Financial Crime World

Obiang Lima’s Alleged Corruption: New Scandal Rocks Equatorial Guinea’s Kleptocracy

In the heart of Africa, the tiny nation of Equatorial Guinea, known for its vast oil reserves, has long been embroiled in a regime of brutal repression and corruption. Despite criticisms from renowned writers like Juan Tomás Ávila Laurel, the country’s leaders Have maintained an unbreakable grip on power. In this article, we examine a new scandal involving Equatorial Guinea’s Minister of Mines and Hydrocarbons, Obiang Lima, and Obiang’s son, amid allegations of financial corruption.

Juan Tomás Ávila Laurel’s Hunger Strike

  • Ávila Laurel, a vocal critic of the Equatorial Guinea regime, launched a hunger strike in 2011, hoping to ignite change in the face of the Arab Spring.
  • Despite his efforts, the regime led by Equatorial Guinea’s dictator, Teodoro Obiang, 78, remained unchanged.

Woes of Equatorial Guinea’s Citizens

  • Obiang and his family have controlled the country’s power through oil industry revenues, leaving the majority of Equatorial Guineans without access to crucial services.
  • Equatorial Guinea could have been a blessing, with oil revenues potentially funding education, healthcare, and other essential services.
  • Instead, much of the money has gone towards vanity projects, like hosting the 2015 Africa Cup during the West African Ebola epidemic.

New Allegations of Financial Corruption

  • Recent reports have uncovered new allegations of financial corruption involving Obiang Lima and Obiang’s son.
  • Journalists have found evidence of extortion and misappropriation of state funds from a construction project called Equatorial Guinea’s National Technological Institute of Hydrocarbons.
  • Millions of euros intended for the project were siphoned off by Obiang Lima’s associates and ended up in offshore companies they controlled.
  • Portuguese police raided the headquarters of the Portuguese construction company, Armando Cunha, linked to the scandal, but neither the company nor the police have commented on the raids.

Impact of Oil Influx

  • Equatorial Guinea’s oil industry influx has led the country to become notorious for its corruption.
  • Oil money has been used to reward loyal officials and buy influence, further perpetuating the corrupt regime.

Obiang Lima and Teodorin Nguema Obiang Mangue

  • Obiang Lima and Obiang’s half-brother, Teodorin Nguema Obiang Mangue, have different approaches to looting their country.
  • Teodorin goes directly to the treasury to get money, while Teodorin invests in assets like luxury villas and planes.

Signs of a Looming Oil Shortage

  • Equatorial Guinea’s crude production had peaked in 2012 but dropped to just over 128,000 barrels by 2017.
  • The International Monetary Fund (IMF) estimates that Equatorial Guinea will run out of oil by 2035 if no new deposits are discovered.
  • The IMF is holding back over $200 million in loans intended to help restructure the economy due to Obiang Lima’s failure to implement transparency measures and a robust asset declaration regime for high-level officials.

Conclusion

  • The future remains uncertain for the citizens of Equatorial Guinea, as their leaders continue their insatiable appetite for wealth.
  • Despite vast oil resources, the citizens lack access to essential services like clean water, proper education, and healthcare.

Contributors

  • Rana Al-Sabbagh (OCCRP)
  • Khadija Sharife (OCCRP)
  • Karina Shedrofsky (OCCRP ID)