Global Witness - Breaking the links between natural resources, conflict and corruption
Liberia
The recent civil war in Liberia, in which more than a quarter of a million people died, half of them civilians, and during which some 1.3 million people were displaced, provides perhaps a stark example of military-political entrepreneurship driven by natural resource exploitation. Warlord Charles Taylor financed his armed insurrection in 1989 by using revenue generated by the sale of timber and diamonds. When he gained power in 1997, Taylor proceeded to sponsor the Revolutionary United Front (RUF) - whose signature was to chop the limbs off civilians to promote terror - in its struggle in neighbouring Sierra Leone. Systematic rape was another tactic; it is estimated that half of all women in Sierra Leone were subjected to sexual violence, including rape, torture and sexual slavery during the civil war.
The Liberian government not only provided material support to the RUF, but also sent its soldiers to fight alongside them, partially in an effort to gain control of the lucrative Sierra Leonean diamond fields, less than 100 miles from the Liberian border. UN sanctions were not imposed on Liberian diamonds until March 2001, almost two years after Liberia became involved in funding the war in Sierra Leone. As a result of sanctions, Taylor's government shifted its focus to timber as its primary source of revenue; again, it took another two years for the UN to impose sanctions on timber.
Taylor ran a shadow state that completely bypassed the normal state institutions, diverting logging revenues to himself rather than the treasury and using these funds to finance his ambitions of regional destabilisation. Logging company militias also became private armies. Liberia's revenues from logging were a minimum of US$187 million in 2000. According to government figures only US$7 million of this money made it into government coffers so, subtracting for production costs, around $100 million went unaccounted for. The Liberian timber industry played a vital role in arms brokering, with logging companies themselves sometimes acting as arms traffickers.
In 2000, Taylor regularised his theft of natural resources by passing the ‘Strategic Commodities Act', which declared that the President was granted the ‘sole power to execute, negotiate and conclude all commercial contracts or agreements with any foreign or domestic investor', effectively signing over control of all the natural resources in Liberia to himself. This ‘theft by legislation' effectively legalised Taylor's pillage: given the inherent instability of the regime, it also encouraged the immediate liquidation of Liberia's natural capital. Between 1997 and 2001, the production of roundwood in Liberia was estimated to have increased by over 1,300%.
In March 2003, the Special Court for Sierra Leone formally indicted Charles Taylor for participating in a joint criminal enterprise ‘to take any actions necessary to gain and exercise political power and control over the territory of Sierra Leone, in particular the diamond mining areas. The natural resources of Sierra Leone, in particular the diamonds, were to be provided to persons outside Sierra Leone in return for assistance in carrying out the joint criminal enterprise ... as part of his continuing efforts to gain access to the mineral wealth of Sierra Leone and to destabilize the Government of Sierra Leone.'
UN timber sanctions were finally imposed in July 2003, more than two years after they were first discussed by the Security Council. The following month, with his funding cut off, and the advance of various rebel groups on Monrovia, Taylor went into exile in Calabar, Nigeria. He continued to be involved in Liberian politics, despite this being against the terms of his exile deal, until his escape and subsequent arrest on 29 March 2006.
Read the latest on Global Witness's investigations into companies bidding for logging contracts in Liberia.
Latest Publications
July 2010
The Bribery Act: what it means for business
Briefing paper produced by the Chartered Institute of Managment Accountants in collaboration with Global Witness outlining the implications for accountants and businesses worldwide of the new 2010 UK Bribery Act.
Global Witness takes UK government to court for failing to list UK companies trading Congo conflict minerals for UN sanctions
Global Witness has made an application to the High Court for a judicial review of the British government is acting unlawfully in refusing to put forward eligible UK companies and individuals trading in Congolese ‘conflict minerals' for targeted UN sanctions, said campaign group Global Witness today
Рисковый бизнес: кто контролирует Казахмыс ПЛС?
Russian translation of 'Risky Business' report.
Russkyi perevod doklada 'Riskovyi biznes.'
Letter on civil society participation in climate change and deforestation talks
Global Witness has signed a letter along with 39 other organisations complaining about the short notice given to civil society groups regarding participation in a meeting of the Interim REDD+ Partnership in Brasilia from 14-15 July. The non-transparent process and restrictions on participation violate the spirit and letter of the agreement and represent a serious false start.
U.S. passes landmark reforms on resource transparency
Global Witness strongly welcomes a ground-breaking new bill, passed by the U.S. Senate today, which will help to lift the curse of corruption and conflict from poor countries that are rich in oil and minerals by promoting greater public oversight and responsible trading practices.
Crisis averted by last-minute deal on Zimbabwe diamonds, but campaigners warn that biggest test lies ahead
A deal reached by the Kimberley Process diamond certification scheme could pave the way for reinforced oversight of diamond production in Zimbabwe, while allowing for limited exports. The deal is far from perfect and its success or otherwise will be determined by what the main players do next.
Renewing the Pledge: Re-Engaging the Guarantors to the Sudanese Comprehensive Peace Agreement
With six months until a referendum on Southern independence, Sudan is alarmingly unprepared. Renewing the Pledge is published by a coalition of 26 NGOs, including Global Witness from Africa, the Middle East, Europe, and the US. The report calls calls for urgent action from African heads of state who will meet shortly at a major summit of the African Union in Uganda from 19 – 27 July.
Six months before critical referendum, Sudan alarmingly unprepared
With six months until a referendum on Southern independence, Sudan is alarmingly unprepared according to a new report published today by a global coalition of 26 humanitarian and human rights organisations. The report calls for urgent action from African heads of state at the African Union summit.
Kazakh company on FTSE 100 a risk for investors, says Global Witness
Kazakhmys plc, a FTSE 100 company which mines copper in the Central Asian nation of Kazakhstan, failed to declare potentially key information about its shareholders and directors when it listed on the London Stock Exchange, thereby exposing investors to unquantifiable risk, warned Global Witness in a report published today.
Bail for Zimbabwe diamond activist welcome, but charges must be dropped
We welcome the decision by the Harare High Court to grant bail to Zimbawean human rights campaogner, Farai Maguwu, who has been in custody since 3 June. The spurious charges against Fairai must now be droppped immediately.
Risky Business: Kazakhstan, Kazakhmys plc and the London Stock Exchange
Kazakhmys plc, a FTSE 100 company which mines copper in the Central Asian nation of Kazakhstan, failed to declare potentially key information about its shareholders and directors when it listed on the London Stock Exchange, thereby exposing investors to unquantifiable risk.
This report raises serious concerns about London's "light-touch" market regulation and argues that it would be in the public interest for companies like Kazakhmys to be required to provide much more information to investors about political risk.
Congo Now! petition calls on UK to do more to end violence in DRC
Congo Now! is a coalition of non-governmental organisations, politicians and Congolese activists who are calling for the UK government to do more to end the cycle of violence and suffering in the resource-rich country.
Global Witness welcomes new EU law banning illegal timber
The European Parliament has introduced new legislation banning the trade of illegally sourced timber and timber products in EU member states. Global Witness warmly welcomed the reform as an important step towards cracking down on illegal logging around the world.
Do No Harm: A guide for companies sourcing from the DRC
Companies sourcing minerals and metals from conflict zones have a responsibility to ensure that they are not directly or indirectly funding human rights abuses or other crimes. Some companies claim that it is too complicated or too difficult for them to do. Global Witness has produced a guide, outlining the steps they must take.
Negotiations between north and south Sudan must include a fair and transparent oil deal
A fair and transparent arrangement for sharing and monitoring the revenues from Sudan’s oil fields should be a top priority for negotiators from north and south Sudan who begin talks today on what will happen if the south votes for independence in January’s referendum, said campaign group Global Witness.
5 Principles for a Post-Referendum Oil Deal in Sudan - briefing paper
A fair and transparent arrangement for sharing and monitoring the revenues from Sudan’s oil fields should be a top priority for negotiators from north and south Sudan who begin talks today on what will happen if the south votes for independence in January’s referendum. The January vote could see the birth of a new country: if so, it will be impoverished and heavily dependent on oil revenues, yet also dependent on former foes in north in order to export its oil. Transparency over oil revenues will be critical to preventing a return to war - this briefing paper outlines 5 principles that will be crucial in reaching such an agreement.
June 2010
Liberian debt relief welcome but better financial controls needed to prevent corruption
The decision by the World Bank to grant debt relief to Liberia under the Heavily Indebted Poor Countries Initiative (HIPC) is welcome but more needs to be done to prevent corruption in the post-conflict country.
