Financial Crime World

Teodorin Obiang Mangue, Equatorial Guinea’s Vice President, Convicted of Embezzlement and Money Laundering in Paris

Parisian Court Ruling: Teodorin Obiang Guilty of Embezzling €100 Million from Equatorial Guinea’s Government

(Paris) – In a landmark decision, a Parisian court convicted Equatorial Guinea’s vice president and eldest son, Teodorin Obiang Mangue, of embezzling over €100 million from his country’s government and laundering the ill-gotten proceeds in France on October 27, 2017.

Judgment Details

  • Teodorin received a three-year suspended prison sentence and a €30 million ($35 million) suspended fine.
  • The court ordered the seizure of his assets in France, worth over €100 million.

Reactions to the Verdict

Sarah Saadoun, Human Rights Watch

Sarah Saadoun, a business and human rights researcher at Human Rights Watch, hailed the verdict, stating it was further proof of rampant corruption in Equatorial Guinea, which has robbed its people of their oil wealth:

“The French government should repatriate the money and ensure it is used for the essential services, where it should have been spent.”

Historical Background

Criminal Complaint Filed by Non-Governmental Organizations (NGOs) in 2006

The controversy began when two French anti-corruption organizations, Transparency International France and Sherpa, filed a criminal complaint against Teodorin in 2006. This case marked the first time a French court recognized NGOs’ standing to file a criminal corruption complaint. The Paris verdict was the first of three pending cases against high-level government officials from various countries for alleged money laundering in France.

Teodorin’s Controversial Activities and Lifestyle

Teodorin, a known symbol of government corruption, has been under international scrutiny for years for his money-laundering activities and flamboyant lifestyle. Between 2004 and 2011, he spent approximately US$315 million on properties, cars, and luxury goods, which was nearly three times more than the government spent on health and education during that period.

Equatorial Guinea’s Argument

The Equatorial Guinean government maintained that Teodorin’s actions were legal, claiming that domestic laws allowed ministers to conduct business with the state through their own companies. No investigation has been conducted against him by the government.

Teodorin’s Promotion to Vice President

Teodorin’s promotion to vice president in June 2016, days after a French court ordered him to stand trial, was seen as an attempt to use diplomatic immunity to shield him from prosecution. The government unsuccessfully sued France in the International Court of Justice, alleging violation of Teodorin’s immunity.

Seizure and Control of Assets

French Government Control over Seized Assets

With this court decision, the French government now has control over millions of euros worth of seized assets, including a 101-room mansion on Avenue Foch, over €5.7 million worth of supercars, and millions more euros worth of art, jewelry, and luxury goods.

Repatriation of Assets

Despite having no laws for repatriation of recovered assets, organizations like Human Rights Watch are urging the French government to ensure the funds are returned to their rightful owners, the Equatoguinean people.

Teodorin reached a US$30 million settlement with the US Department of Justice in 2014 over similar allegations. The agreement requires the funds to be repatriated. Switzerland is presently investigating him for money laundering.

Equatorial Guinea’s Oil Wealth and Lack of Investment in Essential Services

High Per Capita Income but Poor Investment in Essential Services

According to estimates, Equatorial Guinea boasts the highest per capita income in Africa after the discovery of oil in the early 1990s. However, the country has failed to invest significantly in essential services like health and education.

Corruption and Mismanagement in Public Infrastructure Contracts

Human Rights Watch documented in a recent report how ruling elites in Equatorial Guinea siphon off the country’s oil wealth by owning stakes in public infrastructure contract companies. Corruption and mismanagement permeate the system, leaving little money for essential services.