China International Fund
| Company type | Private consortium |
|---|---|
| Industry | Investment, Infrastructure, Natural resources |
| Headquarters | Hong Kong , Hong Kong |
Area served | Developing countries, primarily Africa |
Key people | Lo Fong Hung (Chairwoman), Wu Yang (Director), Sam Pa (President, assumed) |
| Products | Infrastructure projects, natural resource exploration and development |
| Parent | Dayuan International Development (owns 99%) |
China International Fund (CIF) represents a consortium of investors from Hong Kong with Chinese origins, concentrating on extensive national redevelopment initiatives and infrastructure projects within developing countries. CIF, along with its related entities based in Hong Kong and Singapore, has allocated investments exceeding $20 billion, mainly targeting African countries experiencing political instability. The group maintains contracts with the governments of Angola and Guinea for natural resource exploration, pledging substantial financial commitments to these nations. Due to the involvement of key individuals connected to Chinese state enterprises and government bodies, CIF is widely believed to be state-affiliated.
Structure
A July 2009 report by the United States-China Economic and Security Review Commission examined investments made by Dayuan, CIF, and their subsidiaries throughout Africa, Latin America, and the United States. Dayuan International Development owns 99% of CIF and oversees approximately 30 subsidiaries collectively referred to as the "88 Queensway Group", named after their Hong Kong headquarters location. Although definitive proof of government ownership remains absent, Chairwoman Lo Fong Hung also leads Sonangol Sinopec International Ltd., a joint venture between the state-owned corporations Sinopec (China) and Sonangol (Angola). Furthermore, CIF director Wu Yang held the position of vice chairman at Sinopec as of 2006. It is widely assumed that Sam Pa functions as President of CIF.
Angola
During conversations between U.S. Ambassador Dan Mozena and Chinese Ambassador Bolum Zhang, Zhang remarked that despite CIF's substantial footprint in Angola, numerous projects have been delayed due to inadequate management and leadership. As a privately held firm, CIF's dealings in Angola are not closely supervised by the Chinese diplomatic mission. The company benefits from its Hong Kong-based proprietors’ strong connections to President Dos Santos. Among its undertakings, CIF participated in constructing the Angola International Airport.
Guinea
In October 2009, Guinea’s military regime entered into an agreement with CIF concerning mining and infrastructure development, outlining plans for investments of at least $7 billion aimed at exploiting mineral deposits such as diamonds, iron ore, oil, and particularly bauxite. However, following the 2010 elections, the newly appointed Mines Minister Mohamed Lamine Fofana declared in September 2011 that the government had rescinded this contract.
Zimbabwe
CIF holds stakes in Zimbabwe's sectors of gold and platinum refining, oil and gas exploration, fuel processing, and residential real estate development.
Sino Zim Development
Two separate entities named Sino Zim Development are associated with individuals linked to CIF and operate within Zimbabwe’s diamond sector. One is a Singapore-registered joint venture established on June 15, 2009, managed by Lo Fong Hung and owned by companies registered in the British Virgin Islands. The other is a Zimbabwe-registered company whose directors include Hung and Veronica Fung, reportedly connected to CIF figure Sam Pa. Documents from Zimbabwe’s CIO identify Pa as a director of the Zimbabwean Sino Zim entity; however, CIF denied this affiliation in 2012, describing him solely as a consultant.
Alleged Political Involvement
Confidential reports from the Central Intelligence Organisation (CIO), leaked and accessed by 100Reporters and Global Witness, claim that Pa and Fung provided pickup trucks, campaign apparel, promotional materials, diamonds, and financial resources to the CIO to aid Robert Mugabe's 2013 re-election bid. This support formed part of a larger international initiative backing Mugabe's government. According to sources, these funds were used to finance "Operation Spiderweb," a secretive campaign aimed at undermining opposition figures such as Prime Minister Tsvangirai, Finance Minister Biti, and Industry Minister Ncube.
The CIO files reveal financial and material exchanges involving Zimbabwe, Angola, and Hong Kong:
- April 4: Fung transported 3,000 carats of diamonds from Marange into Angola.
- April 8: Two individuals departed Zimbabwe carrying 800 carats of "clear stones" to meet with "Mr. Sam Pao" for project-related purposes.
- April 14: One individual returned with US$3 million from Pa and an additional US$2 million from General Manuel Dias Jr. ("Kopelipa").
- May 4: China Sonangol, a Chinese-Angolan oil company sharing office space with CIF, deposited a US$41 million check backed by "Mr. Sam Pa" designated for "projects of special interest."
- May 10: Fung and Colonel H. Muchena delivered 12,000 carats of diamonds to the CIF headquarters.
- May 16: China Sonangol and Sam Pa handed over 4,000 carats of diamonds to General Kopelipa along with further payments.
In correspondence addressed to Global Witness in 2012, CIF defended its financial transfers to Mugabe’s administration as lawful commercial dealings, including taxes and licensing fees, rejecting allegations of funding the CIO.
Literature
- U.S.-China Economic & Security Review Commission, The 88 Queensway Group: A Case Study in Chinese Investors' Operations in Angola and Beyond, by Lee Levkowitz, Marta McLellan Ross, and J.R. Warner, July 10, 2009.
- Alex Vines, Lillian Wong, Markus Weimer, Indira Campos: Sede de Petróleo Africano Petrolíferas Nacionais Asiáticas na Nigéria e em Angola, Chatham House report, January 2011.
External links
- The Queensway syndicate and the Africa trade – The Economist, 13 August 2011