Equatorial Guinea’s Elite: Luxury and Corruption - A Hidden Fortune’s Trail
October 21, 2019
By John Doe
Equatorial Guinea’s ruling class continues to make headlines for their extravagant lifestyles, funded by the nation’s natural resources and allegations of ill-gotten gains.
- Luxury Spoils of Kleptocracy: Luxury cars worth over $27 million, gilded toilets in a clandestine forest sanctuary, a lion-filled menagerie, and a $200,000 wedding gown for a cabinet minister’s daughter - these are just a few of the astonishing revelations revealing an enormous disparity between the lives of Equatorial Guinea’s elite and its struggling populace.
Unmasking the Anonymous Shell Corporations
Letter to the Editor
- Over the past few weeks, the role of anonymous shell corporations in enabling the ill-gotten gains of Equatorial Guinea’s ruling class has come under scrutiny.
- A French Shift on Africa: This was highlighted in the story “A French Shift on Africa: Stripping a Dictator’s Son of His Treasures,” which detailed how President Teodoro Obiang Nguema Mbasogo’s son, Teodorin, laundered over $100 million through American banks using secretive entities.
A Nation’s Wealth, A Family’s Fortune: Unchecked Corruption in Equatorial Guinea
- With a population of just 700,000, Equatorial Guinea is one of Africa’s smallest nations but is endowed with an abundance of oil and other natural resources.
- President Teodoro Obiang’s Extensive Wealth: The Obiang regime has long been under suspicion and criticism regarding their extensive wealth. Reportedly, over $700 million was stashed in a single American bank as of 2006.
The Use of State Wealth to Prop Up a Regime and a Family Fortune
- The Obiang regime has been accused of using the nation’s natural resource wealth to enrich itself and the Obiang family.
- For instance, Teodorin, in his position as Minister of Agriculture, allegedly imposed a “revolutionary tax” on timber which had to be paid only in cash or checks made out to a company owned by Teodorin himself.
Combating Corruption: Notable Strides and Challenges
- US Department of Justice’s Seizure: Global Financial Integrity praised the US Department of Justice’s efforts to seize over $70.8 million in illicit wealth from Teodorin Obiang, a significant step in the fight against corruption.
- UNODC and World Bank Report: The UNODC and World Bank jointly released a report highlighting the need for greater transparency in corporate incorporation and stronger measures against money laundering.
The Scale of the Global Money Laundering Epidemic
- **Global Money Laundering Crisis:**Two groundbreaking reports and an asset forfeiture complaint revealed the extensive scale of the global money laundering crisis.
- UNODC Report: The most recent UNODC report indicates that laundered funds amounted to approximately $1.6 trillion in 2009.
International Anti-Corruption Day
On the occasion of the sixth annual International Anti-Corruption Day, GFI assessed the progress and setbacks in the global crusade against international corruption.