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Sudan may be on the verge of a de facto split, its infrastructure is in ruins and populations are struggling to survive a global-scale humanitarian crisis, but there is little incentive for either side to back down one year after militia leader Hemedti launched his RSF’s campaign against erstwhile ally the Sudan Armed Forces regime. While attention is focused on conflicts elsewhere, a major African country is being destroyed for personal advantage in a conflict marked by significant intervention from the wider region.

Sudan
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Abu Dhabi’s involvement in conflicts in Sudan and Libya is back in focus, after the UAE opened a second field hospital in eastern Chad, following evidence that its existing hospital was used as a cover for supplying weapons to Sudanese civil war leader Hemedti’s RSF militia. It fits into a wider pattern of Emirati involvement in African conflicts, as well as business.

Somalia | Sudan | Chad | Libya
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The trial of former president Rupiah Banda, which opened in April, has been suspended until October. Banda was charged with abuse of office in connection with a Nigerian oil deal with the Abuja-based Sarb Energy (AE 253/26). Former energy minister Kenneth Kongo, who was testifying as a state witness, rejected claims that Banda personally benefitted from the deal.

Nigeria | Zambia
Issue 302 - 12 June 2015

Egypt: Bold sector reforms planned

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President Abdel Fattah El-Sisi is reviewing a new electricity law which, if approved in its present form, will introduce further substantial reforms to the sector. Sector experts consulted by African Energy did not expect him to pass the law until after the summer peak demand period, as officials are unlikely to have the capacity to deal with the proposed changes before then. Among the main reforms envisaged by the law are the unbundling of grid operator Egyptian Electricity Transmission Company (EETC) from its parent company Egyptian Electricity Holding Company, and making regulator EgyptERA responsible for setting electricity tariffs.

Egypt
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Houston-based oil services company Parker Drilling agreed in mid-April to pay the US authorities $15.9m to settle foreign bribery charges. The company was accused of making a payment to a third party while knowing that it would be used to influence a Nigerian government panel’s decision on whether the company had broken local customs laws.

Nigeria
Subscriber

After more than a year, the UK’s Serious Fraud Office (SFO) has dropped an investigation into allegations that explorer Soma Oil & Gas bribed officials in Somalia. Prompted by a court challenge, the SFO took the exceptional step of informing Soma that there was insufficient evidence of criminality to make a prosecution possible. However, it is continuing with a ten-month investigation into a further set of so-far-secret allegations also linked to the company’s Somali operations. On 12 October, one of the UK’s most senior judges refused Soma’s judicial review application to force the SFO to take a final decision on whether to prosecute or to disclose the nature of its new enquiry.

Somalia
Subscriber

The US Department of Justice (DoJ) has closed its investigation into Hyperdynamics Corporation concerning possible violations of the Foreign Corrupt Practices Act. “Based upon the information known to the department at this time we have closed our inquiry into this matter. If we obtain additional information or evidence in the future regarding this matter, we may reopen our inquiry,” the DoJ said in a letter to the company’s lawyers. The DoJ issued a subpoena in September 2013 asking Hyperdynamics to produce documents relating to its activities in Guinea.

Guinea
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State oil company Entreprise Tunisienne des Activités Pétrolières (Etap) is still without a chairman, following Prime Minister Youssef Chahed’s dismissal of Moncef Mattoussi on 31 August. Energy minister Khaled Gaddour, director-general of hydrocarbons at the ministry Hédi Hrichi and the officials responsible for mining and legal affairs were also dismissed. The decree removing them returned responsibility for the sector – including hydrocarbons, electric power and renewables – to the Ministry of Industry and Small Business, where it used to sit before a stand-alone energy ministry was created in 2016.

Tunisia
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The Organisation for Economic Co-operation and Development (OECD) Working Group on Bribery released its Phase 3 report on South Africa in mid-March. The report evaluates and makes recommendations on implementation and enforcement of the Convention on Combating Bribery of Foreign Public Officials in International Business Transactions and related instruments. The OECD said it was “seriously concerned” by the lack of foreign bribery enforcement actions in South Africa. “Despite South Africa’s economic links to a number of countries with corruption risks, only ten foreign bribery allegations have surfaced since it became a party to the Convention in 2007,” the OECD said.

South Africa
Issue 284 - 12 September 2014

SBM: $240m provision

Free

Netherlands-based oil services company SBM Offshore in August included a $240m provision in its H1 14 financial statement, in anticipation of a potential settlement for improper sales practices. In April, the company released the findings of an internal investigation into its use of agents which found that SBM paid some $200m in commission to agents during the 2007-11 period, including $18.8m to Equatorial Guinea and $22.7m to Angola. SBM disclosed its findings with the Dutch Public Prosecution Service and the US Department of Justice and is discussing potential settlement options.

Issue 369 - 18 May 2018

AfDB debars Chint Electric

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The African Development Bank (AfDB) announced on 7 May that Chinese equipment manufacturer and engineering, procurement and construction contractor Chint Electric has been blacklisted for 36 months. During the period, Chint will be unable to bid, subcontract or provide services under any contract in which the AfDB is participating as a financier. The settlement reached with Chint will see the AfDB monitor progress in strengthening the company’s corporate compliance. The debarment period could be reduced to 24 months if conditions are met early.

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Zimbabwe Power Company (ZPC) acting managing director Joshua Chirikutsi has expressed concern over progress at a 100MW solar PV project near Gwanda. The utility made a controversial $5.6m early payment earlier this year for the project, which is being developed by Intratrek Zimbabwe and China’s Chint Electric. Local media report that Chirikutsi told the Parliamentary Portfolio Committee on Mines and Energy that, “so far from the works done [Intratrek managing director Wicknell Chivayo] cannot account for $1.8m. We are really worried”.

Zimbabwe
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Controversial former energy minister Chakib Khelil returned to Algeria on 17 March for the first time since his abrupt departure three years ago, pursued by allegations concerning his role in the Sonatrach corruption scandals (AE 317/17, 297/24). The path towards his rehabilitation was prepared by Front Nationale de Liberation leader Amar Saâdani, who is loyal to President Abdelaziz Bouteflika but not universally supported within his faction.

Algeria
Subscriber

Ministry of Energy and Petroleum principal secretary and former Kenya Power managing director Joseph Njoroge has suggested that the government may not be willing to pay for power from the 310MW Lake Turkana wind power project if the transmission line is not ready. The question of paying for power from the plant was always going to test the government’s resolve once it became clear that the line would not be finished in time because of issues securing land rights.

Kenya
Subscriber

President José Eduardo dos Santos on 2 June appointed a new board of directors for state oil company Sonangol. The new team will be headed by his daughter Isabel, a businesswoman who led the commission that formulated proposals for Sonangol’s restructuring. The new board will implement the reforms recommended by the commission, outlined in two presidential decrees on 26 May.

Angola