Dec. 24 (GIN) – Lawyers for
the firm of an Israeli mining exec have filed suit against a London-based
watchdog that claims that bribery helped score valuable mining rights in the
West African nation of Guinea and earn profits for the firm in the
multi-billions.
The watchdog, Global Witness, investigates and campaigns against
what it considers corruption in natural-resources sectors across the globe.
Citing documents it obtained, Global Witness claims that bribes to corrupt
officials in Guinea helped the mining firm, BSG Resources, win a valuable
concession at almost no cost.
BSG Resources, lead by billionaire Beny Steinmetz, is heavily
invested in diamonds except for this case. The company denies any wrongdoing and
accuses Global Witness and others, including the Guinean government, of pursuing
a smear campaign to strip the concession they rightfully won from the prior
government, led at the time by now-deceased dictator Lansana
Conte.
The
lawsuit, on behalf of four individuals connected to BSG Resources, charges that
Global Witness failed to turn over source material for their investigative
work.
Global Witness counters that this is an attempt to stifle
journalism in the public interest.
In a
rare interview with the Financial Times, Steinmetz said: “People don’t like
success. It’s disturbing to people that the small David can disturb the big
Goliath.” He said that it was his company’s strategy to pursue “opportunities in
an aggressive way,” adding, “You have to get your hands dirty.”
The
Steinmetz company is linked to investigations in several countries over its
Guinean operations, including the U.S., which is probing for potential
violations of the Foreign Corrupt Practices Act.
Steinmetz, said to be the richest man in Israel, obtained the
rights to Simandou – “the top undeveloped iron-ore asset in the world” - after
Guinean officials cancelled the rights held by Anglo-Australian Rio Tinto and
transferred them at no charge to BSG. Steinmetz sat on the rights and then
flipped them to a new buyer from Brazil. Total profit on almost no investment
will exceed $5 billion – five times Guinea’s annual budget.
A
stunned Sudanese telecom billionaire, Mo Ibrahim, asked aloud: “Are the Guineans
who did that deal idiots, or criminals, or both?”
“The
Western world has always thought of Africa as a continent to take things from,”
observed Patrick Radden Keefe in a New Yorker magazine piece in July, “whether
it was diamonds, rubber, or slaves. This outlook was inscribed into the very
names of Guinea’s neighbor Côte d’Ivoire and of Ghana, which was known to its
British masters as the Gold Coast.”
The
claim against Global Witness was filed this month. There is no return date on
the cast at this time.
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