Some Transparency, No Accountability:
The Use of Oil Revenue in Angola and Its Impact on Human Rights

1. Summary
   
2. 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
   
3. Background: The IMF and Angolan Government
   
   Staff-Monitored Programs: 1995-2001
   The Oil Diagnostic
   Delays in Implementation and a Failure to Publish Reports
   
4. 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
   
5. 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
   
6. 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
   
7. 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
   
8. 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
   
9. Conclusion
   ACKNOWLEDGMENTS

January 2004