Tuesday, 6 December 2011

Equatorial Guinea vote highlights US corruption probe


A flawed constitutional referendum in Equatorial Guinea has strengthened the country's long-serving ruler and drawn attention to a US anti-corruption probe into his son.
The referendum, which human rights groups said was marked by fraud, removed the maximum age limit for the president, allowing ageing President Teodoro Obiang Nguema to stay in power after he turns 75 in six years' time. It also creates a new post of vice president, which his sonTeodorin Obiang Mangue is expected to fill in anticipation of an eventual dynastic succession.
The new focus on the younger Obiang has refocused attention on an announcement in October that the US Justice Department was investigating him for corruption and money laundering in the US. He is believed to have amassed a fortune of over US$100 million, despite being paid US$81,000 a year as Forestry and Agriculture Minister.
The Justice Department is seeking to seize a US$30 million mansion which Obiang owns in Malibu, as well as a private jet, a collection of luxury cars and a collection of Michael Jackson memorabilia worth US$2 million.
The cases are part of the Kleptocracy Asset Recovery Initiative, a Justice Department scheme which seizes corrupt foreign assets and corrupt funds which have been laundered in the US. At the beginning of December, Obiang began fighting the charges.
Equatorial Guinea has had a poor reputation for corruption for some time. Despite substantial oil riches, much of the population remains mired in poverty, with poor infrastructure and services, while a small ruling elite enriches itself. In 2004, the US Securities and Exchange Commission launched a probe into five US oil companies which were accused of bribing government officials in Equatorial Guinea, although the probe was inconclusive.
The legal struggle to reclaim Obiang's assets is anticipated to take a long time, and he is likely to fight the proceedings at every step. In any case, if he becomes vice-president he may decide to start spending more time back in Equatorial Guinea.
Sources: Reuters, Associated Press, AllAfrica

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