1990s in Angola - Diamonds

Diamonds

UNITA's success in mining diamonds and selling them abroad at an inflated price allowed the war to continue even as the movement's support in the Western world and among the local populace withered away. De Beers and Endiama, a state-owned diamond-mining monopoly, signed a contract allowing De Beers to handle Angola's diamond exportation in 1990. According to the United Nation's Fowler Report, Joe De Deker, a former stockholder in De Beers, worked with the government of Zaire to supply military equipment to UNITA from 1993 to 1997. De Deker's brother, Ronnie, allegedly flew from South Africa to Angola, directing weapons originating in Eastern Europe. In return, UNITA gave Ronnie bushels of diamonds worth US$6 million. De Deker sent the diamonds to De Beer's buying office in Antwerp, Belgium. De Beers openly acknowledges spending $500 million on legal and illegal Angolan diamonds in 1992 alone. The United Nations estimates Angolans made between three and four billion dollars through the diamond trade between 1992 and 1998. The UN also estimates that out of that sum, UNITA made at least $3.72 billion, or 93% of all diamond sales, despite international sanctions.

Executive Outcomes (EO), a private military company which had fought on behalf of UNITA prior to the 1992 elections, switched sides after the election. EO played a major role in turning the tide for the MPLA with one U.S. defense expert calling the EO the "best fifty or sixty million dollars the Angolan government ever spent". Heritage Oil and Gas, and allegedly De Beers, hired EO to protect their operations in Angola. Executive Outcomes trained 4,000 to 5,000 troops and 30 pilots in combat in camps in Lunda Sul, Cabo Ledo, and Dondo.