January 13, 2004

Some Transparency, No Accountability:

The Use of Oil Revenue in Angola and Its Impact on Human Rights

I.Summary
II.Recommendations
To the Government of Angola
To the International Monetary Fund
To the World Bank
To Donor governments, the G-8 and Member Governments of the Extractive Industries Transparency Initiative
To Oil Companies Operating in Angola
III.Background:The IMF and Angolan Government
Staff-Monitored Programs: 1995-2001
The Oil Diagnostic
Delays in Implementation and a Failure to Publish Reports
IV.The Oil Diagnostic:Oil Revenue Discrepancies
KPMG's July 2002 Inception Report and the July 2003 Executive Summary
Incoming Revenue Discrepancies
Taxes and Royalties
Sonangol's Tax and Royalty Discrepancies
Sonangol's Profit Oil Discrepancies
Reconciling Incoming Revenues
Other Sources of Revenue
Signature Bonus Payments
Production Discrepancies
V.Expenditure Discrepancies
The March 2002 and July 2003 IMF Staff Reports
Missing Funds
Inadequate Record Keeping
Indications of Corruption
War as an Impediment to Economic Reform...
VI.Government Attempts to Restrict Information
Domestic Laws that Would Criminalize and Restrict Information
Failure to Provide Information to the IMF
Threats Against Governments
Switzerland
France
Efforts to Prevent Companies from Publishing Data
VII.The Impact of Lack of Transparency and Accountability on Human Rights and Development
Freedom of Information
Underfunding of the Judiciary and the Right of Access to Justice
Inadequate Funding of Health, Education, and Social Services
Social Bonus Payments from Companies
The Angolan Government's Obligation to Fulfill Economic, Social and Cultural Rights
Emerging Issues:HIV/AIDS
Lack of Democracy
VIII.International Initiatives to Promote Transparency
IMF and World Bank
The IMF
The World Bank
The Extractive Industries Transparency Initiative (EITI)
The Publish What You Pay Campaign (PWYP)
The G-8 Statement
The Soros Announcement
IX. Conclusion
ACKNOWLEDGMENTS