The SAMIFIN powerless in face Rhodes oil plant smugglers

The SAMIFIN’s latest report was a little empty. This national office in charge of fighting money laundering and terrorist financing networks definitely reached its limits in the Rhodes oil plant case. It can basically attempt no action in itself, but has to expect calls. The SAMIFIN is tackling an issue  only when it is required to do so on a “secret operation warning”’s biding( SOW). It is consequently hanging upon alerts rang by banks or by various other financial institutions, which happen to be not that suspicious toward their customers. In spite of crisis, the service registered 100% more SOWs, namely 54 in 2009, against only 23 in 2008.

In 2010, the SAMIFIN still has job to do. The Rhodes oil plant case is a considerable challenge. Jean Claude Razaraniana, its top official, reported that no less that 26 Rhodes oil plant case related SOW have been received. He revealed that the traffic’s financial network was incredibly simple. Chinese investors transfer big money amounts to Chinese owned companies’ accounts based in Madagascar, and apparently operating in the textile sector for example. “the transfer in itself is illegal since these funds’ origin cannot be tracked down” regretted the SAMIFIN’s director.

According to Jean Claude Razaranaina, Chinese businessmen involved in the financial process can’t be found. They happen to be appearing in no register at all, neither in the Interior Ministry’s home territory security service’s ones, nor in those of the EDBM, the institution in charge of the business company creation. Chinese operators based in Madagascar are then regularly transferring significant amounts of money to Malagasy operators entitled to Rhodes oil plant exploitation rights. The SAMIFIN’s director revealed that some businesses based in Behoririka are part of the network.

Malagasy companies are subsequently transferring money to accounts belonging to individuals happening to be living all around the exploited area. “Bribes and genuine incentives to cut Rhodes oil plants in the forest for the local population” alleged Jean Claude Razaranaina. Some 31 billions of Ariary have been detected as being circulating from the Rhodes oil plant smuggle. Concerning exports, the SAMIFIN warned about the release of 565 containers which were far from returning the expected 75 billions of Ariary, 60 billions of which as export returns, 15 billions as taxes.

The SAMIFIN sometimes comes across fake SOWs after investigation. 18 SOWs investigated in 2009 were baseless, 18 others resulted in trials. Money laundering is basically a crime monished by 10 years behind bars according to the Malagasy legislation, but unfortunately not  a priority concern to Malagasy magistrates. The SAMIFIN cannot cope on its own whenever “illegal money” is injected in the legal financial process without being laundered at all. All for most, it can warn the government and advise it to open an eye on risky institutions like casinos and exchange offices.