Page 8 - AfrOil Week 09 2023

AfrOil INVESTMENT AfrOil

Afreximbank loan to South Sudanese oil

marketer Trinity Energy raises red flags

SOUTH SUDAN SOUTH Sudanese oil and fuel marketing The Sentry report underlines that Trinity
company Trinity Energy Ltd, which procured Energy spent millions of dollars of “facilitation”
a controversial $30mn loan from the African and “business acquisition” costs for the Afrex-
Export-Import Bank (Afreximbank), is under imbank deal, including $125,000 in payments
suspicion of engaging in illicit business practices to the government committee responsible for
and money laundering, Global Trade Review approving the deal.
reports. Biswick Kaswaswa, a former Trinity finance
A new damning report by the investigative director, claims that government officials
and policy organisation The Sentry has flagged received envelopes of cash and other employees
possible bribery, tax evasion and money laun- received earnings far higher than their stated
dering during the loan procurement and called salaries, paid to wipe out a build-up of arrears,
for an inquiry. Ann Kathure Rutere, Trinity’s executive director
According to the report titled “Crude Deal- at the time of the deal, told The Sentry.
ings: How Oil-Backed Loans Raise Red Flags for The investigation also shows that the com-
Illegal Activity in South Sudan,” Trinity Energy pany “changed millions of US dollars on the
– which had never before traded crude – nev- black market, paid fake invoices overseas to
ertheless gained privileged access South Sudan’s disguise the black market exchange of hundreds
most valuable resource. of thousands of dollars, and engaged in behav-
The Afreximbank loan, to purchase diesel iours indicative of tax fraud.” It has also moved
and gasoline to sell to the South Sudan market, money to companies in South Sudan and Kenya
was first agreed upon in 2018 and included a owned by its shareholders and directors, which
trade finance facility enabling “the creation of a illustrates some examples of trade-based money
parallel revenue source and avenues for off-book laundering.
spending that avoid public scrutiny and are vul- The Sentry report calls on global and regional
nerable to capture by self-interested individuals financial institutions to take the necessary meas-
and elites,” The Sentry is quoted as saying. ures to identify the accounts held or owned by
Trinity Energy was awarded more than 40% those with business dealings in South Sudan’s
of crude cargoes contracted by the South Suda- oil sector and carry out a comprehensive assess-
nese government from June 2018 to May 2019, ment to identify their broader international
according to the watchdog. It was also granted networks.
a dominant position in the petroleum and die- Additionally, it recommends that Afrex-
sel import market, which facilitated its lucrative imbank open an investigation into its relation-
position of fuel supplier to the South Sudanese ships and transactions with Trinity Energy and
army. the government of South Sudan. ™

POLICY
Eni CEO describes Africa as a key source of

gas supplies to replace Russia in Europe

REGIONAL CLAUDIO Descalzi, the CEO of Italy’s Eni, has quarter of 2022 that Eni had already succeeded
said that he sees Africa as a vital source of natu- in replacing 50% of the Russian gas it had been
ral gas for Europe as the Continent attempts to importing into Italy from Russia, with most of
reduce its dependence on supplies from Russia the new supplies coming in from North and
in response to the latter country’s invasion of West Africa.
Ukraine. He did not identify any individual importers
Descalzi was quoted as saying in a press or provide a full breakdown of the company’s
release outlining Eni’s results in the fourth supply sources.

P8 www. NEWSBASE .com Week 09 02•March•2023