Sunday, December 10, 2017

Banjul is dead, Long live the Port City of Banjul

Photo of "Pa Machine" by Ishmail Sarr 
This piece was first published in September 9th 2013 about our beloved City of Banjul that has fallen on hard times.  Its republication is triggered by Ismail Sarr's nostalgic photographic depiction of "Pa Machine" at Bund Road.
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The sight of only little kids coming out to greet Yaya Jammeh as he pretends to be touring the devastation that is the city of Banjul is further reminder that the dictator has lost all credibility, and with it, support of the people of Banjul and the Gambian people as well.  One look at the state of Banjul should prove the devastation of its infrastructure, and with it the city's moral and spiritual fabric.  Although the people of Banjul have finally started blaming Jammeh for their predicament, the slide into the current deplorable state started well before Jammeh seized power.

Unlike the Jawara who attempted to address the urban decay with roads and sewerage projects, Jammeh in fact accelerated the deterioration by focusing an inordinate attention and state resources to the far-flung village hamlet of Kanilai, his home town.  Capital cities generally contribute significantly not only to national incomes, but to the political, social, cultural life of countries.  Kanilai does just the opposite.  It drains resources away from the national treasury, and into wasteful and idle endeavors like the "Futamgpang" and women wrestling matches which, some have argued, have contributed to the promiscuous behavior of our young men and women folk.  Kanilai is not all play.  It has a good and well-maintained access road leading to the village.  Its infrastructure is far superior to Banjul's.

Banjul is a dead city.  Like the city of Detroit, once the pride of America and the home of Ford, General Motors and Chrysler, Banjul has been abandoned by the very people who once profited from its strategic location as the seat of government and the hub of commerce.  The decline of Detroit was slow and painful but avoidable.  And so is the decline of Banjul.  Some urban planners suggest that the decline of the Motor City started in 1967 with the worst race riot in U.S. history which saw 42 people killed, mainly African-Americans by National Guard troops.  This led to White flight to the neighboring suburbs thus depriving the city of tax base necessary to provide services and the maintenance of the city's infrastructure.  The decline in the share the world market which started with the competition from Japanese autos led to the bankruptcy of GM and Chrysler.  The financial melt-down provided the coup de grace until the Obama administration stepped in to save two of the Big Three.  .
If a similar inflection point in Banjul's good fortunes is to be suggested, I'd venture to say it is the advent of Gambian tourism of the mid-60s which quickly accelerated in the 70's and 80's.  What was once the outback of the Kombos soon was dotted with tourist hotels and other amenities, including access roads, never seen before were springing up everywhere from Cape Point to Kotu and beyond.  City dwellers who did not venture much outside the city limits, except for an occasional Sunday trip, were now venturing out to enjoy the night life that the tourism paradise around the Cape Point, Fajara and Kotu corridor had on offer.  Night club operators in Banjul moved to the Kombos to cater for the tourists.  Other businesses along Wellington Street followed suit.  Then you have Pipeline, a once residential street soon turned into the business center of the Kombos.  Fuelling all of this was the land use policies of the Jawara era which is a separate subject of interest.

Banjulians abandoned the city in droves for the Kombos.  In heading for the hills ( some have argued that the legendary Banjul mosquitoes contributed to the exodus ), they deprived the city of much needed revenue.  Instead of an expanding tax base, Banjul city administration was also collecting less in rates, some of the money found their way into the notoriously corrupt rate collectors.  For the first time in the city's history, entire compounds, some even of historic significant ( especially those along Clarkson Street ) were being abandoned as well. These newly-transformed 'Kombongkas', including yours truly, did not only deprived the city much needed revenue, they also posed another problem for not only the city but for central government as well.  They clung on to their "kerr chosan" even when offered compensation to make way for the Port Expansion Project.  They eventually succumed but not before the right of eminent domain was likely to be applied by the State which would have abrogated their right to negotiate for a fair market price.

Jammeh's contribution to the acceleration of Banjul's decline is what Daniel Patrick Moynihan would refer to as "benign neglect".   Banjulians supported the coup and Jammeh.  In return, he engaged the Banjulians in frequent 'celebrations' at the July 22nd Square and beach parties and barbeques in the beach front of the State House.  The support for Jammeh was founded on the basis that the Jawara regime neglected the city in spite of the numerous externally funded projects with 10% contribution from government.  There were more urban development-related projects under Jawara than under the current regime.  The drawback to the efforts were that some of these projects were poorly designed as well as poorly implemented.  The SOGEA sewage project comes to mind.  Some of the current pollution problems relating to the raw sewage that has been found in the flood waters in Banjul is partly attributable to this project because a good number of the toilets in compounds were not connected to the system for various reasons, but primarily financial and technical ones.


The devastation did not start with the floods.  It only aggravated it and spot-lighted the plight of those trapped inside what can only be described as a hell-hole.  Bond Road, the ring road connecting Half-Die to the main road out of Banjul is impassable.  The Pumping Station or "Pa Bokis" that pumps the water to keep Banjulians from drawing in flood waters has been out of commission for years.  The gutters along Albion Place that empties into the Box Bar stream are caked because of solid waste, and as a resident of the city told me the other day is that the cutters are so caked in the dry season that you can skate on them.  Now, I am told there is/are crocodile(s) inhabiting those gutters suggesting, in a horrifying way, that the drainage system has completely broken down.  Banjulians will not have to contend not only with the legendary Banjul mosquito but they are like likely to be eaten by crocodiles right in the middle of the capital city.

Drastic decline requires equally drastic measures.  Whereas the problems of the two cities i.e. Detroit and Banjul share some similarities, the solution that I am suggesting for Banjul is different.  I will not suggest that Banjul be under an Emergency Manager or receivership which I oppose in the case of Detroit.  Instead, I am suggesting that Banjul be transformed into a Port City which would require that almost the entire city be leveled.  Of course, it doesn't mean that bulldozers descend on the city tomorrow and start levelling everything in site.  The feasibility of it should be carefully studied.  It may turn out that a better option is to have half of the city, say up to Allen Street, be converted into an industrial complex relating to port operations and other industrial activities.  A site for a new political capital would have to be considered as well.  Which ever option is finally opted for will take massive investment which I envisage will come from private capital.  However, you cannot attract private capital with a corrupt and incompetent government.


Tuesday, November 28, 2017

"The Commission of Inquiry enjoys the full support and confidence of the Barrow administration", says a State House source

President Barrow with Commission members

Over four months of eye-popping deliberations to date, the Commission of Inquiry into the illicit wealth of ex-dictator Yaya Jammeh has conducted itself - individually and collectively - with dignity and decorum reflecting the high moral and intellectual caliber of its members.

Under the Chairmanship of  Mr. Surahata Janneh, it is our view - one shared by many - that the proceedings have been fairly conducted, up to this point, with a degree of professionalism and decorum that holds great promise for a country emerging from 22 years of one of Africa's most brutal, incompetent and corrupt dictatorship.

The three members of the Commission have been competently served with equal professionalism and unmatched dignity by Mrs. Amie Bensouda  in her capacity as lead counsel.  Despite this or in spite of it, as should be expected, there are criticisms, legitimate as well as unfounded ones, recently, including accusations that the lead counsel is conflicted in the case of the sale of the Kairaba Beach Hotel.  It has also been implied during the course of the deliberations that she may also be a potential witness in other cases that may come before the Commission. 

As a result of these criticisms and despite Mrs. Bensouda's public assurances that she has never acted on behalf of the former president or any of his close business associates, and if there is any appearance of a conflict, she will be the first to bring it to the attention of the Commission members and Gambians and to recuse herself. 

In anticipation of further use of this strategy as a means of discrediting or intimidating the Commission, as implied by Mrs. Bensouda's statement that she will not be intimidated, in response to the witness counsel's accusations, we reached out to a State House source who in response to our inquiry assured Gambians and the general public that "the Commission of Inquiry members and the lead counsel, Mrs. Bensouda, enjoy the full confidence and support of the government of President Adama Barrow."

The State House official went further to suggest that if any person has objections to anyone sitting on the Commission or serving as counsel, the proper and prudent measure to take is through court action; let them challenge any individual's fitness to serve in a court of law.  Character assassination and any form of peddling false accusations will not wash and can only strengthen our collective resolve to hold accountable those responsible for squandering the nation's meager resources that brought the Gambian economy to its knees over the 22 years of Jammeh's dictatorship. 

Similar appointments to previous Commissions, the source continued, have been challenged in the past before the courts.  It was none other than Mr. Fafa E. Mbai who challenged the appointment of Justice Aboagyi to a Commission by Sir Dawda at the Supreme Court.  Hon. Hamat Bah, leader of the NRP also challenged the appointment of Justice M. A. Paul to preside in their sedition case.  His took place at the Court of Appeals.  It is not for lack of precedent to resort to the courts for redress.  Amadou Samba or any other witness before the Commission can do likewise.

Conversely, this may have been the reason why the Chairman had the cause to remind witnesses before him that the Commission is not a court of law but a fact finding inquiry into the financial dealings of the ex-president where normal court procedures do not necessarily apply.

The task before Commission members, though challenging, is not insurmountable if the public continues to provide the necessary input and support by refusing to be party to a concerted effort orchestrated by vested interests - from within and without - whose main aim is to muddy the waters and to deflect the attention of the public away from the evidence being generated by the probing questions of Commission members and Mrs. Amie Bensouda.  The important work of the Commission must neither be impeded nor derailed.
                                                                     
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Paradise Papers exposes powerful African politicians

In SOUTH AFRICA, an Isle of Man trust linked to former president Nelson Mandela has emerged following a legal battled waged over the trust's million dollar bank accounts after Mandela's death.

Separately, major retail, medical and mining companies, including some with ties to South Africa's Vice President Cyril Ramaphosa, came under scrutiny for using offshore structures.

In NIGERIA, a civil society organization urged the country's Code of Conduct Bureau to investigate Senate President, Bukola Saraki, for false declaration of assets.  He is accused of not disclosing his interests in a Cayman Island during his political career.

In NAMIBIA,  the "Namibian" newspaper reported that the country's finance ministry was already investigating tax evasion in the fishing industry following reports about a mackerel company Pacific Andes.

In UGANDA, the powerful foreign minister and brother-in-law of President Museveni, Sam Kutesa, responded to revelations that he set up a trust in the Seychelles.  "I thought you could avoid, not evade, taxes but I found it was not practical." He said he did nothing with the company.  This is the same guy implicated in the Cheikh Tidiane Gadio's bribery and money laundering case in New York.

In ANGOLA, the opposition called for a parliamentary probe into the country's sovereign wealth fund after revelations from the Paradise Papers that the fund's investment manager moved millions of dollars offshore.

We have added the Paradise Papers to our continued investigations and campaign to trace the source and the finance destination of the $900,000,000 against an account of a company registered in The Gambia and China under Amadou Samba's name. 

We have so far found no Gambian or Gambian-registered companies in the Paradise Paper.  What is shown in the Panama Papers is the cross-referencing of the AMASA Company owned by Amadou Samba.
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* This blog post is based entirely on the product of the ICIJ or the International Consortium of Investigative Journalists headquartered in Washington D.C.
     

Saturday, November 25, 2017

The barbarism in Libya must cease

African migrants being sold in slave markets across Libya 
The European Union, the United Nations, African Union, ECOWAS were all slow in acting and the results have been catastrophic for hundred of thousands of African migrants who have been held captive, confined in small spaces fit to pack sardines, tortured, killed and maimed. 

Those who survive the inhumane treatment are sent to slave markets were they are sold at slave auctions for as little as $ 400 per human being.   The United Nations have declared the actions of the Libyan slave traders as crime against humanity whose perpetrators must be stopped, arrested and tried. 

But first, countries whose nationals are being traded as slaves must - individually - take proactive measures to put a halt to the barbarism being meted out by the various factions controlling individual regions of Libyan since the toppling of the Libyan dictator. 

Collectively, the African countries must act in concert with all the relevant regional bodies, including ECOWAS and the African Union, to apply diplomatic pressure on both the European Union and the United Nations to consider all options, including military action against the Libyan renegades. 

The United Nations, meanwhile, should station investigators on Libyan soil to apprehend the rogue criminals who capture and imprison African migrants for ransom - a human trafficking trade that has been going on for as long as the human wave of migrants started several years ago. 

The United States should have been a logical partner in this exercise, since they led the military action that toppled Qaddafi but because of the current occupant of the White House, it will be a pure waste of energy to attempt at bringing in the US into the fold.  Trump will simply not be interested in saving African lives.

The challenges facing the international community have grown complex because the signs and warnings of these horrific acts of inhumanity have been ignored for years by the European Union whose main preoccupation was protecting their borders and deporting those who made it through the treacherous journey across the Mediterranean.

The Gambia, the smallest of the African countries, is the second highest per capita exporter of migrants to Europe through the Sahara Desert-Libya route.  Despite this proportionally high number of Gambians exposed to these dangers, its initial share of the $2 billion is a $4 million grant earmarked for the resettlement of 1,500 irregular migrants to be repatriated from Libya to the Gambia. 

In as much as the reentry program is an important component of the migrants' problem, their safety and humane treatment in Libya is paramount at this juncture.  Every African government, whose nationals are stuck in no-man's land, must have, as its top priority, their extrication to safety.  They cannot do it alone.  They must do it in collaboration with the European Union and the United Nations.         

Gambia to market offshore Blocks A1 and A4; challenges APC to commence arbitration proceedings

Gambia's Justice Minister, Ba Tambadou 
Gambia has recently announced plans to market two offshore oil blocks that it revoked from African Petroleum Corporation.

The two blocks in question are A1 and A4 that were initially licensed to APC by the previous regime of Yaya Jammeh.  The license was twice revoked without public explanation, the last revocation took place few months before the Gambian dictator was defeated in last December's presidential elections.

The new government of Adama Barrow has decided to put the blocks in question back on the market which led to the London meeting which took place earlier this month with prospective investors.  You can find the relevant block post here.

The African Petroleum Corporation has threatened to initiate arbitration before, the latest threat was as recent as August this year.  Given recent developments and reports of promising potentials of FAR's Blocks A2 and A5, their is renewed confidence on display by new government in Banjul to a have a clean break with APC.

At the London meeting, the Justice Minister Mr. Tambadou was quoted by Reuters as saying his government respects APC's choice to initiate arbitrating proceedings but it is his government's right also to market its blocks and that includes A1 and A4, thus calling APC's bluff.   We'll see what APC's next move will be. 

Wednesday, November 22, 2017

1.1 billion barrels estimated by FAR in Blocks A2 and A5 in The Gambia, offshore

An Australian Securities Exchange listed oil and gas exploration and development company known in the industry as FAR Limited says that it has identified 1.1 barrels of resources in its two blocks offshore The Gambia i.e. blocks A2 and A5.

The resources are in the two prospects known as "Bambo" and "Samo".  According to company sources, operations are already underway to prepare for drilling in late 2018.   Industry sources also observed that it will be the first time that drilling is done in offshore Gambia since the adminsitration of Sir Dawda K. Jawara in 1979.

Blocks A2 and A5 cover 2,862 sq km within the Mauritania-Senegal-Guinea Bissau (MSGB) Basin and lie about 30 km offshore in 50 - 1,500m water depth.

From the 3D seismic data, FAR was able to identify the Bambo and Samo prospects.  Despite the quality of the seismic data available, FAR opined that more work needs to be done to improve its understand what's at stake and to further reduce the risk.

According to FAR, the opportunities in Blocks A2 and A5 "represent a huge prize, if successful."  And based on FAR's experience in its drilling operations in neighboring Senegal, the geological chance of success in the key reservoirs in the Samo prospects is "high for a frontier exploration well".   Success in the Samo well would be "truly transformational" for The Gambia and FAR, the firm says.

Monday, November 20, 2017

Senegal's former Foreign Minister, Chinese businessman charged in New York with conspiracy to violate the FCPA

Cheikh Tidiane Gadio, Senegal's former Foreign Minister 
FOR IMMEDIATE RELEASE
Monday, November 20, 2017

Head Of Organization Backed By Chinese Energy Conglomerate, And Former Foreign Minister Of Senegal, Charged With Bribing High-Level African Officials

Defendants Allegedly Conspired to Bribe the President of Chad and the Foreign Minister of Uganda

Joon H. Kim, the Acting United States Attorney for the Southern District of New York, Kenneth A. Blanco, Acting Assistant Attorney General of the Criminal Division of the U.S. Department of Justice, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), James D. Robnett, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), and Angel M. Melendez, Special Agent in Charge of the New York Field Office of the Department of Homeland Security, Homeland Security Investigations (“HSI”), announced today the unsealing of a Complaint charging CHI PING PATRICK HO, a/k/a “Patrick C.P. Ho,” and CHEIKH GADIO with participating in a multi-year, multimillion-dollar scheme to bribe high-level officials in Chad and Uganda in exchange for business advantages for a Chinese oil and gas company (the “Energy Company”).  HO and GADIO were charged with violations of the Foreign Corrupt Practices Act (“FCPA”), international money laundering, and conspiracy to commit both.  GADIO was arrested in New York on Friday afternoon and presented on Saturday before U.S. Magistrate Judge Kevin Nathaniel Fox.  HO was arrested on Saturday afternoon and was presented today before U.S. Magistrate Judge Andrew J. Peck and ordered detained.

Acting Manhattan U.S. Attorney Joon H. Kim said:  “In an international corruption scheme that spanned the globe, Chi Ping Patrick Ho and Cheikh Gadio allegedly conspired to bribe African government officials on behalf of a Chinese energy conglomerate.  Wiring almost a million dollars through New York’s banking system in furtherance of their corrupt schemes, the defendants allegedly sought to generate business through bribes paid to the President of Chad and the Ugandan Foreign Minister.  As alleged, Ho’s Ugandan scheme was hatched in the halls of the United Nations in New York, when the country’s current Foreign Minister served as the President of the U.N. General Assembly, and then continued unabated upon his return to Uganda.  International bribery not only harms legitimate businesses and fair competition, but it also destroys public faith in the integrity of government.  And when this type of international corruption and bribery touches our shores and our financial system, as the alleged schemes did, federal criminal charges in an American court may very well be the end result.”

Acting Assistant Attorney General Kenneth A. Blanco said:  “This alleged scheme involved bribes at the highest levels of the governments of two nations.  The Criminal Division is committed to investigating and prosecuting corrupt individuals who put at risk a level playing field for corporate competitiveness, regardless of where they live or work.  Their bribes and corrupt acts hurt our economy and undermine confidence in the free marketplace.”

FBI Assistant Director-in-Charge William F. Sweeney Jr. said:  “The scheme described in this case boils down to these subjects allegedly trying to get their hands on the rights to lucrative opportunities in Africa.  They were allegedly willing to throw money at the leaders of two countries to bypass the normal course of business, but didn’t realize that using the U.S. banking system would be their undoing.  The FBI, our partners in the IRS and the law enforcement community work diligently day after day to protect the integrity of our financial institutions, and stop foreign entities corrupting international commerce.”

IRS-CI Special Agent in Charge James D. Robnett said:  “IRS Criminal Investigation operates worldwide and has the expertise to identify bribery schemes such as alleged in the Criminal Complaint.  Our Special Agents are especially skilled at piecing together these financial puzzles, even those that involve such high level participants.”

HSI Special Agent in Charge Angel M. Melendez said:  “These individuals allegedly offered millions of dollars in bribes to foreign officials, disguised as charitable donations, in order to seek business advantages. One used his position with a United Nations Council to further this scheme.  We will continue to aggressively investigate financial crimes committed by corrupt foreign officials while working collaboratively with our counterparts at the FBI and IRS.” 

According to the allegations in the Complaint[1] and other statements in the public record:
           
Overview

This case involves two bribery schemes to pay high-level officials of Chad and Uganda in exchange for business advantages for the Energy Company, a Shanghai-headquartered multibillion-dollar conglomerate that operates internationally in the energy and financial sectors.  At the center of both schemes is CHI PING PATRICK HO, a/k/a “Patrick C.P. Ho,” the head of a non-governmental organization based in Hong Kong and Virginia (the “Energy NGO”) that holds “Special Consultative Status” with the United Nations (“UN”) Economic and Social Council.  The Energy NGO is funded by the Energy Company.

In the first scheme (the “Chad Scheme”), HO, with GADIO’s assistance, caused the Energy Company to offer a $2 million bribe to the President of Chad in exchange for securing business advantages for the Energy Company in its efforts to obtain valuable oil rights from the Chadian government.  In particular, in exchange for the bribe, the President of Chad provided the Energy Company with, among other things, an exclusive opportunity to obtain particular oil rights in Chad without facing international competition.  GADIO, who is the former Foreign Minister of Senegal and who operated an international consulting firm, played an instrumental role in the Chad Scheme by, among other things, connecting HO with the President of Chad and conveying the $2 million bribe offer to the President of Chad.  HO compensated GADIO by paying him $400,000 via wires transmitted through New York, New York.

In the second scheme (the “Uganda Scheme”), HO caused a $500,000 bribe to be paid, via wires transmitted through New York, New York, to an account designated by the Minister of Foreign Affairs of Uganda, who had recently completed his term as the President of the UN General Assembly (the “Ugandan Foreign Minister”).  HO also provided the Ugandan Foreign Minister, as well as the President of Uganda, with gifts and promises of future benefits, including offering to share the profits of a potential joint venture in Uganda involving the Energy Company and businesses owned by the families of the Ugandan Foreign Minister and the President of Uganda.  These payments and promises were made in exchange for assistance from the Ugandan Foreign Minister in obtaining business advantages for the Energy Company, including the potential acquisition of a Ugandan bank.

The Chad Scheme

As alleged in the Complaint, the Chad Scheme began in or about October 2014, when HO and GADIO met at the UN in New York, New York.  At that time, the Energy Company wanted to expand its oil operations to Chad, and to do so, it wanted to enter into a joint venture with a Chinese government-owned oil and gas company (the “Chinese State Oil Company”) that was already operating in Chad.  Earlier that year, the Chinese State Oil Company had been fined $1.2 billion by the government of Chad for environmental violations.  HO enlisted GADIO – who had a personal relationship with the President of Chad – to assist the Energy Company in gaining access to the President of Chad, with the initial goal of resolving the dispute between the government of Chad and the Chinese State Oil Company, and the ultimate goal of obtaining oil opportunities for the Energy Company in Chad.

GADIO successfully connected HO and the Energy Company to the President of Chad and to other Chadian officials.  HO, acting on GADIO’s advice, then caused the Energy Company to pledge a $2 million bribe to the President of Chad, in what was characterized as a “donation” for charitable causes.  GADIO later solicited from HO a $500,000 payment for GADIO’s firm, arguing that he should receive a percentage of the $2 million “gift” from the Energy Company to the President of Chad.

In reality, this “donation” was a bribe intended to influence the award of oil rights in favor of the Energy Company.  Following this $2 million pledge to the President of Chad, the Energy Company obtained a business advantage in its negotiations to acquire oil rights in Chad, in particular, by having the exclusive opportunity to purchase particular oil rights without facing international competition.  Ultimately, the Energy Company did not complete this acquisition, but instead purchased other oil rights in Chad from a Taiwanese company.  In exchange for GADIO’s efforts to facilitate the bribery of the President of Chad, HO caused $400,000 to be paid to GADIO’s firm, via two wires that were transmitted through a bank in New York, New York.

The Uganda Scheme

As alleged in the Complaint, the Uganda Scheme began in or about October 2014, when HO met at the UN in New York, New York with the Ugandan Foreign Minister, who had recently begun his term as the 69th President of the UN General Assembly (“PGA”).[2]  HO, purporting to act on behalf of the Energy NGO, met with the Ugandan Foreign Minister and began to cultivate a relationship with him.  During the year that the Ugandan Foreign Minister served as PGA, HO and the Ugandan Foreign Minister discussed a “strategic partnership” between Uganda and the Energy Company for various business ventures, to be formed once the Ugandan Foreign Minister completed his term as PGA and returned to Uganda.

In or about February 2016 – after the Ugandan Foreign Minister had resumed his role as Foreign Minister of Uganda, and his in-law had been reelected as the President of Uganda – the Ugandan Foreign Minister solicited a payment from HO, purportedly for a charitable foundation that he wished to launch.  HO caused a $500,000 payment to be wired to an account in Uganda designated by the Ugandan Foreign Minister, through a bank in New York, New York.  In his communications, HO variously referred to this payment as a “donation” to the reelection campaign of the President of Uganda (who had already been reelected) and as a “donation” to “support” the Ugandan Foreign Minister.

In fact, this payment was a bribe to obtain business advantages for the Energy Company in its efforts to secure contracts and ventures in Uganda’s financial and energy sectors.  HO also provided the Ugandan Foreign Minister, as well as the President of Uganda, with promises of future benefits, including proposing to partner with both officials’ family businesses in potential joint ventures.  In exchange, the Ugandan Foreign Minister assisted the Energy Company in obtaining business in Uganda, including by facilitating the Energy Company’s interest in potentially acquiring a bank.

*                      *                      *

HO, 68, of Hong Kong, China, and GADIO, 61, of Senegal, are each charged with conspiring to violate the FCPA, violating the FCPA, conspiring to commit international money laundering, and committing international money laundering.  The maximum penalties for these charges are as follows: five years in prison for conspiring to violate the FCPA; five years in prison for each violation of the FCPA; 20 years in prison for conspiring to commit international money laundering; and 20 years in prison for each charge of committing international money laundering.  The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.

Mr. Kim praised the outstanding work of the FBI and IRS-CI, who jointly conducted this investigation.  He also thanked the Department of Homeland Security, Homeland Security Investigations (“HSI”), and the Department of Justice, Criminal Division’s Office of International Affairs, which provided critical assistance.  Mr. Kim noted that the investigation is ongoing.

This case is being prosecuted by the Office’s Public Corruption Unit and the Criminal Division’s Fraud Section.  Assistant U.S. Attorneys Douglas S. Zolkind, Thomas McKay, Daniel C. Richenthal, and Shane T. Stansbury, and Trial Attorneys David A. Last and Paul A. Hayden of the Fraud Section, are in charge of the prosecution.

The charges contained in the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.


[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
[2] Although the Complaint refers to the “Ugandan Foreign Minister” throughout for clarity, during the year that he served as PGA, he did not simultaneously serve as Foreign Minister of Uganda.  Rather, he resumed as Foreign Minister of Uganda shortly after his term as PGA ended.
Topic(s): 
Foreign Corruption
Financial Fraud
Component(s): 
Press Release Number: 
17-370