ANB-BIA SUPPLEMENT

ISSUE/EDITION Nr 415 - 01/07/2001

CONTENTS | ANB-BIA HOMEPAGE | WEEKLY NEWS


Gabon

Oil, poverty and lining one’s own pockets


SOCIAL CONDITIONS


With the oil boom of the 1970s, Gabon launched
into what turned out to be enormous and loss-making investments.
This situation resulted in a flight of capital abroad;
people getting rich quick;
the gap between the rich and the poor getting ever wider

The government has just passed an anti-corruption law. This follows a plea from Mrs. Pierrette Djouassa, Gabon’s Attorney-General, that action be taken at the highest level to stamp out corruption and impunity. She had declared: «I appeal to the government to draw up an anti-corruption law, preceded by an amnesty so as to wipe the slate clean».

For a number of years, corruption has made inroads into the highest echelons of power. Although this is a worldwide problem, Gabon’s statute books didn’t cater for many forms of corruption. In view of the fact that President Bongo had talked about a «new start» in Gabon’s history, Mrs. Djouassa had suggested an amnesty for the most recent indictments followed by an anti-corruption law with no retrospective effects. Mr. Antoine Nguema Essono, presiding judge at the Central Criminal Court, says that such measures will only work if the country’s judicial system is seen to be credible, independent and free from political pressures.

Justice must be open

To fight effectively against corruption, the judges say that far-reaching action must be taken. Success in the fight against corruption will only be achieved if the judiciary is independent, and justice is not only done but is seen to be done. They spoke out against the way justice is administered in Gabon — one for the rich and powerful, the other for the poor and weak.

Once the Senate had approved the law against the illegal acquisition of wealth, an initial reaction came from Lawyer Louis-Gaston Mayila, president of the Economic and Social Council (THESE). At a first (closed) session of his Council, he stated: «The law against illegal enrichment must be put into practice as soon as possible; however, there are a number of modifications to be made in the law as presently enacted». Lawyer Mayila hopes that the Commission set up to crack down on illegal financial activities «will be up to the task it has been assigned. I’m very pleased that such an initiative has been taken — an initiative which will strengthen our legal system so that this modern-day evil can be combatted; and which will ensure that when it comes to managing public funds, everything is open and above board».

Inflation, crisis and embezzlement

Because of the country’s exceptionally high Gross National Product resulting from its petroleum resources, Gabon is considered to be one of Africa’s richest countries. But it is presently passing through an unprecedented financial and economic crisis, which effects mostly the poorer section of the population. In spite of that, the rich make no bones about displaying their wealth for all to see, wealth which most of them have obtained dishonestly. Because there’s been no system of checking what’s going on, corruption exists at the highest levels of power — even in the ministries. Money has found it’s way illegally into people’s pockets in a thousand and one different ways, and most of the «new rich» seem to be young people.

Before the present crisis and the devaluation of the CFA franc, inflation remained at acceptable levels. But then, for the first time, Gabon’s leaders stated (unfortunately as it turned out) that there were far too many foreigners in Gabon who were controlling the economy; who were responsible for the increasing insecurity; and who were heavily involved in unacceptable illegal immigration activities.

Michel Emane is a high-ranking civil servant with the Finance Ministry. He noted the following: «In spite of a warning from the international financial institutions that the government’s rate of expenditure is far too high, and that an unfavourable economic situation has been part of the Gabon’s economic scene in past years, the State did nothing to put its economic house in order during 1999». Investment strategies proved a failure and this brought about a debt crisis.

In fact, most people don’t get much from the country’s oil wealth and nearly 40% of the population experience the daily round of misery and poverty. A Gabonese economist puts it this way: «Because of what’s presently taking place in Gabon, it’s none too easy to follow the guidelines for good economic management as laid down by the International Monetary Fund».

An end to getting rich on the quick

Mr. Mayila’s comments and reactions were listened to. Gabon’s economic wizz-kids drew the government’s attention to the necessity «of revising certain aspects of the law dealing with lining one’s own pocket and also, how the law should be applied». To show its good will, the government established a National Economic Control Commission, plus appropriate legislation». Pascal Désiré Missongo is Gabon’s Justice Minister. He says that «the Commission is there to back up the police and can act on its own initiative or when people have taken out a complaint».

Big business in other African countries has been able to stand on its own feet in spite of pressure from the multinationals, and this has given rise to an affluent and powerful middle class. Here in Gabon, the situation is somewhat different. If you want to get rich quick, two ways lie open to you — become a politician or get your hands on a juicy post in public administration. A job in the Finance Ministry is a plum job, indeed, and is coveted by all and sundry. The same goes for getting a job in certain private businesses in which the State injects capital funding. We had to wait more than two years for a law against corruption to come into existence — a law which gives a legal backing to the reforms already embarked on by the public authorities to clean up the situation of the country’s finances.

Cancelling debts

Gabon has been hard hit by the general recession and is under pressure from donor organisations and countries to carry out a structural adjustment programme. On many occasions, the government has made known it would like to have its debt cancelled. President Omar Bongo has declared: «Gabon will matters into its own hands if the G7 nations don’t decide to cancel Gabon’s debt at the end of their negotiations. «But», says one economist, Gabon’s placed itself in such a situation that all could end badly, especially in such a small country». It was in this climate of mistrust, that in 1998 Gabon went over the deadline for paying its debts, which led its creditors to suspend their disbursements.

There’s an inequality of wealth distribution within Gabon and this has led to an ever-widening gap between the «haves» and the «have-nots». At the same time, it has facilitated the «side-tracking» of state-funds into private pockets. However, the cleaning-up of the country’s public finances continues, even if some politicians leaders are not entirely convinced that «democracy can find its own way, but co-exists badly alongside poverty».


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