By investing in the gas industry private banks are rewarding the state for its corruption
When it comes to Mozambique's liquid natural gas industry, the global fossil fuel industry, state financiers and private banks seem to have a saviour complex.
Standard Bank has always been one of the largest financiers and the financial vehicle for its 20% owner, the Industrial Commercial Bank of China. Rand Merchant Bank, Absa and the Export Credit Insurance Corporation are also partly financing the $24bn Total needs for the project, alongside HSBC and the US Export Import Bank.
This nonchalant attitude to corruption is terrifying. There are really only two explanations for their choices to invest. One, these banks know exactly what will happen once the government has received its gas revenues — the money will go straight into the coffers of politicians and a few elites — but invest nonetheless.
We’re talking about a government with deeply corrupt processes, like the 2016 debt scandal where it illegally borrowed $2bn from Credit Suisse and VTB Bank, which led to fraud and money-laundering charges against three Credit Suisse bankers, and a prison sentence for one. The government was exposed for planning to spend the loan on weapons and repay it with gas revenues, and thrust the country into billions of dollars of debt.
Community members live in as much fear of the army as the insurgents. They have told us of soldiers imposing random curfews and assaulting themThe banks’ talk of local employment is hot air. Three years after Anadarko began construction of the Afungi LNG Park, a project now taken over by Total, which will provide crucial facilities for industry players like ExxonMobil, Eni and Shell, the only jobs created for locals have been menial, like cooking, cleaning and basic construction.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Banks are turning a blind eye to Mozambique gas field graftBy investing in the gas industry private banks are rewarding the state for its corruption
Read more »
Over $48m distributed to SA banks in Botswana money-laundering caseBotswana government had requested for mutual legal assistance in the case of the Bank of Botswana.
Read more »
Banks are turning a blind eye to Mozambique gas field graftBy investing in the gas industry private banks are rewarding the state for its corruption
Read more »
Glencore share falls on news of Swiss criminal probe over DRC dealingsAuthorities are investigating alleged failure to institute organisational measures to prevent graft
Read more »
Virat Kohli is a 'terrific guy', says Steve SmithAustralia's Steve Smith has hailed Indian superstar and on-field rival Virat Kohli as a 'terrific guy' and a strong leader who plays hard on the field.
Read more »
Telkom suspends dividend policy for three years over spectrum auctionGroup has paid a final dividend for its year to end-March, but eyes future capex
Read more »