Global Policy Forum

The UN security council has hired Kroll Associates to investigate the murky finances of Unita, the Angolan rebel movement. The New York-based firm which specialises in international white-collar criminal investigations is interested in Unita's investment portfolio and money laundering operations.

But the security council may be wasting its money and Kroll Associates' time. Unita leader Jonas Savimbi has a reputation for handling the movement's finances in his own idiosyncratic manner. It is highly unlikely that Unita has an investment portfolio. Savimbi strenuously resisted suggestions to invest Unita's diamond wealth even before the onset of UN sanctions against his party. He also forbade his foreign representatives, when they could operate legally, from purchasing offices or residences with party funds. The party's bank accounts held enough money to cover expenses on a quarterly basis.

Attempts to identify and seize Unita assets have proved futile. The British seizure of two bank accounts in the name of Isaias Samakuva, the former Unita representative in London, yielded a very small amount of money, which was, in fact, the living expenses of Samakuva's wife. No other party funds were detected in Lisbon, Washington, Geneva or Bonn where the Unita rebels once maintained offices.

Unita's assets are not in foreign banks but in Angola in close proximity to Savimbi and his closest collaborators. It is worth noting that none of the highly publicised defections, described as 'high-ranking' by the Angolan government, have come over to the government with any financial resources. Control of Unita's financial assets is highly centralised. It consists largely of diamonds, but also includes cash.

Diamonds serve as a means of exchange for Unita. It has well-trained technicians who can expertly value stones. In the past, diamonds were sold for cash. Now they are bartered for weapons or other supplies needed by Unita. In the absence of a universal diamond certification system, Unita's stones flow invisibly into the stream of diamonds from other countries. Even when a certification system is in place, it will probably be porous; the Angolan rebels might receive less for their stones than the going rate, increasing their value for those who purchase them.

Much has been made of the fact that Unita no longer has access to the kimberlite deposits that require heavy equipment to exploit. The point that is missed is that diamonds were stock-piled in large amounts just as arms were cached. That is why Unita could smuggle an estimated $100m in diamonds out of the country last year. Organised alluvial mining continues in the Lundas, Malange, Cuando Cubango, Bie and Cuanza Norte provinces.

Unita's expenses are down appreciably since the government army severely diminished their conventional military capability forcing them to resort to guerrilla tactics - which do not require costly weapons like aoí­rtillery or large volumes of expensive petrol. As a result, their financial resources go further. This does not mean, however, that Unita still has ample funding. The aircraft that fly in essential supplies are very expensive, not least because of the risks assumed by the pilots.