Africa Oil & Gas: Sonangol Denies Report About $50 Billion Hole

(Bloomberg) – Angolan state-owned oil company Sonangol said a report about a $50 billion shortfall in its accounts is “absolutely false.”Angolan newspaper Valor Economico reported on Monday that international consultants hired to reorganize Sonangol had found discrepancies between the funds received and invested by the company. It also said some of the oil producer’s assets were overvalued and contracts weren’t negotiated in the best interest of the state.

“The board of Sonangol categorically denies the report by Angolan newspaper Valor Economico that refers to the existence of imparities of $50 billion,” Sonangol said in the statement on Tuesday. The consultants hired “didn’t carry out any detailed financial analysis and therefore the content of the report that was published is absolutely false and unreasonable.”

Sonangol has been in the spotlight since Isabel dos Santos, the daughter of Angolan President Jose Eduardo dos Santos, was appointed chairwoman of the Luanda-based company following the dismissal of the firm’s entire board last week. Angola’s main opposition UNITA party has rejected the appointment, and said it would ask parliament to debate the decision.

– With assistance from Anabela Reis. To contact the reporter on this story: Henrique Almeida in Lisbon at halmeida5@bloomberg.net To contact the editors responsible for this story: Jerrold Colten at jcolten@bloomberg.net John Bowker, Sarah McGregor

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