Wycleff Responds to Charges Concerning Finances of Yele

Haiti Needs Your Support: Message by Wyclef Jean

“Haiti today faced a natural disaster of unprecedented proportion, an earthquake unlike anything the country has ever experienced.

The magnitude 7.0 earthquake – and several very strong aftershocks – struck only 10 miles from Port-au-Prince.

I cannot stress enough what a human disaster this is, and idle hands will only make this tragedy worse. The over 2 million people in Port-au-Prince tonight face catastrophe alone. We must act now.

President Obama has already said that the U.S. stands ‘ready to assist’ the Haitian people. The U.S. Military is the only group trained and prepared to offer that assistance immediately. They must do so as soon as possible. The international community must also rise to the occasion and help the Haitian people in every way possible.”

Many people have already reached out to see what they can do right now. We are asking those interested to please do one of two things: Either you can use your cell phone to text “Yele” to 501501, which will automatically donate $5 to the Yele Haiti Earthquake Fund (it will be charged to your cell phone bill), or you can click here to DONATE.

Wyclef Jean

Articles and Historical Sources on Haiti:
Haiti: the land where children eat mud By Alex von Tunzelmann
Country Without a Net by Tracy Kidder
How the U.S. impoverished Haiti by Jean Damu

Black Jacobins by C. L. R. James
Toussaint l'Ouverture biography
Jean-Jacques Dessalines Biography
Naomi Klein on Haiti Disaster Capitalism

The United Nations and the Suffering of Congolese Civilians

The United Nations group of experts recently published their final report of the group of experts (PDF). They have been issuing reports on the Congo Crisis for the last decade. This report (PDF) is the latest in a series of reports published on the on-going conflict in the Congo and should be read as such, as opposed to the manner in which some misguided Think Tanks and media outlets have interpreted the report (PDF). A classic case of the misguided reading has been spurious reports that the “first” American company has been identified as participating in the trade of so-called conflict minerals. The fact of the matter is the United Nations has done a plethora of studies since 2001 identifying US companies that have contributed to the fueling of the conflict in the Congo. See a list of Western Companies involved in Congo since the 1996 invasion by US allies Rwanda and Uganda.

Human Rights Watch also published a recent report, which assessed the joint operations between the Congolese military and the United Nations forces. As expected the report was critical of the joint operations and recommended that the United Nations end its support of the military operations.
Read HRW Press Release
Read HRW full report

The Basics of the Chinese Deal

In the wake of this morning’s report by Bloomberg news we have to take a moment to lay bear how the game is really played and some of the reasons why Congo is likely to remain dependent and impoverished for at least another generation and maybe more.

As the Paris Club meets (although the affairs of the Congo are being determined, no Congolese official is a part of these talks or decisions in Paris) to decide upon the “forgiveness” of a portion of Congo’s illegitimate and odious $11 billion debt accumulated during the Western-backed dictatorial Mobutu era (1965 - 1997), the United States and Canada are apparently seeking “clarification” on the Freeport McMoran and First Quantum contracts; both of which are a part of the contract review process began by the Congolese government in 2007.

These are part and parcel of the contracts that experts reviewing the contracts on behalf of the Carter Center said that they had not seen such egregiously lopsided contracts in 30 years of assessing such contracts. These are the very same contracts that the United States and Canada have been silent on in spite of the plethora of independent studies that have clearly documented how lopsided and opaque they have been and the degree to which they exploit the people of the Congo.

As a result of the contract review process (2007 – present), the government canceled the First Quantum deal (First Quantum says it is still seeking a negotiated solution) and the Freeport McMoran deal is still unresolved. In our unpacking of the Chinese deal we will compare the Chinese deal with the Freeport McMoran contract in upcoming blogs in this series.

Anatomy of the Chinese Deal

The deal was established in the Fall of 2007, finally consummated in the Spring of 2008 and given the green light by the International Monetary Fund (IMF) in October 2009 after the restructuring of the deal to meet IMF terms. It is a mineral for infrastructure swap between the Congolese government and the Chinese government represented by a number of state companies. The basic principle is that the deal would provide the Congo with transport and social infrastructure in exchange for access to mineral resources.

Players: Gecamines, Sinohydro Corporation, China Railway Group, Metallurgical Group Corporation
Type of Partnership: Joint Venture
Equity: China 68 percent Congo 32 percent (Congo only receives 17% equity in its deal with American company Freeport McMoran)
Initial Value of the Deal: $9 billion
Renegotiated Value due to IMF pressure: $6 billion
Duration of Contract: Approximately 30 years

Stated Benefit to Congo:
4,000 KM road network
3,200 KM Rail system
31 Hospitals with 135 beds each
145 Health Centers with 50 beds each
49 clean water distribution centers
4 large universities
A Parliament building

Stated Benefit to China:
10.6 million tons of copper and 626,619 tons of cobalt

Year concessions expected to come into Production: 2013

Primary demand of the IMF: The deal had to be restructured so that the Congolese government would not assume any additional debt. As a part of the initial deal the Chinese had required the Congolese government would guarantee the repayment of the infrastructure investments in case the profits of the mining projects would not be sufficient to offset the costs of the development of the infrastructure projects.

IMF Promises as a result of the renegotiated Chinese deal: Paris Club would forgive most of the Congo’s $11 billion debt. IMF would provide Congo with $600 million for government operations under a new three-year “poverty reduction” agreement (2009 – 2011).

China, Congo and the International Monetary Fund

Over the next several days we will deconstruct the Chinese Congo deal and the role of the International Monetary Fund (IMF). Much of the exchanges have played out in rarified air on the pages of the Financial Times. We look to bring the exchange down to the ground so one can fully understand why we maintain that one of the challenges facing Congo since its modern founding is that it has been the subject of geo-political intrigue and battles resulting in the affairs of the Congo being determined by Great powers as opposed to the people of the Congo. Congo's very creation was a result of European geo-strategic interests at the 1884/85 Berlin/Congo conference.

The Paris Club is considering the the retirement of much of Congo's $11 billion debt as a direct result of the Congolese government succumbing to pressure from the International Monetary Fund and restructuring the $9 billion Chinese agreement to $6 billion.

In the upcoming blogs we will analyze four main elements:
1. $9 billion Chinese infrastructure for minerals swap/barter
2. The role of the IMF in shaping Congo's fiscal policies
3. Comparison and contrast between the Chinese deal and the Freeport McMoran Tenke contract
4. The role of the $11 billion debt accumulated under the West's dictator Mobutu Sese Seko (1960, 1965 - 1997)

The Militarization of the Congo: When Will It Stop

The recent Human Rights Watch report and reports from many Congolese have consistently documented the failed nature of the military approach to addressing what is in essence a political challenge.

Human Rights Watch has warned the United Nations that it may be complicit in crimes against humanity due to its support of the Congolese army and its Kimia II military campaign. The armed forces of the Congo (FARDC in French) are for all intents and purposes a hodge-podge of former rebel groups. Even in Human Rights Watch description that the Congolese army is committing atrocities and abuses against the civilian population does not quite get to the root of the matter. What is transpiring is those rebel groups that have been “integrated” into the Congolese army as entire battalions are continuing the same practices they pursued while they were rebels. They are still in control of mines and collecting taxes in regions where they exercise military dominance outside of the purview of the Congolese government. We are talking here primarily about the National Congress for the Defense of the People (CNDP), which is lead by Bosco Ntaganda and sidelined figure Laurent Nkunda, who according to reports is moving freely in Rwanda as opposed to being under arrest as is commnly portrayed.

The central question that remains, is how many more civilians have to die before a comprehensive concerted political process is initiated that lays out a framework that includes the neighboring governments, particularly Rwanda and Uganda but also to some degree Burundi; the Congolese government and FDLR and other rebel groups. Lack of political space in Rwanda and Uganda is a key part of the reason that a war is being fought on the bodies of Congolese women. Very little will change in the region without opening of political space in the countries involved, including the Congo itself. The United States has a critical role to play in addressing this problem in light of its historical support of policies that have perpetuated the conflict. Great Britain also has leverage on the players in the region and can play a constructive role in bringing an end to the atrocities in the Congo. Both countries need to radically change their policies to the point where they throw their weight behind the opening of political space in the region as opposed to their long-held practice of supporting strongmen, authoritarian regimes, military ventures and corporate plundering, all of which have been the difference maker in a region of weak and fragile states.

What Can and Should Be Done:
1. The United States and Great Britain should step up its diplomatic engagement as opposed to the military approach they are currently pursuing.
2. Back a political path to sustainable peace and stability
3. Hold accountable its corporations that are contributing to the fueling of the conflict and the exploitation of the people.
4. Support the strengthening of local institutions as opposed to its current approach of strengthening the military.

Our mining companies' responsibility to the Congo: Response from FOTC Canada

The 2002, 2003 and 2008 UN reports from the Panel of Experts on Illegal Exploitation of Natural Resources and Other Forms of Wealth in the Democratic Republic of Congo establish a clear link between the presence of mining companies and the militarization that leads to crimes against humanity in the Congo. Moreover, it is the case that half of the worldwide capital raised for mining and mineral exploration companies is done through the Toronto Stock Exchange.

However, the remedy proposed in this article, voluntary corporate responsibility, is insufficient. To suggest that mining companies can solve the problem without addressing the issue of their very culpability is not helpful. Hence, this is a band aid solution that gives mining companies carte blanche to continue doing harm while pretending to be philanthropists.

As a Congolese, my people need empowerment towards self-reliance for security, social and political capacity building in the Congo within the framework of local institutions. Firstly, a transparent and equitable consultation process with the Congolese for access to their land via a wholesale renegotiation of the current mining contracts that one-sidedly benefit the mining companies.

Secondly, fair-minded United States and Canadian citizens need to pressure their government to enact transparent and mandatory legislative programmes to reign in the mining companies. Liberal MP John McKay’s Bill C-300 is a necessary first step.

Finally, Canada should take necessary measures along with the US and the international community to assert diplomatic pressure on Rwanda and Uganda so as to stop the latter’s support of militias and military intervention in the Congo. The West must favour a political settlement rather an illusive military solution.

Click here for original article!

Bodia Macharia, President
Friends of the Congo, University of Toronto
Email: fotcuoft@gmail.com