New Allegations of Corruption Surface in Equatorial Guinea: The Case of Minister Gabriel Mbega Obiang Lima

Equatorial Guinea, known for its rich oil reserves, has long been notorious for its brutal dictatorship and pervasive corruption. Sporadic attempts at reform through peaceful means, including a hunger strike by award-winning writer Juan Tomás Ávila Laurel in 2011, have failed to bring about change.

Fresh Allegations of Corruption

The latest allegations of corruption involve Equatorial Guinea’s Minister of Mines and Hydrocarbons, Gabriel Mbega Obiang Lima. The son of President Teodoro Obiang Nguema is reportedly linked to extortion and embezzlement of millions of euros from a Portuguese construction project.

Construction Project and Alleged Corruption

Expresso, in partnership with the Organized Crime and Corruption Reporting Project (OCCRP), obtained criminal complaints detailing how Obiang Lima’s associates allegedly siphoned off funds from a Portuguese construction company, Armando Cunha, and deposited them into their offshore accounts. Police raided the headquarters of Armando Cunha in Lisbon on December 17, 2021, and authorities have yet to comment on the matter.

Note: Armando Cunha maintains all their business transactions were conducted abroad in a lawful and legitimate manner and did not respond to further inquiries about the police raid.

Equatorial Guinea’s Oil Wealth and Corruption

Despite Equatorial Guinea’s vast oil wealth, the majority of the population faces significant challenges, including lack of access to proper education, healthcare, and basic infrastructure. Most of the oil revenue has been spent on vanity projects, such as hosting the 2015 Africa Cup during the West African Ebola epidemic and constructing an opulent African Union summit complex.

The Impact of Oil in Equatorial Guinea

Tutu Alicante, a human rights lawyer and founder of Equatorial Guinea-focused NGO EG Justice, attributes the country’s rampant corruption to the influx of money from the oil industry. “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,” he said. “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.”

Grand Hotel Malabo and Allegations of Corruption

In 2010, Obiang Lima signed a contract for a National Technological Institute of Hydrocarbons facility in Malabo. The facility, originally planned to cost around 57 million euros, later became the Grand Hotel Malabo, which was costing almost 107 million euros by 2012. Criminal complaints filed against Armando Cunha indicate that the Portuguese construction company paid millions of euros to companies allegedly controlled by Obiang Lima and his associates.

Around 7 million euros from these payments went to the suspected companies. Additionally, Armando Cunha agreed to perform over 23 million euros’ worth of works on various properties around Equatorial Guinea, including the Grand Hotel Malabo.

Note: Armando Cunha denied all allegations of corruption and blamed any claims otherwise on a disgruntled partner with whom they are currently embroiled in a legal dispute.

Renting Properties at Inflated Prices

According to anti-corruption expert Lucas Oló, many Equatorial Guinean companies, including those linked to Obiang Lima, make money by renting properties to foreign oil companies and the government at inflated prices. “At the end of the day, they get the money back either way,” Oló said. These firms charge exorbitant rents for housing and typically do not mind the costs due to potential reimbursement from the ministry.

Credit: Edin Pasovic/OCCRP