Illicit exploitation of natural resources

Abstract

in Angola, Mozambique, Sierra Leone, the Democratic Republic of Congo, the Central African Republic, Liberia and Côte d’Ivoire, warlords and leaders of militias and rebel movements prospered from the pillaging of their nation’s natural wealth as much as financiers of crime rackets, dishonest civil servants, corrupt politicians or national and international corporations. This impromptu alliance of stakeholders in Africa’s wars and violence could be broken down only with tens of thousands of peacekeepers, targeted sanctions against the most persistent looters and with billions of Dollars invested in rebuilding governmental capacities. Still, many nations are far from safe. Too heavy is the toll of war, violence and corruption to rebuild these countries in a few short years. With global demand for most commodities reaching record heights and while most of these resource rich states’ oversight and law enforcement institutions are still in shambles, it is as easy as ever - and much more profitable - to gain access to natural resources. Adhering to legal standards continues to be a minor consideration. For warlords and leaders of militias who have successfully transformed themselves into elites by joining political parties or by becoming businessmen, it’s business as usual. Sadly, these elites are greatly assisted by the apparent disinterest or inability of leading global companies – the ultimate users of raw materials - to reign-in the continued illegal exploitation of the developing world’s natural resources. Just in the last few months several investigations have revealed once again how criminal behavior is still pervasive in the natural resource business and how it affects each consumer around the world in unexpected ways. For at least four years it has been known that thousands of artisan diggers are exploiting cassiterite deposits (a tin oxide) around Walikale, in Eastern DRC. A report by Nicholas Garrett in the Financial Times (6th March 2008) confirmed again that these artisans are laboring under the dictate of the renegade 85th brigade of the Congolese army led by Colonel Samy Matumo. The production not only enriches these bands of soldiers and their commanders, but for years the cassiterite has been bought and traded through Western metals exchanges and brokers. Eventually it is used for the production of electronic products made by largest companies in this sector.