The Empress Has no Clothes

Isabel dos Santos is the woman who once boasted to Forbes magazine that she was Africa’s first female billionaire. Although Angolans knew she owed her fortune to nepotism and wholesale theft from the public purse, Isabel wove an image of herself as an astute global entrepreneur. But her reputation began to unravel along with her business empire after her father José Eduardo dos Santos stepped down as President of Angola last year. As President, Dos Santos had funnelled millions of dollars from the state oil company Sonangol to ‘loans’ to bankroll her businesses. Then, before leaving office, he installed Isabel as the head of Sonangol. The effect was catastrophic. The new President marshalled the evidence and ensured his own position was sufficiently secure before acting. First, Isabel was sacked as the head of Sonangol. Then she was removed, step by step, from each of the lucrative contracts or positions awarded […]

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Isabel dos Santos: The Fall of Africa’s Richest Woman

Just think for a minute. In a two-year span, a father gave his daughter, among several contracts, four that were worth over US $22 billion. The father is then President José Eduardo dos Santos, and the daughter is Isabel, Africa’s richest woman. These were the golden days of the presidential family’s capture of Angola. Period. In the past month, with a stroke of a pen, General João Lourenço has annulled the four egregious contracts. The former “princess” is crying foul, and is threatening to sue the Angolan state however, the state is calling out her bluff. Her fortune is about to tumble like a house of cards, just as her father’s power fell flat once he left office after 38 years. Through her father’s presidential decrees, Isabel built her fortune. Now, ironically, the man her father personally chose to replace him is first and foremost taking away the family’s fortunes […]

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The Half-a-Billion-Dollar Scam of Espírito Santo Bank in Angola

In the plunder that has been carried out in Angola, little has been said about the extraordinary role of Portuguese facilitators – especially bank executives, lawyers and intermediaries – in setting up related operations. Little is also said about the extremely harmful role they play in Angola, while pretending to be above reproach. Maka Angola brings to light the US $518.5 million operation orchestrated in 2013 by José Fernando Faria de Bastos, a Portuguese lawyer living in Angola, and Rui Guerra, a Portuguese citizen and then-CEO of Banco Espírito Santo Angola (BESA). Let us start on June 28, 2013. On that day, BESA carried out five credit operations to five shell companies totalling US $379 million. This operation financed the purchase of assets of Espírito Santo Commerce (Escom), 66 percent owned by the Espírito Santo Group (GES) of Portugal, and 30 percent by the Portuguese-Angolan citizen Hélder Bataglia. An addendum […]

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Angolan Opposition Unites to Challenge ‘Illegal’ Election Results

Four Angolan opposition parties have jointly declared that the results of the 23 August election announced by the National Electoral Commission were illegal and unconstitutional. In a joint statement issues on Sunday, UNITA, CASA-CE, PRS and FNLA stated they would not recognize “any results produced on the margins of the law”. The party leaders demanded a recount at provincial level “on the basis of the law and the constitution”. They declared that only three of Angola’s 18 provinces, Cabinda, Uíge and Zaire, had processed the election results in accordance with the Electoral Law. “The supposed count was limited only to checking the spoiled, blank and contested ballots. The process became even more shady with the disappearance of ballot boxes, the emergence of new ballot boxes, the disappearance of votes, and other irregularities,” the opposition leaders declared. The party leaders, who were also the presidential candidates of their respective parties, said […]

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Greasy Palms in Angola’s Oil Industry

Today Maka Angola can shed light on a relatively clumsy sleight of hand by the former Chairman of the Board and CEO of Sonangol USA. Step forward Baptista Sumbe, who occupied that position between 1997 and 2009. In 2006, for the sum of US $400,000, Baptista Sumbe and his wife Rosa acquired approximately 550 square meters of land, demarcated as Plot 4, Block 3, Section 11 of the Royal Oaks Country Club in Houston, Texas. They borrowed $306,000 from the Compass Bank on June 26, 2006 to help pay for it. So far, so legit. But Baptista Sumbe didn’t really need a bank loan. He had already gone knocking on the door of Sonangol USA, the company in which he was Chairman of the Board. On November 1, 2006, Mr and Mrs Sumbe had arranged to borrow from Sonangol USA the sum of US $1,750,000 for their personal use. They […]

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Higher Education in Angola is not in Safe Hands

Since Angola’s civil war ended in 2002, the overall number of students in higher education has risen more than tenfold to over 140,000 but have educational standards kept pace? Some suggest they have not; that quantity should not be confused with quality. No less a figure than General João Lourenço, the MPLA Vice-President and Defence Minister, said in a speech to the academic community this month that institutions of higher education should not exist just to train the masses. He referred openly to the need for higher quality in Angola’s institutions of higher education and added that merit should be rewarded. It is remarkable that João Lourenço chose to highlight the concept of merit when this has not been high on the list of attributes required for appointments under José Eduardo dos Santos’s regime. Up to now nepotism, affinity and servile obedience have been more likely to secure an academic […]

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40 Years On… The Boys are Back

Shrugging off the legal challenges to her appointment as President of the Board of Director of Sonangol, the President’s daughter, Isabel dos Santos, has lost no time in showing how she means to restructure the state oil company.  Her first task has been to recruit 120 Portuguese staff to senior positions. The new recruits will join a further 50 consultants – also mostly Portuguese nationals – currently working as consultants and advisers to Isabel on behalf of the Boston Consulting Group and the Portuguese law firm Vieira de Almeida, who in effect are jointly running the Angolan state firm at this point. The arrival of the Portuguese contingent to take over at the Angolan state oil company raises some interesting points:  firstly, the total absence of any national or international recruitment campaign and the lack of any attempt at dialogue between the managers and workers at Sonangol points to the same lack […]

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Isabel dos Santos Pockets Forbes

U.S.-based business publisher Forbes has formed a partnership with a company controlled by Isabel dos Santos, daughter of the Angolan President, to publish a new magazine edition for Portuguese-speaking African countries. Forbes Portuguese Africa will be a joint venture with ZAP, a company in which Ms. Dos Santos has a 70 percent shareholding. Last August, Forbes published information revealing that the President’s daughter had acquired almost her entire Angolan fortune through corrupt means. The announcement comes almost a year after Forbes included Ms. Dos Santos on its list of Africa’s wealthiest people. It assessed her wealth at U.S. $3 billion, making her the richest woman on the African continent. The inclusion of Ms. Dos Santos on the list attracted criticism that Forbes was glorifying a woman who owed her fortune to the political influence of her father, President José Eduardo dos Santos. In response to that criticism, in August, Forbes […]

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Corruption in Angola, Money-Laundering in Portugal and the Impact on Human Rights

Rather than addressing corruption in Africa in general, this brief paper focuses on a particular case study, Angola. The rationale for this analysis lies in the paradoxical combination of the following factors: for the past decade, the country has had the fastest growing economy in the world; it is the third-largest economy in Sub-Saharan Africa; it ranks among the most corrupt regimes worldwide and has some of the lowest levels of human development. In recent years, the national oil company Sonangol and Politically Exposed Persons (PEP’s) have invested billions of euros in the European Union, particularly in Portugal. On February 14, the National Assembly passed Angola’s 2013 state budget – the largest ever, to the tune of US $69 billion. This unprecedented budget and the country’s steady economic growth have the potential to transform the lives of Angolans. It is estimated that two-thirds of the 19 million Angolans still live […]

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(English) Blood Diamonds: Angolan Generals Defeated in Court Case in Portugal

The Portuguese Public Prosecutor’s Office dismissed, yesterday, a criminal complaint lodged by nine Angolan generals against journalist Rafael Marques de Morais, and the publishing house Tinta-da-China, following the publication of “Blood Diamonds: Corruption and Torture in Angola”. Marques’ book, which was published in Portugal in 2011, is a chilling account of systematic human rights abuses by soldiers of the Angolan Armed Forces and guards of Teleservice, the largest private security company in the country. The generals are shareholders of both the diamond mining company Sociedade Mineira do Cuango, and its security contractor Teleservice. The book details several cases of murder with more than 100 victims, and dozens of torture cases with more than 500 victims. The generals alleged that the author defamed and slandered them. However, the Public Prosecutor, having examined the documentation entered into evidence, found that the publication of the book fell within the legitimate exercise of a […]

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