On September 10, sections of the second Nord Stream 2 pipeline laid from the German shore and Danish waters were connected in a so-called above-water tie-in in the Baltic Sea. The opposing pipe strings were lifted from the seabed by the lay barge, Fortuna, and the pipe ends were cut and fitted together. The welding to connect the two lines took place on a platform located above the water on the side of the vessel. Then the connected pipeline was lowered to the seabed as one continuous string / credit: Nord Stream 2 / Axel Schmidt
Editor’s Note: This analysis originally appeared in Counterpunch.
Amid escalating tensions between U.S./NATO and Russia, all eyes are on Ukraine, but Nord Stream 2, a pipeline built to bring Russian gas under the Baltic Sea directly to Germany, is an integral part of the story.
U.S. Under Secretary for Political Affairs Victoria Nuland asserted (January 27), “If Russia invades Ukraine one way or another … we will work with Germany to ensure it (the pipeline) does not move forward.” Delayed by U.S. threats and sanctions, Nord Stream 2 highlights why countries are challenging U.S. leadership.
Since the 1960s when Europe first began importing Russian gas, Washington perceived Russian energy as a threat to U.S. leadership and Europe’s energy security. More recently, with fracking, the United States has become the world’s largest gas producer and a major exporter of LNG (liquefied natural gas). It wants to muscle in on Europe’s huge market, displacing Russian gas. With Nord Stream 2 completed and filled while it awaits German regulatory approval, the stakes are high.
Soon after pipeline construction began in 2018, the United States passed a law threatening sanctions on the Swiss ship laying the pipe. The Swiss pulled out and two Russian vessels completed the line despite sanctions. The United States threatened German contractors too, but Germany stood firm.
In 2021, with construction almost complete, German Chancellor Angela Merkel visited the White House, insisting on Nord Stream 2. U.S. President Joe Biden gave way. He wanted to mend relations with Germany—the European Union’s most powerful country.
Nord Stream 2, like its predecessor Nord Stream 1, began as a joint venture (51% Russia’s Gazprom, 49% Royal Dutch Shell as well as Austrian, French and German companies). Then Poland’s government agency responsible for monopoly regulation forced European partners to relinquish their share, creating another delay. The European companies gave up their shareholding but remained as equivalent financial investors in the pipeline.
Upon the Europeans relinquishing their shareholding, Gazprom became the sole pipeline owner. It is also the world’s largest gas supplier, with a gas pipeline monopoly in Russia. Gazprom wants to deliver its own gas via its pipeline to Europe. The EU, on the other hand, has maintained since 2009 that pipeline operators, in order to encourage market competition, cannot own the gas they carry. After construction of Nord Stream 2 began, the EU extended its rules to new marine pipelines originating abroad.
Nord Stream 2 was the only pipeline affected. While those pipelines completed prior to May 2019 were exempt, its completion was delayed by U.S. sanctions on pipelaying. Gazprom claimed discrimination and appealed. In August, a German court rejected the appeal. Gazprom then appealed to Germany’s Supreme Court.
German industrialists are desperate for Russian gas. Germany has only 17 days of gas supply in storage. Volatile short-term spot prices have compounded their woes. EU gas imports have increasingly shifted from long-term contracts with prices indexed to crude oil toward short-term deals by multiple traders in spot markets.
In 2020, spot prices were roughly half those of Gazprom’s long-term contracts. They surged as much as sevenfold in 2021, reflecting a mix of factors. On the demand side, economic revival from the pandemic boosted demand for gas in Asia as well as Europe. On the supply side, green sources of energy diminished in central Europe because of cloudy windless days. With the decommissioning of coal and nuclear power stations, utilities turned to natural gas.
European politicians blamed Russia for high gas prices, but Gazprom affirmed it was supplying the amounts stipulated in its long-term contracts. Gazprom wants long-term contracts to underpin the huge capital costs of gasfield and pipeline investments.
Russia is a petro-state. It’s the world’s single largest exporter of natural gas, and the second largest oil exporter—just behind Saudi Arabia. Pipelines and sea routes to market are vital to its economy. Russia wants to sell oil and gas in Asia and Europe, and they want to buy it. Nord Stream 2 makes commercial sense. It incurs no transit fees. The route to market is much shorter than aging pipelines via Ukraine. For its part, Ukraine depends on transit fees from gas shipped through these pipelines.
Nord Stream 2 remains controversial, bitterly opposed by Poland and Ukraine who presume it will reduce volumes and transit fees on pipelines through their countries. Germany, Austria, the Czech Republic and others want it. Germany, which carries huge weight in the EU, sees gas as a transition fuel after phasing out nuclear and coal.
Numerous hurdles during and since construction have delayed Nord Stream 2’s certification. The most recent forced its Swiss operating company to form a German subsidiary for the pipeline section in German waters. Upon eventual certification, Germany will become Europe’s main entry point for Russian gas.
The current crisis between Russia and United States/NATO has been brewing for many years. With the dissolution of the Soviet Union, NATO expanded membership to Eastern Europe. NATO facilitates U.S. leadership, keeping European countries on its side against Russia. From a Russian viewpoint, NATO is provocative and threatening.
Part of the agreement underpinning the USSR’s dissolution was Western assurance that it would not expand into Russia’s sphere of influence, a pledge NATO most recently violated by stationing troops, ships and planes along Russia’s borders. The West accuses Russia of interference in Ukraine. Russia points to a 2014 Western-inspired coup in Ukraine and legitimate grievances of Russian-speakers in the breakaway Donbass republics. I document the two narratives in my book Oil and World Politics.
In December, Russia presented draft treaties to the United States and NATO, demanding a complete overhaul of Europe’s security architecture. Russia stressed the principle of indivisible and equal security for all countries, as agreed by all 56 members of the Organization for Security and Co-operation in Europe (OSCE) at Istanbul (1999) and reaffirmed at Astana (2010). Members expressly agreed not to strengthen their security at the expense of other members’ security. The United States is a signatory.
President Putin warned that if the West continued its aggressive policies (NATO’s expansion and missile deployment in eastern Europe), Russia would take ‘military-technical’ reciprocal measures. He said, “they have pushed us to a line that we can’t cross.”
Russia’s initiative put the cat among the pigeons. A succession of high-level meetings occurred between Russia and the United States, NATO and OSCE. Washington presented written responses (January 26), seeking to narrow the debate to Ukraine and alleging the Russians were poised to invade it. Russia insisted repeatedly it would not initiate an invasion but would support Donbass if the latter were attacked.
The United States escalated tensions by repeating claims of an upcoming Russian invasion, even as Ukraine’s leaders expressed doubts. Washington threatened sanctions of unprecedented severity, including major Russian banks, high-tech goods, the SWIFT financial messaging system, and Nord Stream 2.
France and Germany balked because the sanctions would backfire on their economies. They appeared unconvinced Russia intended to attack unless provoked. A flurry of high-level bilateral discussions with Russia followed.
Significantly, representatives of France, Germany, Russia and Ukraine (Jan 26) confirmed support for the 2015 Minsk II agreement and an unconditional ceasefire. Minsk II requires Ukraine to negotiate with the two Donbass republics on autonomy within a federalized Ukraine but, thus far, no negotiations have been held.
The EU imports 40 percent of its gas from Russia. For Russia, the routes through Ukraine and Poland are unreliable, because of hostility in both countries. Ukraine has a long-term deal with Gazprom for gas transit until 2024. Ukraine earns big transit fees, roughly $2 billion USD per year, and desperately wants to keep them. For its internal market, Ukraine buys Russian gas indirectly from Poland, Romania and Slovakia.
Whatever happens with Western sanctions, Russia has a strategic new market in China. Russia’s Power of Siberia pipeline began exporting gas from east Siberia to northeast China two years ago. The two countries have agreed to build a second line, Power of Siberia 2. It will bring gas from the Yamal peninsula in the Russian Arctic to China’s northeast. That means Yamal gas will be able to flow to China as easily as to Europe.
The current situation is dangerous and could easily escalate. Nord Stream 2 is critically important but national security trumps all. Security can only be achieved if it is universal. U.S. efforts to contain Russia and maintain leadership over Europe are not working. The world has become multi-polar and Nord Stream 2 is a fulcrum at the centre of the current crisis.
John Foster, international petroleum economist, is author of Oil and World Politics: the Real Story of Today’s Conflict Zones (Lorimer Books). He held positions with the World Bank, Inter-American Development Bank, BP and Petro-Canada. His blog johnfosterwrites.com and former TF guest editor Charlotte Dennett’s FollowthePipelines.com examine new issues.
SPEAKERS
Dr. Fred M’Membe, Sean Blackmon, Jacqueline Luqman (Toward Freedom board member)
Sean Blackmon: We’re happy to be joined for this conversation today by Dr. Fred M’Membe, president of the Socialist Party of Zambia. Dr. M’Membe, thanks so much for joining us.
Dr. Fred M’Membe: Thank you very much for inviting me on your show.
Sean Blackmon: Absolutely. And, Doctor, of course, we’ve been following on the show very closely the rapidly escalating war in Ukraine, this proxy war between U.S./NATO forces and Russia. And we’ve been keeping a close eye on the international response to this war, as you know, the U.S. and the West, its allies and junior partners, you know, try to present this image as if, you know, the whole international community is sort of a siding with them in condemnation of Russia’s invasion of Ukraine in February of this year. But I feel like once you take a closer look at how some of these opinions and perspectives from different governments are really playing out, I think the picture is a bit more complicated. Now. Back in March, in the United Nations there was a debate over resolution fundamentally to condemn Moscow for its invasion of Ukraine. And within that vote, 35 countries abstained from it, including 17 member states of the African Union. And there have also been leaders like the Cyril Ramaphosa of South Africa, that have not necessarily uh, jumped on the western bandwagon with this as well. And so we wanted to bring you want to sort of discuss this, because, from your perspective, obviously, you’re there in Zambia a country in a southern Africa, and I’m just wondering why you think we’ve seen these kinds of responses from some of these different African governments towards the war in Ukraine. And what do you think it says about the reality of geopolitics right now.
Dr. Fred M’Membe: First, let me say, it is very important to understand that no war is good. It is impossible not to be moved by the outrageousness of warfare. They grow some fears of civilians who are trapped between choices that are not their own, but was make very complicated historical processes that appear to be simple. The war in Ukraine is not merely about NATO, or about ethnicity. It is about many things. Every war must end at some point. And the diplomas must restart must come in. Africa and the Russian people share a history of struggle. When the African people were fighting for their independence for their liberation, those who are condemning Russia today, we are not with them [then]. They were on the other side. They never took our site. Not that our side was wrong. Our side was right. But they never took our side. They took the side of the colonialists. They took the side of the side of apartheid, they took their side of racist superiority against the forces of liberation, African liberation. We’ll never forget that. They want us to forget that, but it’s not easy to forget that. Because it’s not very long ago. Zimbabwe only became independent in 1980. Namibia only became independent in 1990. This is not very long ago, in terms of historical processes. We know who stood with the apartheid regime in South Africa. We know who stood with the racist regime in Rhodesia, now, Zimbabwe. We know who sided with the colonialists in Angola, in Mozambique, in the Cape Verde. We know all these things. So the African people have a sense of history as well. It’s not possible for Africans to condemn Russia, given where we are coming from together. And the Russian war is a complicated process. Let’s not be simplistic about it, Let’s understand where this process is coming from. Since 1990, there has been an attempt to expand the NATO forces in Eastern Europe, up to Russia. There was some cooperation, initially, even from Russia itself, under Boris Yeltsin, there was some engagement. But all that has changed. And it is important to understand that long history and the Africans understand that. We are able to analyze things for ourselves, we are able to see things for ourselves, we are able to come to our own conclusions. And also we understand the decisions and actions of our enemies, and also the decisions and actions of our friends. We are even able to understand the mistakes of our friends, and to separate them or single them out to identify them from the actions and decisions of our enemies. We know who our friends are. The Russian people have stood on our side. Russia has never had colonies in Africa—that must be understood. Despite helping to liberate us, Russia has never taken control of any African country. Russia has never colonized any country that they helped to liberate. Russia has not exploited an African country. We do not know of any country in Africa that can claim it was a colony of Russia, [claim that] it has been exploited and humiliated by Russia. This history is very clear to us. And this is not easy for us to be swayed by propaganda against Russia. We don’t want the war in Ukraine to continue as Africans. War is bad. War is not good for the poor. War is not good for the workers. War in itself is a crime. War produces crimes. Peace must always be a priority. We Africans want the war in Ukraine to end. But that won’t to end without taking into account the security concerns of Russia, and indeed, the security concerns of Ukraine itself. And even the security concerns of Europe itself. It shouldn’t be the security of one section, or one region or one country, the security of all must be considered. The security of Ukraine must be considered, the security of Russia must be considered. And indeed the security of Europe. Emphasizing on just one side of the equation, it won’t work. You cannot have security for Europe, you cannot have security for Ukraine without taking into account the security concerns of Russia. Similarly, you cannot have the security concerns of Russia addressed without taking into account the security concerns of Ukraine, the security concerns of Europe. We all need our security. As we pursue our own security interests, we also must take into account the security concerns of others. This is what is lacking in the issue of Ukraine. Russia has legitimate security concerns. And it just didn’t walk into Ukraine. From 2004, they have been actively pursuing these issues. But instead of addressing them, the opposite has happened. NATO has been expanding its lines, NATO has been trying to consolidate its positions in Eastern Europe, up to the Russian border. What did you expect Russia to do, sit idle and watch? Its security concerns not being addressed? Its security being violated? Its security being threatened? Would the USA or Europe accept that situation? Who in the world would accept that to happen?
Jacqueline Luqman: You know, what you just said that that brief encapsulation of the history of solidarity really, that the Russian people and that the Russian government has had with the African liberation struggles over the decades is so important, I think to this conversation, because I think in some ways, we in the United States, even though we who are our Pan Africanist, understand and know a little bit of that history, most people do not so most people don’t understand and don’t know, they’re ignorant of the struggle against colonialism on the African continent. So they’re ignorant of the abuses, and they’re ignorant of their relationship with Russia and the continent. And in that context, do you think that the it’s that ignorance of this relationship that you just explained, that makes it difficult for us in the United States to understand why African nations are refused to condemn Russia and also why we have a difficult time, pulling back from literally cheering this war to continue In order to “support” Ukraine, as our government tells us, without having any consideration for the lives of the people who are caught in the middle of this war, as you said, who do who did not choose it, and who did not ask for it, most of whom are working class and poor people on the continent of Africa.
Dr. Fred M’Membe: Sometimes, it’s not only the issue of ignorance, sometimes the issue of arrogance, and the problem sometimes even racist attitudes. What is good for the goose is good for the gander. What’s good for America is also good for others. America would not tolerate what it wants Russia to tolerate on its borders. If Russia was to move into Mexico today or into Canada, and they do what the Americans and the Europeans are trying to do in Ukraine, I don’t think they would tolerate that. We have the 1962 Cuban Missile Crisis. Cuba is 90 miles away from Florida. But when the Soviet Union placed missiles there, there was a big crisis, which had to be resolved amicably. Why should Russia feel secure? With Ukraine, becoming a NATO member, and placing missiles on his border? These are issues that need to be guaranteed. What we need is adherence to the Minsk agreements. What is needed is security guarantees for Russia and Ukraine, which would also require Europe to develop an independent relationship with Russia that is not shaped by U.S. interests. There will also be need to have a reversal of Ukraine’s ultra-nationalist laws, and they return it to a much more plurinational… national compact. If in some sense negotiations and agreements regarding these essential matters do not materialize, it is likely that the dangerous weapons will face each other across the divides. And additional countries may be drawn into this conflict with a potential to spiral out of control. We don’t want this conflict to get out of control. There is a need for negotiations to end this war. And the negotiations, in our view center around the three principal issues. They’re returning to the Minsk agreements, security guarantees for Russia and Ukraine, reversal of ultra-traditionalist laws. This is not demanding too much. Of course, these are not simple issues. But there are issues that need to be addressed.
Sean Blackmon: For sure. And you know, last question, Dr. M’Membe is, you know, we’re in a time from the standpoint of a U.S. imperialism, as it sees itself engaging in great power conflict, both with Russia and China and the African continent seems like, it’s sort of poised to become a real battlefield for this new Cold War. And so, for the African continent for all of its linguistic and cultural and ethnic and geographic diversity, how do you see sort of the role of the continent in the coming period as we continue to see efforts to, you know, bring about a world order that isn’t controlled from Washington.
Dr. Fred M’Membe: For our diversity, for the difference [uninteligible] among us, one thing that we all need is peace. We need peace to develop, we need peace to move people out of poverty. We don’t want to be drawn in[to] any Cold War, or any other war. We don’t want war. We have had enough. We have been humiliated for over 600 years. We were hunted as slaves traded as slaves. We were colonized. We moved from classical colonialism, neocolonialism. All these humiliating things. We have had enough of our torture, we have have had enough crucifixion. It’s time for Africa also to have its resurrection. And that resurrection cannot come under a Cold War. That’s why our position is of non-alignment. We have the right to pursue our own interests, while others also have the right to pursue their own interests. But one thing that is in common is we need a peaceful world. All our people need a peaceful world. The Americans need to live in peace, the Europeans need to live in peace. The Africans need peace. The Russians need peace, all need peace. Everything that threatens peace threatens all of us. It threatens our peaceful existence here. And it also threatens our progress. War is destructive. It destroys wealth. It destroys production, it increases poverty, it increases despair. It brings suffering it brings pain. We don’t need this. We have had enough. We want to develop and developing peace. And we don’t want to be shackled to wars that are not ours. These are not wars that are ours or benefit us. But we are there to try and offer solutions because every war, no matter how small it is, it has got ripple effects. It affects not only the primary people involved in it, but there are also secondary implications. We don’t want war.
Sean Blackmon: Absolutely. Well, we thank you so much, Dr. M’Membe, for joining us today. We’re going to leave it there and move to a break here on “By Any Means Necessary
on Radio Sputnik in Washington, D.C.
On left: U.S. Secretary of State Antony Blinken with Rwandan President Paul Kagame. On right: Ugandan President Yoweri Museveni. Background: National Unity Platform presidential candidate Bobi Wine / photo illustration: Toward Freedom
SILVER SPRING, Maryland—The United States and its European allies only care about human-rights violations when it benefits them.
That’s what a few dozen members of the Horn of Africa and East Africa diaspora agreed upon as they gathered August 13 outside Washington, D.C.
A regional conference of the National Unity Platform, a political party in Uganda, brought together members of the country’s diaspora from the New York City and Washington metro areas to strategize on how to tackle U.S. meddling that props up leaders.
“The West wants to change regimes for itself, not for Africans—we remember Libya,” said Dr. Berhanu T. Taye, chair of the Global Ethiopian Advocacy Nexus (GLEAN) and member of the Ethiopian American Public Affairs Committee (AEPAC). He was referring to the 2011 U.S./NATO invasion that turned the most prosperous African country into a war zone that hosts slave markets.
‘Aid An Instrument of Western Neocolonialism’
While the conference’s theme was “Democracy & Security In East Africa & the Horn of Africa,” a series of protests the group staged the day prior was called, “No to Neo-Colonial African Dictators.”
Neocolonialism refers to the stage of colonialism in which a colonial power continues to control a country or a nation of people by supporting the rise to leadership of those within the oppressed nation who serve the colonial master. This continues the process of extracting material wealth for the benefit of the colonial powers. Loan programs through the International Monetary Fund and the World Bank are seen as tools to subjugate and profit off oppressed countries.
Taye referred to Western aid as “opium.” He encouraged conference attendees to get better organized for the struggle. “Aid is not only an instrument of Western neocolonialism, but of underdevelopment.”
The party’s regional conference included attendees and speakers from countries outside East Africa and the Horn of Africa, including Chad, Nigeria, Senegal, Sierra Leone and Guinea Bissau.
The Horn of Africa highlighted in yellow / credit: Wikimedia
Some party members and attendees from other countries expressed frustration with non-governmental organizations and the U.S. government not taking their concerns seriously.
“The likes of [Ugandan President Yoweri] Museveni and [Rwandan President Paul] Kagame… would not be able to do what they do without the backing of the United States and the United Kingdom,” said Maurice Carney, who spoke remotely to the audience via Zoom. Carney is founder and executive director of U.S.-based nonprofit organization Friends of the Congo.
Among the violations the group denounced were Museveni’s government being partly responsible for destabilizing the Democratic Republic of Congo (DRC) by sending arms and proxy fighters.
Meeting notes from an August 8 convening of the United Nations Security Council show officials pointing out the Ugandan government’s support for a Daesh affiliate group.
The violence in the DRC has internally displaced 5.6 million Congolese, while 990,000 take shelter across the African continent. In February, the International Court of Justice ordered Uganda to pay $325 million in reparations to the DRC.
‘Billions Go Out the Back Door’
The U.S. Chamber of Commerce’s International Trade Administration encourages U.S. companies to do business in the DRC, citing “tens of trillions of dollars” in mineral wealth.
“The DRC is one of the most blessed places on Earth,” said Taye. “Sadly, the agents in the neighborhood—Kagame and Museveni—are facilitating the looting of Congo for the West.”
Non-governmental organization Global Witness reported in April that 90 percent of minerals coming out of one DRC mining area were shown to have come from mines that did not meet security and human-rights standards. Companies relying on minerals from such mines include U.S.-based Apple, Intel and Tesla.
“Aid that comes in the front door with tens of millions of dollars is a mirage,” Carney said. The United States has disbursed $618 billion in aid to Uganda since 2001. “Billions go out the back door in the form of extractions [of resources].”
‘Africa Is Going to Be Punished’
Conference moderator Joseph Senyonjo said the NUPUSA (the party’s U.S. arm) has attempted to engage U.S. Representative Karen Bass (D-CA), chair of the Subcommittee on Africa, Global Health, Global Human Rights and International Organizations in the House Committee on Foreign Affairs.
“She has done nothing,” he said.
Senyonjo added Rep. Gregory Meeks (D-NY) has been unhelpful. Meeks chairs the House Committee on Foreign Affairs and has introduced a U.S. House bill that would punish African countries for bypassing U.S. sanctions on Russia. U.S. Ambassador to the UN Linda Thomas-Greenfield said in an August 5 speech in Ghana that U.S. sanctions are not to blame for the global wheat shortage, all while threatening action if African countries buy Russian fossil fuels. However, cutting off Russia from the SWIFT global payments system prevents it from trading wheat, a major Russian export.
What does that mean for African countries that have relied on Russia for 32 percent of their wheat imports?
“Africa is going to be punished,” Senyonjo told conference attendees.
“Internationalism is the Achilles’ heel of U.S. imperialism,” said Netfa Freeman, keynote speaker at the August 13 regional conference of the National Unity Platform (Uganda) held outside Washington, D.C. / credit: Julie Varughese
‘We Can’t Be Timid’
Netfa Freeman, the keynote speaker, warned attendees of approaching the U.S. government from a weak position and with the intent of appealing to the conscience. He said the United States cannot recognize human rights because it was built by violating the human rights of the Indigenous peoples and enslaved Africans. Now, it holds one-fifth of the world’s prisoners, including the longest-held political prisoners in the world.
“Convincing them cannot be the goal,” said Freeman, an organizer with Pan-African Community Action, a grassroots organization based in southeast Washington. He also is a member of the Black Alliance for Peace Coordinating Committee and hosts a local radio program.
Freeman added officials such as Thomas-Greenfield, U.S. Vice President Kamala Harris and U.S. Secretary of Defense Austin Lloyd mirror the comprador class that holds power in various African countries. A comprador appears to independently operate as a leader, but answers to colonial powers.
Freeman encouraged conference attendees to widen the scope of their solidarity to include Afro-descendants in Cuba, Haiti, Nicaragua and Venezuela, for example, because they, too, suffer under U.S. sanctions and threats of invasion. He connected events that took place during the same timeframe on the continent—the assassination of DRC Prime Minister Patrice Lumumba and the driving into exile of Ghanian Prime Minister and President Kwame Nkrumah—with the assassinations of Malcolm X and the Rev. Dr. Martin Luther King, Jr.
“Internationalism is the Achilles’ heel of U.S. imperialism,” Freeman said.
Freeman added the struggle must be waged against the system, not against individual leaders.
“We can’t be timid. We don’t ask for anything. We demand.”
Editor’s Note: The following represents the writers’ opinion.
A free and transparent media is critical for any democracy. But in every society, defending the integrity of the media requires constant vigilance. We found ourselves drawn into the work of exercising this vigilance by complete chance.
When the independent left publication New Frame closed down after four years of operations, the liberal media rushed in, in unseemly haste, to put the boot in. Perhaps the worst of the attacks was penned by Sam Sole and Micah Reddy of the investigative journalism outfit amaBhungane. They alleged, based on nothing more than salacious gossip, that there was an attempt to influence public discourse in South Africa by the Chinese state. Not a shred of evidence was provided for this conspiracy theory by Sole and Reddy in an article that was largely based on innuendo. They abused the institutional authority of amaBhungane as a trusted publication to give credence to a conspiracy theory, one that aligned closely with the
key tropes being driven by the United States in the New Cold War.
The hostility towards us in this story can only be because our new organization, the Pan-African Institute for Socialism (PAIS), aims to create a non-sectarian space on the left to reach consensus on a pragmatic minimum program to increase the prospects for the Black poor and working-class majority in South Africa, Africa and the Global South.
PAIS has never had any sort of connection to New Frame aside from a single meeting held at their offices to inquire about the process for submitting opinion pieces for consideration, something that never actually happened in the end. But, to our complete astonishment, we found PAIS, a new and entirely unfunded organization, drawn into the conspiracy theories recycled by Sole and Reddy. This quite bizarre experience led us to wonder who funded amaBhungane, and what the drivers were for such vehemence by publications that claim to be fair, even-handed, and balanced. Those questions soon led us to an intricate web of relationships that are clearly designed to hide the influence of powerful funders and networks.
What is the real project of these U.S.-led imperialists and their surrogates in South Africa? A common thread has been the use of proxies to stymie the liberation of the majority of South Africans, particularly the Black working class and rural poor. First was Inkatha.1 Then came the DA. Lately, it is a hodge-podge of xenophobic opportunists. In addition, there are organizations that pose as being ‘Left’ and the so-called independent media. They all have one thing in common. They have an agenda to drive the ANC vote below 50 percent, in towns, cities, provinces and ultimately nationally.2
While PAIS may irritate them because we shine a spotlight on these reactionaries, their real target is the liberation movement. They wish to stymie the realization of the National Democratic Revolution, the as-yet unrealized goal of the struggle.
In this graphic the authors provided, they connect South African media leaders to major funders and the U.S. government / credit: Phillip Dexter and Roscoe Palm
We have been stunned by the extent of the capture of much South African media by the U.S. state and how most of it is hiding in plain sight. The first article to come out of our ongoing research project, “Manufacturing consent: How the United States has penetrated South African media”3 noted a few key points, including the following:
The National Endowment for Democracy (NED) was created in 1983 during the Reagan era to conduct operations and functions previously carried out by the CIA.4 It supported the mujahideen in Afghanistan and the Contras in Nicaragua and has been involved in many U.S.-backed coups.5 It now has vast tentacles across Africa.6
The NED funds the Mail & Guardian’s (M&G) weekly publication The Continent7 via its own non-profit arm, Adamela Trust, and international organisations like the International Fund for Public Interest Media (IFPIM),8 and the Media Institute of Southern Africa (MISA),9 all of which are linked to key people and organisations in the South Africa media. The editor-in-chief of the Continent is Simon Allison, former Africa editor of M&G, Africa correspondent of Daily Maverick, and a former consultant with Open Society Foundation (OSF)-funded Institute for Security Studies.10 11 It is noteworthy that the NED has continued its program through Republican and Democratic administrations, from Reagan through to Biden, and was headed by Carl Gershman from its inception until 2021. Its agenda has not changed. 3. The OSF and Luminate, another major foundation, are official U.S. government partners that often work closely with the NED and other parts of the U.S. state, strategically taking on and funding projects that the U.S. state cannot or does not wish to directly undertake.12 Among the many examples of direct collaboration is that the NED and the OSF jointly founded Global Forum for Media Development (GFMD).13 The Center for International Media Assistance (CIMA) is an official initiative of NED that coordinates this work and lists OSF as a partner.14 Luminate, together with the MIDF, has facilitated “dedicated coaching and newsroom expertise in topics such as marketing, newsletters, community building, and audience development” for M&G.15 4. Key senior people in publications like the M&G and amaBhungane, including three former editors-in-chief of the M&G have gone on to work for U.S. and Western government-supported organizations, including three separate projects funded by the NED.16 17 18 5. At least fifteen people who passed through the fellowship program run by amaBhungane have been directly tied to U.S. government organizations and programs including the Voice of America.19amaBhungane has also led the formation of a regional investigative journalism network, IJ Hub.20 6. The M&G, the Daily Maverick and amaBhungane, as well as smaller projects like the M&G-linked Daily Vox and the local U.S. embassy-linked Africa Check,21 are part of a list of at least 24 publications that have been funded by one or more of the major funders that regularly partner with the U.S. government.22
As we continue with our research we are finding more NED links. For instance the NED has funded the Institute for Race Relations (IRR),23 which publishes the Daily Friend,24 a publication that is ostensibly liberal, but veers towards the reactionary right wing weltanschauung. Sam Sole, the editor of amaBhungane, is a member of the International Consortium of Investigative Journalists (ICIJ),25 which is funded by the NED.26 We are also finding more and more links between organizations, like the OSF and Luminate, and the U.S. state. It is also likely that some journalists are funded directly by organizations, so that the claim to independence of organizations can be upheld.
The Oppenheimer family, whose wealth was wrung from the super-exploitation of Black labor in the mines, have long had considerable influence over political life in South Africa, including during the negotiations where the right of capital to continue to exploit was affirmed.27 But it is clear that, like OSF and Luminate, the Oppenheimers are also key partners of the U.S. state. The Oppenheimers fund amaBhungane28 and are given the red carpet treatment by the Daily Maverick to platform for their surrogates such as Greg Mills to propagate their pro-Western worldview.29 Founded by Branko Brkic, the Daily Maverick does list some funders, but asks you to take a leap of faith that a group of ten trusts, companies, and individuals that own anything between 0.1 percent and 15 percent of its investment holding company, are not compromised or party to any external leverage, as a cohort or as individual opaque entities. It also raises questions that the Daily Maverick and its biggest shareholder, Inkululeko Media, are indexed by Google as sharing the same office address in St. George’s Mall, Cape Town.30 31 Their opaqueness flies in the face of the Daily Maverick’s claims of transparency, which are merely a marketing strategy. Since their reader covenant was drafted in 2009, the Daily Maverick has become an important and influential player in the polity. It has evolved beyond being a blog with an angle that punched above its lightweight class and has accrued a tremendous amount of institutional authority in shaping discourse and curating narratives. With this power comes the responsibility to precisely disclose its funding. In short, it’s time for Daily Maverick to grow up, just like its peers in the mediascape.
The Oppenheimers also fund the Institute for Race Relations (IRR),32 the South African Institute for International Affairs,33 and their own foundation, the Brenthurst Foundation34. In each case, the links to the U.S. state are clear. Chester Crocker, who was Ronald Reagan’s point man in southern Africa at the height of the Cold War35 is an “honorary life member” and board member of the IRR.36 The Brenthurst Foundation has clear and open links of various kinds to NATO. The director of the Brenthurst Foundation, Greg Mills,37 served as a special advisor to the NATO Commander David Richards, who commanded the Western coalition forces as they stomped their way across Afghanistan.38 Greg Mills39 is one of four foreign policy right-wing hawks who are “allowed” to write on geopolitical affairs by the Daily Maverick. The other three are former U.S. diplomat Brooks Spector,40 former editor of M&G and president of consultancy group Calabar Consulting, Phillip van Niekerk,41 and lifetime foreign affairs hawk and stenographer of Western imperial interests, Peter Fabricius. Fabricius and Spector are also linked to the South African Institute of International Affairs as “experts”.42 The SAIIA is funded by USAID and the U.S. Department of State.43 But the systemic capture of much of our mediascape by the U.S. state and its partners extends beyond questions of funding, training programs, revolving doors, boards and collaborations of various kinds. There is also the question of editorial lines. In a number of publications, there is a systemic bias towards pro-U.S. positions, and very, very little critique of U.S. imperialism. There are a number of people writing as independent analysts, who are in fact embedded in the U.S. state in various ways. We also see that while the media has often served the interests of the public in terms of uncovering corruption in government, it has often done comparatively little in terms of doing the same in terms of private sector corruption, abuse of workers and control of policy.
All this is just scratching the surface. We are finding much, much more evidence of widespread media capture with every hour of research. Already some key questions are emerging for future research and articles. They include the following:
Why is the Daily Maverick’s funding not fully and precisely disclosed—including, in particular, the details on all equity, loan, or subsidy transactions?
How are the amaBhungane fellowship and training programs funded? Are there project costs, fees and expenses received from programs funded directly or indirectly from U.S. government agencies? Why do such large numbers of the fellows go on to work for U.S. government funded projects?
Which publishers, editors and journalists have attended the regular events for editors held by the U.S. consulate in Cape Town? What are the details of other briefings held by U.S.-directly or -indirectly funded organizations that senior leaders of South African media attend?
Who are the former publishers, editors and journalists who now work for the U.S. state or for U.S.-state directly or -indirectly funded organizations?
What other media projects are funded by the NED, OSF, Luminate and the Oppenheimers?
What is the percentage of articles in our “independent” media on geopolitics that support the U.S. line on international affairs and the percentage of those that are critical?
Transparency is a basic democratic value. It is time we knew who the masters of our media really are. It cannot be acceptable that while the editors and reporters of these publications demand accountability and transparency of those in government, labor and, occasionally, in business, they arrogate to themselves the right to not meet the same standards.
Our research project is growing in scope and urgency by the day. We need help from all interested citizens of South Africa who wish to contribute to media reform in the interests of transparency and the important work of defending and deepening our democracy. As a start, we welcome suggestions for further questions for us to explore and, in due course, to present to the South African National Editors’ Forum (SANEF). Please do contact us at [email protected] and share the questions that you think should be raised.
Phillip Dexter and Roscoe Palm are co-founders of the Pan-African Institute for Socialism, which can be found on Twitter at @PaisSocialism.
Footnotes
1 The Inkatha Freedom Party (IFP) started as a cultural movement in present day KwaZulu-Natal, but quickly morphed into a political movement to oppose the ANC’s liberation struggle. See “Inkatha Freedom Party (IFP),” South African History Online. 2 For example, in a recent opinion piece in Financial Times, Gideon Rachman wrote, “The best thing [the ANC] could do for the country’s future would be to lose the next election and leave power.” Gideon Rachman, “South Africa’s fear of state failure,” Financial Times, Aug. 15, 2022 3 See Ajit Singh and Roscoe Palm, “Manufacturing consent: How the United States has penetrated South African media,” MR Online, Aug. 8, 2022. 4 See David Ignatius, “Innocence Abroad: The New World of Spyless Coups,”The Washington Post, Sept. 22, 1991 (“‘A lot of what we do today was done covertly 25 years ago by the CIA,’” agrees [Allen] Weinstein.” Weinstein was a co-founder of the NED.) 5 See David K. Shipler, “Missionaries for Democracy: U.S. Aid for Global Pluralism,”The New York Times, June 1, 1986. 6 For example, in FY2021 alone, the NED’s Africa program granted $41.5 million dollars across 34 countries and hundreds of projects. See National Endowment for Democracy, 2021 Annual Report. 7 See National Endowment for Democracy, “Regional: Africa 2021,” Feb. 11, 2022. 8 See International Fund for Public Interest Media, “About”. 9 See National Endowment for Democracy, Awarded Grants Search, (search: “Media Institute of Southern Africa”). Additionally, MISA has received funding from and is a “key partner” of the U.S. Agency for International Development. See United States. Congress. House. Committee on Appropriations. Subcommittee on Foreign Operations, Export Financing, and Related Programs, Foreign Operations, Export Financing, and Related Programs Appropriations for 2002: Hearings Before a Subcommittee of the Committee on Appropriations, House of Representatives, One Hundred Seventh Congress, First Session, U.S. Government Printing Office, 2001, p. 870. 10 See Simon Allison LinkedIn. 11 See Institute for Security Studies, “How we work”. 12 “Private sector funding of independent media abroad … has several advantages over public financing. Private funders can be more flexible … and their programs can operate in countries where U.S. government-funded programs are unwelcome. “In many places around the world, the people we train are more open to participating in programs funded by private sources than those funded by the U.S. government,” says Patrick Butler, ICFJ [International Center for Journalists] vice president.” National Endowment for Democracy, Center for International Media Assistance, Empowering Independent Media Inaugural Report: 2008, Ed. Marguerite Sullivan, (cited in Manufacturing consent article). 13 According to the Global Forum for Media Development, OSF and NED are its “core funders.” See Global Forum for Media Development, “Partnerships”. 14 See Center for International Media Assistance, “Partners”. 15 See Luminate Group, “Sixteen media selected for Membership in News Fund,” Feb. 4, 2021. 16 Roper became editor-in-chief of M&G in 2009 and left in 2015 to become the Deputy CEO of Code for Africa (CfA). CfA is a member of Code for All, which is funded by the NED. Additionally, Roper was a Knight Fellow at the International Center for Journalists, which is also funded by the NED. See, Chis Roper LinkedIn profile; Code for All, “Our Supporters”; International Center for Journalists, Impact Report, 2022, p. 17. 17 Former editor-in-chief Khadija Patel (2016-2020) left the M&G to chair the NED-sponsored International Press Institute. In 2021, Patel became head of programs at the NED-funded International Fund for Public Interest Media (IFPIM). See fn. 2 (above) (NED funding of IFPIM); International Press Institute, “Supporters and Partners”; International Press Institute, “Executive Board”; International Fund for Public Interest Media, “About”. 18 Former editor-in-chief Phillip van Niekerk (1997-2000) left the M&G to take up a senior position at the International Consortium of Investigative Journalists (ICIJ) in Washington D.C. ICIJ is funded by the NED. See “New editor of M&G,”Mail & Guardian, Mar. 20, 1997; “Over to you, Dr Barrell,”Mail & Guardian, Dec. 15, 2000; International Consortium of Investigative Journalists, “Our Supporters”. 19 See “Manufacturing consent: How the United States has penetrated South African media.” Full citation at fn. 3. 20AmaBhungane “is incubating the Hub… As incubator, amaBhungane has continued to support the Hub administratively.” IJ Hub, Annual Narrative Report 2021/21. 21 See Africa Check, “Partners” (“The U.S. Embassy in South Africa is proud to team up with Africa Check to tackle misinformation and disinformation in the media.”). 22 In addition to their own media-related grants, OSF and Luminate jointly founded the South African Media Innovation Program, a multi-million dollar media investment initiative managed by the Media Development Investment Fund, which is also funded by OSF and Luminate. See South Africa Media Innovation Program; Luminate Group, “South Africa Media Innovation Program (SAMIP) launched by Open Society Foundation of South Africa (OSF-SA), Omidyar Network, and Media Development Investment Fund,” Aug. 29, 2017. 23 See i.e. South African Institute of Race Relations, 86th Annual Report, 2015, p. 7. Additionally, the IRR has partnered with the International Republican Institute, which is one of NED’s four core institutes. See International Republican Institute, “Democratic Governance in Africa”; National Endowment for Democracy, “How We Work”. The IRR is also a member institute of the NED’s Network of Democracy Research Institutes. (See National Endowment for Democracy, “NDRI Member Institutes” (https://www.ned.org/ideas/network-of-democracy-research-institutes-ndri/ndri-member-institutes/#Top). 24 “The Daily Friend is the online newspaper of the Institute of Race Relations.” Daily Friend, “About” (https://dailyfriend.co.za/about/). 25 See International Consortium of Investigative Journalists, “Sam Sole”. 26 See International Consortium of Investigative Journalists, “Our Supporters”. 27 See Sampie Terreblanche, “The New South Africa’s original ‘State Capture’”, Africa Is a Country, Jan. 28, 2018. 28 See amaBhungane, “About Us”. 29 See https://www.dailymaverick.co.za/author/ray-hartley-and-greg-mills 30 See https://www.sayellow.com/view/south-africa/daily-maverick-in-cape-town 31 See footer on Inkululeko website for address. 32 See Oppenheimer Memorial Trust, “All Beneficiaries – S” 33 See Oppenheimer Memorial Trust, “All Beneficiaries – S” 34 See The Brenthurst Foundation, “Our Story”. 35 Interestingly, a 1983 New York Times profile of the Oppenheimer empire opens with the following: “In an oracular vein, an academic named Chester A. Crocker once said of South Africa: That country is by its nature a part of the West. It is an integral and important element of the Western global, economic system. Mr. Crocker, who has since become the State Department’s top Africa hand and author of the Reagan Administration’s policy of “constructive engagement” with South Africa’s white minority Government, was openly embracing a premise found in both South African propaganda and the arguments of Marxist analysts: that the West’s formal condemnations of apartheid mask an enormous stake in the outcome of the shadowy struggle between the races there.” See Joseph Lelyveld, “Oppenheimer of South Africa,”The New York Times, May 8, 1983. 36 See South African Institute of Race Relations, 92nd Annual Report, 2021, p. 6. 37 See The Brenthurst Foundation, “Greg Mills”. 38 See Greg Mills, From Africa to Afghanistan: With Richards and NATO to Kabul, Wits University Press, 2007. 40 See J. Brooks Spector author page at Daily Maverick. 41 See Phillip van Niekerk author page at Daily Maverick. 42 See South African Institute of International Affairs “Expert” pages for Peter Fabricius and Brooks Spector. 43 See South African Institute of International Affairs, “Funders”.
