

122 UN Security Council 2014 Report of the Secretary-General on thesituation in Abyei S2014518

123 UN Security Council 2015 Ibidem124 See Permanent Court of Arbritation webpage httpwwwlocgov

lawwebservletlloc_newsdisp3_l205401463_text

48

LIVING IN FEAR

the South Sudanese army launched an attack over Heglig125

South Sudanrsquos army took control of the oil-producing townof Heglig The South Sudan move did not enjoy sympathyfrom many countries including its allies such as the US andBritain126 The African Unionrsquos (AU) Peace and SecurityCouncil considered Sudanrsquos occupation of Heglig as illegal127

At the end after a few days South Sudan pulled back itstroops from Heglig even though President Salva Kiir stillclaims that Heglig is a part of South Sudan and is expectinginternational arbitration

Oil and geopolitics

The implications of the oil economy are self-telling Prior tothe separation of Sudan from South Sudan in 2011 theunified Sudan was the second-largest non-OPEC oil producerin Africa in 2010 When they separated Sudan and SouthSudanrsquos production diminished and together they rankedas the fourth-largest non-OPEC African oil producer in 2013Particularly the split of the country in oil revenues economicterms was a huge blow to Sudan with its crude oil exportrevenues falling from almost $11 billion in 2010 to around$18 billion in 2012128 It has been estimated that oilcontributes 98 of South Sudan government income morethan for any other government in the world129

125 Wall Street Journal 2012 Sudan escalates fight over oil httpwwwwsjcomarticlesSB10001424052702304444604577339461981143808

126 The Guardian 2012 South Sudan to withdraw from disputed oiltownhttpwwwtheguardiancomworld2012apr20south-sudan-withdraw-oil-town

127 IRIN 2012 Sudan-South Sudan Heglig and the border128 US Energy Information Administration 2014 Country analysis brief

Sudan and South SudanhttpwwweiagovcountriesanalysisbriefsSudansudanpdf

129 Global Witness 2009 Fuelling mistrust

49

3 SOUTH SUDAN THE OIL WAY

Although oil exploration started at the end of the 1950showever no success was achieved with the activities of Italianoil company Agip130 Discoveries were found in the years tofollow The first oil discovery was made in 1979 when theAmerican company Chevron found oil near the Darfur-Kordofan boundary Three years later Chevron made twolarger discoveries the Heglig and Unity oilfields which asof today are the most productive However by 1984 Chevronstopped its operations when some of its workers were killedby an armed group By 1988 the company dismantled all ofits operations in Bentiu and Unity provinces131

As a landlocked country all the oil in South Sudan had tobe extracted and exported via a pipeline The pipeline wasconstructed by China National Petroleum Corporation andit covered a length of around 1600 kilometers132 Ittransports the oil from South Sudan to the Red Sea Thecost of the pipeline was estimated at $1 billion and it wasfinished in 1999133At the time of the construction of thepipeline Sudan provided less than 1 of Chinarsquos oil importsbut a few years later by 2009 the investments of Chinatotalled more than $8 billion134

130 Understanding Sudan 2009 Fact sheet two A history of oil in theSudan httpunderstandingsudanorgOilOilResourcesL2FS2-HistoryofOilinSudanpdf

131 Understanding Sudan Ibidem132 The Conversation 2012 Oil fuels the conflict between Sudan and

South Sudan ndashand it keeps getting hotter133 Sitarek 2001 The human price of oil ICE Case Studies Number 83

httpwww1americanedutedicesudansanctionshtm16134 The Conversation 2012 Ibidem

50

LIVING IN FEAR

Source US Energy Information Administration 2014

South Sudan becameindependenth in July2011 Taking aboutthree-quarters of theproduction A disputeover transit fees ledSouth Sudan to haltproduction for most of2012

Oil production inSudan and South Sudan

thousand barrels per day

51

3 SOUTH SUDAN THE OIL WAY

Main oil companies in Sudan and South Sudan

While initially many companies involved were of Westernorigin most of the companies now involved in the oil sectorare from China and Malaysia

Source US Energy Information Administration 2014 Countryanalysis Brief Sudan and South Sudan

Row over oil tariffs

By 2011 both countries did not agree on how much SouthSudan should pay to export its oil through the pipelines inSudan Sudan requested a fee of 33 dollars a barrel whileSouth Sudan said the highest fee they could afford was 2

Table 2 Main oil companies in Sudan and South Sudan

52

LIVING IN FEAR

dollars a barrel135 Following this lack of agreement SouthSudan halted crude oil production in early 2012

This decision worsened the economic situation in bothcountries as both depend hugely on money from oil exportsfor their revenues However an agreement was reached andin April 2013 South Sudan restarted oil production136

Causes of the Sudanese Civil War

Wars in Sudan have been often portrayed quite simplisticallyas an ArabMuslim north versus and an AfricanCristiansouth While certainly ethnicity and religion played a rolethe conflict has been mainly fought over natural resources137

Today oil is the countryrsquos main natural resource and ithas been estimated that it accounts for 98 of South Sudanrsquosrevenue138 The multibillion potential of their revenuehowever has not translated into wealth and benefits for themajority of the population of South Sudan First of all it hasnot solved the problem of security as since the very inceptionof the State of South Sudan in 2011 there were conflicts inmany areas of the country particularly in the borderline withSudan A 2013 report from the World Bank illustrates thisby asserting that ldquodespite South Sudanrsquos great resourcewealth its population is one of the most deprived due todecades of neglect and war and the distortions of the oil

135 IPS 2011 South Sudan rows over exorbitant fees for pipeline use136 Reuters 2013 South Sudan resumes oil output after ending row with

Sudan over transit fees137 Caas 2007 Natural resources and conflict in Sudan138 See World Bank webpagehttpwwwworldbankorgencountry

southsudanoverview

53

3 SOUTH SUDAN THE OIL WAY

economyrdquo139 Indeed oil reserves sitting on a disputed borderbetween Sudan and South Sudan have not translated yetinto wealth for the majority of citizens of South SudanInstead most of the inhabitants of the country remain deeplypoor and do not enjoy even basic rights to access potablewater and adequate sanitation140

Oil has been a main cause for the war and conflicts inSudan For instance it influenced the end of the peaceagreement obtained after the first civil war This first civilwar ended in 1972 with the Addis Ababa Agreement Theagreement established a system of peaceful co-existence witha single country by guaranteeing aNorthern basedgovernment but granted at the same time autonomy in theSouth This however was not going to last long as thediscovery of oil at the end of the 1970s in Southern Sudanchanged the ldquocoexistencerdquo idea In 1978 Sudanese PresidentNimeiry decided to embark on oil exploration project thatwould lead to the finding of oil in commercial quantities Inorder to control the oil within the hands of the Northernbased Government military force was used and in additionto imposing islamic law which led to the new civil warstarting in 1983141

139 World Bank 2013 Interim Strategy Note (FY 2013-2014) httpwww-wdsworldbankorgexternaldefaultWDSContentServerWDSPIB20130207000333037_20130207110223RenderedPDF747670ISN0P1290Official0Use0Only090pdf

140 National Geographic 2013 South Sudan oil the environment andborder conflicts httpvoicesnationalgeographiccom2013032286550

141 Sitarek 2001 The human price of oil ICE Case Studies Number 83httpwww1americanedutedicesudansanctionshtm16

54

LIVING IN FEAR

Numerous authors have identified natural resources ashaving a direct correlation with wars and conflicts142 Ananalysis by Ross of the University of California (UCLA) ofthirteen wars and conflicts concluded that in the case ofSudan oil was one of the key causes of the second civil warand an incentive for advancing the independence of SouthSudan143 Ross describes his conclusion in the followingmanner

War in Sudan began in 1983 when SudanesePresident Nimeiry took a series of measures thatupset the delicate balance between thepredominantly Muslim north and the heavilyChristian and Animist south among these measureswas his decision to place newly discovered oil inthe countryrsquos south under the jurisdiction of thenorth and to build an oil refinery in the northinstead of the south The Sudan Peoplersquos LiberationArmy (SPLA) subsequently complained that thenorth was stealing the resources of the southincluding oil demanded that work cease on apipeline to take oil from the south to the refineryin the north and in February 1984 attacked an oilexploration base killing three foreign workers andbringing the project to a halt144

142 Varisco 2010 lsquoA study on the inter-relation between armed conflictand natural resources and its implications for conflict resolution andpeace buildingrsquo Journal of Peace Conflict and Development issue 15Ross 2003 How do natural resources influence civil war Evidencefrom 13 cases httpwwwsscnetuclaedupoliscifacultyrossHowDoesNat3pdf

143 Ross Ibidem144 Ross Ibidem

55

3 SOUTH SUDAN THE OIL WAY

Even when the different parties were discussing an agreementon ldquono attacks on civilians or civilian objectsrdquo oil was playinga central role It is instructive to note that the Sudanesegovernment desired language in the text stating that oilinstallations were ldquocivilian objectsrdquo while the SPLA wantedthe contrary145

Human Rights Watch reached the same conclusion thatoil without doubt has been a key fuel for war particularlysince the end of the 90s when crude oil was first exportedfrom Sudan in 1999146

Oil became the main objective and a principal causeof war (hellip) The large-scale exploitation of oil byforeign companies operating in the theatre of warin Southern Sudan has increased human rightsabuses there and has exacerbated the long-runningconflict in Sudan a conflict marked by gross rightsabuses ndashtwo million dead four million displacedsince 1983 ndashand recurring famine and epidemics147

Also the UN makes clear statements on the issue Specialenvoy Leonardo Franco expressed in a report that oilexacerbated the conflict

the economic political and strategic implicationssurrounding oil exploitation in western Upper Nilewhich have seriously exacerbated the conflictthereby causing a deterioration in the overall

145 Ibidem146 Human Rights Watch 2003 Sudan oil and human rights147 Human Rights Watch 2003 Sudan oil and human rights

56

LIVING IN FEAR

situation of human rights and respect forhumanitarian law and narrowing the slim chancesfor peace148

Indeed multiple causes and elements contributed to theconflicts It was recognized that ethnicity and religion wereimportant elements however the key dimension is controlover natural resources particularly oil Added to this are alsotensions over land and resources and the promotion by thegovernment of crops like cotton and sugar which displacedcertain groups of people149 Similar conclusions were reachedyears back by a Canadian Government Mission in Sudanwhich fully recognized some ethnic disputes as well asdisputes over other natural resources however oil was thekey factor which made things really dramatic

148 UN 2000 Interim report of the Special Rapporteur of the Commissionon human rights on the situation of human rights in the Sudan A55374 httpwwwunorgdocumentsgadocs55a55374pdf Seealso UN 1999 Situation of human rights in Sudan UN Doc A54467

149 University of Massachusetts (undated) Modern conflicts conflictprofile SudanhttpwwwperiumassedufileadminpdfSudan1pdf

57

3 SOUTH SUDAN THE OIL WAY

The Harker mission pointed out that while therehave always been pressures on the Dinka in theHeglig- Ruweng area as a result of inter-tribalfighting with Arab nomads for grazing areas anddry-season water the situation had worsened withthe beginning of oilexploration and had continuedto deteriorate over theyears because of the periodicoffensives launched by the Government and itsallies resulting in destructionand mass populationdisplacement150

South Sudan has one of the largest oil reserves inSub Saharan Africa and the commodity is thelifeline of the countryrsquos economy accounting for98 percent of the governmentrsquos financial resources

Whoever controls South Sudanrsquos oil thereforecould seize the upper hand in the battle for power

Source France 24 2013 lsquoBattle for oil adds newdimension to South Sudan conflictrsquo

Whoever controls South Sudanrsquos oil therefore could seizethe upper hand in the battle for power

The same scenario applies to the South Sudan Civil Warwhich initially was also portrayed along ethnic line TheDinka ethnic group of President Salva Kiir has fought rebelsallied with former vice president Riek Machar of the Nuer

150 UN 2000 Interim report of the Special Rapporteur of the Commissionon human rights on the situation of human rights in the Sudan A55374 Ibidem

58

LIVING IN FEAR

ethnic group However increasingly ldquothe focus of the fightingis shifting to the battle to control the countryrsquos mostimportant natural resource ndash oilrdquo151 The oilfields haveliterally become the battlefields

Consequences of war and conflict

The damage inflicted on people as a consequence of war ishuge Back in 2001 US Secretary of State Colin Powellqualified the war in Sudan in the following terms ldquoThere isperhaps no greater tragedy on the face of the earth todaythan the tragedy that is unfolding in the Sudanrdquo152 Firstthere is a large number of deaths due to war and war relatedcauses and also a huge number of displaced people Thedeath toll derived from the Second Civil Sudanese War isestimated at two million The US Commitee for refugeesasserted that ldquothis massive loss of life surpasses the civiliandeath toll in any war since World War IIrdquo153 In the mostrecent civil war the South Sudanese Civil War that startedin December 2013 by April 2014 the death toll wasestimated to be at 10000154

Besides the death toll there are estimated more than fourmillion people of the Southern Sudanese population forced

151 France 24 2013 Battle for oil adds new dimension to South Sudanconflicthttpwwwfrance24comen20131227-battle-oil-adds-new-dimension-south-sudan-conflict

152 Human Rights Watch 2003 Ibidem153 See US Committee for Refugees webpage in 2001 http

webarchiveorgweb20041210024759httpwwwrefugeesorgnewscrisissudanhtm

154 International crisis group 2014 South Sudan a civil war by any othernamehttpwwwcrisisgrouporg~mediaFilesafricahorn-of-africasouth20sudan217-south-sudan-a-civil-war-by-any-other-namepdf

59

3 SOUTH SUDAN THE OIL WAY

to flee their homes at one time or another It has also beenargued that the development of oilfields has led to the forcedremoval of the local population In the words of the lateJohn Garang oil was a ldquokiller itrsquos evicting our civilianpopulationrdquo claiming 100 000 people displaced due to thiscause155

Children are some of the main victims of conflict beingrecruited for instance for war and suffering sexual violenceFrom March 2011 to September 2014 the UN estimatesthat there were 1243 incidents affecting 68776 children156

UN reports indicate that both armed groups have usedchildren ldquoon a large scale and committed other graveviolations including killing maiming and sexual violencerdquo157

For instance in 2015 an incident was reported where closeto 100 children were abducted some as young as 13 Armedsoldiers were advancing house to house looking for boysand taking them by force158 According to UNICEF this occuredin Wau Shilluk close to the city of Malakal in Upper NileState159

Not surprisingly as put by a high UN representativepeople are desperate for peace

155 BBC 2001 Garang Oil firms are targetshttpnewsbbccouk2hiafrica1393481stm

156 UN Security Council 2014 Report of the Secretary-General on childrenand armed conflict in South Sudan S2014884

157 Ibidem158 The Guardian 2015 South Sudan gunmen kidnap at least 89 boys

from village near Malakal httpwwwtheguardiancomworld2015feb22south-sudan-gunmen-kidnap-89-boys-village-malakal-child-soldiers

159 The Guardian 2015 South Sudan gunmen kidnap at least 89 boysfrom village near Malakal

60

LIVING IN FEAR

People are desperate for peace They are tired ofliving in fear Many have had to flee several timesThey are exhausted They lack water they areextremely worried for their children who are notin school and at risk of being recruited into armedgroups Sexual violence is rife All people want isto live in safety security and stability160

Wars have also an impact on food security and nutrition Asof February 2015 there was an alert that the food situationwas critical in South Sudan for more than 25 millionpeople161 This was famine related to war Ulrika BlomCountry Director for Norwegian Refugee Council in 2015succinctly stated ldquoThere is an urgent need for a solution onthe conflict so that people are able to resume their dailylives in dignity and not be dependent on massive foodassistancerdquo162

The harsh consequences of war are inevitable and occurfrom a systematic destruction of infrastructure erosion ofthe human capital and weakening of essential institutions

Besides causing an appalling loss of life Sudanrsquoslong civil war eroded the capital base The wardepleted the labour force while roads irrigationsystems and other key components of rural

160 Under-Secretary-General for Humanitarian Affairs and Emergency ReliefCoordinator Valerie Amos remarks to the press Juba South Sudan 9February 2015 httpreliefwebintreportsouth-sudanunder-secretary-general-humanitarian-affairs-and-emergency-relief-coordinator-1

161 UN Security Council 2015 Reports of the Secretary-General on theSudan and South Sudan SPV7392

162 Norwegian Refugee Council 2015 Conflict a cause of hunger in SouthSudan httpwwwnrcnodid=9192498

61

3 SOUTH SUDAN THE OIL WAY

infrastructure were destroyed damaged orneglected It also weakened institutions divertedfinancial capital from economic development andundermined interpersonal trust which is criticalto productive business dealings163

Some have tried to put a figure on the costs of war A recentreport estimates that the cost of the civil war may be between$223 and $28 billion over the next five years for SouthSudan alone if the factions fail to bring peace to the worldrsquosnewest country164

UN peacekeeping operations

In July 2011 the Security Council determined that thesituation in South Sudan constituted a threat to internationalpeace and security in the region and established the UNMission in the Republic of South Sudan (UNMISS)165 Thekey elements of the mandate is to consolidate peace andsecurity However after the civil war broke in July 2013 inthe light of significant human rights violations the large-scale displacement of persons the UNMISS mandate wasreshaped and a focus was given to the protection of civiliansand creation of the conditions for delivery of humanitarianassistance166

163 IFAD 2013 Enabling poor rural people to overcome poverty in SouthSudan

164 Frontier Economics 2015 South Sudan the cost of war httpwwwfrontier-economicscomdocuments201501south-sudan-cost-warpdf

165 UN Security Council 2011 Resolution 1996166 UN Security Council 2014 Resolution 2155

62

LIVING IN FEAR

In June 2011 a month before the establishement ofUNMISS a second UN peacekeeping operation wasestablished in the disputed border between Sudan and SouthSudan The United Nations Interim Security Force for Abyei(UNISFA) was created in a context of escalating violenceand tensions and population displacement167 One of the topobjectives was to achieve the demilitarization of the Abyeifrom any force other than UNISFA and the Abyei PoliceService facilitate the delivery of humanitarian aidstrenghten the capacity of the Abyei Police Service and incooperation with the police provide security for oilinfrastructure in the Abyei area168

Corporations and conflicts with communities

Since the conclusion of the 2005 Peace Agreement betweenthe Government of Sudan (GoS) and Sudan PeoplersquosLiberation MovementArmy (SPLM) negative impacts ofoil exploration and extraction have continued to ignitemistrust among local communities towards the oilcompanies Many problems from the oil activities wereidentified such as water pollution and uncompensateddispossession of land However oil companies or thegovernment did little to assess correct and reduce suchimpacts169 In this context many communities chose the ldquopath

167 UN Security Council 2011 Resolution 1990168 UN Security Council 2011 Resolution 1990169 ECOS 2014 Scrutiny of South Sudanacutes oil industry http

w w w e c o s o n l i n e o r g r e p o r t s 2 0 1 4 Scrutiny_of_South_Sudans_Oil_Industrypdf

63

3 SOUTH SUDAN THE OIL WAY

of confrontation with oil companiesrdquo170 For instance byblocking and interfering in oil operations by truck blockagesand other stoppages171

Resentment of local communities againstoil companies

The negative consequences of oil developmenthave been causing deep resentment against oilcompanies in many oil-rich parts of SouthernSudan Arriving in any oil area where activeexploitation is ongoing one is often confrontedwith persistent complaints from local people aboutpoor management of ldquoproduced waterrdquo which isblamed for pollution of the environment This isoften linked to unexplained deaths of animals andstrange or new human ailments Moreover the oilinfrastructure such as oil roads wells and pipesare frequently blamed for disrupting the means oflivelihoods of local people as well as destructionof property

Source ECOS

170 ECOS 2014 Ibidem171 ECOS 2014 Ibidem

64

LIVING IN FEAR

Lundin Oil Consortium facing war and violencein their work territory

In 2010 the European Coalition on Oil in Sudan (ECOS)requested an investigation on the activities of the LundinGroup and its connection with the conflict in Sudan and thepossible ldquocomplicity in the commission of war crimes andcrimes against humanityrdquo172 During the Second Civil War in1997 a consortium of oil companies led by the Swedish oilcompany Lundin Oil AB (ldquoLundinrdquo) signed a contract withthe Government for the exploration of oil in the concessionarea called Block 5A that was not at that time under fullGovernment control The other members of the Consortiumwere Petronas Carigali Overseas Sdn Bhd (ldquoPetronasrdquo) fromMalaysia OMV (Sudan) Exploration GmbH (ldquoOMVrdquo) fromAustria and the Sudanese state-owned oil company SudapetLtd

Before the start of explorations the area around Block5A was relatively peaceful When the oil exploration startedthe escalation of violence and war followed suit173 Accordingto the European Coilation on oil in Sudan Block 5A ldquobecamethe scene of intense fighting and gross human rightsviolations as soon as the Lundin Consortium started oilexploration activities on the groundrdquo Right from thebeginning there are reports of significant war and violence

172 ECOS 2010 Unpaid debt The Legacy of Lundin Petronas and OMV inSudan 1997-2003 Press Release httpwwwecosonlineorgreports2010Press_release_UNPAID_DEBT

173 ECOS 2010 Unpaid debt The Legacy of Lundin Petronas and OMV inSudan 1997-2003 httpwwwecosonlineorgreports2010UNPAID_DEBT_textonlywebpdf

65

3 SOUTH SUDAN THE OIL WAY

where villages and towns were burnt and looted Tens ofthousands of people in Block 5A were also moved out fromthe exploration areas

In 1999 the Lundin Group discovered major reserves ofoil This accelerated the Government desire to control allthe areas surrounding the well and the infighting intensifiedLundinrsquos explorations in Block 5A had to be suspended twicedue to insecurity174

The consequences of all the violence towards thepopulation which were in the middle of the power battlefor controlling Block 5A were severe abuse of all humanrights and war crimes More than 10000 people were killedalmost 160000 displaced with thousands of peoplepermanently uprooted from their villages hundreds ofthousands of cattle lost or looted destruction of churchesschools markets medical clinics and many otherincalculable moral damage and inmense loss of income175

Talisman Energy accused of complicity with forceddisplacements

A Canadian company Talisman Energy which at that timewas considered to be the largest independent oil and gascompany in Canada has been accused of indirectly helpingto exacerbate the war and of being complicit in human rightsabuses and crimes against humanity176 Talisman has a 25

174 HRW 2003 Ibidem175 ECOS 2010 Unpaid debt Ibidem See also Medecins sans frontieres

2002 Violence health and access to aid in Unity Statewestern uppernile Sudan httpwwwdoctorswithoutbordersorgsitesusafilessudan_04-2002pdf

176 Africa files 2000 Corporate immunity for oiling repression Talismanin Sudan httpwwwafricafilesorgarticleaspID=621

66

LIVING IN FEAR

stake in the Greater Nile Oil Project Company (GNOPC) aninitiative located in south-central Sudan with threeadditional partners the national petroleum company ofChina (40) the national oil company of Malaysia (30)and the national petroleum company of Sudan (5)177

There were many allegations that people were forcefullydisplaced in the area of the oil field ran by Talisman UNreported that accusations were made on Talisman of ldquobeingaccomplice of human rights abuses in Upper Nile so as toguarantee security for its oil operationsrdquo178

Moreover a report from the Canadian Foreign AffairsMnistry ndashthe Harker Report ndash which undertook a mission toSudan described with concern that fighting was intense inthe areas of oil development in general and that oilextraction may have contributed to relocation of civiliansby force179

Violence and the fear of it impact immediatelyon the peoplersquos use of the land and result in foodinsecurity which in turn propels movement ordisplacement

Contradicting that oil is at stake in the displacement issueTalisman explained that displacement was a result of an inter-tribal issue Once again the Harker report concluded thatthe displacement was because of oil

177 Africa files 2000 Ibidem178 UN Security Council 2000 Interim report of the Special Rapporteur of

the Commission on Human Rights on the situation of human rights inthe Sudan A55374

179 Canadian Ministry of Foreign Affairs 2000 Human Security in SudanThe Report of Canadian Assessment Mission httpwwwecosonlineorgreports2000Human20Security20in20Sudanpdf

67

3 SOUTH SUDAN THE OIL WAY

ldquoFor Talisman so very much seems to be explained as merelyan inter-tribal problem but displacement has gone on andis still going on and in Ruweng County it is hard to denythat displacement is now and has been for some timebecause of oilrdquo180

Talisman Energy decided in 2002 to end its controversialfour-year investment in Sudan by selling its 25 percent stakein the Greater Nile Petroleum Operating Company to anIndian firm Most of the rumours is that the reasons for thiswas the strong pressure from the US particularly to end itswork in Sudan in order to stop indirectly supporting theGovernment in Sudan with its oil revenue181

The oil way developing what

Sharing the wealth with the Sudanese people The resourcecurse again

As said before 98 of the governmentrsquos revenue comesfrom oil production royalties and South Sudan sits on thethird-largest oil reserves in Africa182 It was estimated in 2011that South Sudan controlled 75 of the overall oil productionof Sudan and South Sudan altogether ndasharound 500000barrels per day However South Sudan remains dependenton the North for processing refinement and export to theRed Sea

180 Canadian Ministry of Foreign Affairs 2000 Ibidem181 New York Times 2002 Talisman to sell its stake in company in Sudan

httpwwwnytimescom20021031businesstalisman-to-sell-its-stake-in-company-in-sudanhtml

182 Africa Business Initiative 2011 Investment climate upate Sudanhttpswwwuschambercomsitesdefaultfileslegacyinternationalafricafiles16920_AfricaNewsletter_Sudanpdf

68

LIVING IN FEAR

Paradoxically South Sudan is considered a fragile StateSitting on oil as has occured to many other countries acrossAfrica and abroad does not guarantee wealth for the majorityof the population A 2013 report concluded that ldquoover thelast decade Sudan has been the largest recipient ofhumanitarian assistance by some distance receiving US$106 billion over the periodrdquo183 90 per cent of the populationearn less than a dollar a day184

Oil money through the State budget is expected to serveto finance all the key governmental activities of the Statesuch as agriculture health infrastructures and educationDespite the fact that the benefits from oil are substantialthere are numerous questions arising about the destiny ofall the oil money For instance how could it be explainedthat one of the sectors more financed is the military andsecurity apparatus Since South Sudanrsquos independence theGovernment has allocated 38 of oil revenue to the militaryand security services with only 10 and 7 ininfrastructures and education respectively185 In 2012 SouthSudan was the among top 8 African countries having militaryexpenditure of almost $1 billion186 For instance TheEconomist reports that South Sudan bought 100 Ukrainian

183 Global humanitarian assistance 2013 Global humanitarian assistancehttpwwwglobalhumanitarianassistanceorgwp-contentuploads201307GHA-Report-2013pdf

184 Kebede 2014 The role of oil in South Sudanhttpswwwruoruottawacabitstream10393315631KEBEDE20Solomon2020145pdf

185 The Guardian 2014 South Suan is divided by the spoils of oil notethnicity httpwwwtheguardiancomcommentisfree2014jan14south-sudan-divided-oil-ethnicity-violence

186 LAVDC 2014 Les quatre puissances militaires regionales dacuteAfriquehttpwwwlavdcnetportailles-quatre-puissances-militaires-regionales-dafrique

69

3 SOUTH SUDAN THE OIL WAY

T-72 tanks187 At the same time agriculture and livestock hasbeen completely neglected despite the fact that more than80 of the population depend on that sector for fulfiliingtheir basic needs

Where the money goes

Daniel Wuor Joak former MP in South Sudan LegislativeAssembly and Minister of Education Science and Technologyin Upper Nile State claims that between 2005 and 2014both the Government of South Sudan (GOSS) and theRepublic of South Sudan (RSS) have been receiving onaverage not less than two billion of USD per year Somehave already manifested the unclarities over the destiny ofall that money as described by Mr Wuor Joak

Since 2005 upwards both the GOSS and RSS havebeen receiving no less than 18 billion USD in oilrevenues without implementing any majordevelopmental projects like roads network linkingdifferent States in South Sudan conducive learningschools from basics to universities level referralmedical facilities clean drinking water in remoteareas throughout the country setting up vibrantand credible institutions which can adhere to rulesof law All these things have not been implementeddue to poor system of governance under leadershipof Salva Kiir Mayardit Most of the counties have

187 The Economist 2014 Arms and the African

70

LIVING IN FEAR

no roads linking them with their State capitals andlack schools health centres clean drinking wateretc South Sudanese population in the rural areasthroughout the country are still living in the sameconditions as they were under Khartoumrsquos rule interms of scarcity of development188

Speaking more directly Kebede made firm remarks aboutthe overall situation in South Sudan

In general poverty corruption bad governance andviolence characterized the resource curse in SouthSudan A relatively small group of elite capturesvast wealth while leaving much of their societywithout access to the minimum resource necessaryfor long term wellbeing As a result South Sudanremains one of the worldacutes least-developedcountries despite its oil (hellip) hellipmuch of the oilrevenue has been squandered189

188 Wuor Joak 2014 Major Causes of the Current Conflict in Sudan SouthSudan News Agency

189 Kebede 2014 The role of oil in South Sudanhttpsw w w r u o r u o t t a w a c a b i t s t r e a m 1 0 3 9 3 3 1 5 6 3 1 KEBEDE20Solomon2020145pdf

71

3 SOUTH SUDAN THE OIL WAY

Even before the current tensions Bentiu saw little benefitfrom oil The streets are unpaved and covered with trashelectricity is scarce reserved for those with privategenerators () Most expect more violence Bentiu hasbecome more militarized with armed soldiers placed atcheck points and at the bridge Troops are constantlymoving to the front Weapons are being flown into theairport

ldquoThe oil is a curse ldquoMohammed Abdurahman Kili 56mumbled from his hospital bed his body covered withburns He was inside his shop in a crowded market onthe edge of town when a Sudanese warplane attackedkilling a 9-year-old child and another person and settinghis shop on fire

Washington Post 2012

President Salva Kiir recognized in 2012 that corrupt officialshad stolen from the people of South Sudan and the amountlost or taken by lead government and military officials mightbe as much as $4 billion190 Kiir sent a letter to 75 SouthSudanese officials or individuals close to the governmentasking them return all the amount lost The letter describedin general terms how the money got ldquolostrdquo

An estimated $4 billion are unaccounted for orsimply put stolen by current and former officialsas well as corrupt individuals with close ties togovernment officials Most of these funds have beentaken out of the country and deposited in foreignaccounts Some have purchased properties oftenpaid in cash191

190 Ibidem191 Paanluel Wel South Sudanese bloggers httppaanluelwelcom2012

0601letter-from-president-kiir-on-corruption-4-billion-dollars-stolen192 Sudan Tribune 2013 South Sudanacutes Kiir accuses army of corruption

72

LIVING IN FEAR

A year later Kiir accused the armed forces of being corruptHe said that despite the big budget allocations made to thearmy there were even no ldquovehicles to transport soldiers onmissionsrdquo192 Two years later the issue remained unclearand the names of the officials referred to in the letter wereyet to be disclosed However Kiir accused Machar of beingresponsible for a lot of corrupted activities in the country193

Machar responded to Kiir by saying that his claims wereunfounded and then also accusing him of such practices194

It seems South Sudan epitomises all the features of theresource curse argued in Chapter 1195 How can the corruptionbe prevented How can the money go to the people It isalso important to note that the oil sector provides littleemployment to the people of South Sudan Most of thehousehold income and employment is generated in theagriculture and farming sector primarily196 Would investingin other sectors like agriculture that provide real wealth tothe people make a difference

193 Sudan Tribune 2014 South Sudan rebel leader should face corruptioncharges Kiir

194 Sudan Tribune 2014 South Sudan Macharacutes Rebentildes dismiss corruptionaccusations no spiritual powers httpallafricacomstories201407221384html

195 Kebede 2014 The role of oil in South Sudan Ibidem196 Tizikara et al 2012 Post-conflict development of Agriculture in South

Sudan perspective on approaches to capacity strenghtening httpwwwerailsnetimagesfarasecretariatkigali-movementfileKigali20MovementPost-Coflict20Agriculture_South20Sudanpdf

73

3 SOUTH SUDAN THE OIL WAY

Environment

As experienced in oilfileds in other parts of the world the oilfields here are also leaving a significant impact on theenvironment and local communities A three year study inThar Jath and Mala fields in Unity State show thatgroundwater is very polluted making the water unsafe forhuman consumption197 The study made by a team of SouthSudanese and German geologists concluded that water usedby 180000 people was too salty to drink and containdangerous amounts of heavy metals198

In many occasions the oil fields that causeenvironmental pollution are even abandoned due to the warSome observers identified that oil pipelines damaged duringthe conflict were leaking199

South Sudan must produce for its needs

In 2015 the Minister of Finance of South Sudan David DengAthorbei made a statement saying that the country shouldbe self-sufficient in agriculture terms and in addition itneeds to increase its non-oil revenue and to achieve peace200

197 Rueskamp et al 2014 Effect of oil exploration and production on thesalinity of a marginally permeable aquifer system in the Thar Jath-Mala- and Unity Oil fields Southern Sudan Zbl Geol Palaont Teil IJ

198 Radio Tamazuj 2015 Study Direct link between oil exploration andwater pollution in Unity httpsradiotamazujorgenarticlestudy-E28098direct-linkE28099-between-oil-exploration-and-water-pollution-unity

199 Star Africa 2014 South Sudan Oil leaks cause pollution fears httpenstarafricacomnewsssudan-oil-leaks-cause-pollution-fearshtml

200 Bloomberg 2015 South Sudan Finance Minister says food output canoffset oil httpwwwbloombergcomnewsarticles2015-01-20south-sudan-finance-minister-says-food-output-can-offset-oil-1-

74

LIVING IN FEAR

He also made a call for a reduction of the countryrsquos relianceon agriculture imports particularly in the context of aneconomy affected by the plunge in global oil prices201

Peter Biar Ajak from the Center for Strategic Analysis andResearch in Juba illustrates the macroeconomic weaknessesof South Sudan today because of its oil dependence

South Sudanrsquos oil-dependent economy is nearingcatastrophe The production of crude oil has droppedby about 35 percent since the conflict began Thatcombined with a drop of roughly 45 percent in globaloil prices since the summer has meant a substantialreduction in the governmentrsquos oil revenues andenormous fiscal and budgetary ressures

Since South Sudan exports almost nothing asidefrom oil and imports almost everything else tradeand monetary policy have also been buffeted byfalling oil revenues Access to foreign currency hasbecome extremely limited The prices of manyimported goods have risen There are shortages ofpetrol which must be imported because SouthSudan has no refinery202

Indeed a dynamic agriculture sector may be key for peaceand development in South Sudan More than 95 of thecountryrsquos population is dependent on farming fishing orherding to meet their daily food needs and income as well203

201 Bloomberg 2015 Ibidem202 Biar Ajak 2015Sanctions for peace in South Sudan The New York Times

January 7th203 FAO in emergencies httpwwwfaoorgemergenciescountries

detailenc147627

75

3 SOUTH SUDAN THE OIL WAY

204 Business Daily 2011 South Sudanrsquos vast agricultural sector potentialuntapped

205 Norwegian Refugee Council 2015 Conflict a cause of hunger in SouthSudan httpreliefwebintreportsouth-sudanconflict-cause-hunger-south-sudan OCHA 2015 South Sudan Crisis Situation reportn 74 httpreliefwebintsitesreliefwebintfilesresourcesSouth_Sudan_Situation_Report_No_74pdf

206 OECD 2014 Fragile States 2014 Domestic revenue mobilisation infragile states httpwwwoecdorgdacgovernance-peaceconflictandfragilitydocsFSR-2014pdf

South Sudan has good soil and climatic conditions and morethan 70 of its land area is suitable for crop productionThere are many that believe that the investment in theagriculture sector has more potential than oil however thisthinking has not received due attention from local andforeign investors204 Efforts towards making agriculture workare vital for peace and stabililty in the country It is urgentlyneeded to work on this area particularly when at presentthere are 25 million in Sudan at risk of starvation205 andaround one third of the population are food insecure plusmore than a million displaced

The dependency on income from natural resourcesleaves fragile states vulnerable It exposes them toshocks in commodity prices ndash as demonstrated bythe sudden fall in commodity prices in 2009following the 2002-2008 boom Neither is it asustainable source of incomeSouth Sudanrsquos oilproduction for instance is projected to decreasesteadily in future years and become negligible by2035

Source OECD206

76

LIVING IN FEAR

207 UN Security Council 2015 Resolution 2206 SRES2006(2015)httpwwwunorggasearchview_docaspsymbol=SRES2206 (2015)

208 Sudan Tribune 2015 South Sudan unhappy with US support for sanctionshttpwwwsudantribunecomspipphparticle54232

209 Washington Post 2014 US appears unable to pull South Sudan backfrom the brink of civil war httpwwwwashingtonpostcomworldus-appears-unable-to-pull-south-sudan-back-from-the-brink-of-civil-w a r 2 0 1 4 0 5 0 3 d 9 2 8 0 b d a - 3 8 6 b - 4 2 4 9 - 9 4 e 0 -b5292610e5bb_storyhtml

210 Ibidem

US fallen dream

In 2015 the UN imposed a travel ban and assets freeze againstindividuals or entities which engaged in or provided supportfor acts that threaten peace security and stability of SouthSudan207 The US was behind the draft and the submission ofthe resolution This resolution prompted an angry reactionfrom the South Sudanese The South Sudanese presidencywas said to be extremely disappointed about the US ledmove208

In the past the relationship between the US and SouthSudan was completely diferent The United States was themain promoter and supporter of the worldrsquos newest nationThe Washington Post for instance asserted that ldquoSouth Sudanowes its existence to the United Statesrdquo209 The expectationscreated were high before its started its independence andsome believed that Sudan would be able to manage thecountry breaking the so-called ldquoAfrican model of pettyrivalries corruption and oppressionrdquo210 Despite all the hopesput on the young nation as of today no solution has beenfound to the ongoing war

77

3 SOUTH SUDAN THE OIL WAY

The US was the largest donor to Sudan in the years priorto independence providing 339 of the total aid to Sudanbetween 2000 to 2009211 The United States (US$472million) was the largest donor of humanitarian assistanceto South Sudan in 2012 followed by the United Kingdom(US$96 million)212 For many years Sudan was the thirdlargest recipient of US aid only after Iraq and Afghanistan213

The inteligence and information systems of theAmericans on the ground in Sudan seemed to have beenrelatively good214hellip however how come they did not foreseethat South Sudan was quickly descending once again on theavenue of a country at civil war For instance the problemsbetween President Salva Kiir and his deputy were not newAlready more than two years before the civil war started inJune 2011 in a speech in Juba the President accused hisDeputy Riek Machar ldquoof running a parallel governmentwithin the governmentrdquo215 Couldnrsquot they have preventedanother conflict Why did they fall into ridiculouscontradictions as the one recently revealed via wikileakssuggesting that the US was funding both armies in

211 Development initiatives (undated) Sudan Aid Factsheet 1995-2009httpwwwglobalhumanitarianassistanceorgwp-contentuploads201102Sudan-Aid-Factsheet-2011pdf

212 See global humanitarian assistamce ebpage httpwwwglobalhumanitarianassistanceorgcountryprofilesouth-sudan

213 The Atlantic 2011 US played key role in Southern Sudanacutes longjourney to Independence

214 The Global Intelligence files 2013 SudanUSMIL ndash SPLA trying toget US to hook it up httpssearchwikileaksorggifilesviewemailid=5047664

215 Sudan Tribune 2011 Salva Kiir exposes his rift with Machar overSouth Sudan transitional constitution httpssearchwikileaksorggifilesviewemailid=3831682

78

LIVING IN FEAR

contention the Government force of Salva Kiir and the rebelsof Riek Machar216 Why are both paid by the UShellip to dowhat As one reporter questioned why are they ldquopaid tokill each otherrdquo217

216 RT 2015 US officials tussle over arms embargo sanctions in oil-flushSouth Sudan httprtcomusa226387-south-sudan-sanctions-war

217 RT 2015 Ibidem

Seven Million

ldquoA peaceful DR Congo could transform Africa almostovernight but is there a way outrdquo218

There is always a way out However peace is not an easything particularly under certain circunstances When youhave lost your father your mother your uncle your sisterwhat else can you lose Can you still believe in peaceTwoof the bloodiest conflicts in recent decades in the world haveoccurred in Africa The Second Civil War in Sudan has leftaproximately two million casualties and the conflict in DRCis estimated to have snuffed life out of no less than fivemillion people

How many more

How does one begin to quantify the dead when they are inthe hundreds of thousands No less than seven million livesof Congolese and South Sudanese were taken away due towars and conflicts fuelled by natural resources How many

218 African Business 2009 DR Congo $24 trillion fortune

4

79

80

LIVING IN FEAR

more How many more before the world wakes up to acteffectively towards ending all those conflictsProbably unless you are one survivor from those experiencesyou would never be truly able to understand what it meansto lose entire families and friends you would never be trulyable as well to understand what it means to feel fear foryour life and the life of your close relatives

When you start counting sometimes you forget thatpeople are not numbers There are names behind thenumbers A family A life As we write this book people aredying needlessly in the DRC and in South Sudan Calculatingdead people due to conflicts in this part of the world is verydifficult due to statistical challenges and so it is conceivablethat probably the number of victims is much larger than sevenmillion (7000000) When would the volume of bloodshedthe number of lives taken be enough for the belligerentofficials to make real peace How many more should fallAthousand more Another one million The pain sadness anddestruction that those conflicts generate should not beaccepted any more

Oil and minerals the main cause of ongoingconflicts and war

Some authors argue that minerals and oil are not a cause ofwar but ldquocompetition for them could amplify and expediteconflictrdquo219 In this book as chapter two and three haveshown oil and minerals are the main motor behind theconflict in recent decades in DRC and South Sudan It would

219 UN Security Council 2013 Natural resource wealth fails to translateinto equivalent benefits for people fuelling conflict to instability DeputySecretary-General tells Security Council httpwwwunorgpressen2013sc11037dochtm

81

4 SEVEN MILLION

be very difficult if not impossible to expect those conflictsif their territories were resource poor Oil and minerals arefull of blood An activist poet wrote We Thought it was Oilbut it was Blood220 Although he was writing about the NigerDelta situation we see a universal application in that phrase

In both countries described there were other elements andfactors to take into consideration however it can be saidthat control over natural resources was the most importantcause on both conflicts in DRC and South Sudan In bothcases oil and minerals fuelled those wars and in manyoccasions these resources have inspired fueled and sustainedarmies operating in the territories of both countries

A Statersquos wealth means nothing if not shared withthe majority of the population

DRC and South Sudan ought to be wealthy countriesUnfortunately having a wealth of natural resources doesnot mean that it belongs to the citizens or that the wealthwould be shared among the population of a given State AState is a nation or territory considered as an organizedpolitical community under one government221 A goodgovernment should be the one that takes care of its citizensand shares the wealth among its citizens and not justdistribute it among an elite Jan Eliasson Deputy Secretary-General of the United Nations stated that ldquoin too manycountries a wealth of resources including timber oil coaldiamonds and precious metals failed to translate into

220 Nnimmo Bassey 1998 We Thought it was Oil but it was Blood IbadanKraft Books

221 See httpwwwoxforddictionariescomdefinitionenglishstate

82

LIVING IN FEAR

equivalent wealth for the people Only a powerful fewbenefitrdquo222

The State is expected to perform an adequateimplementation of human rights granted by several UNdeclarations and conventions including the right to foodright to health right to shelter right to clothing right towork farmersacute rights etc Paradoxically the violations andabuses of human rights have been constant in DRC and SouthSudan Both countries have suffered from acts of war oncivilian population both have as well a large number ofdisplaced people with no access to food without healthcarewithout shelter and without any work Both countries havemore than 90 people living below one dollar per day andthey are considered among least developed countries andfragile states Due to this both are some of the biggestrecipients of humanitarian aid Moreover both have hugesecurity problems shown for instance by the presence ofUN peacekeeping operations Out of the 17th worldwideongoing peacekeeping UN operations three are in DRCSouth Sudan and in Abyeia disputed territory between Sudanand South Sudan

They possess resources that have a huge monetary valueand that in most cases have the involvement of foreigncountries and corporations and other stakeholders of theprivate sector which are ready to pay enormous sums ofmoney to gain control of the natural resources belonging toother countries If no war or significant armed conflict takes

222 UN Security Council 2013 Natural resource wealth fails to translateinto equivalent benefits for people fuelling conflict to instability DeputySecretary-General tells Security Council httpwwwunorgpressen2013sc11037dochtm

83

4 SEVEN MILLION

place common elements among those countries that possesssuch resources in Africa is the existence of massive povertyand corruption and in most cases this is contrasted withmega-rich individuals Letacutes take for instance the case ofoil-rich Angola where the president and his daughter possessmultibillionaire fortunes while at the same time the majorityof the country population is living on less than two dollarsper day223

Greed power and control over natural resources

It must be noted as well that often oil and minerals involvemillions and multibillion profits With such large sums ofmoney greed power and control take the driving seat ofwhatever country government in the world When theprospects for such money flow arrives many leaders andelites start distancing themselves from the majority of thepopulation and stop thinking about the welfare of their ownpeople

At the centre of most of the conflicts in both countriesare struggles for power and control of natural resourcesMinerals and oils are the main cause of the ongoing conflictsand wars Unfortunately most commentators qualify therecent civil war in South Sudan as a ldquopower strugglerdquo withoutfurther qualifications In South Sudan who gets the oil getsthe power Therefore the power struggle is a war overnatural resources for control of the oil in the country Areporter affirmed that ldquowhoever controls South Sudanrsquos oiltherefore could seize the upper hand in the battle for

223 Forbes 2013 Daddyacutes girl how an African ldquoprincessrdquo banked $3 billionin a country living on $2 day httpwwwforbescomsiteskerryadolan20130814how-isabel-dos-santos-took-the-short-route-to-become-africas-richest-woman

84

LIVING IN FEAR

224 France 24 2013 Battle for oil adds new dimension to South SudanConflict httpwwwfrance24comen20131227-battle-oil-adds-new-dimension-south-sudan-conflict

225 OECD 2014 Fragile States 2014 Domestic revenue mobilisation infragile states httpwwwoecdorgdacgovernance-peaceconflictandfragilitydocsFSR-2014pdf

powerrdquo224 In both countriesrsquo non-renewable natural resourcetook a dominant share of the fiscal revenue of DRC andSouth Sudan ndash 82 in the DRC and 98 in South Sudan225

Who controls those resources controls the countryThe case of South Sudan where the president has

recognized the disappearance of $4 billion by corruptindividuals is compelling President Salva Kiir pinpointed thespirit behind the rot ldquoOnce we got to power we forgot whatwe fought for and began to enrich ourselves at the expenseof our peoplerdquo This might also include him as well becauseit is difficult to imagine that such huge amount of money couldbe stolen without the leader noticing anything at all

Greed for minerals and oil is at the heart of the massivedeath toll and impoverishment of the Congolese and SouthSudanese people in recent decades It can be affirmed quitecomfortably that if the Eastern part of the DRC would havenot sat on huge mineral reserves it would be very difficultto imagine all the conflicts that have occurred in that zoneIt can be affirmed as well that without oil ongoing wars inSouth Sudan might most probably never have occured

Peace is the only way forward

Achieving peace is a complex issue To create peace thereare many issues to resolve with all stakeholders such as

85

4 SEVEN MILLION

mutual accusations of support to rebel groups226 goodgovernance transparency demobilisation and disarmamentof local militia etc227

A positive but vital first step is that there are calls at veryhigh levels in both countries and at international fora Thismust be followed with open debate on the core causes of theconflict and ways of achieving reconciliation It does notappear that lasting peace can be achieved otherwise In thatprocess the people need to be put at the centre ofdevelopment policies and actions in both countries in orderto stop the plunder reverse environmental degradation andfight poverty As long as the political military and corporateelite maintain their control of the natural resources of thecountry the devastating plunder will continue to the benefitof only such elite and a handful of corporations

226 UN Security Council 2015 Reports of the Secretary-General on theSudan and South Sudan SPV7392

227 The Guardian 2014 South Sudan is divided by the spoils of oil notethnicity httpwwwtheguardiancomcommentisfree2014jan14south-sudan-divided-oil-ethnicity-violence

INDEX

AAbyei Joint Oversight

Committee (AJOC) 47Abyei Police Service 46 62Abyei 43-home of the Ngok Dinka 43

45Africa 18 20 see minerals

-and wars at the greatlakes 20 25-armed groups in 26-criminal networks in 26-death in 20-exploitation naturalresources in 18-militias in 26-minerals in 20-poverty in 20-wealth in 20

Africarsquos wealth 14-and resource curse 14-blessing or curse 14

African Business 22African Development Bank

(AfDB) 16 17

African Unionrsquos (AU) Peaceand Security Council 48

Algeria 15Allied Democratic Forces

(ADF) 25 28-in North Kivu 25

American Mineral Fields(AMF) 36

AngloAmerican corporation35

AngloGold Ashanti 35Anvil Mining 36Armed Forces of the DRC

(FARDC) 26Athorbei David Deng 73Auty Richard 14

BBBC 18Blom Ulrika 59Blue Nile 45

CCentral African Republic 7China National Petroleum

Corporation 49

86

INDEX

87

Citibank NY 36Clinton Bill 24 36Conflict minerals 30 see

Rwanda-legitimate exports of 30-smuggling of 30

Conflicts 7-and natural resources 7-causes of 10 80-uniqueness of 10

Congolese Government 18

DDemocratic Republic of

Congo (DRC) 7-85-and (MONUC) 29-greed for minerals in 32-UN peacekeeping opera-tion in 29

Diffra oil complex 47DR Congo 79

EEastern Congo 28

-insecurity in 28Eliasson Jan 81

-Deputy Secretary-Generalof the United Nations 81

European Coalition on Oil inSudan (ECOS) 63

Exploration GmbH (OMV)64

Exxon corporate 15

FFirst Sudanese Civil War 42Forces deacutemocratiques de

libeacuteration du Rwanda(FDLR) 28

GGabon 18

-oil in 18Gertler Dan 12 13Ghana 18

-oil in 18Giambrone Antonino 38Glencore Anglo-Swiss 35Government of South Sudan

(GOSS) 69Government of Sudan (GoS)

62Great War of Africa 23Greater Nile Oil Project

Company (GNOPC) 6667

Guinea Equatorial 15

HHague 44Permanent Court of Arbitra-

tion in 44Human Rights Watch 55

IIMF 22International Rescue Commi-

ttee 23

LIVING IN FEAR

88

JJoak Daniel Wuor 69Juba 74

-Center for StrategicAnalysis and Research in74

Katanga Minister of Planning22

KKenya 19Kerry John 24Kiir Salva 43 84

LLibya 7Lumumba Patrice 13 20Lundin Oil Consortium 63

MMachar Riek 43 57 77 78Madagascar 16Mala fields 73Malakal 59Mali 7Mayardit Salva Kiir 69McKinney Cynthia Ann 23

-US Congresswomanfrom the Democratic Party23

McMurrough Mike 36McNamara Robert 37

-as World Bank President37

Minerals 20 see Africa-and death 20

-and poverty 20-and wars at the GreatLakes 20-and wealth 20

Mozambique 18-gas in 18

Muloni Irene 18

NNationalist and Integrationist

Front (FNI) 36Natural resources 8 83 see

conflicts-and conflict 8-and greed 83-and power 83-and wars 8-control over 83

Niger Delta 16-oil is a curse for 16

N o n - g o v e r n m e n t a lorganisations (NGOs) 12

Non-OPEC African oilproducer 48

Norwegian Refugee Council59

OOECD Guidelines for

Multinational Enterprises37

Oil 48-and geopolitics 48

PPeace 84

INDEX

89

-as way forward 84Petronas Carigali Overseas

Sdn Bhd (Petronas) 64Powell Colin 58PR Newswire 30President Kabila 24President Obama 24

RRDC Mining Code 35Republic of South Sudan

(RSS) 69Rio Tintorsquos QMM 16Ruweng County 67Rwanda 24 31

-conflict minerals from 31

SSecond Congo War 24 32

34Second Sudanese Civil War

42Somalia 7South Kordofan 45South Sudan Civil War 57South Sudan 11 18 19 41

-Dinka ethnic group in 4357-Nuer ethnic group in 4357the oil way 41-UN peacekeeping opera-tions 61

South Sudanese Civil War 58Sudan 79

-Second Civil War in 79

Sudan Armed Forces 46Sudan oil police 47Sudan Peoplersquos Liberation

Army (SPLA) 41 46 5462-civil wars and conflict in41

Sudan vs South Sudan 43-and Heglig battles 47-and peace agreement 43-main oil companies in 51-oil-centered conflict 46-Row over oil tariffs 51

Sudanese Civil War 52-and Addis AbabaAgreement 53-and Islamic law 53-causes of 52

Swedish oil company LundinOil AB (Lundin) 64

TTalisman Energy 65Thar Jath 73Transnational Corporations

(Tncs) 34-and the private sector 34

UUganda 19 24UN Interim Security Force for

Abyei (UNISFA)UN Mission in the Republic of

South Sudan (UNMISS)61 62

UN Organization Stabiliza-

LIVING IN FEAR

90

tion Mission in the DRC(MONUSCO) 29

UN peacekeeping operations11

UN Security Council 11UNICEF 59UNISFA 47United Nations Office of the

Special Adviser on Africa(OSAA) 8

United Nations SecurityCouncil 25

United Nations 13University of California

(UCLA) 54 55Upper Nile State 59 69US fallen dream 76

VVirunga National Park 18

WWar and conflict 58

-consequences of 58Wars and minerals 21

-cobalt 22-coltan 22-copper 22-diamond 22-gold 22-manganese 22-peace at last 21-timber 22-tin 22-zinc 22

Wau Shilluk 59We Thought it was Oil but it

was Blood 81Wealth 12 13

-for whom 13-quest for 12

World Heritage site 18Worldwatch 40

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