Title: Angolan Attorney-General Investigates Money Laundering Allegations Against BAI Chair, José Carlos de Castro Paiva

Criminal Complaint Filed Against José Carlos de Castro Paiva

Investigative journalist Rafael Marques and sociologist Tânia de Carvalho have lodged a formal criminal complaint with the Angolan Attorney-General against José Carlos de Castro Paiva, chair of Banco Angolano de Investimentos (BAI), Angola’s largest private bank. The accusations involve the diversion of state assets worth millions into private shell companies and personal bank accounts.

Evidence of Money Laundering and Illegally Diverted Public Funds

Evidence provided in the complaint cites Paiva’s involvement in money laundering and the illegal diversion of public funds. Marques and Carvalho demand a thorough investigation into these allegations by the Office of the Attorney-General.

Paiva’s Previous Ties to Corruption

Paiva’s history of alleged corruption has previously come under scrutiny. He joined Sonangol, the state oil monopoly, in 1976 and rose through the ranks, becoming its London operations head by 1987. International investigations and the Luanda Leaks reports revealed a network of Angolan elites around former President José Eduardo dos Santos who had illicitly diverted billions of petrodollars into their pockets through offshore tax havens and private banking networks. Paiva was identified as one of these “Secret Bankers” in the Organized Crime and Corruption Reporting Project (OCCRP) report.

Suspicious Activities at BAI

Despite these allegations, the Angolan Justice system has not previously investigated how Paiva came into possession of millions of US dollars from his positions at BAI and Sonangol. Sonangol, a principal investor in BAI, held 18.5% of its stock. In 2006, Paiva was appointed to the BAI board. With ties to the corrupt Angolan regime, BAI soon became a conduit for dos Santos family members and associates, with some of Sonangol’s stock transferred to shell companies controlled by Paiva and fellow company directors.

BAI consistently delayed providing information to comply with anti-money laundering checks when such transactions raised red flags, yet when forced to reveal the identities of the beneficial owners, the bank requested secrecy.

Brazilian Police Investigation

Brazil’s Federal Police reported in 2020 that Paiva and associates had invested millions from Sonangol accounts into the construction of the Mussulo tourist resort and the Solar Tambaú residential condominium in João Pessoa, Paraíba State. Initial funding of $8 million from Paiva and $3 million from BAI Vice President Ted Giletti was later augmented in 2017 by $25 million. The ultimate destination was a company owned by Portuguese national João Carlos Guerra Alves Pina Ferreira, another Paiva associate, who also co-directs the company JCP Construções e Incorporações with him.

The Brazilian investigation revealed approximately 60 Angolans, including Politically Exposed Persons (PEPs), were involved in the projects. However, no formal investigation was launched in Luanda, despite the Brazilians sharing their information with the Angolan Attorney-General’s office.

Lack of Transparency and Defamation Charges

BAI remains reluctant to reveal the identities of five of its eight main shareholders. Throughout the past decade, Marques’ Maka Angola website has exposed corruption and suspicious activities by individuals, including Paiva. However, when sociologist Tânia de Carvalho referred to the Brazilian case against Paiva in a broadcast, she faced a defamation charge. Paiva has never filed defamation lawsuits against the original publications reporting allegations of him diverting ‘millions and millions of Angolan money’ into Swiss bank accounts.

Contradictory Explanations for Shell Companies’ Ownership

From March 2006 to June 2007, HSBC pressed BAI for ownership information but only received contradictory explanations for the shell companies holding 13.5% of its shares. Eventually, the shell companies were ‘assigned temporarily’ to BAI’s chairman of the board.

Paiva’s Holdings in BAI

Paiva has held the position of Angola’s BAI Chairman since 2006, holding a majority ownership position (18.5% beneficial ownership) through Arcinella Assets SA (7%), Sforza Properties (6.5%), and Dabas Management Limited (5.0%). However, HSBC’s legal counsel reported that both Arcinella and Sforza continue to be held in trust by Paiva. From March 2006 to June 2007, HSBC pressed BAI for ownership information but only received inconsistent responses. Eventually, the shell companies were ‘assigned temporarily’ to BAI’s chairman of the board.