When money becomes difficult to track, warning lights should flash – E24

Equinor was going to help Angola with idealistic projects. Several years later, no one can give an account of what the money was really used for. Now more must demand answers.

Published:Posted: September 15, 2020 7:53 am

Angolan elite it confirms the scourge that sitting in abundance of resources can be. Oil and diamonds are among the glories of the exports that have helped create one of the most corrupt regimes in the world.

There the cash flows they are difficult to follow and where tax havens often become outposts of a political elite that enrich itself at the expense of the people. A country with gray areas, which end up at the top of the lists you don’t want to top.

Still transferred several of the world’s largest oil companies sums gigantic sums to the state-controlled Angolan oil company Sonangol. From 2011 to 2016, Equinor * also contributed money to the company.

_{* Equinor changed its name from Statoil in May 2018. For the sake of simplicity, the Equinor company name is used in comments and articles.}

Money was “Social contributions” that the oil giants had to pay to obtain exploration permits off the oil-rich coast. From Equinor, 420 million NOK went to a research facility that has not been built in almost ten years. But as Sonangol on Friday claims the E24 is yet to be built.

Simultaneously Norway’s largest company agreed to pay an additional NOK 295 million to Sonangol. This money would go towards indefinite “social projects” and the training of local personnel in Angola. For Stavanger Aftenblad / E24, Equinor confirms that the company does not know how the money was spent.

Contract Norway’s only oil giant signed with Sonangol does not give Equinor “the right to inspect the use of funds.” And E24’s questions to Sonangol about where the money for social projects has gone, still lack answers.

This is obviously unsettling. Diffuse funds are not accounted for. And Equinor and other companies don’t see Sonangol in the cards. This is not the recipe to ensure that funds are used for idealistic purposes, in a country as corrupt as Angola.

For me If all the anti-corruption legislation was deemed to have been complied with, obviously these are not contractual clauses that must be repeated in the future. All businesses must take responsibility for knowing where their payments end up, especially in countries where money is otherwise difficult to track.

Then get it rather, business opportunities may be lost. In a global competition for the most lucrative oil fields, there will often be competitors who are willing to go to great lengths to satisfy local regimes. In such competition, Norwegian companies will often have to register passports.

Because we have to in fact, you could also expect more openness and diligence from Norwegian companies. And even though Equinor has now dumped Stat in the name, 67 percent of the shares remain directly owned by the Ministry of Oil and Energy. We are talking about a political company and a flagship. In a Norway that should and should lead the fight against corruption.

Then it is Of course, it is good that Equinor has reported for several years about the payments it makes to regimes and companies in different countries. It helps to make visible the money gaps, and also the amounts that can be lost in this case. This practice helps to hold Sonangol responsible for the funds received, and here several international oil companies should do the same.

And also formal right of access only to a part of the image. Equinor can also help hold Sonangol accountable in the future. Keeping the pressure on where the cash flows have gone and helping the public know as much as possible about the development in this case. Even if it becomes unpopular with the elites in Luanda, Paris, Hong Kong or London.

A responsibility it also depends on Norwegian politicians, who would otherwise like to hold up the flag against corruption and for human rights. When Norwegian money can be lost, an even greater effort is required. The government should, on its own initiative, hold the Angolan authorities accountable on an ongoing basis. The Storting, for its part, can ensure that the government follows up.

Norwegian companies You should also take into account the expensive experiences of this project, when considering new projects and investments. Then it is also possible to take a general position on the dangers of corruption, long before a similar payment is considered.

Because even there one does not find anything wrong beforehand, one is not automatically on safe ground. And the risk of something going wrong is greater in some countries and in some sectors than in others. There is no reason to be naïve when actors in countries ravaged by corruption demand payments for various idealistic projects.

The last Incoming CEO Anders Opedal should also be remembered. Equinor’s profile suggests less controversial projects in the future. So it wouldn’t seem so stupid to concentrate most of the future oil and gas projects in politically transparent countries. Included in or near the Norwegian shelf.

At the same time Opedal also received a clear mandate to make Equinor greener and more renewable. As billions in sales off the coast of the United States show, there is no shortage of opportunities internationally. Preferably also in countries that are poor in oil, but are hungrier for cheap renewable energy.

Then it is It is also very possible to find developing countries that have a great time in their work with the fight against corruption. It should not be ignored at all that it can also provide a better return on investment in the long run.