Equatorial Guinea’s Minister of Mines and Hydrocarbons Accused of Extortion and Money Laundering
According to a new investigative report by the Organized Crime and Corruption Reporting Project (OCCRP) and its partner Expresso, Equatorial Guinea’s Minister of Mines and Hydrocarbons, Gabriel Mbega Obiang Lima, and his international business network have been accused of extortion and siphoning off millions of euros from state funds.
Alleged Extortion and Money Laundering
Journalists have uncovered evidence that Obiang Lima, 48, allegedly extorted bribes from businessmen and diverted state money from a construction project into offshore companies and accounts controlled by his associates. A criminal complaint filed in Portugal alleges that funds from Armando Cunha, a Portuguese construction firm, ended up in these offshore accounts.
- Police raided Armando Cunha’s headquarters in Lisbon on December 17, but the Portuguese construction company did not reply to a request for comment.
- Armando Cunha denied all allegations of corruption and stated that its activities had been conducted in a regular and lawful manner.
Equatorial Guinea’s Missed Opportunity
Equatorial Guinea, Africa’s longest-running dictatorship, could have been a prosperous nation due to its abundant oil reserves. However, much of the billions of dollars generated by the oil industry in the late 1990s have been channeled into vanity projects and personal wealth accumulation by the ruling elite.
The Institute of Hydrocarbons’ Construction Project
In 2010, the government awarded a contract to create a facility for the National Technological Institute of Hydrocarbons of Equatorial Guinea to train students for jobs in the oil industry. The planned facility was estimated to cost 57 million euros and was to be based in Malabo, the capital.
- By 2012, the planned facility’s location had shifted to Mongomo, and the cost had risen to almost 107 million euros, or over five times the country’s entire education budget for the following year.
- The institute now boasts a modern building, complete with tennis courts and housing for teachers and students.
Obiang Lima’s Network
Gabangare Holdings Limited, a Cyprus-based company with ties to Obiang Lima, allegedly received over 10 million euros from Armando Cunha for consulting services. The documents suggest that these funds, labeled as “payment for consulting,” ended up in accounts controlled by Obiang Lima’s associates in various countries.
Van der Horn van den Bos’ Business Interests
Obiang Lima has ties to Donald Frank Van der Horn van den Bos, a Dutch tax consultant. They share common business interests, but their personal ties are unclear.
- Two sources familiar with Gabangare described Van der Horn van den Bos as Obiang Lima’s “right-hand man,” who conveyed the minister’s instructions to the company’s directors and management.
- Van der Horn van den Bos’ companies, Patapouf S.L. in Mallorca, Spain, and Bellezzavecchio S.A., a real estate company where he served as a director, received 4.65 million euros from Armando Cunha for consulting services between 2013 and 2016.
- Flojust Holding B.V., another of Van der Horn van den Bos’ companies, invoiced the Portuguese construction firm for over 400,000 euros between 2011 and 2013.
Van der Horn van den Bos did not respond to a request for comment.
Obiang Lima and the Grand Hotel Malabo
Obiang Lima has ties to the Grand Hotel Malabo. Although officially owned by two companies, evidence indicates that he is behind both of them: Grupo Molsa and Gabangare.
- A lawyer for Armando Cunha denied the company was involved in any corrupt practices and blamed any allegations otherwise on a disgruntled partner embroiled in a legal dispute.
Obiang Lima’s Influence Beyond Equatorial Guinea
Obiang Lima’s influence is not limited to Equatorial Guinea’s borders. In the Netherlands, he plays a significant role in the production of the film “Where the Road Runs Out.”
- Gabangare holds the rights to the film, and Donald Frank Van der Horn van den Bos, Obiang Lima’s associate, acquired Firenze Film’s rights to the project, including “Where the Road Runs Out.”
The Impact of Corruption in Equatorial Guinea
Obiang Lima’s extensive business network underscores the level of corruption and self-enrichment that has plagued Equatorial Guinea’s oil industry. The end of the country’s oil boom may further threaten the Obiang clan’s wealth, but they have already amassed vast fortunes that are likely to last regardless of the oil’s depletion.
Antonio Lucas Oló, an anti-corruption expert, described the situation as “devastating”: “Oil money has served for some or many to get rich … but personal wealth does not contribute to the development of any community.”
Journalists have uncovered evidence of Obiang Lima’s alleged involvement in corruption and money laundering. These allegations add to the long history of financial crimes and corruption in the country, which has been ruled by autocratic regimes for decades. Obiang Lima did not respond to requests for comment.