Banco Espírito Santo’s International Reputation Marred by Fraudulent Practices
A Web of Deceit and Corruption Exposed
A recent investigation has uncovered a web of deceit and corruption surrounding Banco Espírito Santo (BESA), one of Portugal’s largest banks. The scandal involves the bank’s involvement in a fraudulent housing project in Angola, which was allegedly backed by a sovereign guarantee.
The Fraudulent Housing Project
The project, led by parent company Jeosat, promised to build affordable homes for Angolan citizens. However, according to documents obtained by OCCRP, the project never received funding from international financial institutions and no funds were disbursed.
- The project was allegedly backed by a sovereign guarantee, but evidence suggests that funds continued to flow into BESA accounts despite claims that the guarantee was voided in 2010.
- Internal bank records show a $20 million loan to Jeosat’s BESA account in August 2010, which was immediately transferred out to an unknown beneficiary.
Who Benefited from the Scheme?
Sobrinho, a key figure in the project, denied knowledge of the funds and claimed that BESA never received a fee or commission for its work. However:
- Emails and documents obtained by OCCRP reveal that Sobrinho opened several accounts at Credit Suisse shortly after a meeting with financiers from Jeosat’s construction project.
- It is unclear who benefited from the scheme, but experts suggest that Angolan politicians may have been involved in siphoning off housing funds.
The Impact on Banco Espírito Santo
The bank’s parent company was known for its international reputation, but this scandal has marred its image. In 2014, the bank collapsed, and Angola stepped in to rescue it by guaranteeing $5.7 billion of BESA’s non-performing debts. However, the sovereign guarantee was withdrawn when the parent company went bust.
Calls for Accountability
The investigation has raised concerns about a culture of corruption among Angolan politicians. Transparency International director Karina Carvalho stated that “BESA was used to fund the Angolan kleptocracy.” Rodrigues, another key figure in the project, blamed a culture of corruption and claimed that other officials likely benefited from the siphoning off of housing funds.
The Way Forward
The scandal has sparked widespread outrage, with many calling for accountability and an end to the culture of corruption. As one expert noted, “It is clear to everyone that BESA was used to fund the Angolan kleptocracy… No one is accountable, and no one seems to care.”
In conclusion, the scandal surrounding Banco Espírito Santo’s involvement in a fraudulent housing project in Angola has marred its international reputation and raised concerns about corruption among Angolan politicians. It is crucial that those involved are held accountable and that measures are taken to prevent such schemes from occurring in the future.