# CE2004088EN.01007401.xml

| 8.4.2004 | EN | Official Journal of the European Union | CE 88/74 |
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8.4.2004

EN

Official Journal of the European Union

CE 88/74

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(2004/C 88 E/0081)

WRITTEN QUESTION E-2229/03

by José Ribeiro e Castro (UEN) to the Commission

(2 July 2003)

Subject:   Oil revenue, Angola, transparency

Subject:

According to a press release from the NGO Global Witness, issued on 20 June 2003, the Deputy Prime Minister of Angola, Aguinaldo Jaime, has given significant public commitments regarding the future transparency of revenue from oil exploration off the Angolan coast.

The relevant excerpt from the press release from Global Witness reads as follows: ‘In the past, we had off-budget transactions, so the budget lacked credibility,’Angolan Deputy Prime Minister Aguinaldo Jaime said in a speech at an oil industry conference in London.'For the first time in Angola's history, the budget will encompass all revenue and that will send to the donor community the signal that the Angolan Government is committed to a fully transparent way of managing the budget.’‘Jaime clarified that these figures will include all the country's oil revenues.’

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Is the Commission aware of these statements by the Deputy Prime Minister, Aguinaldo Jaime?

Is it aware of other similar undertakings given by the Angolan Government?

Bearing in mind the positions already expressed in this regard by the Council and Commission, as well as by other international bodies, does the Commission have any firm information that commitments of this nature given by the Angolan Government are already being acted on or will be put into effect very shortly? In the Commission's view, what impact might positive developments in this key political and financial dossier have on the planned — and constantly postponed — Donors' Conference aimed at supporting the country's reconstruction?

Answer given by Mr Nielson on behalf of the Commission

(9 September 2003)

(9 September 2003)

The Commission is aware of the statement made by Angolan Deputy Prime Minister Aguinaldo Jaime and welcomes the government's commitment towards more budgetary transparency. The cabinet reshuffle in December 2002, in which a new economic team moved into government, gave hope for more transparent economic and financial management. However, experiences in the past have not been positive and it remains to be seen whether real improvements will actually come about.

The international community, including the Commission, continues to urge the government to embrace transparent budgetary management, in particular of oil and diamond revenues and provides support for this. Thus, during his visit to Angola in January 2003 in meetings with government representatives and President dos Santos, the Member of the Commission in charge of Development and Cooperation explicitly emphasised the need for a transparent management of the revenues of the country's vast natural resources to the benefit of all Angolans. He furthermore underlined that such action would also contribute to a stable and predictable environment, which is a prerequisite to attract urgently needed foreign investment.

A programme to assist the government in managing public expenditure and improving the management of oil and tax revenues forms part of the World Bank's Transitional Support Strategy (TSS) for post-war Angola. The EC/Angola co-operation strategy 2002-2007, which was signed during the visit of the Member of the Commission in charge of Development and Cooperation in January, also contains a component targeting the improvement of financial management.

The Commission and the international community have repeatedly underlined that an improvement of Angola's relationship with the International Monetary Union (IMF), which includes progress in transparency and accountability, would be essential for the success of the donors' conference on the reconstruction of Angola, a second vital element being a credible poverty reduction strategy. If Angola is indeed able to honour the commitment made by the Deputy Prime Minister, this will have a positive bearing on the country's relationship with the IMF and thus facilitate the holding of the conference.

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