French police seized a six story mansion belonging to the son of Equatorial Guinea leader, Teodoro Obiang Nguema Mbasogo, as part of an investigation into money laundering (BBC). The corruption charges were brought forth by the anti-corruption agency, Transparency International. The organization suspects Mr. Obiang, as well his father and several other African leaders, of using the state's assets to acquire property in France (Transparecny International). The seized mansion is valued at 150 million euros. Around this time last year the French government confiscated some fifteen luxury cars from Teodorin Nguema Obiang Mangue, worth an estimated 70 million euros (BBC). This story alone exemplifies the vast extent at which rulers utilize wealth from resources for their own personal gains at the expense of their country. The resource curse is all too relevant in this story. Equatorial Guinea struck it rich by finding oil in the late 1990's, but the government wasn't ready for a sudden increase in monitory supply. Sadly, like most countries that find oil reserves, they gave into corruption and became fiscally irresponsible. The country's population of 750,000 lives in poverty while their leaders parade around in mansions and drive 15 plus cars. On another note, last year in Equatorial Guinea the first ever elections took place, and Africa's longest standing leader retained power with 95% of the vote (BBC). This last example shows how corruption is embedded in practically every element of the Equatorial Guinea government. I'm proud of the French for stepping in and attempting to make a point of the extreme corruption in the Equatorial Guinea government. To further the idea of combating corruption, countries around the world should stop sending crates of foreign aid to countries that have corrupt political leaders. Another way to eliminate corruption would be to instill strong institutions with the power of regulating the wealth that comes with oil production.
References:
"Paris Villa of Equatorial Guinea Leader's Son Obiang Seized." BBC News. BBC, 08 Sept. 2012. Web. 16 Nov. 2012. <http://www.bbc.co.uk/news/world-africa-19120379>.
"Biens Mal Acquis" Case: Teodorin Obiang Refuses to Appear before Judicial Authorities." Press Releases -. N.p., n.d. Web. 16 Nov. 2012. <http://www.transparency.org/news/pressrelease/20120713_biens_mal_acquis_case_teodorin_obiang_refuses_to_appear>.
The French have a good idea with trying to limit the spending habits of leaders in foreign countries, and it's also good to try and oust the problem of corruption to the international community. However, they don't seem to have a plan for returning any of the capital wasted on luxuries to the people who were exploited in order to pay for it. Equatorial Guinean's are the people who are at the loss here. Obiang will continue to take their country's profits and spend them in other countries, leaving his people to suffer with no hope to see the oil profits help them.
ReplyDeleteUnfortunately i believe that this action, though important is very minimal. It will take a unified global effort to try to end corruption and seize assets which many will determine to be illegally obtained. Yet monitoring such things is extremely difficult since if you ask any wealthy person in the world, it is very likely that they have assets hidden away in offshore banks. But anyway back to the point, i believe that cutting aid would not help, it would simply make everything worse since the little money that the people do get wont reach them. Also what will stop leaders from going to places to China which cares little with mixing humanitarian politics with economic relations?
ReplyDeleteThis is a very good start to try to minimize the money laundering from the leaders of equatorial Guinea however, it is so hard to punish leaders in these cases. Also, as seen in class this regime has so many properties around the world that it will need to be more than just France implementing sanctions.
ReplyDeleteWhile I do think that this was a small start to end corruption done by political leaders, I agree with Othman in the fact that it is just too minimal. Seizing one corrupt leaders mansion is really not going to do anything other than make him mad. It would not be surprising if Mr. Obiang went out and used more of Equatorial Guinea's money to buy himself an even better home. I like the idea of trying to get rid of corruption by implementing more regulation, but I also think it is going to be hard to trust the people that will be in charge of this regulation. It seems that the resource curse has really taken a tole on this country so I think the only thing the people and the leaders know is corruption. I hope that there will be bigger actions taken in the future to end this corruption. This would hopefully end the resource curse and turn it into more of a blessing for Equatorial Guinea,
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