Friday, September 02, 2011

Libya: the minister, the Tory donor and a contract to supply oil

There is a highly selective, refined, and discriminating virus sweeping the continent of Europe today: it only infects the highest levels of national governments. In France and in Italy it is weakening its hosts; now it is the turn of the Cameron government in the UK.

A junior minister, Alan Duncan, was instrumental in steering a lucrative contract ($1billion), to a company with which he has close ties, having previously been a director of one of its subsidiaries. The contract was issued by the government to supply fuel to, and trade oil for, the Libyan rebels during the current conflict. The company, Vitol, is said to be the only firm to have been approached to perform this task, which is highly unusual indeed. Heightening the odor somewhat, Vitol was a large donor to the Conservative's 2010 election campaign.

As of now this only involves a junior minister, one who can be easily scythed off, and a lot of unfortunate appearances. It could all be above board, or limited to Mr. Duncan if not. But Britain is twittering, and things are getting a mite uncomfortable for the government of Prime Minister David Cameron.

UK Minister for International Development Alan Duncan

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