BESA’s Real Estate Deals Raise Suspicions of Fraud
A recent investigation has uncovered a web of questionable real estate transactions involving Banco de Solução e Assessoria (BESA) and its subsidiaries. The bank, owned by the Angolan government, granted massive loans to shell companies affiliated with Escom, a property development company, without proper due diligence.
Questionable Transactions
The investigation reveals that BESA financed several shell companies to purchase properties from Escom at inflated prices, often exceeding their actual value. For example:
- Prismódico was given a loan of US $117 million to acquire apartments in the Aquaville Condominium, which were valued at US $171 million despite being encumbered with debts and disputes.
- Urbanlab bought a plot of land for US $54 million, which was initially reported to be worth only US $31 million.
Lack of Documentation
The investigation also found that several properties lacked essential documentation, such as:
- Contracts
- Registration certificates
- Building permits
Suspicions of Fraud
The transactions, totaling over USD $518.5 million, have raised suspicions of fraud among legal experts. A lawyer who wished to remain anonymous described the deals as “a perfect example of a fraudulent scheme” and argued that BESA’s failure to conduct proper due diligence amounts to criminal negligence.
BESA’s Defense
BESA has defended its actions, stating that it relied on technical evaluations from Proprime, a Portuguese company, which assessed the properties based on information provided by Escom. However, an investigation by Maka Angola found that Proprime had never visited the sites and relied solely on Escom’s data.
Consequences of Lack of Transparency
The case highlights concerns about the lack of transparency and accountability in Angolan business dealings. The government-owned bank’s willingness to grant massive loans to shell companies without proper due diligence raises questions about its commitment to good governance and responsible banking practices.
Update
BESA has released a statement denying any wrongdoing, claiming that it acted in accordance with industry standards and that the transactions were evaluated by experts. However, the investigation continues to uncover evidence of irregularities and potential fraud.