Alioune Gueye: Petrosen Ex-Chief Now Defends Kosmos in Senegal Conflict

• Alioune Gueye, former Director General of Petrosen, is currently defending Kosmos Energy against the Senegalese state over penalty payments.
• This contrasts sharply with his 2016 role as a prominent critic of Kosmos during the Petrotim scandal, where he collaborated with Ousmane Sonko.
• His appointment to Petrosen prompted ethical concerns from Burhan Dia, who warned of potential conflicts given Gueye's past legal threat from Kosmos.
• Dia highlighted the risk that Kosmos could leverage Gueye's history, potentially compromising Senegal's interests and reputation.
• The situation underscores the importance of scrutinizing potential conflicts of interest in high-level public appointments within state-owned enterprises.

The potential for perceived conflicts of interest, especially when an appointee has a documented adversarial history with a major international partner, can undermine public trust and the nation's negotiating position.

Alioune Gueye, formerly the Director General of Petrosen, finds himself at the center of renewed public attention due to his current role in a legal dispute involving Kosmos Energy. In a significant shift from his past, Mr. Gueye is now defending Kosmos against the Senegalese state, which is seeking penalty payments from the energy company for alleged failures to meet its contractual commitments. This development is particularly notable given his previous, highly adversarial relationship with Kosmos during the widely publicized Petrotim scandal in 2016.

In 2016, during the intense public debate surrounding the Petrotim scandal, which implicated figures like Frank Timis and Alioune Sall, Alioune Gueye was a prominent voice of opposition. An expert accountant based in the United States, he collaborated closely with Ousmane Sonko on the issue, contributing significantly to the public discourse. His insights were notably cited at least three times in Sonko's 2017 book, "Pétrole et gaz au Sénégal : chronique d'une spoliation," published by Fauves in France.

Specifically, on page 164 of the book, Sonko attributed to Mr. Gueye a crucial definition of a "FARM OUT AGREEMENT," which formed a cornerstone of the accusations against Kosmos and Petrotim. This agreement was defined as a contract where the owner of a participatory interest assigns a portion of that interest in a block to another party, either in exchange for cash or for the buyer to cover a portion of exploration costs for one or more specific wells, and/or other works as conditions for the assignment. At that time, Gueye and Sonko were united in their critical stance against the Macky Sall administration concerning the Kosmos-Petrotim issue.

Mr. Gueye's appointment to lead Petrosen Holding SA subsequently brought his historical involvement with Kosmos back into sharp focus. Burhan Dia, a former activist with the Pastef party, publicly expressed concerns on Facebook regarding potential risks in the relationship between Kosmos and Alioune Gueye, whom he referred to as "former enemies." Dia cautioned against placing Petrosen under the leadership of an individual who might struggle to assert full authority against an American corporation. He articulated that it was "ethically and professionally serious" for multinational executives to engage with someone over whom they might possess psychological leverage due to a "serious deontological accident." Dia emphasized that Petrosen, representing Senegal's 10% interest, meant the nation's "face and reputation" were at stake, with these warnings reported by EMEDIA at the time of Gueye's appointment.

While expressing profound respect for Mr. Gueye and even suggesting his suitability for a ministerial role, Dia maintained that the directorship of Petrosen was not the appropriate position for him. He specifically warned that Kosmos could potentially exploit Gueye's past to exert pressure, urging authorities to "protect" this "crack of the diaspora," whom he described as an excellent expert accountant, affable, courteous, and profoundly patriotic. Dia further recalled that following his 2016 accusations, Kosmos had engaged lawyers in Texas, leading to a serious threat against Gueye, who was "forced to write another article to retract his accusations, under pain of serious (judicial) consequences."

Dia, who had also worked on the Kosmos case with Gueye, noted his own caution due to strict Securities Exchange Commission (SEC) rules and his regulation by FINRA, emphasizing the stringent nature of Wall Street regulations, which include severe penalties for non-compliance.

This unfolding situation highlights critical issues within Senegal's oil and gas governance, particularly concerning the appointment processes for high-ranking officials in state-owned enterprises. The potential for perceived conflicts of interest, especially when an appointee has a documented adversarial history with a major international partner, can undermine public trust and compromise the nation's negotiating position. The ethical considerations raised by Burhan Dia underscore the imperative for robust due diligence and transparent frameworks in public appointments, ensuring that officials can execute their duties without any psychological or professional impediments.

This case serves as a poignant example of the complexities involved when past professional engagements intersect with new governmental responsibilities. It stresses the critical importance for legal and compliance professionals in Senegal to scrutinize potential conflicts of interest involving high-ranking public officials, particularly when their past adversarial roles with private entities could compromise their current duties. Such scenarios can significantly impact Senegal's reputation and financial interests within the global energy sector, necessitating strong ethical frameworks and thorough due diligence in public appointments.

This case highlights the critical importance for legal and compliance professionals in Senegal to scrutinize potential conflicts of interest involving high-ranking public officials, particularly when their past adversarial roles with private entities could compromise their current duties. It underscores the need for robust ethical frameworks and due diligence in public appointments within state-owned enterprises dealing with international corporations.

Source: Original reporting via EMEDIA