Angola to Investigate $50b Shortfall in Sonangol

Angola to Investigate $50b Shortfall in Sonangol

Angola will investigate reports of a $50b shortfall in the accounts of Sonangol, the state-run oil company, local newspaper Valor Economico reported citing unidentified people close to the international consultants hired to restructure the company. Bloomberg reported that the assessment uncovered “discrepancies” between the funds received and invested. In addition, it showed that the company had withheld revenue to the government.

Some of Sonangol’s assets were overvalued and contracts weren’t negotiated in the best interest of the state, according to the newspaper.

Angola’s economy has been strained by the slump in oil, which provides about two-thirds of fiscal revenue. Angola President, Jose Eduardo dos Santos, a week before fired the Board of Sonangol and appointed his daughter Isabel dos Santos as the chairwoman.

The new Board of Directors will restructure and develop the company in favour of the new readjustment model of the oil sector of the organization, said the Minister of State and Chief of Staff of the President, Edeltrudes Costa, All Africa reported.

Edeltrudes Costa, who was speaking during the inauguration of the 11 members of the Board said that given the current global economic environment, the national oil sector could not remain on the sidelines of the strategies that other companies have to do face the situation.

The minister also said that it was necessary to safeguard a more effective and efficient model, eliminating unnecessary costs and promote increased production and tax revenues.

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