Angola, the largest crude oil producer in Africa after Nigeria, appointed Deloitte LLP as the independent auditor of its $5 billion sovereign wealth fund to ensure transparency.
The fund, headed by Jose Filomeno dos Santos, the eldest son of President Jose Eduardo Dos Santos, also appointed Artur Carlos Andrade Fortunato to the board of directors to oversee risk management, according to a statement from the fund today.
Half the initial endowment of The Fundo Soberano de Angola, as the fund is known, will be invested in agriculture, mining, infrastructure and real estate in Angola and other African markets. The remainder will be allocated to cash and fixed income instruments issued by sovereign agencies, global and emerging-market equities as well as other alternative investments around the globe, the fund said. As much as 7.5 percent may also be spent on education, income generation, access to clean water, health care and energy, it said.
The Luanda-based fund will help diversify the economy from oil, build commercial infrastructure and support socio-economic growth, Armando Manuel, finance minister and former head of the fund, said in the statement. Deloitte’s appointment “ensures accountability to the Angolan state and citizens,” he said.
The OPEC member is ranked 157th of 176 countries on Transparency International’s 2012 Corruption Perceptions Index. Angolan offshore wells operated by companies such as Chevron Corp., Exxon Mobil Corp and Total SA pumped 1.71 million barrels a day of crude in October, according to data compiled by Bloomberg.