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Ducroire again immersed in African arms controversy

(Brussels, 21 December 2005) Vlaams Netwerk Lichte Wapens (Amnesty International, Pax Christi, Vrede vzw and Proyecto Gato) and Belgian NGOs active in central Africa are bewildered that New Lachausée, a Wallonia arms manufacturer, will receive more than €8 million in compensation from Belgian export credit agency (ECA) Ducroire for a “blown-up” illegal ammunition factory deal in Mwanza, Tanzania. At least this is the interpretation being given to a December 8, 2005 Parliamentary statement from the Federal Minister of the Economy Mark Verwilghen.

New Lachausée’s Wallonian export licence for the controversial factory was cancelled in February 2004 and again in the summer of 2005 following pressure from NGOs and the Belgian Ministry of Foreign Affairs. A study by the well known Antwerp research centre IPIS found that the construction of an ammunition factory in Tanzania was contrary to both Belgian and European legislation concerning weapons exports. While the Wallonia regional government has the authority to issue export licences, this was over-ridden by national law in this case.

It had been thought the export credit guarantee was conditional on the issuing of a valid export permit, which, while originally approved by the regional government, was in the end cancelled by the national government. Efforts to reimburse New Lachausée are thus seen by NGOs as an effort to circumvent proper procedures, not the first such effort in this long tale of secret arms deals.

The Ducroire export cover was originally approved on December 16th 2003 but the Waloon government withdrew its export permit on February 12th, 2004 following considerable controversy and protests. The export licence was reactivated early in 2005 and Ducroire followed suite with a reactivation of its export cover. Following further protests, the Wallonia government was again forced to cancel its export permit in June 2005.

NGOs are now demanding an enquiry into the irregularities which could lead to New Lachausée being awarded damages for an if not illegal then certainly immoral arms deal with a series of attendant apparently secret efforts to cover it up. The insurance payment has been suspended by the government, which is investigating the NGO claims with respect to incorrect procedures.