Guinea’s Corruption Woes: A Persistent Challenge in the Mining Sector
Guinea: Rich in Resources, Poor in Development
Guinea, known as one of the top ten mineral-rich countries in the world, struggles with corruption at all levels of government. Despite its abundant natural resources, including bauxite, gold, diamond, and uranium, it remains one of the poorest countries with 73.8% of its population multidimensionally poor and an additional 12.7% living near multidimensional poverty [@1-2].
Ranked amongst the Most Corrupt
Transparency International ranked Guinea 142nd out of 176 countries in the 2016 Corruption Perceptions Index, with a score of 27 out of 100 for perceived public sector corruption [@3]. This is the highest corruption score the country has received since 2006.
Political Background
- Ahmed Sékou Touré led Guinea to independence from France in 1958.
- Lansana Conté seized power in a coup in 1984, leading to a power struggle and corruption allegations.
- Alpha Condé, the leader of the opposition party Rally of the Guinean People (RGP), was elected president in 2010.
Guinea’s Political Instability and Corruption Allegations
Presidency of Alpha Condé
Condé promised to tackle corruption and review mining contracts upon his election. However, numerous allegations of corruption, mainly in the mining industry, have continued to surface:
NCT Necotrans and Bolloré Group
One controversy involved the transfer of the management of Conakry port from French firm NCT Necotrans to the Bolloré Group [@7]. The government breached the long-term contract with Necotrans, and allegations surfaced of political and financial promises exchanged to secure the redistribution of power over the port. Necotrans claimed that Condé was rewarding Bollore for having financed his political campaign [@8].
Suspended Elections and Violence
In 2012, Condé suspended elections indefinitely citing “technical problems,” leading to clashes between police, opposition parties, and the ruling party [@9]. At least 400 people were injured, and up to 60 people were killed [@10]. Finally, elections took place on September 28, 2013, but several international observers reported numerous irregularities, technical problems, and corruption during the voting process [@11][@12].
Corruption in the Mining Sector
International mining companies control much of Guinea’s mining wealth, and there are over two dozen such companies involved in the industry. The correlation between Guinea’s vast mineral resources and its status as one of the poorest countries can primarily be attributed to the persistent corruption in the mining sector at all levels of government.
Allegations against Guinea’s Presidents
Condemned presidents, including current president Alpha Condé, have faced corruption allegations, charges, and cases related to the mining industry [@13][@14][@15].
Och-Ziff Capital Management Group
In 2017, the Securities and Exchange Commission (SEC) accused Och-Ziff executives of participating in a bribery scheme to win business in the mining sector across various African countries, including Guinea [@15][@16][@17].
Rio Tinto and Simandou Mine
The corruption in the mining industry reached a boiling point in 2016 when Rio Tinto lost its license for the mineral-rich Simandou Mine. The license was then awarded to BSGR [@18][@19]. In 2019, BSGR reached an agreement with the Guinean government to withdraw the mutual allegations of corruption and drop the arbitration case. However, in 2016, Rio Tinto admitted to bribing a government official to influence President Condé to give the mining rights back to Rio Tinto. President Condé denied the allegations, but France 24 published recordings that proved the Guinean government was involved in the transactions [@20][@21].
Allegations Regarding Iris Corporation Berhad
Acting CEO of IRIS Corporation Berhad, Datuk Hamdan Mohd Hassan, was arrested in Malaysia in relation to an e-passport project the company was conducting in Guinea [@22][@23][@24]. Hamdan was reportedly involved in corrupt practices as part of the project. Iris distanced itself from Hamdan’s alleged illegal actions and stated the project would continue as planned.
References:
[1] Transparency International - Guinea. (n.d.). Retrieved 2023, April 18, from www.transparency.org
[2] Guinea Economy: Population, GDP, Inflation, Business, Trade, FDI, Corruption. (n.d.). Retrieved 2023, April 18, from www.heritage.org
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[25] Guinea: Ensure Justice in Treasury Chief’s Death. (2012, November 16). Human Rights Watch. Retrieved 2023, April 18, from https://www.hrw.org/news/2012/11/16/guinea-ensure-justice-treasury-chiefs-death
[26] La directrice du Trésor guinéen assassinée à Conakry. (2012, November 10). Le Monde.fr. Retrieved 2023, April 18, from https://www.lemonde.fr/monde/article/2012/11/10/la-directrice-du-tresor-guineen-assassinee-a-conakry_1694946_3212.html
[27] Condemning the Murder of Treasury Director Ms. Aissatou Boiro. (2012, November 17). U.S. Department of State. Retrieved 2023, April 18, from https://www.state.gov/r/pa/prs/ps/2012/11/205264.htm
[28] Décrets : Le mari de feu Aïssatou Boiro nommé ministre de l’Environnement. (2012, November 23). www.ecoguinee.com. Retrieved 2023, April 18, from https://www.ecoguinee.com/decrets-le-mari-de-feu-aissetou-boiro-nomme-ministre-de-lenvironnement/
[29] Uprooting the Seeds of Corruption - Part 2. (2017, August 8). Corrupt Guinea. Retrieved 2023, April 18, from https://corruptguinea.com/2017/08/08/uprooting-the-seeds-of-corruption-part-2/
[30] Iris deputy MD arrested by MACC, COO to take over. (2017, July 15). The Star Online. Retrieved 2023, April 18, from https://www.thestar.com.my/business/business-news/2017/07/15/iris-deputy-md-arrested-by-macc-coo-to-take-over/
[31] International Minerals Statistics and Information | U.S. Geological Survey. (n.d.). Retrieved 2023, April 18, from https://www.usgs.gov/minerals/mineral-resources-data-system/statistics-and-information/international-minerals-statistics-and-information
[32] Alexis Arieff (2014)Guinea: In Brief. (n.d.). Retrieved 2023, April 18, from fas.org
[33] Two Ex-Och-Ziff Executives Accused by SEC in Bribery Scheme. (2017, January 26). Bloomberg.com. Retrieved 2023, April 18, from https://www.bloomberg.com/news/articles/2017-01-26/two-ex-och-ziff-execs-accused-by-sec-in-bribery-scheme
[34] Hyperdynamics resolves FCPA offenses linked to Guinea payments. (2015, September 30). The FCPA Blog. Retrieved 2023, April 18, from https://www.fcpablog.com/blog/2015/9/30/hyperdynamics-resolves-fcpa-offenses-linked-to-guinea-payments.html
[35] HYPERDYNAMICS CORP (OTCMKTS:HDYN) Files An 8-K Regulation FD Disclosure. (2017, April 3). Marketexclusive.com. Retrieved 2023, April 18, from https://marketexclusive.com/news/254715642/hyperdynamics-corp-hdyn-marks-two-key-announcements-towards-continuing-growth-strategy
[36] Uprooting the Seeds of Corruption - Part 1 - Corrupt Guinea. (2017, August 3). Corrupt Guinea. Retrieved 2023, April 18, from https://corruptguinea.com/2017/08/03/uprooting-the-seeds-of-corruption-part-1-corrupt-guinea/