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Counterfeiting, War and Smuggling: British American Tobacco Dirty Games in the Sahel

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Billions of cigarettes, most made by BAT, are smuggled north through Mali every year on their way to the gray markets of the Sahel and Northern Africa.

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Stashed inside pickup trucks and guarded by armed militias and jihadists, every year billions of illicit cigarettes wind their way through the lawless deserts of northern Mali bound for the Sahel and North Africa.

The profits from their long journey fuel north Mali’s many armed conflicts, lining the pockets of offshoots of al-Qaida and the so-called Islamic State (IS) group, as well as local militias, and corrupt state and military officials. This violence is now spilling out across West Africa, displacing more than two million people in Burkina Faso, Chad, Mali, and Niger.

Cigarettes made by one of the world’s largest tobacco companies, British American Tobacco (BAT) and distributed with the help of another major, Imperial Brands, through a company partially owned by the Malian state, dominate this dirty and dangerous trade.

Now an investigation by OCCRP can show this is no accident.

Secrets contained in leaked documents, backed up by trade data and dozens of interviews with insurgents, former BAT employees, experts, and officials, show BAT started to oversupply Mali with clean-labelled cigarettes soon after the north fell to militants, knowing that its product would be fodder for traffickers.

The profits of cigarette smuggling fuel the bloody struggle between jihadists, armed militias, and corrupt military officers that has turned northern Mali into a lawless warzone.

For years the company partnered with Mali’s state-backed tobacco company, a subsidiary of Imperial Brands, to distribute cigarettes in regions controlled by rebel militias and throughout the country. Sources say these cigarettes, trucked north with the help of the military and police, then fall into the hands of jihadists and militias. An internal document suggests BAT used informants in West Africa to keep abreast of the workings of the illicit trade.

 

Credit: Edin Pasovic/OCCRP

The dirty business goes well beyond the desert. OCCRP’s reporting found the Malian government not only helps to distribute BAT’s cigarettes, but also apparently turns a blind eye to gross accounting irregularities at its partner Imperial and even possible trade fraud.

And it continues today. Public trade data and expert analysis show BAT and Imperial continue to oversupply the country with billions more cigarettes than it needs. Meanwhile, BAT’s annual revenue in 2019 alone exceeded the total GDP of Mali and Burkina Faso.

The Malian case is the latest to show the world’s leading tobacco companies are not always abiding by the terms laid out in a series of historic agreements between 2004 and 2010 with the European Union (EU), in which they agreed to prevent their cigarettes from falling into the hands of criminals by only supplying legitimate demand. The agreements were concluded in the wake of legal disputes between three companies and the EU over cigarette smuggling.

“This is their playground,” Hana Ross, a University of Cape Town economist who researches tobacco, said of the industry.

“They know they can get away with stuff. It’s much easier to bribe. It’s much easier to cheat the system,’’ she said. “Governments here are generally weak. This is where they do things that they don’t dare to do in Europe anymore.”

A spokesperson said BAT was opposed to the illegal trade in tobacco, which the company called a “serious, highly organized crime.”

“At BAT, we have established anti-illicit trade teams operating at global and local levels. We also have robust policies and procedures in place to fight this issue and fully support regulators, governments and international organizations in seeking to eliminate all forms of illicit trade.”

BAT started to oversupply Mali soon after the north fell to militants, knowing its product would be fodder for traffickers, according to dozens of interviews.

Imperial said it is committed to ensuring high standards of corporate governance and “totally opposed to smuggling which benefits no-one but the criminals involved.”

The Malian government did not respond to requests for comment for this story.

Malian soldiers traveling in convoy across the desert arrive at the entrance to Kidal in northern Mali. Credit: AP Photo/Rebecca Blackwell

Malian soldiers traveling in convoy across the desert arrive at the entrance to Kidal in northern Mali. Credit: AP Photo/Rebecca Blackwell

 

The Tobacco People

In the deserts of northern Mali, cigarette smugglers are called “kel tabac,” the tobacco people.

Illicit cigarettes from the capital, Bamako, and ports in Guinea, Benin, and Togo are loaded into convoys with armed guards and driven north along thousands of kilometers of winding roads and desert tracks to Libya and Algeria, and as far east as Sudan.

Smuggling has long been a part of life in the vast and largely empty Sahel region, where armed insurgents claim a patchwork of ever-shifting territories. Jihadist movements linked to al-Qaida and IS, Tuareg separatist forces, and local ethnic militias take turns controlling roads and checkpoints along the way.

Residents of northern Mali drinking coffee. Credit: Ahmoudou Attiane

Residents of northern Mali drinking coffee. Credit: Ahmoudou Attiane

Moving illegal tobacco is a difficult and dangerous job, with trips taking between three and 10 days. Many truckers are killed by military or armed groups along the way. But it is well-paid: In a country where most people live on less than $1.90 per day, drivers can expect to earn between 6,000 to 10,000 euros for moving a load of contraband cigarettes.

It is also a lucrative trade for the drug lords and corrupt local officials in Mali’s restive northern regions.

Hama Ag Sid Ahmed, spokesman for the National Movement for the Liberation of Azawad (MNLA), an armed Tuareg independence movement that has controlled much of northern Mali on and off, said state officials and organized crime work together to profit from smuggling.

“Certain military officers, members of the intelligence services, heads of military zones in the northern regions are approached by drug lords,” he said.

“Large sums of money are paid for a contract related to a service rendered or to be rendered.”

A former tobacco industry insider said various militant groups, from the Tuareg separatists who have been fighting the Malian state for decades to the more recent offshoots of IS jihadists, also take a cut along the way.

“Product is escorted north by the Malian army or the gendarmerie [police], to protect it from so-called bandits,” said the former official, who would only speak on condition of anonymity due to safety concerns. “It would be given to the Tuareg for the trip onwards near Timbuktu, and then the Tuareg looked after paying IS in the Sahel.”

With the continuing violence and lawlessness, Malian customs have abandoned much of the north. Samba Ousmane Touré, an ex-employee of BAT’s distributor in Mali who is now a member of the country’s tobacco control committee, said armed groups have become the gatekeepers of the smuggling routes towards Algeria, Libya, and Niger.

“Armed groups play the role of customs,” he told OCCRP. “Yes, [BAT] knows.”

One of the most high-profile jihadists in northern Mali, an al-Qaida operative known as Mr. Marlboro, is thought to have financed his jihad by smuggling cigarettes.

The one-eyed Mokhtar Belmokhtar allegedly orchestrated terror attacks, including one in Algeria in January 2013 that killed more than 35 people. He led the so-called Those Who Sign in Blood Battalion. In June 2013, U.S. authorities offered a reward of up to $5 million for information leading to Belmokhtar’s location.

His battalion had ties to key Malian armed groups, reportedly providing crucial military assistance to the terrorist group MUJAO against the MNLA during the battles of Gao and Timbuktu. A senior U.S. official said in July 2013 that Mr. Marlboro “has shown commitment to kidnapping and murdering Western diplomats and other civilians.” One such hostage was the former U.N. Niger envoy Robert Fowler.

Sid Ahmed, the spokesperson for the MNLA, said many terrorists like Belmokhtar started out trafficking cigarettes before moving onto harder substances, and then to violent jihad.

“The Arab drug barons created armed militias to protect their drugs and which later developed into the terrorist organizations that are present today in the Sahel region,” he said.

Research from The Global Initiative Against Transnational Organized Crime argues the long established smuggling networks in Mali and the Sahel evolved “first to move illicit cigarettes, later hashish and then, most profitably, cocaine.”

A 2017 KPMG report agrees, noting that the region’s cocaine trade overlays routes originally used to smuggle cigarettes, and that illicit trade “can also intersect with the operations of terrorist groups.”Illicit trade is “an important component of the local political economies” of Mali and other countries in the Maghreb, said the report, which was sponsored by Philip Morris, though it claims the trade is fueled by illicit cigarettes from free-trade zones in the United Arab Emirates.

Raoul Setrouk, who is pursuing a court case against BAT competitor Philip Morris in the state of New York for intellectual property theft, said that illicit tobacco in the region has consequences that go far beyond health and tax issues.

“I hope we don’t have to wait for a new Mr. ‘Marlboro’ like terrorist Mokhtar Belmokhtar to raise our consciousness,” he told OCCRP.

Multiple sources, from soldiers and U.N. employees to businessmen, and armed militia members, told OCCRP that brands made by BAT and Philip Morris dominate the illicit trade.

Most common are Dunhills, produced in BAT’s factories in South Africa, and Philip Morris’ flagship brand Marlboros, which are handed to smugglers linked to armed groups by PMI’s politically connected representative in Burkina Faso, along with American Legends.

“Those which transit through are mainly three brands: Dunhill, American Legend and Marlboro,’’ said Hama from the MNLA. “It is the same thing also in northern Niger and not far also in the south of Algeria.”

Mohamed Ag Alhousseini, an independent researcher in the region, said much the same: “Even in Algeria, the trafficking is encouraged by the need of Marlboro and Dunhills, because they have other brands in the country.”

It’s hard to determine exactly how many illicit cigarettes are smuggled through Mali.

Trade data, information from customs officials, leaked BAT documents, and industry experts indicate there may be up to 4.7 billion surplus cigarettes in Mali every year — the equivalent of around 470 shipping containers of extra cigarettes. Some of them are produced in the country, but more are imported, almost all of them from South Africa.

Mali’s government has ignored years of blatantly false tax figures from Imperial Brands, a shareholder of the state tobacco company that distributes Dunhills in militant-run areas.

It’s also tricky to determine how much profit BAT makes because the company doesn’t separate out country figures in its annual reports. A company presentation from around 2007 estimates BAT’s market value in 18 “operational markets” in West Africa at 201 million British pounds (about US$394 million), and its market share in Mali at 61 percent. Another document, from 2012, gives gross turnover for Mali of 52.06 million British pounds ($84.6 million).

A BAT source, by contrast, estimated the company had a gross turnover of over $160 million in Mali in 2019 alone.

Imperial said SONATAM’s sales are “commensurate with the legitimate demand of the Malian population” and the company operates a stringent sales monitoring system.

“All cigarettes imported by SONATAM into Mali are done so legally under synallagmatic contracts with other commercial operators,” the company said in a statement.

Understanding Mali’s illicit cigarette trade is a messy business — and that includes the data behind it. Because the illicit market is so opaque, many of the calculations rely on educated guesswork.

Euromonitor International, a strategic market research company, estimated the country’s retail volume at 3 billion cigarettes in 2016, rising to nearly 3.2 billion in 2020.

Leaked documents obtained by the University of Bath and shared with OCCRP show that in 2007, BAT estimated the country had demand for 1.9 billion cigarettes. In 2011, the company upped the estimate to 2.4 billion. Both these figures are lower than independent projections for the same years.

After northern Mali became a war zone, however, BAT’s calculations changed, with documents from 2013, 2014, 2015, and 2017 estimating the market as significantly larger than Euromonitor’s figures, at between 3 to 3.8 billion sticks.

The reason behind these high figures is unclear, as the same documents contain estimates of Mali’s smoking prevalence that are below the WHO’s. Experts have varying estimates for smoking rates. In 2011 BAT pegged it at 9.5 percent. The World Health Organization, by contrast, says 12 percent smoked in 2017, a rate that has remained steady over the past decade.

Yet data shows that every year since 2016, the first year after Mali’s 2012 rebellion for which trade figures are available there may have been up to almost 8 billion cigarettes in Mali.

Exact figures are hard to determine. A Malian customs official estimated an annual total of 4.6 billion cigarettes based on adding imports (2.6 billion in 2018 and in 2019 each year) with local production (around 2 billion in 2018 and in 2019 each year).

U.N. Comtrade data, however, shows between an estimated 3.4 billion to 5.9 billion cigarettes were exported to Mali per year from 2016 to 2019, nearly all of them from BAT’s regional hub, South Africa. Adding in local production, that could mean as many as 7.9 billion cigarettes are available in Mali each year.

Officials in Mali and South Africa confirmed the accuracy of the Comtrade numbers, which closely match regular reports on the value of tobacco imports released by the Malian government.

Ahmed Malian troops join with former rebels before a joint patrol in Gao, Mali, after deadly attacks by Islamic extremists. Credit: AP Photo/Baba

Ahmed Malian troops join with former rebels before a joint patrol in Gao, Mali, after deadly attacks by Islamic extremists. Credit: AP Photo/Baba

Hallmarks of an Illicit Trade

In Gao, a city in northern Mali that has long been under the control of armed groups, a warehouse that distributes BAT’s cigarettes does a brisk trade.

Ahmoudou Ag Attiane, a local automotive dealer, told OCCRP that 20-ton tractor-trailers stocked with cigarettes commonly arrive at the warehouse. Many of the cartons are then trucked 10 hours north to Kidal, which is controlled by al-Qaida in the Islamic Maghreb (AQIM).

“The law is the [AQIM group] that has the most power — the terrorists, the jihadists — and they banned smoking and also alcohol. So you see, someone can’t show off too much by opening up a place where everyone knows this is where cigarettes are stored, this is where cigarettes are sold.

“All these big traders have relations with the big boss of Kidal,” he said, “which means that they are protected.”

Sid Ahmed, the MNLA spokesperson, added to this point, saying: “The traffickers make a large order with a merchant in Gao or Timbuktu. The traders transport [product] from Bamako to Gao and or Timbuktu. From Gao it goes to Algeria [and] Libya and from Timbuktu it goes to Mauritania and Algeria.”

The company that runs the warehouse, SONATAM — the state tobacco company whose shareholders include Imperial and the Libyan Arab African Investment Company — has been BAT’s distributor in Mali for years. Many of the cigarettes that pass through its warehouse in Gao are Dunhills from BAT’s plant in Heidelberg, near Johannesburg, which have accounted for up to 37 percent of South Africa’s total cigarette exports in recent years.

Unlike locally produced brands, the South African Dunhills come in packaging covered with health warnings in a major European language, French, known in the industry as a “clean label,” meaning they can be sold on the gray market.

David Reynolds, who built Japan Tobacco International’s program on countering the illicit tobacco trade, said BAT in South Africa is “notorious” for oversupplying the region.

“The rule is always the same: Oversupply plus lack of local controls leads to gray trade. That’s been a big part of BAT’s — and other cigarettes companies’ — business model for years,” he said.

“If you combine a major, high-end international brand, plus oversupply in a marginal market, such as Mali, with a clean label, you have all the hallmarks of intentional diversion into the parallel [illicit] trade.”

Documents obtained by OCCRP shed further light on how BAT’s Dunhills fall into the hands of armed groups in northern Mali.

A document from 2013 show SONATAM distributes between 25 percent to 75 percent of the three brands of BAT’s cigarettes sold in Mali. Three of its warehouses and distribution points are in rebel-controlled areas, including Gao, as well as Timbuktu and Mopti in the north of the country.

This map from a BAT presentation shows the company’s distribution points in Mali underneath the text: “As we know, in a dark market, the war is won on the battlefield with no pity for our competitors and a massive and well executed trade marketing and distribution to be seen and reachable everywhere.”

This map from a BAT presentation shows the company’s distribution points in Mali underneath the text: “As we know, in a dark market, the war is won on the battlefield with no pity for our competitors and a massive and well executed trade marketing and distribution to be seen and reachable everywhere.”

One BAT presentation from 2013 calls northern Mali a “war zone,” but notes that BAT has nonetheless identified future stockists and networks in Gao, Timbuktu, and Kidal. Another from 2017 highlights the “extremist insurgency” in eight of Mali’s regions, noting that three of them “remain completely dangerous to operate within owing to terrorist activities.”

However, an internal strategy memo from 2015 shows BAT planned to increase its business in these regions. The plan, called “Desert Storm” in an apparent reference to the U.S.-led military operation during the Gulf War, discusses how to reach “full potential” for their brands in Mali by incentivizing SONATAM to meet sales targets in areas including insurgency-run regions.

“As we know, in a dark market, the war is won on the battlefield with no pity for our competitors,” said the memo.

A 2007 presentation echoes the language of Europe’s colonial-era Scramble for Africa to describe the contest for the “crown jewels” of Mali and Ghana, casting West Africa as a battleground and speaking of “fighting ITG [Imperial Tobacco Group] to the death” and a “PMI [Philip Morris International] attack.”

“Mali was such an important market that BAT undertook a two-pronged strategy,” said Andy Rowell, a University of Bath researcher working with anti-tobacco watchdog STOP.

“The company set out to secure a ‘license to operate’ by schmoozing government officials. At the same time, the company sought to ‘delay and disrupt’ the operations of the opposition.”

Other BAT documents lay out its strategy to increase its market share against lower-cost cigarettes in Bamako and “UPC” — jargon for “Up Country” — including detailed analysis of the competition. They also show the company’s fine-grained ability to map and track contraband in West Africa: One presentation from around 2006 lists BAT’s “informants” in Mali and Niger.

Telita Snyckers, a lawyer who previously held senior positions at the South African Revenue Service and author of the book Dirty Tobacco: Spies, Lies and Mega-Profits, called the operation “corporate espionage stuff.”

The slides of the 2007 presentation discuss BAT’s strategy for West Africa, including Mali, stressing the need to “Grow VFM in Freedom Markets and Mali.” Snyckers said that VFM, or “Value For Money,” is a euphemism for smuggling and illicit channels.

In another presentation from 2009, a group of legal and security officials from BAT was told that “Mali, as the principal market which has the highest volume of illicit trade, is where we have the most to gain by increasing contestable market space.”

A BAT spokesperson declined to comment on the documents without seeing them before the publication of this article, but added, “we are not aware of the phrases ‘dark market’ or ‘value for money brands’ relating to illicit trade.”

A map shown in a BAT presentation from around 2007. One slide explains: “The bulk of the contraband goes to Libya via Agadez (Niger) from the ports of Cotonou and Lomé.” Another notes a trail of contraband from Guinea to Mali. Credit: OCCRP

A map shown in a BAT presentation from around 2007. One slide explains: “The bulk of the contraband goes to Libya via Agadez (Niger) from the ports of Cotonou and Lomé.” Another notes a trail of contraband from Guinea to Mali. Credit: OCCRP

Extraordinary Mistakes or Barefaced Lies

The rampant tobacco smuggling in Mali isn’t only down to the cigarette companies. OCCRP’s reporting indicates there is little state oversight of the industry.

For one thing, the government has overlooked blatant inaccuracies in figures from BAT’s distribution partner, Imperial, which for two consecutive years stated in its public accounts that SONATAM paid 5.5 million euros in taxes more every year than its total turnover.

West African financial analyst Oumar Ndiaye called the numbers “impossible.” Some former tobacco executives in Mali dismissed the SONATAM turnover figures as deliberate lies to fiscal authorities.

Imperial attributed them to an error in currency conversion, with West African CFA francs mistakenly not converted into euros. The company declined to provide documentation, however, and referred reporters to the Malian government, which did not respond to several requests for comment.

Alex Cobham, the chief executive officer of the Tax Justice Network and an expert on tax avoidance by multinationals, said Imperial’s explanation “doesn’t stand up,” and that repeating the same numbers over multiple years is “implausible.”

“Whoever wrote these numbers down thought nobody would ever look at them,” he said. “They’re either making extraordinary mistakes, year after year, or they’re telling you barefaced lies, or both.”

He also faulted the company’s auditor, PricewaterhouseCoopers, for apparently accepting the shoddy accounting.

“The idea that one of the world’s leading accounting firms, that prides itself on the auditing of multinationals to ensure they’re behaving as they should do, would not have picked up any of this in their rigorous annual audit process is difficult to square with any claim that corporate tax is being paid or audited on an appropriate basis,” he said.

It’s unclear who put together the “impossible” numbers.

Imperial inherited much of West Africa’s tobacco business from Bolloré Group, a giant in France’s former colonies which operates a number of ports across Africa and logistics companies worldwide.

The tobacco purchase bought Imperial a stack of elite connections. The directors of SITAB, an Imperial subsidiary in Ivory Coast, included a relative of former President Felix Houphouet-Boigny. Lassine Diawara, the chairman of the board of directors of MABUCIG, a Burkina’ cigarette manufacturer. His online biography says he is a Knight of the National Order of Merit in France. He has traveled with Blaise Compaoré, the ex-president of Burkina Faso. SONATAM was run for a number of years by Cissé Mariam Kaïdama Sidibé, who became prime minister of Mali for a short period in 2011.

Ross Delston, a U.S.-based lawyer and anti-money laundering compliance expert who has worked in West Africa, said the Malian government could well have an incentive to overlook years of obvious errors.

“Any governmental authority that has a monopoly over a given commodity also has a high degree of risk for corruption,’’ he said after discussing SONATAM figures with OCCRP. “It’s just too easy to skim off a bit, or more than a bit, for the people at the top.”

Touré, the ex-employee of BAT’s agent in Mali, agreed, saying that the state shared in the responsibility for the bad accounts, adding, “I think that [in] corrupt states like ours, the tobacco industry has a lot of power over their leaders.”

Mali’s government declined to comment.

U.N. trade figures also indicate years of discrepancies equaling millions of dollars in the price of the country’s cigarette imports.

Mali imported more than 3 million kilograms of cigarettes from South Africa annually in both 2016 and 2017, representing around 95 percent of the country’s cigarette imports. An ex-BAT official said that the only cigarettes Mali imports from South Africa are BAT’s Dunhill cigarettes, a point confirmed in an earlier BAT document.

If the former employee is correct, BAT reported to the government of South Africa it sold the cigarettes for under $7 per kilogram, while SONATAM reported it bought the cigarettes for $15 per kilogram in 2016 and 2017, the years for which U.N. trade data is available for Mali. The discrepancy amounts to between $29.1 million and $32.8 million per year, and appears to have continued afterward, according to Malian government data available for 2018.

It’s unclear exactly what is behind the difference.

A Malian customs official dismissed the numbers as a likely lag in reporting shipments.

A cigarette street vendor in Mali’s capital, Bamako. Credit: dpa picture alliance archive / Alamy Stock Photo

A cigarette street vendor in Mali’s capital, Bamako. Credit: dpa picture alliance archive / Alamy Stock Photo

Two former tobacco industry insiders told OCCRP that trade mis-invoicing, a method for moving money across borders that involves deliberate falsification of the volume or price of goods, is common practice in the company’s dealings with Mali.

“Mis-invoicing, under- and over-invoicing, and invoicing direct to the U.K. instead of in the delivered country were all used at one time or another,” one of them said.

Cobham, of the Tax Justice Network, said SONATAM’s overpayment is “very much consistent with the longstanding history of commodity trade price manipulation for profit-shifting purposes.”

That’s apparently not unusual for BAT. In 2019, Cobham’s organization authored a report that found BAT used various methods to shift profits out of poorer countries, at a scale that could deprive eight countries in Asia, Africa, and South America of nearly US$700 million in tax revenue until 2030.

“The bottom line is BAT is manipulating the price of the same commodity and the transaction in a way that can’t be justified by any possible transport costs, and any auditor worth their salt should have picked that up,” he said.

SONATAM did not respond to requests for comment.

Imperial did not respond to several OCCRP requests for clarification, saying only that the company “is committed to high standards of corporate governance” and “totally opposed to smuggling which benefits no one but the criminals involved.”

A BAT spokesperson said the prices of its tobacco “are in line with what external, independent parties would charge,” which is documented in the company’s tax strategy.

“BAT entities … comply with all applicable tax legislation and regulations in the countries where we operate,” he said.

PricewaterhouseCoopers and its French partner Xavier Belet, who audits the SONATAM accounts, ignored several requests for comment by OCCRP.

A solider lights a cigarette in Kidal, Mali. Credit: MINUSMA/Sylvain Liechti handout via REUTERS

A solider lights a cigarette in Kidal, Mali. Credit: MINUSMA/Sylvain Liechti handout via REUTERS

Friends on the Ground

From warehouses in Gao, Timbuktu, and Mopti, Dunhills flow north largely unchecked by Malian regulators.

“With the insecurity, the customs abandoned an important part of the north because of the narco-traffickers,” said Aboubacar Sidiki Kone, a Malian customs official.

Even if customs did man Mali’s lonely desert posts in the north, it’s unclear what they would do. An internal document obtained by OCCRP shows Malian customs and police were sponsored by BAT.

In a 2013 presentation, BAT lays out an “action plan” for a series of scheduled raids to be carried out by Malian customs and police in collaboration with company agents, tallying seizures of illicit cigarettes made by its competitors. A mission order and a protocol agreement in the presentation show BAT was supposed to pay for these raids.

Internal documents show BAT used informants in West Africa to keep abreast of the illicit trade.

A former BAT employee described staffers in Mali feeding intelligence on contraband to customs agents, helping them to seize the brands of other manufacturers.

Sory Coulibaly, a former sales executive for a BAT distributor in Mali, added that BAT has sweetened the deal, equipping customs agents and police with motorcycles and small patrol boats. Touré added that BAT has given customs several new cars every year.

Credit: OCCRPA slide showing BAT’s 2013 action plan for raids to be carried out by Malian customs and police in collaboration with company agents.

The cooperation between Mali’s customs and BAT was formalized further in 2019, when local media reported Malian customs’ announcement of a memorandum of understanding (MoU) with the tobacco company.

Deals with customs agencies are a longtime tobacco industry strategy, detailed in a paper published by the BMJ’s journal Tobacco Control the same year. Eric Crobie, Stella Bialous, and Stanton A. Glantz found that there are more than 100 such MoUs around the world, that they violate the World Health Organization’s international tobacco control treaties, and are ineffective at reducing smuggling.

Memoranda of Understanding (MOUs) were seen by transnational tobacco companies as “useful to provide access to decision makers and promote the image of [tobacco companies] as government partners,” the authors wrote.

In Mali’s case, the details of neither its deal with BAT nor an MoU it signed with SONATAM are easy to find. Abdel Kader Sangho, director of the customs’ training center, ignored several inquiries from reporters.

Touré, the Malian tobacco control expert, said the country’s tobacco laws are weak and there is little enforcement of them on the ground. “Our anti-smoking texts are not strong and most of our leaders are corrupt,” Touré said. “The texts exist, but it remains to apply them in the field.”

Today, SONATAM’s statistics claim Mali’s contraband levels are at an all-time low, while BAT continues to flood the country with cigarettes far exceeding demand.

Anecdotal evidence suggests the flows of smuggled tobacco may even be increasing. Touré said he has observed that the amount of Dunhills moving to the north, have recently been on the rise.

“I’m sure these cigarettes are destined for other countries, Niger, Algeria and others,” he said.

Meanwhile BAT and the Malian government are planning to make more cigarettes in the country. In 2017 they partnered up to build a new $18.2 million factory, according to local media reports. It is expected to open this year with the capacity to produce 3 billion Dunhills per annum.

Sandrine Gagne-Acoulon contributed reporting.

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Aisha Kehoe Down (OCCRP), CENOZO, Gaston Sawadogo (L'Evenement), and Tom Stocks (OCCRP).

Politics

Asylum Pact: Rwanda Must Do Some Political Housecleaning

Rwandans are welcoming, but the government’s priority must be to solve the internal political problems which produce refugees.

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Asylum Pact: Rwanda Must Do Some Political Housecleaning
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The governments of the United Kingdom and Rwanda have signed an agreement to move asylum seekers from the UK to Rwanda for processing. This partnership has been heavily criticized and has been referred to as unethical and inhumane. It has also been opposed by the United Nations Refugee Agency on the grounds that it is contrary to the spirit of the Refugee Convention.

Here in Rwanda, we heard the news of the partnership on the day it was signed. The subject has never been debated in the Rwandan parliament and neither had it been canvassed in the local media prior to the announcement.

According to the government’s official press release, the partnership reflects Rwanda’s commitment to protect vulnerable people around the world. It is argued that by relocating migrants to Rwanda, their dignity and rights will be respected and they will be provided with a range of opportunities, including for personal development and employment, in a country that has consistently been ranked among the safest in the world.

A considerable number of Rwandans have been refugees and therefore understand the struggle that comes with being an asylum seeker and what it means to receive help from host countries to rebuild lives. Therefore, most Rwandans are sensitive to the plight of those forced to leave their home countries and would be more than willing to make them feel welcome. However, the decision to relocate the migrants to Rwanda raises a number of questions.

The government argues that relocating migrants to Rwanda will address the inequalities in opportunity that push economic migrants to leave their homes. It is not clear how this will work considering that Rwanda is already the most unequal country in the East African region. And while it is indeed seen as among the safest countries in the world, it was however ranked among the bottom five globally in the recently released 2022 World Happiness Index. How would migrants, who may have suffered psychological trauma fare in such an environment, and in a country that is still rebuilding itself?

A considerable number of Rwandans have been refugees and therefore understand the struggle that comes with being an asylum seeker and what it means to receive help from host countries to rebuild lives.

What opportunities can Rwanda provide to the migrants? Between 2018—the year the index was first published—and 2020, Rwanda’s ranking on the Human Capital Index (HCI) has been consistently low. Published by the World Bank, HCI measures which countries are best at mobilising the economic and professional potential of their citizens. Rwanda’s score is lower than the average for sub-Saharan Africa and it is partly due to this that the government had found it difficult to attract private investment that would create significant levels of employment prior to the COVID-19 pandemic. Unemployment, particularly among the youth, has since worsened.

Despite the accolades Rwanda has received internationally for its development record, Rwanda’s economy has never been driven by a dynamic private or trade sector; it has been driven by aid. The country’s debt reached 73 per cent of GDP in 2021 while its economy has not developed the key areas needed to achieve and secure genuine social and economic transformation for its entire population. In addition to human capital development, these include social capital development, especially mutual trust among citizens considering the country’s unfortunate historical past, establishing good relations with neighbouring states, respect for human rights, and guaranteeing the accountability of public officials.

Rwanda aspires to become an upper middle-income country by 2035 and a high-income country by 2050. In 2000, the country launched a development plan that aimed to transform it into a middle-income country by 2020 on the back on a knowledge economy. That development plan, which has received financial support from various development partners including the UK which contributed over £1 billion, did not deliver the anticipated outcomes. Today the country remains stuck in the category of low-income states. Its structural constraints as a small land-locked country with few natural resources are often cited as an obstacle to development. However, this is exacerbated by current governance in Rwanda, which limits the political space, lacks separation of powers, impedes freedom of expression and represses government critics, making it even harder for Rwanda to reach the desired developmental goals.

Rwanda’s structural constraints as a small land-locked country with no natural resources are often viewed as an obstacle to achieving the anticipated development.

As a result of the foregoing, Rwanda has been producing its own share of refugees, who have sought political and economic asylum in other countries. The UK alone took in 250 Rwandese last year. There are others around the world, the majority of whom have found refuge in different countries in Africa, including countries neighbouring Rwanda. The presence of these refugees has been a source of tension in the region with Kigali accusing neighbouring states of supporting those who want to overthrow the government by force. Some Rwandans have indeed taken up armed struggle, a situation that, if not resolved, threatens long-term security in Rwanda and the Great Lakes region. In fact, the UK government’s advice on travel to Rwanda has consistently warned of the unstable security situation near the border with the Democratic Republic of Congo (DRC) and Burundi.

While Rwanda’s intention to help address the global imbalance of opportunity that fuels illegal immigration is laudable, I would recommend that charity start at home. As host of the 26th Commonwealth Heads of Government Meeting scheduled for June 2022, and Commonwealth Chair-in-Office for the next two years, the government should seize the opportunity to implement the core values and principles of the Commonwealth, particularly the promotion of democracy, the rule of law, freedom of expression, political and civil rights, and a vibrant civil society. This would enable Rwanda to address its internal social, economic and political challenges, creating a conducive environment for long-term economic development, and durable peace that will not only stop Rwanda from producing refugees but will also render the country ready and capable of economically and socially integrating refugees from less fortunate countries in the future.

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Beyond Borders: Why We Need a Truly Internationalist Climate Justice Movement

The elite’s ‘solution’ to the climate crisis is to turn the displaced into exploitable migrant labour. We need a truly internationalist alternative.

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“We are not drowning, we are fighting” has become the rallying call for the Pacific Climate Warriors. From UN climate meetings to blockades of Australian coal ports, these young Indigenous defenders from twenty Pacific Island states are raising the alarm of global warming for low-lying atoll nations. Rejecting the narrative of victimisation – “you don’t need my pain or tears to know that we’re in a crisis,” as Samoan Brianna Fruean puts it – they are challenging the fossil fuel industry and colonial giants such as Australia, responsible for the world’s highest per-capita carbon emissions.

Around the world, climate disasters displace around 25.3 million people annually – one person every one to two seconds. In 2016, new displacements caused by climate disasters outnumbered new displacements as a result of persecution by a ratio of three to one. By 2050, an estimated 143 million people will be displaced in just three regions: Africa, South Asia, and Latin America. Some projections for global climate displacement are as high as one billion people.

Mapping who is most vulnerable to displacement reveals the fault lines between rich and poor, between the global North and South, and between whiteness and its Black, Indigenous and racialised others.

Globalised asymmetries of power create migration but constrict mobility. Displaced people – the least responsible for global warming – face militarised borders. While climate change is itself ignored by the political elite, climate migration is presented as a border security issue and the latest excuse for wealthy states to fortify their borders. In 2019, the Australian Defence Forces announced military patrols around Australia’s waters to intercept climate refugees.

The burgeoning terrain of “climate security” prioritises militarised borders, dovetailing perfectly into eco-apartheid. “Borders are the environment’s greatest ally; it is through them that we will save the planet,” declares the party of French far-Right politician Marine Le Pen. A US Pentagon-commissioned report on the security implications of climate change encapsulates the hostility to climate refugees: “Borders will be strengthened around the country to hold back unwanted starving immigrants from the Caribbean islands (an especially severe problem), Mexico, and South America.” The US has now launched Operation Vigilant Sentry off the Florida coast and created Homeland Security Task Force Southeast to enforce marine interdiction and deportation in the aftermath of disasters in the Caribbean.

Labour migration as climate mitigation

you broke the ocean in
half to be here.
only to meet nothing that wants you
– Nayyirah Waheed

Parallel to increasing border controls, temporary labour migration is increasingly touted as a climate adaptation strategy. As part of the ‘Nansen Initiative’, a multilateral, state-led project to address climate-induced displacement, the Australian government has put forward its temporary seasonal worker program as a key solution to building climate resilience in the Pacific region. The Australian statement to the Nansen Initiative Intergovernmental Global Consultation was, in fact, delivered not by the environment minister but by the Department of Immigration and Border Protection.

Beginning in April 2022, the new Pacific Australia Labour Mobility scheme will make it easier for Australian businesses to temporarily insource low-wage workers (what the scheme calls “low-skilled” and “unskilled” workers) from small Pacific island countries including Nauru, Papua New Guinea, Kiribati, Samoa, Tonga, and Tuvalu. Not coincidentally, many of these countries’ ecologies and economies have already been ravaged by Australian colonialism for over one hundred years.

It is not an anomaly that Australia is turning displaced climate refugees into a funnel of temporary labour migration. With growing ungovernable and irregular migration, including climate migration, temporary labour migration programs have become the worldwide template for “well-managed migration.” Elites present labour migration as a double win because high-income countries fill their labour shortage needs without providing job security or citizenship, while low-income countries alleviate structural impoverishment through migrants’ remittances.

Dangerous, low-wage jobs like farm, domestic, and service work that cannot be outsourced are now almost entirely insourced in this way. Insourcing and outsourcing represent two sides of the same neoliberal coin: deliberately deflated labour and political power. Not to be confused with free mobility, temporary labour migration represents an extreme neoliberal approach to the quartet of foreign, climate, immigration, and labour policy, all structured to expand networks of capital accumulation through the creation and disciplining of surplus populations.

The International Labour Organization recognises that temporary migrant workers face forced labour, low wages, poor working conditions, virtual absence of social protection, denial of freedom association and union rights, discrimination and xenophobia, as well as social exclusion. Under these state-sanctioned programs of indentureship, workers are legally tied to an employer and deportable. Temporary migrant workers are kept compliant through the threats of both termination and deportation, revealing the crucial connection between immigration status and precarious labour.

Through temporary labour migration programs, workers’ labour power is first captured by the border and this pliable labour is then exploited by the employer. Denying migrant workers permanent immigration status ensures a steady supply of cheapened labour. Borders are not intended to exclude all people, but to create conditions of ‘deportability’, which increases social and labour precarity. These workers are labelled as ‘foreign’ workers, furthering racist xenophobia against them, including by other workers. While migrant workers are temporary, temporary migration is becoming the permanent neoliberal, state-led model of migration.

Reparations include No Borders

“It’s immoral for the rich to talk about their future children and grandchildren when the children of the Global South are dying now.” – Asad Rehman

Discussions about building fairer and more sustainable political-economic systems have coalesced around a Green New Deal. Most public policy proposals for a Green New Deal in the US, Canada, UK and the EU articulate the need to simultaneously tackle economic inequality, social injustice, and the climate crisis by transforming our extractive and exploitative system towards a low-carbon, feminist, worker and community-controlled care-based society. While a Green New Deal necessarily understands the climate crisis and the crisis of capitalism as interconnected — and not a dichotomy of ‘the environment versus the economy’ — one of its main shortcomings is its bordered scope. As Harpreet Kaur Paul and Dalia Gebrial write: “the Green New Deal has largely been trapped in national imaginations.”

Any Green New Deal that is not internationalist runs the risk of perpetuating climate apartheid and imperialist domination in our warming world. Rich countries must redress the global and asymmetrical dimensions of climate debtunfair trade and financial agreements, military subjugation, vaccine apartheidlabour exploitation, and border securitisation.

It is impossible to think about borders outside the modern nation-state and its entanglements with empire, capitalism, race, caste, gender, sexuality, and ability. Borders are not even fixed lines demarcating territory. Bordering regimes are increasingly layered with drone surveillance, interception of migrant boats, and security controls far beyond states’ territorial limits. From Australia offshoring migrant detention around Oceania to Fortress Europe outsourcing surveillance and interdiction to the Sahel and Middle East, shifting cartographies demarcate our colonial present.

Perhaps most offensively, when colonial countries panic about ‘border crises’ they position themselves as victims. But the genocide, displacement, and movement of millions of people were unequally structured by colonialism for three centuries, with European settlers in the Americas and Oceania, the transatlantic slave trade from Africa, and imported indentured labourers from Asia. Empire, enslavement, and indentureship are the bedrock of global apartheid today, determining who can live where and under what conditions. Borders are structured to uphold this apartheid.

The freedom to stay and the freedom to move, which is to say no borders, is decolonial reparations and redistribution long due.

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The Murang’a Factor in the Upcoming Presidential Elections

The Murang’a people are really yet to decide who they are going to vote for as a president. If they have, they are keeping the secret to themselves. Are the Murang’a people prepping themselves this time to vote for one of their own? Can Jimi Wanjigi re-ignite the Murang’a/Matiba popular passion among the GEMA community and re-influence it to vote in a different direction?

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In the last quarter of 2021, I visited Murang’a County twice: In September, we were in Kandiri in Kigumo constituency. We had gone for a church fundraiser and were hosted by the Anglican Church of Kenya’s (ACK), Kahariro parish, Murang’a South diocese. A month later, I was back, this time to Ihi-gaini deep in Kangema constituency for a burial.

The church function attracted politicians: it had to; they know how to sniff such occasions and if not officially invited, they gate-crash them. Church functions, just like funerals, are perfect platforms for politicians to exhibit their presumed piousness, generosity and their closeness to the respective clergy and the bereaved family.

Well, the other reason they were there, is because they had been invited by the Church leadership. During the electioneering period, the Church is not shy to exploit the politicians’ ambitions: they “blackmail” them for money, because they can mobilise ready audiences for the competing politicians. The politicians on the other hand, are very ready to part with cash. This quid pro quo arrangement is usually an unstated agreement between the Church leadership and the politicians.

The church, which was being fund raised for, being in Kigumo constituency, the area MP Ruth Wangari Mwaniki, promptly showed up. Likewise, the area Member of the County Assembly (MCA) and of course several aspirants for the MP and MCA seats, also showed up.

Church and secular politics often sit cheek by jowl and so, on this day, local politics was the order of the day. I couldn’t have speculated on which side of the political divide Murang’a people were, until the young man Zack Kinuthia Chief Administrative Secretary (CAS) for Sports, Culture and Heritage, took to the rostrum to speak.

A local boy and an Uhuru Kenyatta loyalist, he completely avoided mentioning his name and his “development track record” in central Kenya. Kinuthia has a habit of over-extolling President Uhuru’s virtues whenever and wherever he mounts any platform. By the time he was done speaking, I quickly deduced he was angling to unseat Wangari. I wasn’t wrong; five months later in February 2022, Kinuthia resigned his CAS position to vie for Kigumo on a Party of the National Unity (PNU) ticket.

He spoke briefly, feigned some meeting that was awaiting him elsewhere and left hurriedly, but not before giving his KSh50,000 donation. Apparently, I later learnt that he had been forewarned, ahead of time, that the people were not in a mood to listen to his panegyrics on President Uhuru, Jubilee Party, or anything associated to the two. Kinuthia couldn’t dare run on President Uhuru’s Jubilee Party. His patron-boss’s party is not wanted in Murang’a.

I spent the whole day in Kandiri, talking to people, young and old, men and women and by the time I was leaving, I was certain about one thing; The Murang’a folks didn’t want anything to do with President Uhuru. What I wasn’t sure of is, where their political sympathies lay.

I returned to Murang’a the following month, in the expansive Kangema – it is still huge – even after Mathioya was hived off from the larger Kangema constituency. Funerals provide a good barometer that captures peoples’ political sentiments and even though this burial was not attended by politicians – a few senior government officials were present though; political talk was very much on the peoples’ lips.

What I gathered from the crowd was that President Uhuru had destroyed their livelihood, remember many of the Nairobi city trading, hawking, big downtown real estate and restaurants are run and owned largely by Murang’a people. The famous Nyamakima trading area of downtown Nairobi has been run by Murang’a Kikuyus.

In 2018, their goods were confiscated and declared contrabrand by the government. Many of their businesses went under, this, despite the merchants not only, whole heartedly throwing their support to President Uhuru’s controversial re-election, but contributing handsomely to the presidential kitty. They couldn’t believe what was happening to them: “We voted for him to safeguard our businesses, instead, he destroyed them. So much for supporting him.”

We voted for him to safeguard our businesses, instead, he destroyed them. So much for supporting him

Last week, I attended a Murang’a County caucus group that was meeting somewhere in Gatundu, in Kiambu County. One of the clearest messages that I got from this group is that the GEMA vote in the August 9, 2022, presidential elections is certainly anti-Uhuru Kenyatta and not necessarily pro-William Ruto.

“The Murang’a people are really yet to decide, (if they have, they are keeping the secret to themselves) on who they are going to vote for as a president. And that’s why you see Uhuru is craftily courting us with all manner of promises, seductions and prophetic messages.” Two weeks ago, President Uhuru was in Murang’a attending an African Independent Pentecostal Church of Africa (AIPCA) church function in Kandara constituency.

At the church, the president yet again threatened to “tell you what’s in my heart and what I believe and why so.” These prophecy-laced threats by the President, to the GEMA nation, in which he has been threatening to show them the sign, have become the butt of crude jokes among Kikuyus.

Corollary, President Uhuru once again has plucked Polycarp Igathe away from his corporate perch as Equity Bank’s Chief Commercial Officer back to Nairobi’s tumultuous governor seat politics. The first time the bespectacled Igathe was thrown into the deep end of the Nairobi murky politics was in 2017, as Mike Sonko’s deputy governor. After six months, he threw in the towel, lamenting that Sonko couldn’t let him even breathe.

Uhuru has a tendency of (mis)using Murang’a people

“Igathe is from Wanjerere in Kigumo, Murang’a, but grew up in Ol Kalou, Nyandarua County,” one of the Mzees told me. “He’s not interested in politics; much less know how it’s played. I’ve spent time with him and confided in me as much. Uhuru has a tendency of (mis)using Murang’a people. President Uhuru wants to use Igathe to control Nairobi. The sad thing is that Igathe doesn’t have the guts to tell Uhuru the brutal fact: I’m really not interested in all these shenanigans, leave me alone. The president is hoping, once again, to hopefully placate the Murang’a people, by pretending to front Igathe. I foresee another terrible disaster ultimately befalling both Igathe and Uhuru.”

Be that as it may, what I got away with from this caucus, after an entire day’s deliberations, is that its keeping it presidential choice close to its chest. My attempts to goad some of the men and women present were fruitless.

Murang’a people like reminding everyone that it’s only they, who have yet to produce a president from the GEMA stable, despite being the wealthiest. Kiambu has produced two presidents from the same family, Nyeri one, President Mwai Kibaki, who died on April 22. The closest Murang’a came to giving the country a president was during Ken Matiba’s time in the 1990s. “But Matiba had suffered a debilitating stroke that incapacitated him,” said one of the mzees. “It was tragic, but there was nothing we could do.”

Murang’a people like reminding everyone that it’s only they, who have yet to produce a president from the GEMA stable, despite being the wealthiest

It is interesting to note that Jimi Wanjigi, the Safina party presidential flagbearer is from Murang’a County. His family hails from Wahundura, in Mathioya constituency. Him and Mwangi wa Iria, the Murang’a County governor are the other two Murang’a prominent persons who have tossed themselves into the presidential race. Wa Iria’s bid which was announced at the beginning of 2022, seems to have stagnated, while Jimi’s seems to be gathering storm.

Are the Murang’a people prepping themselves this time to vote for one of their own? Jimi’s campaign team has crafted a two-pronged strategy that it hopes will endear Kenyans to his presidency. One, a generational, paradigm shift, especially among the youth, targeting mostly post-secondary, tertiary college and university students.

“We believe this group of voters who are basically between the ages of 18–27 years and who comprise more than 65 per cent of total registered voters are the key to turning this election,” said one of his presidential campaign team members. “It matters most how you craft the political message to capture their attention.” So, branding his key message as itwika, it is meant to orchestrate a break from past electoral behaviour that is pegged on traditional ethnic voting patterns.

The other plunk of Jimi’s campaign theme is economic emancipation, quite pointedly as it talks directly to the GEMA nation, especially the Murang’a Kikuyus, who are reputed for their business acumen and entrepreneurial skills. “What Kikuyus cherish most,” said the team member “is someone who will create an enabling business environment and leave the Kikuyus to do their thing. You know, Kikuyus live off business, if you interfere with it, that’s the end of your friendship, it doesn’t matter who you are.”

Can Jimi re-ignite the Murang’a/Matiba popular passion among the GEMA community and re-influence it to vote in a different direction? As all the presidential candidates gear-up this week on who they will eventually pick as their running mates, the GEMA community once more shifts the spotlight on itself, as the most sought-after vote basket.

Both Raila Odinga and William Ruto coalitions – Azimio la Umoja-One Kenya and Kenya Kwanza Alliance – must seek to impress and woe Mt Kenya region by appointing a running mate from one of its ranks. If not, the coalitions fear losing the vote-rich area either to each other, or perhaps to a third party. Murang’a County, may as well, become the conundrum, with which the August 9, presidential race may yet to be unravelled and decided.

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