Category Archives: Canada in Africa

Understanding the ways Canada underdevelops Africa

The question gets asked often: How can Africa be so poor when it receives so much aid?

The answer is simple. The world economic system sucks more out of the continent than it puts in. And tax evasion by Canadian firms plays a significant role in this impoverishment.

The May report, Honest Accounts 2017: How the World Profits from Africa’s Wealth, concludes that more wealth is extracted from the continent than enters it. In 2015, African countries received $162 billion in aid, loans, remittances and foreign investment but lost $203 billion through tax avoidance, repatriation of profits and climate change costs caused by others.

(The report ignores the structural imbalance in the terms of trade that sees the bulk of the value of tea, coffee, cocoa and many other commodities produced on the continent captured by distributors, marketers, retailers, etc., outside Africa while a higher share of the value of imported buses, phones, computers, etc., is captured by producers outside the continent.)

On top of the $32 billion corporations repatriated in profits, Honest Accounts found that $68 billion was lost to illicit capital flight, mostly multinational corporations evading taxes. Their findings align with a 2015 UN Economic Commission for Africa/African Union panel that found companies are illegally moving about US $40 billion a year out of the continent. The Washington, D.C.-based Global Financial Integrity Forum found that between 1970 and 2008 “total illicit financial outflows from Africa, conservatively estimated, were approximately $854 billion. Total illicit outflows may be as high as $1.8 trillion.” Three per cent of this total was thought to be bribes to government officials or theft of public funds. Fifteen per cent of all illicit outbound transfers were found to be money derived from drug smuggling, counterfeit goods, racketeering and other common criminal activities. The vast majority of the illicit funds, up to two-thirds of the total, were cross-border commercial transactions designed to reduce or eliminate taxes. Most of this money consisted of corporations shifting goods and profits between jurisdictions to reduce or eliminate their tax bill.

Often called “transfer pricing” or “trade misinvoicing,” multinational corporations artificially adjust the price of goods sold between their subsidiaries or partner companies in order for profits to end up in low (or no) tax jurisdictions while costs appear in high tax countries where they’re deducted from a company’s tax bill. Author Alain Deneault describes transfer pricing thusly: “First, the corporation creates one or more subsidiaries in a tax haven. Then, it maintains business relations with the subsidiary as if it were an independent party. Transactions are always designed to benefit the subsidiary, because money earned by the offshore entity will not be taxed. In other words, the goal is to establish bogus operations with the subsidiary in order to record a large proportion of the company’s earnings in offshore accounts, removing them from taxation in countries where the corporation has real and substantial activities.”

Canada has helped build the global offshore financial system that enables transfer pricing. Deneault details the work of Canadian politicians, businessmen and Bank of Canada officials in developing taxation and banking policies in a number of Caribbean financial havens in his book Canada — A New Tax Haven: How the Country That Shaped Caribbean Tax Havens Is Becoming One Itself.

Resource companies are some of the leading culprits in misinvoicing. With commodity prices constantly in flux and their products entirely for export, mining companies are well placed to abuse countries’ limited means of investigating false invoices and transfer pricing. Half of all internationally listed mining companies operating in Africa are based in Canada and in Canada in Africa: 300 years of aid and exploitation, I detail more than half a dozen examples of Canadian mining firms publically accused of tax avoidance.

In one of the best-detailed examples, a series of reports suggest that Canada’s largest mining firm, Barrick Gold, short-changed Tanzanians of tens, if not hundreds, of millions of dollars. A 2003 Alex Stewart Assayers audit concluded that mining companies overstated their losses by US $502 million between 1999 and 2003, which cost the Tanzanian government $132.5 million. The audit also suggested that $25 million in royalties went unpaid.

Another report titled “A golden opportunity: How Tanzania is failing to benefit from gold mining” found that between 2003 and 2008, foreign mining companies exported US $2.5 billion in gold from Tanzania with only $110 million reaching the government in royalties and direct taxes. As Tanzania’s top gold producer during this period, Barrick consistently declared losses in order to pay minimal corporation tax. With many subsidiaries, including ones in notorious tax havens such as the Cayman Islands and Barbados, Africa Barrick Gold (now called Acacia) made it diffi cult for Tanzanian tax collectors to trace exactly what the country was owed.

Last year, a Tanzanian tribunal ruled that Barrick organized a “sophisticated scheme of tax evasion” in the East African country. As its Tanzanian operations delivered over US $400 million profi t to shareholders between 2010 and 2013, the Toronto company failed to pay any corporate taxes.

Transfer pricing deprives African governments of the tax revenues required to build schools, hospitals and other vital infrastructure. And tax avoidance by Canadian fi rms is one reason two-thirds of Africans continue to survive on less than US $3.10 a day.

This article first appeared in Canadian Dimension

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Mining people along with minerals

If you take a nation’s mineral resources do you have a moral responsibility to also accept its people?

On Sunday about 40 people rallied outside a Montreal Metro station against deportations to Guinea. The protesters called on Prime Minister Justin Trudeau to live up to his “Welcome to Canada” rhetoric and allow asylum seekers from the small West African nation to stay.

After a de-facto amnesty on deportations between 2013 and 2016, requests for asylum by Guineans have been refused en masse since December. According to the Refugee and Immigration Board, 10 Guineans in Canada have had their asylum rejected since June 30. Sixty-three claimants from the impoverished country are currently pending.

Rally organizers cited corporate Canada’s exploitation of the mineral rich nation as a rationale for why asylum seekers should be allowed to stay. Certainly, in a number of ways, this country has contributed to the impoverishment that drives Guineans to seek a better life elsewhere.

A handful of Canadian mining companies operate in the small West African nation and to strengthen their hand Ottawa signed a Foreign Investment and Protection Agreement with Guinea in 2015. At least two Canadian resource companies have engendered significant conflict and controversy in Guinea.

Those living near SEMAFO’s Kiniero mine, reported Guinée News in 2014, felt “the Canadian company brought more misfortune than benefits.” In 2008 the military killed three in a bid to drive away small-scale miners from its mine in southeast Guinea. BBC Monitoring Africa reported “the soldiers shot a woman at close range, burned a baby and in the panic another woman and her baby fell into a gold mining pit and a man fell fatally from his motor while running away from the rangers.” Blaming the Montréal-based company for the killings, locals damaged its equipment.

In September 2011 protests flared again over the company’s failure to hire local young people and the dissolution of a committee that spent community development monies. Demonstrators attacked SEMAFO’s facilities, causing hundreds of thousands of dollars in damage. Some also targeted a bus carrying company employees, prompting the authorities to evacuate all expatriate staff to Bamako in neighbouring Mali.

In 2014 the Guinean government’s Comité Technique de Revue des Titres et Conventions Miniers concluded that the Montréal firm evaded $9.6 million in tax. The Comité Technique also found that the company failed “to produce detailed feasibility studies” and was not “in compliance with new measures in the 2011 mining code.” The Comité Technique recommended that SEMAFO be fined and stripped of its mining rights in the country. Later that year SEMAFO sold the Kiniero mine.

Canadian mining interest in the country dates back to the colonial period. In 1916 Montreal-based Alcan started exploring in Guinea and a dozen years later began operating through a French subsidiary. In 1938 Alcan opened a bauxite mine on the Island of Tamara in the Isles de Los. (In 1904 London gave the island — and some other African territory — to France in exchange for its relinquishment of fishing rights in Newfoundland, which included the right to dry cod on land.) To construct a wharf on this island just off the coast of Conakry the Canadian company turned to the colonial penal system with most of the 170 workmen pressed into service from the local penitentiary.

Fifteen years later Alcan opened a modern plant on the island to supply its smelters in Québec. Les Mines et la Recherche Minière en Afrique Occidentale Française describes the island just off the Guinea coast as “a Canadian enclave” at the beginning of production in 1951. Alcan employed some 1,200 workers to build the site with the African labourers paid 5,000 francs ($20 CAD) a month.

In 1953 the director of mines for French West Africa granted Alcan exclusive prospecting rights over 2,000 square kilometres of territory in Western Guinea. The company discovered one of the richest bauxite deposits in the world in the Boké region. During a 1956 visit to France’s West African colonies Canada’s ambassador to France, Jean Désy, inspected the nascent Boké site.

After Guinea’s 1958 independence the Boké project became highly contentious. In January 1961 much of the workforce went on a weeklong strike to demand the dismissal of a dozen white managers. Later that year the mine was nationalized. In Negotiating the Bauxite/Aluminium Sector under Narrowing Constraints Bonnie K. Campbell notes, “in November 1961, the government took possession of the Kassa and Boké sites because of the failure of the private firm, Les Bauxites du Midi (a 100 per cent subsidiary of Alcan) to observe its agreement to transform locally bauxite to alumina by 1964.” When the government voided its contract, Alcan illegally secreted out company files from Guinea.

Alcan (now Rio Tinto Alcan) maintains a presence in the country with the largest known bauxite reserves in the world. While Guinea has extracted significant quantities of the mineral, it has almost all been refined into aluminum elsewhere.

Conversely, bauxite isn’t mined in Canada, but this country has long been among the leading producers of the valuable metal. Dependent on cheap electricity from dams built on indigenous land, Québec aluminum smelters have refinedsignificant amounts of Guinean bauxite. The divide between bauxite/aluminum and its extraction/production has traditionally reflected an extremely hierarchical world economy — shaped by the transatlantic slave trade, European colonialism, structural adjustment, etc. — in which the poor provide the minerals and those at the top carry out the value-added production.

The exploitation of Guinean resources in this fashion has quite clearly benefited Canadian corporations and created jobs in this country rather than in the place where the bauxite originated.

Therefore the answer to the question posed at the beginning of this article is yes. Ottawa’s role in shaping the hierarchical international economic system and corporate Canada’s extraction of Guinean resources should be factors considered in assessing every Guinean’s request for asylum in this country.

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Statistics, damn lies and the truth about Rwanda genocide

The real Rwanda genocide story has no Canadian heroes.

Canadian commentators often claim more Tutsi were killed in the genocide than lived in Rwanda. Since it aligns with Washington, London and Kigali’s interests, as well as liberal nationalist Canadian ideology, the statistical inflation passes with little comment.

A Tyee story last month described the “slaughter of over 800,000 Tutsis in Rwanda” between April and July 1994. An earlier Globe and Mail profile of Roméo Dallaire cited a higher number. It noted, “over the next few months, Hutu activists and militias, supplemented by police officers and military commanders, killed an estimated 800,000 to 1 million Tutsis.”

Even self-declared experts on the subject cite these outlandish statistics. In the Globe and Mail and rabble last year Gerald Caplan wrote that, “despite his [Dallaire] best efforts, perhaps a million people of the Tutsi minority were slaughtered in 100 days.” With ties to the regime in Kigali, Caplan pulled this number out of thin air. It’s improbable there were a million Tutsi in Rwanda in 1994 and no one believes every single Tutsi was killed.

While the exact figure is unknown and somewhat contested, Rwanda’s 1991 Census calculated 596,387 Tutsi. Initially sponsored by the International Criminal Tribunal for Rwanda, the GenoDynamics project by the Dean of the Frank Batten School of Leadership and Public Policy at the University of Virginia Allan Stam and University of Michigan political science professor Christian Davenport put the number slightly lower at 500,000. Others claim the Hutu-government of the time sought to suppress Tutsi population statistics and estimate a few hundred thousand more Rwandan Tutsi.

But, a significant number of Tutsi survived the hundred days of killing. Tutsi survivors’ umbrella group IBUKA (“Remember”) initially concluded that 300,000 survived the genocidal killings, which they later increased to “nearer to 400,000.”

For 800,000 to 1 million Tutsi to have perished there would have had to been at least 1.1 million and probably closer to 1.4 million Tutsi. That’s twice the official calculation.

Notwithstanding the three examples mentioned at the top, the most commonly cited formulation of the number of deaths in 1994 is the more vague “800,000 Tutsi and moderate Hutu.” A 1999 UN report concluded, “approximately 800,000persons were killed during the 1994 genocide in Rwanda.” As time passes, however, the regime in Kigali increases the death toll. In 2004 the Rwandan Ministry of Local Government, Community Development and Social Affairs claimed 1,074,017 died and in 2008 the government-backed Genocide Survivors Students Association of Rwanda put the number at 1,952,087.

But, the higher the death toll one cites for the genocidal violence the greater the number and percentage of Hutu victims. In the 2014 BBC documentary Rwanda’s Untold Story Stam explains, “if a million people died in Rwanda in 1994 — and that’s certainly possible — there is no way that the majority of them could be Tutsi…Because there weren’t enough Tutsi in the country.”

The idea there was as many, or even more, Hutu killed complicates the “long planned genocide” narrative pushed by the regime in Kigali and its Anglo-Saxon backers. So does the fact that overwhelming evidence and logic points to the Rwandan Patriotic Front (RPF) as culprits for blowing up the plane of the Hutu presidents of Rwanda and Burundi, as well as much of the Hutu-led Rwandan military command, which sparked the mass killings.

Washington and London’s support for the RPF, as well as Paul Kagame’s more than two-decade long control of Kigali, explains the dominance of a highly simplistic account of Rwanda’s genocide. But, a tertiary reason for the strength of the fairy tale is it aligns with the nationalist mythology of another G7 state. A wealthy, educated, population speaking the world’s two main colonial languages, Canadians have pumped out innumerable articles, books, songs, plays, poems, movies, etc. about our noble General’s effort to save Rwandans. Yet the Romeo Dallaire saviour story largely promoted by Left/liberals is based on a one-sided account of Rwanda’s tragedy.

Two of the articles mentioned at the top celebrate Dallaire. One of the stories that inflates the Tutsi death toll was a Globe and Mail profile upon the former general’s retirement from the Senate and in the other Caplan writes, “the personalrelationship so many Canadians feel with Rwanda can be explained in two words: Roméo Dallaire…[who] did all in his limited power to stop the killings.”

A Monthly Review article I discovered recently provides a stark example of how Left Canadian nationalists have warped understanding of Rwanda’s tragedy to fit their ideology. The third paragraph of the venerable New York-based Marxist journal’s 2003 review of When Victims Become Killers: Colonialism, Nativism, and the Genocide in Rwanda and A People Betrayed: The Role of the West in Rwanda’s Genocide begins: “A Canadian, General Roméo Dallaire, is the hero of the Rwandan tragedy.”

Canadian reviewer Hugh Lukin Robinson’s main criticism of Ugandan scholar Mahmood Mamdani’s When Victims Become Killers is that he downplays the importance of the Canadian commander of the UN military force. Robinson writes, “[Mamdani’s] disinterest in the international betrayal of Rwanda is illustrated by his single reference to General Dallaire, whose name he misspells and whom he refers to as ‘the Belgian commander in charge of UN forces in Rwanda.’ In contrast, Linda Melvern marshals the evidence which amply justifies the title of her book.”

But, Melvern is a leading advocate of the Kigali sponsored fairy tale about the genocide. Drawing on Dallaire’s purported “genocide fax,” she promotes the “long planned genocide” narrative. Simultaneously, Melvern ignores (or downplays) the role Uganda’s 1990 invasion, structural adjustment policies and the October 1993 assassination of the first ever Hutu president in Burundi played in the mass killing of Spring 1994. Melvern also diminishes RPF killings and their responsibility for shooting down the plane carrying Hutu President Juvénal Habyarimana and the Rwandan military high command.

Robinson was impressed with Melvern’s praise for Canada’s military man. “Dallaire had trained and risen through the ranks of an army proud of its tradition of peacekeeping,” Robinson quotes from Melvern’s writing. “He was a committed internationalist and had first hand experience of UN missions. He was a hard worker. And he was obstinate.” But, the “committed internationalist” admits he didn’t know where Rwanda was before his appointment to that country. Nor did Dallaire have much experience with the UN. “Dallaire was what military people call a NATO man,” explained CBC journalist Carole Off in a biography of the General. “His defence knowledge was predicated almost exclusively on the needs of the NATO alliance.”

More significantly, a number of the UN officials involved in Rwanda — head of UNAMIR troops in Kigali Luc Marchal, intelligence officer Amadou Deme, UN Secretary General Boutros Boutros-Ghali, etc. — have challenged Dallaire’s interpretation of events, contradicted his claims or criticized his actions. Dallaire’s civilian commander on UNAMIR published a book accusing the Canadian General of bias towards the Uganda/US/Britain backed RPF. In his 2005 book Le Patron de Dallaire Parle (The Boss of Dallaire Speaks), Jacques-Roger Booh Booh, a former Cameroon foreign minister and overall head of UNAMIR, criticizes Dallaire’s actions in Rwanda and challenges his interpretation of events.

In one of two footnotes Robinson ended his Monthly Review article on a Canadian nationalist note. The former labour researcher writes: “There is another account of the Rwanda tragedy for which two Canadians can take a great deal of credit. In 1997, the Organization for African Unity (OAU) appointed an International Panel of Eminent Persons to report on what had happened. Stephen Lewis was a member of the Panel and Gerald Caplan was its principal writer and author of the report, Rwanda –The Preventable Genocide. It confirms all the main facts and conclusions of Linda Melvern’s book.”

While paying lip service to the complex interplay of ethnic, class and regional politics, as well as international pressures, that spurred the “Rwandan Genocide,” the 300-page report is premised on the unsubstantiated claim their was a high level plan by the Hutu government to kill all Tutsi. It ignores the overwhelming evidence (and logic) pointing to Paul Kagame’s RPF as the culprit in shooting down the presidential plane, which sparked the genocidal killings. It also emphasizes Dallaire’s perspective. A word search of the report finds 100 mentions of “Dallaire,” five times more than “Booh-Booh,” the overall commander of the UN mission.

Rather than a compelling overview of the Rwandan tragedy, the OAU report highlights Canada’s power within international bodies. In a Walrus story Caplan described, “waiting for the flight back to Toronto, where I would do all my reading and writing” on a report “I called…’The Preventable Genocide.'” Partly funded by Canada, the entire initiative was instigated by US Secretary of State Madeleine Albright.

Caplan is a staunch advocate of the noble Canadian general story. In 2017 Caplan, who started an organization with Kagame’s long-standing foreign minister, Louise Mushikiwabo, called Dallaire “surely among Canada’s most admired citizens, if not the most admired.”

Praise for Dallaire’s role in Rwanda is based on a highly simplistic account of what transpired in 1994. In their haste to promote a Canadian saviour in Africa, left/liberals have confused international understanding of the Rwandan tragedy, which has propped up Kagame’s dictatorship and enabled his violence in the Congo.

When commentators are claiming more Tutsi were killed than lived in the country it’s time to revaluate popular discussion of Rwanda’s tragedy.

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Trudeau’s pal in Rwanda a ruthless dictator

Why is the Trudeau government supporting Africa’s most ruthless dictator?

After amending the constitution to be able to run indefinitely Paul Kagame recently won 98.63 per cent of votes in Rwanda’s presidential election. In response, Canada’s High Commissioner Sara Hradecky tweeted “Congratulations to Rwandans for voting in peaceful presidential election” and “Canada congratulates Paul Kagame on his inauguration today as President of Rwanda.” The latter tweet was picked up by the state propaganda organ New Times in a story titled “Heads of State, diplomats laud Kagame’s ‘visionary leadership’.”

If garnering 99 per cent of the vote wasn’t a clue that Kagame is a dictator, the High Commissioner could’ve taken a look at Canada’s ‘paper of record,’ whose Africa bureau chief has shined a critical light on Rwanda in recent years. At the start of 2016 The Globe and Mail reported on two new books describing the totalitarian nature of the regime.

“Village informers,” wrote South Africa-based Geoffrey York. “Re-education camps. Networks of spies on the streets. Routine surveillance of the entire population. The crushing of the independent media and all political opposition. A ruler who changes the constitution to extend his power after ruling for two decades. It sounds like North Korea, or the totalitarian days of China under Mao. But this is the African nation of Rwanda — a long-time favourite of Western governments and a major beneficiary of millions of dollars in Canadian government support.”

In 2014 York wrote an investigation headlined “Inside the plots to kill Rwanda’s dissidents,” which provided compelling evidence that the regime had extended its assassination program outside of east Africa, killing (or attempting to) a number of its former top officials who were living in South Africa. Since the initial investigation York has also reported on Rwandan dissidents who’ve had to flee Belgium for their safety while the Toronto Star revealed five individuals in Canada fearful of the regime’s killers.

On top of international assassinations and domestic repression, Kagame has unleashed mayhem in the Congo. In 1996 Rwandan forces marched 1,500 km to topple the regime in Kinshasa and then re-invaded after the Congolese government it installed expelled Rwandan troops. This led to an eight-country war between 1998 and 2003, which left millions dead. Rwandan proxies have repeatedly re-invaded the mineral rich eastern Congo. In 2012 The Globe and Maildescribed how “Rwandan sponsored” M23 rebels “hold power by terror and violence” there.

The Rwandan government’s domestic repression and violence in the Congo is well documented. Yet I couldn’t find a single tweet or comment by Hradecky critical of Kagame since she became High Commissioner in January. Yet she found time to retweet Kagame’s International Women’s Day message that “Realizing women’s full aspirations is inextricably linked to achieving whole nation’s potential.”

Re-tweeting a tyrant’s message or applauding spurious elections are clear forms of support for the “butcher of Africa’s Great Lakes.” But, Hradecky has offered less obvious backing to the regime.

On July 4 Hradecky tweeted “From the Canadian High Commission, we wish Rwandans a Happy Liberation Day!,” which was picked up by the New Times in a story titled “Messages of solidarity as Rwanda marks Liberation Day.”

The Ugandan-sponsored Rwandan Patriotic Front officially captured Kigali on July 4, 1994. Trained at a US militarybase in Kansas, Kagame’s forces apparently waited to take the capital so their Liberation Day could coincide with their US backers’ Independence Day, a public relations move that continues to pay dividends as demonstrated by a July NPR story titled “In Rwanda, July 4 Isn’t Independence Day — It’s Liberation Day.”

Four years after 3,000 Ugandan troops “deserted” to invade their smaller neighbour the force of mostly exiled Tutsi took Kigali. Today, Rwanda continues to be ruled by largely English-speaking individuals who often are descended from those who had authority in a monarchy overthrown during the 1959–61 struggle against Belgian rule. The Guardianrecently pointed to “the Tutsi elite who dominate politics and business” and the The Economist detailed the “The Rwandan Patriotic Front’s business empire” in the country.

Underpinning the “liberation” story is a highly simplistic, if not counterfactual, account of the 1994 genocide. Widely hailed as the person who ended the killings, Kagame is probably the individual most responsible for the mass slaughter. His RPF invaded Rwanda from Uganda, engaged in a great deal of killing and blew up the presidential plane, an event that unleashed the genocidal violence.

As Hradecky should know, last year The Globe and Mail described two secret reports documenting Kagame’s “direct involvement in the 1994 missile attack that killed former president Juvénal Habyarimana, leading to the genocide in which an estimated 800,000 people died.”

Echoing Kigali’s narrative, Hradecky published a half dozen tweets (or retweets) in April commemorating the Genocide. “Canada stands with Rwanda to commemorate the victims of Genocide,” read one. Hradecky also retweeted a Government of Rwanda statement: “Today marks the beginning of the 23rd Commemoration of the 1994 Genocide against the Tutsi.”

Promoting simplistic commentary on the subject effectively strengthens a regime that derives much of its legitimacy from purportedly stopping the genocide.

From commemorating Liberation Day to applauding questionable elections, Canada’s High Commissioner has provided various forms of ideological support to Africa’s most ruthless dictator. That should embarrass everyone who wants this country to be a force for good in the world.

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Do Canadians really want monuments to racist colonialists?

Some good might come in Canada from neo-fascists marching in Charlottesville, Virginia.

Taking advantage of media interest in protests over monuments to historical figures with racist views activists in Halifax are pushing to removecommemorations to two individuals who helped conquer Africa. And there’s no lack of other such memorials to target across the Great White North.

In 1898 Henry Edward Clonard Keating led a small force that killed the chief of Hela and abducted several individuals from the village to operate canoes the soldiers had stolen from them. In response, others from the village in what is now southern Nigeria attacked and killed most of Keating’s force. A British force then razed Hela and killed about 100 locals. There’s a plaque commemorating Keating in Halifax’s Public Gardens.

Dalhousie Professor Afua Cooper is also pushing to rename Stairs Street in Halifax. William Grant Stairs played an important part in two expeditions that helped Belgian King Leopold II expand his barbarous reign in the Congo. Also commemorated with an Island in Parry Sound, Ontario, and two plaques in Kingston, the Haligonian was one of 10 white officers in the first-ever European expedition to cross the interior of the continent and subsequently Stairs led a 2,000 person force that added 150,000 square kilometres to Leopold’s colony.

Read from a humanistic or internationalist perspective, the Royal Military College of Canada (RMC) graduate’s diary of his time in Africa is incredibly damning. Or, as Parliamentary Poet Laureate George Elliott Clarke put it, “Stairs’ account of his atrocities establishes that even Canadians, blinded by racism, can become swashbuckling mass murderers.”

Stairs and Keating are two of many Canadians who helped colonize the continent and continue to be commemorated (a number of British figures who fought in Africa are also honoured across the country).

In Kingston two plaques honour RMC trained Huntley Brodie Mackay. Commanding Royal Engineer in West Africa, Mackay was part of a British expedition to destroy the Yonnie stronghold of Robari in what is now southeast Sierra Leone. In the fighting the soldiers employed the first ever recoil-operated Maxim machine gun, reported MacMillan’s magazine. “Maxim, which here administered rather than received its baptism of fire, was turned on them, and they dropped off the roofs by dozens… When the leading troops entered the gates … there was not a living Yonnie left in the town, although there was no lack of their dead.”

Replacing Mackay as West Africa’s Commanding Royal Engineer in 1889, Saint John-born William Henry Robinson also has a plaque in his honour at the RMC. In 1892 the 29-year-old led a small force to destroy a rebellion not far from the former Yonnie stronghold. In “Canadian Soldiers in West African Conflicts 1885-1905” Andrew Godefroy explains: “When Robinson and his party of Sierra Leone Frontier Police attacked his stockade on 14 March, however, [rebel leader] Karimu was ready to receive them and repulsed their initial assault. The momentum lost, Captain Robinson tried to rally the attack by personally setting explosive charges at the gates, hoping to blow them open and allow for his men to rush through.” Robinson was shot in the battle and ultimately became the first RMC graduate to give his life fighting for British colonialism.

A mountain in Banff National Park, as well as a plaque and building at RMC, are named in honour of Sir Edouard Percy Girouard. The Montréaler built two train lines that played a central part in the brutal British conquest of Sudan and was Director of Imperial Military Railways during the 1899 – 1902 Boer War (numerous monuments commemorate Canadians who fought in that conflict to strengthen British colonial authority in Africa, which ultimately ledto racial apartheid). In 1906 the RMC graduate became High Commissioner of Northern Nigeria, ruling over 10 to 20 million people. Girouard employed forced labour to construct a 550-km railway and justified strengthening precolonial authority by saying colonial authorities didn’t want, “to deal with a rabble, with thousands of persons in a savage or semi-savage state, all acting on their own impulses.”

After Northern Nigeria, Girouard became governor of British East Africa from 1909 to 1912. Girouard sought to turn today’s Kenya into a “white man’s country”. He abrogated the sole treaty the East African protectorate had ever signed with an African tribe. Weakened by disease and confronting an ascendant Britain, in 1904 the Masai agreed to give up as much as two thirds of their land. In exchange, the cattle rearing, semi-nomadic people were assured the fertile Laikipia Plateau for “so long as the Masai as a race shall exist.”

By Girouard and Britain’s odd calculation, the agreement expired fewer than seven years later. About 10,000 Masai, with 200,000 cattle and 2 million sheep, were forced to march 150 km southward to a semiarid area near German East Africa. An unknown number of Masai and their livestock died on this “trail of tears”.

Campaigns to remove monuments or rename places named after Canadians who participated in the “scramble for Africa” can help educate the public about Canada’s history on the continent and European colonialism more generally.

In order to move forward to a better future Canadians must reconcile with the wrongs committed in our past, both on this continent and around the world.

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Canada’s neoliberal policies enable exploitation in Zambia

While few Canadians could find Zambia on a map, the Great White North has significant influence over the southern African nation.

A big beneficiary of internationally sponsored neoliberal reforms, a Vancouver firm is the largest foreign investor in the landlocked country of 16 million.

First Quantum Minerals (FQM) has been embroiled in various ecological, labour and tax controversies in the copper rich nation over the past decade. At the end of last year First Quantum was sued for US$1.4 billion by Zambia Consolidated Copper Mines Investment Holdings (ZCCM-IH), a state entity with minority stakes in most of the country’s mining firms. The statement of claim against First Quantum listed improper borrowing and a massive tax liability.

In a politically charged move, President Edgar Lungu recently ordered ZCCM-IH to drop the case and seek an “amicable” out of court settlement with FQM. Social movements criticized the government for (again) caving to powerful mining interests exploiting the country’s natural resources. According to War on Want, Zambia is losing $3 billion a year to tax dodges by multinationals, mainly in the lucrative mining sector. A recent Africa Confidential report on the row between First Quantum and ZCCM-IH highlighted the Vancouver firm’s political influence, pointing out that “top government officials are frequently feted and hosted by FQM.”

First Quantum’s presence in Zambia dates to the late 1990s privatization of the Zambian Consolidated Copper Mines (ZCCM), which once produced 700,000 tonnes of copper per year. In a report on the sale, John Lungu and Alastair Fraser explain that “the division of ZCCM into several smaller companies and their sale to private investors between 1997 and 2000 marked the completion of one of the most comprehensive and rapid privatisation processes seen anywhere in the world.”

The highly indebted country was under immense pressure to sell its copper and public mining company. Zambia’s former Finance Minister Edith Nawakwi said, “we were told by advisers, who included the International Monetary Fund and the World Bank that…for the next 20 years, Zambian copper would not make a profit. [But, if we privatised] we would be able to access debt relief, and this was a huge carrot in front of us — like waving medicine in front of a dying woman. We had no option” but to privatize.

Ottawa played a part in the privatization push. Canada was part of the World-Bank-led Consultative Group of donors that promoted the copper selloff. With the sale moving too slowly for the donors, a May 1998 Consultative Group meeting in Paris made $530 US million in balance of payments support dependent on privatizing the rest of ZCCM.

(Canada had been a proponent of neoliberal reform in Zambia since the late 1980s. At the time Ottawa slowed aid to the country in a successful bid to change the government’s attitude to neoliberal reforms, explains Carolyn Bassett in The Use of Canadian Aid to Support Structural Adjustment in Africa. After Zambia fell into line with the International Monetary Fund, CIDA recharged its aid program. As part of a push for economic reform Ottawa secured an agreement that gave a former vice president of the Bank of Canada the role of governor of the Bank of Zambia, where he oversaw the country’s monetary policies and “responses to the IMF”. In her 1991 Ph.D thesis Bassett notes, “instrumental in developing Zambia’s new ‘domestically designed’ [economic] program was the new head of the Bank of Zambia, Canadian Jacques Boussières.” Paid by Ottawa, Boussières was the first foreign governor of the Bank of Zambia since independence. This was not well received by some. Africa Events described Boussières as “a White Canadian who came to de- Zambianise the bank post under controversial circumstances.”)

The hasty sale of the public mining behemoth was highly unfavourable to Zambians. The price of copper was at a historic low and the individual leading the negotiations, Francis Kaunda, was later jailed for defrauding the public company. “ZCCM’s privatization was carried out with a complete lack of transparency, no debate in parliament, and with one-sided contracts which few of us have ever seen,” said James Lungu, a professor at Zambia’s Copperbelt University.

Taking advantage of the government’s weak bargaining position, First Quantum and other foreign companies picked up the valuable assets for rock bottom prices and left the government with ZCCM’s liabilities, including pensions. The foreign mining companies also negotiated ultra low royalty rates and the right to take the government to international arbitration if tax exemptions were withdrawn for 15 years or more. Many of the multinationals made their money back in a year or two and when the price of copper rose five fold in the mid-2000s they made bundles.

Having conceded tax exemptions and ultra low royalty rates, the government captured little from the surge in global copper prices. In 2006 Zambian royalties from copper represented about $24 million on $4 billion worth of copper extracted. The .6% royalty rate was thought to be the lowest in the world. The government take from taxing the mining companies wasn’t a whole lot better. Between 2000 and 2007 Zambia exported $12.24 billion US in copper but the government only collected $246 million in tax.

Since 2008 Zambia has wrestled more from the companies, but they’ve had to overcome stiff corporate resistance. When the government suggested an increased royalty in 2005 First Quantum’s commercial manager Andrew Hickman complained that it “would probably make any new mining ventures in Zambia uneconomical” while three years later First Quantum said it would have “no choice” but to take legal action if a new tax regime breached the agreement it signed during the privatization process.

With billions of dollars tied up in the country, First Quantum had good reason to campaign aggressively to maintain the country’s generous mining policy.

First Quantum stands accused of cheating Zambia out of tens of millions of dollars in taxes. An audit found that between 2006 and 2008 Mopani Copper Mines under-reported cobalt extracts and manipulated internal prices to shift profits to First Quantum and Glencore subsidiaries in the British Virgin Islands and Bermuda, allowing it to evade millions of dollars of tax in Zambia.

In Offshore Finance and Global Governance: Disciplining the Tax Nomad William Vlcek explains:

As a corporate entity, First Quantum does not directly manage the mining operations in Zambia, rather it owns a subsidiary in Ireland which in turn owns subsidiary corporations registered in The British Virgin Islands and Zambia. … The overall corporate organization involves similar subordinate corporate structures with subsidiaries registered in Barbados, British Virgin Islands, Ireland, Luxembourg, and Netherlands, none of which jurisdictions include a mine or smelter operated by First Quantum. … Jurisdictions such as the British Virgin Islands … do not impose a corporate income tax on foreign-sourced income. Thus, First Quantum’s subsidiaries will pay corporate income tax on their operations in Zambia to the Zambian government, but any income that flows through to the BVI-registered subsidiary will not be taxed before flowing onward.

In a bid to cut down on corporate ‘transfer pricing’ and tax evasion, the Zambian government sought to simplify the mining fee structure. In 2013 Lusaka proposed eliminating income tax on mining companies and substantially increasing royalty rates (up to 20% for open-pit mines and 8% on underground operations). In 2015 Minister of Finance Alexander B. Chikwanda told Parliament:

The tax system was vulnerable to all forms of tax planning schemes such as transfer pricing, hedging and trading through ‘shell’ companies which are not directly linked to the core business. Sir, it has been a challenge for the revenue administration to detect and abate such practices. Further, provisions on capital allowances and carry forward of losses eliminated potential taxable profits. Mr Speaker, the tax structure was simply illusory as only two mining companies were paying Company Income Tax under the previous tax regime as most of them claimed that they were not in tax-paying positions.

First Quantum, Toronto’s Barrick Gold and a number of other foreign mining companies screamed murder and worked to derail the Zambian government. First Quantum government affairs manager John Gladston said “the new system doesn’t incentivise investment in new capital projects which in turn, will inevitably be translated into fewer new jobs and less opportunities for wealth creation for Zambians.” To spur a backlash in the job-hungry country, First Quantum laid off 350 workers at its Kansanshi mine. The government responded by saying First Quantum wasn’t adhering to the country’s labour law. Government spokesperson Chishimba Kambwili told Xinhua that “all mining companies are aware of the standing order, which obliges them to consult the government through the Ministry of Labour before any decision to sack any worker becomes effective.”

Barrick Gold also threatened to lay off workers if the government increased royalty rates. The Toronto company said it would shutter its Lumwana Mine, which prompted 2,000 workers, fearing for their jobs, to hold a one-day strike. The foreign-run Chamber of Mines of Zambia claimed 12,000 jobs would be lost if the royalty changes went through and the IMF added its voice to those opposing the royalty hike.

The mining corporations’ strong-armed tactics succeeded. After a six-month standoff, the government backed off.

First Quantum, Barrick and the other foreign mining companies exploited the immense power ZCCM’s privatization gave them over Zambian economic life. By shuttering their mines they could produce economic hardship for thousands of people. (With an 80% unemployment rate and most Zambians living on less than a dollar a day, each formally employed individual provides for many others.) Some suggested the foreign mining companies were even “powerful enough to manipulate the exchange rate” of the country.

Canadian officials actively backed FQM and other mining companies in Zambia. At the 2013 Prospectors and Developers Association of Canada Convention Ottawa announced the start of negotiations on a Foreign Investment Promotion and Protection Agreement with Zambia, which would allow Canadian companies to pursue Zambia in international tribunal for lost profits. The next year the Head of Office at the Canadian High Commission, Sharad Kumar Gupta, “said the Canadian government is trying to encourage the private sector to explore… opportunities in Zambia’s mining sector,” reported Lusaka’s news.hot877.com.

After the leftist Patriotic Front opposition party accused First Quantum of blocking workers from voting in a 2005 parliamentary by-election, the Canadian High Commissioner defended the Vancouver company. John Deyell, who previously worked at mining giants Inco and Falconbridge in Sudbury, claimed First Quantum wasn’t responsible for day-to-day operations despite owning a sixth of MCM stock and controlling two seats on MCM’s executive board. In response the Patriotic Front sought to take their protest against MCM’s violation of workers’ rights to the Canadian High Commission, but the police denied them a permit.

In Zambia, as with elsewhere in Africa, Canada’s mining industry, foreign policy and neoliberalism overlap tightly. It’s a subject Canadians ought to pay attention to if we want our country to be a force for good in the world.

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Aid and exploitation: Canada in Congo

Imagine if the media only reported the good news that governments and corporations wanted you to see, hear and read about. Unfortunately, that is not far from the reality of reporting about Canada’s role internationally.

The dominant media almost exclusively covers stories that portray this country positively while ignoring or downplaying information that contradicts this narrative. The result? Canadians are ignorant and confused about their country’s role in the world.

In a recent example of benevolent Canada bias, The Globe and Mail reported uncritically about a trip international development minister Marie-Claude Bibeau made to the Congo. In a story last week headlined “Canada commits $97-million to Congo under feminist foreign-aid policy,” The Globe reported that “Canada has committed nearly $100-million to the Democratic Republic of the Congo to support women’s economic empowerment, protect street children and provide humanitarian assistance.”

A week earlier Canada’s paper of record decided a relatively insignificant Canadian project to help miners in eastern Congo was front-page news. “New gold standard emerges for Congo’s miners, Canada’s jewellery buyers,” detailed an Ottawa-funded initiative to promote legal exports and to standardize the price paid to scale miners.

While Partnership Africa Canada’s “fair trade” gold initiative is an interesting project and the international development minister’s announcement was newsworthy, the narrowness of the two articles gives readers the impression Canada helps improve the lives of people who live in a country where 87 per cent live on less than $1.25 a day. But, an abundance of evidence suggests Canada has actually impoverished the central African nation.

What follows is a brief outline of the context within which the good news about Canada’s role in the Congo should be seen:

Over a century ago Royal-Military-College-of-Canada-trained officer William Grant Stairs participated in two controversial expeditions to expand European influence over the Congo. In 1887, Stairs was one of ten white officers in the first-ever European expedition to cross the interior of the continent, which left a trail of death, disease and destruction. A few years later the Halifax native led a 1,950-person mission to conquer the resource-rich Katanga region of the Congo on behalf of Belgium’s King Leopold II. Today Stairs is honoured with a street, island and multiple plaques, even though he was openly racist and barbarous and added 150,000 square kilometres to the Belgium’s King’s monstrous colony.

During this period Hamilton, Ontario’s William Henry Faulknor was one of the first white missionaries to establish a mission station in eastern Congo. Between 1887 and 1891 Faulknor worked under the ruler of the Yeke kingdom, Mwenda Msiri, who would later meet his death at the hand of Stairs. Faulknor’s Plymouth Brethren explicitly called for European rule (either Belgian or British) over Katanga and like almost all missionaries sought to undermine local ways.

Following Faulknor, Toronto-born Henry Grattan Guinness II established the Congo Balolo Mission in 1889. Congo Balolo Mission missions were located in remote areas of the colony, where King Leopold’s Anglo-Belgian Rubber Company obligated individuals and communities to gather rubber latex and chopped off the hands of thousands of individuals who failed to fulfill their quotas.

Faced with the violent disruption of their lives, the Lulonga, Lopori, Maringa, Juapa and Burisa were increasingly receptive to the Christian activists who became “the interpreter of the new way of life,” writes Ruth Slade in English-Speaking Missions in the Congo Independent State. Not wanting to jeopardize their standing with Leopold’s representatives, the Congo Balolo Mission repeatedly refused British-based solidarity campaigners’ appeals to publicly expose the abuses they witnessed.

In the 1920s the Canadian trade commissioner in South Africa, G.R. Stevens, traveled to the Congo and reported on the Katanga region’s immense resources. In de-facto support of Belgian rule, a Canadian trade commission was opened in the colony in 1946. In response to a series of anti-colonial demonstrations in 1959, Canadian Trade Commissioner K. Nyenhuis reported to External Affairs that “savagery is still very near the surface in most of the natives.”

Ottawa backed Brussels militarily as it sought to maintain control of its massive colony. Hundreds of Belgian pilots were trained in Canada during and after World War II and through the 1950s Belgium received tens of millions of dollars in Canadian NATO Mutual Aid. Canadian Mutual Aid weaponry was likely employed by Belgian troops in suppressing the anti-colonial struggle in the Congo.

Immediately after independence Canada played an important role in the UN mission that facilitated the murder of anticolonial Prime Minister Patrice Lumumba in 1961. Canadian Colonel Jean Berthiaume assisted Lumumba’s political enemies by helping recapture the popular independence leader. Lumumba was handed over to soldiers under military commander Joseph Mobutu.

Canada had a hand in Mobutu’s rise and Ottawa mostly supported his brutal three-decade rule. Then, Canada also helped get rid of Mobutu.

Ottawa supported Rwanda and Uganda’s invasion, which ultimately drove Mobutu from power. In 1996, Canada led a short-lived UN force into eastern Zaire (Congo) designed to dissipate French pressure and ensure pro-Mobutu Paris didn’t take command of a force that could impede the Rwandan-led invasion. As Rwanda has unleashed mayhem in the Congo over the past two decades, Ottawa has backed Kigali.

In 2002 a series of Canadian companies were implicated in a UN report titled “Report on the Illegal Exploitation of Natural Resources and other Forms of Wealth in the Congo.” Ottawa responded to the report by defending the Canadian companies cited for complicity in Congolese human rights violations.

At the G8 in 2010, the Canadian government pushed for an entire declaration to the final communiqué criticizing the Congo for attempting to gain a greater share of its vast mineral wealth. Earlier that year Ottawa obstructed international efforts to reschedule the country’s foreign debt, which was mostly accrued during Mobutu’s dictatorship and the subsequent wars. Canadian officials “have a problem with what’s happened with a Canadian company,” Congolese Information Minister Lambert Mende said, referring to the government’s move to revoke a mining concession that First Quantum acquired under dubious circumstances during the 1998-2003 war.

With about $4.5 billion invested in the Congo, Canadian mining companies have been responsible for numerous abuses. After a half-dozen members of the little-known Mouvement revolutionnaire pour la liberation du Katanga occupied Anvil Mining’s Kilwa concession in October 2004 the Canada-Australian company transported government troops who killed 100 people. Most of the victims were unarmed civilians.

In recent months a number of individuals have been killed at Banro’s mines in eastern Congo. Over the past two decades the secretive Toronto-based company has been accused of fuelling conflict in a region that’s seen incredible violence.

Of course one cannot expect a detailed history of Canada’s role in impoverishing Congo in a story about a government aid announcement or a 1,300-word article about an initiative to standardize pay for some of the world’s most vulnerable miners. But, The Globe‘s failure to even mention the broader story reflects its bias and helps to explain why Canadians are so confused about their country’s role in the world.

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