Equatorial Guinea: Minister of Mines and Hydrocarbons, Gabriel Mbega Obiang Lima, Accused of Extorting Bribes and Misappropriating Millions in State Funds

Equatorial Guinea, the smallest country in mainland Africa, is known for being one of the most oil-rich nations in the world. However, its populace continues to face challenges with poverty, corruption, and insufficient infrastructure (World Bank). Amidst this context, allegations of corruption involving the son and a powerful minister of the Equatorial Guinean government, Gabriel Mbega Obiang Lima, have emerged.

Allegations Against Minister Gabriel Mbega Obiang Lima

Gabriel Mbega Obiang Lima, a 48-year-old minerals and hydrocarbons minister, stands accused of extorting bribes from businessmen and misappropriating millions of European euros intended for a construction project into offshore companies and personal accounts controlled by his associates (Expresso).

Portuguese Construction Project and Bribes

The corruption scandal involves international collaborations between Lisbon-based Portuguese companies and Equatorial Guinean firms. The criminal complaint obtained by OCCRP’s partner Expresso alleges that over 10 million euros were paid to companies suspected to be controlled by the minister and his associates, including Cyprus-based Gabangare Holdings Limited and several of its subsidiaries (OCCRP).

Portuguese construction company, Armando Cunha, reportedly paid nearly 7 million euros to these firms out of the 10 million euros invoiced, leaving almost 3.4 million euros unaccounted for. Additionally, over 23 million euros’ worth of works were awarded to companies tied to Obiang Lima’s alleged associates as part of the deal.

Obiang Lima’s Ties to Armando Cunha and Grand Hotel Malabo

Journalists uncovered ties between Obiang Lima and Armando Cunha’s Grand Hotel Malabo. The minister was once the manager of a local company claimed to have owned the hotel, and sources suggest that he is the beneficial owner of Gabangare Holdings. The minister did not respond to requests for comment.

Widespread Corruption in Equatorial Guinea

Corruption allegations against Gabriel Mbega Obiang Lima add to the long history of reports pointing to widespread corruption in Equatorial Guinea. Even as the country boasts a high Gross Domestic Product (GDP) per capita compared to other African countries, little of that wealth trickles down to the population.

Oil Industry and Corruption

Equatorial Guinea’s oil industry began thriving in the 1990s, and ever since, foreign companies have been eager to exploit potential deposits in its territorial waters. The once poverty-stricken country now generates billions of dollars in revenue each year. However, most of that wealth remains within a few hands, leaving the populace hungry for a fair share.

Human Rights Lawyer and Anti-corruption Expert’s Perspective

Tutu Alicante, a human rights lawyer and founder of Equatorial Guinea-focused NGO EG Justice, explains the transition of the country from being a small corrupt nation to a very corrupt one:

When the oil came, we had this influx of millions and millions of dollars and influx of oil companies, gas companies that were willing to bribe government officials to get access to the production capacities. So we went from being a small corrupt country to becoming a very, very corrupt nation, a country that’s now defined by how corrupt we are.

Alejandro Lucas Oló, an anti-corruption expert, supports this notion, stating that companies in Equatorial Guinea often extort businesses by charging exorbitant prices for state-funded events.

Conclusion

This latest revelation about Obiang Lima and his alleged misdeeds further underscores the existing web of corruption and mismanagement in one of the world’s richest yet poorest countries.