The Challenge
Our client, an investment bank, was sponsoring a US$1.2bn sovereign bond issue by Angola. Following allegations of corruption in relation to previous issues by sub-Saharan African countries, our client needed to understand the corruption risk. The focus was on how the proceeds of the issue might be diverted from their intended purpose into the hands of ministers and officials.
The Solution
A Greyhawk director spent one week in Angola where he met officials, bankers, NGOs and other well-placed observers. Based on these interviews, we mapped the formal and informal processes which would determine spending decisions and highlighted areas of potential risk. We drew attention to areas where governance and transparency were known to be weak and profiled key officials involved in budgetary decisions. For officials likely to be involved in determining the proceeds of the bond issue, we provided insight into their previous conduct, influence and perceived integrity.
The Result
Our analysis enabled the client to introduce the appropriate controls and balances to protect itself legally and reputationally. The bond issue proceeded without attracting controversy or criticism.