Equatorial Guinea dictator's son 'splurged millions of impoverished country's money'

The US Justice Department has accused an African dictator's son of splurging $100 million of his impoverished country's money on luxuries including a private jet, a Malibu mansion, and a trove of Michael Jackson memorabilia.

Teodoro Nguema Obiang Mangue first moved to the United States in 1991, at the age of 23, to study English at Pepperdine University in Malibu Photo: flickr

By Nick Allen, Los Angeles

6:51PM BST 26 Oct 2011

Comment

Teodoro Nguema Obiang Mangue is alleged to have lived a playboy lifestyle in California where he owned a collection of 24 sports cars valued at $10 million.

Mr Obiang is the eldest son and heir apparent to Teodoro Obiang Nguema Mbasogo, the president of Equatorial Guinea. He serves as a minister of forestry and agriculture in his father's government.

Seventy per cent of the tiny west African nation's 680,000 population lives below the poverty line, and tens of thousands have no access to electricity or clean water, according to the African Development Bank.

A 46-page civil complaint filed by the US government in a court in California said Teodoro Obiang earned $6,799 (£4,234) a month for his government role but engaged in "extortion, misappropriation, embezzlement, or theft of public funds" to fund his lavish life.

The US is seeking to recover $71 million in assets from Mr Obiang for "the benefit of the people of the country from which it was taken".

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Mr Obiang's extraordinary catalogue of spending included a $3.2 million spree on Jackson items. He paid $275,000 for one of the late singer's white crystal-covered gloves and $80,000 on a pair of his crystal-covered socks.

He also spent $245,000 on a basketball signed by Jackson and the basketball player Michael Jordan.

In June 2006 he paid $38.5 million for his 12-acre estate overlooking the Pacific Ocean in Malibu, California, which included a private cinema and golf course. In the same month he paid $30 million up front for a Gulfstream G-V private jet.

He also went on outlandish shopping sprees for designer clothes, spending $80,000 at Gucci and $50,00 at Dolce & Gabbana in a single month.

According to the court documents his cars included a $2 million Maserati, and two Bugatti Veyrons worth $2 million and $1.3 million.

He also owned eight Ferraris, seven Rolls Royces, five Bentleys, four Mercedes, two Lamborghinis and an Aston Martin.

In June 2005 he bought two high performance 50ft speedboats worth $2 million and had one shipped to Hawaii so he could use it on a visit there. It capsized and had to be salvaged at a cost of $400,000.

In what would have been his most lavish expense he commissioned a German company in 2008 to design a "mega yacht" worth $380 million, nearly three times what Equatorial Guinea spends on health and education in a year. After the plan became public, Equatorial Guinea announced he would not be buying it.

He also paid $6.5 million for a house in the celebrity enclave of Bel Air in Los Angeles.

Mr Obiang first moved to the United States in 1991, at the age of 23, to study English at Pepperdine University in Malibu and lived in a hotel room at the exclusive Beverly Wilshire Hotel. He dropped out after five months.

In 1998 he was appointed forestry minister in the government of his father, who took over the country in a bloody coup in 1979.

According to the US Justice Department, the country's valuable natural resources, including oil, gas and timber, were allegedly used to line the pockets of the president, his son and their close associates.

Alleged corruption included bribery and money laundering schemes, such as demanding fees from companies before signing logging concessions, or paying a tax before getting timber exports approved.

The complaint said: "During President Obiang's more than 30-year rule members of the inner circle have amassed extraordinary wealth through a variety of corrupt schemes."

It said Teodoro Obiang's spending was "inconsistent" with his salary as a government minister.

Late last year Mr Obiang moved his luxury sports car collection, along with $400,000 worth of motorcycles, from Los Angeles to France. Eleven of his vehicles were seized there last month.

His private jet is believed to be in Equatorial Guinea but US officials said they would try to seize it if it ever lands in another country.

A Washington-based spokesman for Equatorial Guinea and Mr Obiang said there had been "no wrongdoing".

He said: "We intend to carefully review the allegations of this complaint now that we finally have access to it. We look forward to meeting with representatives of the Department of Justice to provide information that we hope will resolve the issues presented."

Embarrassing moment playboy son of an African dictator (whose people live on £1.50 a day) has £5million in supercars seized from outside his home

By PETER ALLEN

Last updated at 1:54 PM on 1st October 2011

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  Eleven supercars worth up to £5 million have been seized from outside an African dictator’s Paris mansion as part of a foreign aid money-laundering investigation. The vehicles, which included two Bugatti Veyrons, a Ferrari 599 GTO and a Maserati MC12 are all registered to Teodoro Obiang Nguema, the president of Equatorial Guinea. He is one of numerous African heads of state who regularly receive vast handouts in foreign aid – including British cash via European funding.

  
  
  

Away we go: Among the 11 supercars siezed were Maseratis, two limited edition Bugatti Veyrons, Ferraris, Porsches and Rolls Royces

'Ill-gotten gains': This Maserati MC12, and the other supercars, were seized as part of an ongoing investigation into Teodoro Obiang Nguema, the president of Equatorial Guinea

Load her up: Two officials stand by as the Maserati is lined up to drive aboard a lorry to take it away

Police swooped on his £15 million mansion on the prestigious Avenue Foch, close to the Arc de Triumphe, this morning, piling all of the vehicles on to a car transporter.

They are all thought to be ‘ill-gotten gains’ bought so as to hide huge amounts of cash smuggled into France from Africa, said a police source.

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‘There is an on-going judicial investigation into money laundering and other crimes related to the receipt of foreign aid,’ the source added. ‘These seizures have resulted from this enquiry.’

The cars, which all appeared to be new, also included an Aston Martin V8 600lm, Rolls-Royce Drophead Coupe, a Porsche Carrera GT, and a Ferrari Enzo, as well as various Bentleys.

Yellow fever: This Porsche Carrera GT worth a reported £350,000 was one of several cars repossessed

Under investigation: President Teodoro Obiang Nguema, above right, was not present as the cars were taken away, but a staff member told police most of the vehicles were ‘mainly used by his son, Teodorin Obiang left above'

Obiang Nguema, who is the current chairman of the African Union, was not thought to be present at the time of the seizures, though a member of his staff told police that the cars were ‘mainly used by his son, Teodorin Obiang'. 

The Supreme Court of France has appointed an investigating judge to conduct a judicial inquiry into claims that Obiang Nguema has used state funds to purchase property include the Avenue Foch house. 

Equatorial Guinea is oil rich, but poverty remains rife and there are regular allegations of high-level corruption, especially by Obiang Nguema and his eldest son, Teodorin.

All aboard: The cars here a Maserati MC12, Rolls Royce Phantom Coupe and an Aston Martin V8

All of the cars have been impounded and – if the Obiang Nguemas are unable to get them back – they are likely to be auctioned. 

Earlier this year it emerged that billions in foreign aid was being used to fund a multi-million-pound Paris property portfolio for African dictators.
Scores of the most luxurious houses and flats in the French capital are now owned by men who regularly receive the money.

EQUATORIAL GUINEA... TINY COUNTRY, HUGE CONTRADICTIONS

The Republic of Equatorial Guinea is one of the smallest nations in Africa, with an area of around 11,000 square miles and a population of 676,000. 

It is also one of the richest nations in Africa, but the distribution of wealth is desperately uneven.

The likes of Teodoro Obiang Nguema enjoys rude wealth, while 70 per cent of the population are living underneath the United Nations Poverty Threshold of £1.50 a day.

The gulf between rich and poor comers from the recent discovery of large petroleum reserves. The nation's GDP per capita ranks 28th in the world, but few people benefit.

They also include Ali Bongo, President of Gabon, with at least 39 properties, and Denis Sassou-Nguesso, President of the Republic of the Congo, who has 16.

Obiang Nguema’s six-floor period building is used by his family on shopping trips to France, while Obiang Nguema – who came to power in a bloody 1979 coup – prefers to occupy a 2,000 pounds -plus-a-night suite at the Plaza Athenee Hotel, off the Champs Elysee. 

The astonishing details are in a report handed to Paris prosecutors by anti-corruption groups Transparency International and Sherpa. 

They are also investigating claims that Zine El Abidine Ben Ali of Tunisia and Hosni Mubarak of Egypt – both deposed in the Arab Spring – retain numerous homes in France.

Libya’s Colonel Gaddafi is also thought to be a Gallic property owner, as is Bashar Al-Assad, accused of killing his own subjects in Syria.

The dossier’s main accusation is that foreign aid flooding into blighted African states was used to fund the extravagant lifestyles of unelected leaders. 

French authorities have been accused of turning a blind eye to the scandal. Liberation newspaper highlighted President Sarkozy’s apparent inability to his give up his support for despots.

Critics say Paris prosecutors were fooled by financial 'illusionists' who hid the vast wealth. William Bourdon, barrister for the complainants had to battle against the 'judicial silence' he said.

Read more: http://www.dailymail.co.uk/news/article-2043836/Son-African-head-state-cars-seized-money-laundering-investigation.html#ixzz1buboYw3b

Equatorial Guinea’s president plundered his country’s natural resources through corruption

 The son of Equatorial Guinea’s president plundered his country’s natural resources through corruption, spending more than $70 million in looted profits on a Malibu mansion, a Gulfstream jet and Michael Jackson memorabilia, the U.S. government said.

In what appeared to be a concerted action, France last month seized 11 luxury sports cars belonging to Teodorin Nguema Obiang Mangue, a government minister in the West African country and heir-apparent to the presidency.

And a Spanish investigative judge has been asked to seize properties in Madrid and Las Palmas in the Canary Islands owned by President Teodoro Obiang Nguema, his sons and some ministers, acting on a case brought by the Pro-Human Rights Association of Spain.

Teodorin Obiang, who is in his early 40s, used his position to siphon millions of dollars for his own personal use, U.S. authorities said in two civil forfeiture complaints filed in the District Court in Los Angeles and Washington, D.C. The complaints say Obiang’s assets can be forfeited because he engaged in misappropriation and theft of public funds for his benefit.

The U.S. government is seeking to recover $70 million in stolen funds from Obiang for “the benefit of the people of the country from which it was taken.”

“We are sending the message loud and clear: The United States will not be a hiding place for the ill-gotten riches of the world’s corrupt leaders,” said Assistant Attorney General Lanny Breuer.

An email message left for Purificacion Angue Ondo, Equatorial Guinea’s ambassador to the U.S., was not immediately returned. President Obiang has denied charges of corruption in the past. Teodorin Obiang told a South African court in 2005, in a dispute about two Cape Town mansions valued at $4 million, that he earned $4,000 a month as a minister but that in his country it is legal for companies owned by ministers to bid for government contracts with foreign groups and receive “a percentage of the total contract.”

U.S. authorities believe Teodorin Obiang amassed more than $100 million through various schemes while he served as the country’s forestry minister. His current government salary is about $6,800 a month, according to court documents.

The U.S. action follows years of investigations including a Justice Department and Immigration and Customs Department probe that showed Obiang transferred about $75 million into U.S. banks between 2005 and 2007, and indicated U.S. banks had not shown due diligence.

This came after the Obiang fortunes helped bring down the once-venerable Riggs Bank in 2004, when a U.S. Senate Committee investigation found the bank had “turned a blind eye” to evidence it was handling proceeds of foreign corruption in deposits of some $700 million deposited by its biggest customers — Equatorial Guinea government entities, senior officials and Obiang family members. One bank official gave evidence that more than a million dollars was brought to the bank in one instance in cash enfolded in plastic wrap.

Some $26.5 million of that was transferred in suspicious transactions to Banco Santander in Spain, and used to buy properties being investigated there.

The U.S. Senate Permanent Subcommittee on Investigations last year found that powerful Equatorial Guinea officials and their families used attorneys, real estate agents and lobbyists to circumvent anti-corruption laws.

Human rights groups including the Global Witness and the Open Society Justice Initiative for years have been asking the United States to deny visas to the Obiang family and seize their property under U.S. laws against unjust or illicit enrichment.

It was unclear why the action suddenly was being taken. A spokeswoman for the Department of Justice, Laura Sweeney, declined to comment “at this time” in an email response to questions. Ken Hurwitz, senior legal officer at the New York-based Open Society Justice Initiative, said he had heard reports that the Malibu property was being put up for sale.

Equatorial Guinea was a backwater until American energy company Exxon Mobil discovered oil and gas there in 1994. U.S. companies continue to dominate the industry there but face growing competition. Most oil from the country, which produces billions of dollars in annual revenue, is exported to the United States.

Despite its newfound wealth, life for the vast majority of the country’s 680,000 people remains a struggle and the majority live below the poverty line with tens of thousands having no access to electricity or clean water, according to U.N. and World Bank figures.

Earlier this year, Global Witness reported that Teodorin Obiang had commissioned plans to build a superyacht costing $380 million — nearly three times what the country spends on health and education each year.

U.S. authorities said Teodorin Obiang spent $30 million on a Malibu mansion, $38.5 million on a Gulfstream jet and about $3.2 million on Michael Jackson memorabilia, including a crystal-covered glove from the “Bad” tour and a basketball signed by the singer and former Chicago Bulls star Michael Jordan.

Among the other items purchased by Obiang, according to federal officials, was a 2011 Ferrari automobile valued at more than $530,000. Obiang also stored 24 luxury cars worth nearly $10 million at the Petersen Automotive Museum in Los Angeles and shipped them to France.

Among the supercars seized in France last month are Maseratis, two limited edition Bugatti Veyrons, Maseratis, Ferraris, Porsches and Rolls Royces.

Obiang would give various stories to banks that questioned where he had received large sums of cash from, authorities said. When Obiang opened an account at a California bank in 2007, he claimed that he acquired money from a family inheritance and from trading expensive and custom automobiles, court documents show. Agencies

US Seeks $70M From President Nguema’s Son

African dictator's son who became Malibu playboy after 'siphoning off $70m' from his impoverished people is set to lose his fortune (and his $3m of Jacko trinkets)

• Son of Equatorial Guinea's president splashed out $38.5m on private jet
• Dated rapper Eve and 'hired super-yacht for $700,000 to impress her'
• American-educated 39-year-old also spent $30m on Malibu mansion
• Shelled out $39m on Gulfstream jet and 24 cars worth almost $10m

By LOUISE BOYLE and MARK DUELL

Last updated at 3:37 PM on 26th October 2011

Expensive taste: Son of Equatorial Guinea's president, Teodoro Nguema Obiang Mangue, wearing a shirt emblazoned with his father's face, has reportedly spent $70million of his country's money

He lives a typical Malibu playboy lifestyle - residing in a sprawling beach mansion, has dated rapper Eve and even splashed out $3million on Michael Jackson memorabilia.  

But now Teodoro Nguema Obiang Mangue is set to lose it all after it was revealed that the son of Equatorial Guinea's president is being hunted by the U.S. government for looting more than $70million from his own country.

Mangue, 39, used his position as a government minister to siphon millions of dollars for personal use, according to two civil forfeiture complaints filed in Los Angeles and Washington D.C.

The U.S. government is now trying to recover the $70million. U.S. authorities believe the son of President Teodoro Obiang Nguema amassed more than $100million in various schemes while he served as the country's forestry minister.

Among them were demanding companies pay a 'tax' for doing business in Equatorial Guinea as well as providing Mangue with gifts and free services, according to court documents filed in the U.S.

In what appeared to be a concerted action, France last month seized 11 luxury sports cars belonging to him and a Spanish investigative judge has been asked to seize properties in Madrid and Las Palmas in the Canary Islands owned by the president, his sons and ministers.

Equatorial Guinea is a country of around 680,000 people which has become a major oil, gas and timber producer, resulting in billions of dollars in revenue. Despite this fact, the majority of the population live on a dollar a day. 

And despite already having a government salary of $6,800 a month, Mangue is accused of tapping into the nation's wealth and indulging his lavish tastes. 

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Mangue, who is American-educated, spent $30million on a Malibu mansion, $38.5million on a Gulfstream jet and $3.2million on Michael Jackson memorabilia that included a crystal-covered glove from the Bad tour and a basketball signed by the singer and Michael Jordan.

Wacko for Jacko: Mangue is wanted by the U.S. Government for spending his country's resources on Michael Jackson's crystal-covered glove and a basketball signed by the singer

Life's a beach: The Equatorial Guinea minister is said to have spent $30 million of the country's resources on this extensive Malibu mansion

Worlds apart: The majority of citizens of Equatorial Guinea live on a dollar a day (left) while government minister Mangue spent millions of his nation's wealth in Malibu

Among the other items purchased by Mangue, according to federal officials, was a 2011 Ferrari  valued at more than $530,000. 

'We are sending the message loud and clear: The United States will not be a hiding place for the ill-gotten riches of the world's corrupt leaders'

Assistant Attorney General Lanny Breuer

He also stored 24 luxury cars worth nearly $10million at the Petersen Automotive Museum in Los Angeles and shipped them to France, which has reportedly since seized 11 of them.

Last year it was reported that Mangue was dating the rapper and actress Eve, spending close to $700,000 to rent Microsoft billionaire Paul Allen's 303-foot yacht Tatoosh to impress her, according to the New York Post.

A friend of Eve told the New York tabloid that he had been chasing her for a long time and that she finally gave in to his invitation.

Meet and greet: The Obamas meet president of Equatorial Guinea Teodoro Obiang Nguema Mbasogo and his wife Costancia

All about Eve: The playboy is said to have rented a super-yacht from Microsoft billionaire to impress the rapper and actress

The Grammy award winner was reportedly named in the ongoing investigation into Mangue and  foreign corruption.

Eve used her Twitter account to deny the allegations and urged her fans not to believe everything they read.

Authorities are seeking to recover $70million in stolen funds from Mangue for 'the benefit of the people of the country from which it was taken'.

Assistant Attorney General Lanny Breuer said: 'We are sending the message loud and clear: The United States will not be a hiding place for the ill-gotten riches of the world's corrupt leaders.'

An email message left for Purificacion Angue Ondo, Equatorial Guinea's ambassador to the U.S., was not immediately returned.

Mangue would give various stories to banks that questioned his large sums of cash, authorities said. 

When Nguema opened an account at a California bank in 2007, he claimed that he acquired money from a family inheritance along with trading expensive, custom-made cars.

His father, who has led Equatorial Guinea since 1979, has been accused by Amnesty International of torturing and unjustly imprisoning political opponents. 

Bad investment: Mangue (left) spent millions on Michael Jackson memorabilia including the famous crystal-covered glove 

Lavish luxuries: He is said to have spent $38.5million on a Gulfstream jet (file picture)

The U.S. Senate Permanent Subcommittee on Investigations issued reports in 2004 and last year regarding possible corruption by Equatorial Guinea government officials.

The 2010 report found that powerful foreign officials and their families used attorneys, real estate agents and lobbyists to circumvent anti-corruption laws.

In the two civil forfeiture complaints, it is stated that Mangue's assets can be forfeited because he engaged in misappropriation and theft of public funds for his benefit.

EQUATORIAL GUINEA: A BACKWATER UNTIL U.S. COMPANY DISCOVERED OIL

Poverty: Malabo neighbourhood in Equatorial Guinea stands in contrast to President Mbasogo's riches

Equatorial Guinea was a relatively ignored place until American energy company Exxon Mobil discovered oil and gas there in 1994. 

U.S. companies continue to dominate the industry there but face growing competition. Most oil from the country, which produces billions of dollars in annual revenue, is exported to America.

Despite its newfound wealth, life for the vast majority of the country's 680,000 people remains a struggle.

The majority live below the poverty line with tens of thousands having no access to electricity or clean water.

It was listed by U.S. think tank Freedom House as among one of the world's worst regimes along with North Korea, Burma and Somalia.

President Teodoro Obiang Nguema Mbasogo seized power in 1979 from his uncle, who said he was a sorcerer and collected human skulls. 

The President has created a one-party state in a country with Africa's most notorious prison, Black Beach, which is known for its torture.

Read more: http://www.dailymail.co.uk/news/article-2053554/The-Malibu-playboy-set-lose-70m-fortune--spent-3m-Michael-Jackson-collectables-people-African-country-lived-ONE-DOLLAR-day.html#ixzz1buAsK5YR