Divvying up South Sudan
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By Steve Fake

September 2, 2011 — Though much of the attention on land grabs in
Africa has focused on Asian and Middle Eastern buyers, the Oakland
Institute has been revealing that U.S.-based institutions are active
as well. This is particularly true of South Sudan, where “US investors
are intimately involved” in land dealing.

Earlier this summer the Oakland Institute discovered that one of the
largest land deals in the new South Sudan was made by a Texas-based
firm. It was even more underhanded than might be expected. The deal
would have granted the company a 49-year lease on the 600,000 hectares
– an area larger in size than the state of Rhode Island – and full
resource exploitation rights, for a mere $25,000. The communities
residing on the land in question weren’t even aware of the deal being
made on their homeland. While only starry-eyed naïfs would expect that
the people living on the land affected would receive more than cursory
consultations, even the cynic might anticipate that the communities
would at least be informed of “the unfair and exploitive land
investment deal of the Texas-based Nile Trading & Development, Inc.
(NTD).” Such expectations would be misplaced. The Dallas company
secretly bargained the land rights with three local elites: a chief, a
judge, and a government official (surely they must walk into a bar in
the service of some joke). The lessor in the deal is a “fictitious
cooperative” of “a group of influential natives from Mukaya Payam and
the neighboring payams (districts)…The influential natives leased out
the land behind the backs of the entire community.”

The Dallas-based company (how many sinister, Wild West capitalist
ventures in Africa originate out of Texas?) that sought to perform an
end-run around local residents has links to Howard Eugene Douglas, an
official in the Reagan Administration (who did a stint working under
the odious Alexander Haig). The company is part of a cluster of firms
and individuals in Texas concentrated on exploiting the resources of
South Sudan.

The NTD’s land speculation deal would have, at a minimum,
“significantly affect[ed] patterns of land access and use for tens, or
even hundreds of thousands of people.”

Happily however, once the community of Mukaya Payam, in southern South
Sudan, learned of the deal, they protested and quickly emerged
victorious. The President of the Republic of South Sudan, Salva Kiir,
quickly acceded to their demands.

Anuradha Mittal, of the Oakland Institute, commented, “This is a rare
example of a community viewed by investors as near-squatters and
essentially dispensable who are getting their voices heard by the
highest officials in government. It is an important democratic action
in South Sudan.”

The nixed deal is part of a larger trend. As The Times (UK) reported
on the eve of South Sudan’s formal independence, investors “have
already bought up nearly a tenth of the new nation in a series of huge
land deals that researchers say cheat the nacent (sic) nation of its
birthright” (Tristan McConnell, “The Secret Sale of South Sudan,” The
Times, July 2, 2011).

Another deal detailed by The Times involves New York-based Jarch
Management, which is developing an even larger tract of land in an
area of northern South Sudan with potential oil reserves. There are
fears that the "development" will entail displacing residents. The
Norwegian People’s Aid director for Sudan commented, "It is all done
secretly. The people don’t know what’s going on."

No less a publication than the Financial Times characterized the deal
as having “a decidedly 19th-century flavour to it.” In a piece
suggestively entitled “Rhodes Redux,” the publication noted of the
deal in 2009, “It is the largest private land deal in Africa yet —
involving the lease of a huge tract of remote territory bordering the
Nile. … the deal depends as much on control exerted… the warlord whose
son’s company claims rights to some of the land, as it does on legal
title.”

The head of Jarch is Philippe Heilberg, former Wall Street banker
“backed by former CIA and state department officials” who apparently
tired of commodity trading to become "one of Africa’s biggest private
landowners," namely in Sudan. The land lease was granted by a
notorious, atrocity-happy, local Nuer warlord — who had allied with
Khartoum and the SPLM by turns in the North-South civil war — to Jarch
and its partner firm, managed by the son of the warlord. An aid worker
commented on the deal, "The community knew nothing, it was done
secretly between Philippe Heilberg and [the warlord]’s family."

Jarch is comprised of quite a rogue’s gallery. The Times notes that,
"High-profile appointees to Jarch’s management have included former US
ambassadors and spies. Its Advisory Board is a who’s who of Sudan’s
warlords, many of whom led insurgencies against the South." Former
State Department, Pentagon, and White House officials, as well as the
famous Joe Wilson, fill out the roster.

As for Heilberg himself, in an interview with Rolling Stone he
commented, "This is Africa. The whole place is like one big mafia. I’m
like a mafia head." Unsurprisingly, Jarch now tells reporters that "Mr
Heilberg no longer does interviews." Such honest braggadocio is best
kept away from the public. We might get upset.

The views expressed in this article reflect those of the author.

Steven Fake is a co-author along with Kevin Funk of The Scramble for
Africa: Darfur-Intervention and the USA. They maintain a website with
their commentary here.

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