Financial Crime World

Angola’s Anti-Corruption Crusade: Lourenço’s Government Takes on Systemic Corruption in the diamond and oil-rich Nation

ANGola, as the second-largest oil producer in Africa and a member of OPEC, has long been grappling with the issue of systemic corruption, particularly within its oil and mining industries. This section introduces Angola’s current situation and quick facts.

Quick Facts: Angola

  • Government type: Presidential Republic
  • Capital: Luanda
  • Population: 33,642,646 (July 2021 est.)
  • GDP: $212.285 billion (2019 est.)
  • Official language: Portuguese
  • Main exports: Crude petroleum, diamonds, natural gas, refined petroleum, and ships

History of Systemic Corruption

The extractive industries, including Angola’s oil and mining sectors, have been known for transnational bribery schemes. The oil sector, which drives the country’s economy, has been plagued by complex corporate structures, offshore transactions, political capture, and bid-rigging, among other corruption concerns. ( More details below )

Corruption in the Oil Sector

  • Odebrecht bribes: Brazilian-based conglomerate Odebrecht paid approximately USD $50 million to Angolan government officials between 2006 and 2013, resulting in benefits worth over USD $261.7 million.
  • SBM Offshore: Dutch company SBM Offshore violated the Foreign Corrupt Practices Act (FCPA) in Angola by making bribes totaling over USD $22 million between 2007 and 2011.

President Lourenço’s Fight Against Corruption

Following the complicated past marked by dictatorship rule, civil war, and a contentious presidential election in 2017, Angola’s new president, João Lourenço, made fighting corruption a top priority. ( New developments and outlook below )

History of Systemic Corruption (Continued)

Angola gained independence from Portugal in 1975. Its political landscape has been marred by decades of conflict and instability. Systemic corruption has persisted with widespread petty corruption, lack of transparency in financing political parties, inequities in the judicial system, and nepotism and patronage networks.

President Lourenço’s Fight Against Corruption (Continued)

In a 2019 interview, Lourenço described corruption as a chronic issue that had “rooted itself in our society for decades.” In response, his administration has overhauled Angola’s outdated anti-corruption and anti-money laundering laws, launched high-profile investigations into former government officials, and taken steps to establish a central anti-corruption authority. Lourenço also removed figures close to the former president, including Isabel dos Santos, from positions of power.

Recent Developments

Angola has made significant strides in strengthening its anti-corruption legislation and enforcement efforts. In February 2021, new Criminal Law and Criminal Procedure Codes entered into force, introducing improvements such as corporate criminal liability, harsher penalties for corruption, the criminalization of private corruption, and asset forfeiture. The administration also created the National Asset Recovery Service in 2018 and passed a law on repatriating financial resources from abroad.

Outlook

Despite the challenges and criticism, Angola’s commitment to fighting systemic corruption is a promising sign for its future as a strong economic force and ethical leader in Africa. The country’s progress in establishing a more effective anti-corruption framework and culture will be crucial to its success. However, it faces criticism and skepticism, with some arguing that the efforts might be a thinly veiled political maneuver.