Leaked documents reveal… Angola’s oil made ex-President’s daughter richest woman in Africa

Jan 26, 2020 News

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– BBC Panorama

Leaked documents reveal how Africa’s richest woman made her fortune through exploiting her own country, and corruption.
Isabel dos Santos got access to lucrative deals involving land, oil, diamonds and telecoms when her father was president of Angola, a southern African country rich in natural resources.
The documents show how she and her husband were allowed to buy valuable state assets in a series of suspicious deals.
Ms Dos Santos says the allegations against her are entirely false and that there is a politically motivated witch-hunt by the Angolan government.
The former president’s daughter has made the UK her home and owns expensive properties in central London.
She is already under criminal investigation by the authorities in Angola for corruption and her assets in the country have been frozen.
Now BBC Panorama has been given access to more than 700,000 leaked documents about the billionaire’s business empire.
Most were obtained by the Platform to Protect Whistle-blowers in Africa and shared with the International Consortium of Investigative Journalists (ICIJ).
They’ve been investigated by 37 media organisations including the Guardian and Portugal’s Expresso newspaper.
Andrew Feinstein, the head of Corruption Watch, says the documents show how Ms Dos Santos exploited her country at the expense of ordinary Angolans.
“Every time she appears on the cover of some glossy magazine somewhere in the world, every time that she hosts one of her glamorous parties in the south of France, she is doing so by trampling on the aspirations of the citizens of Angola.”
The ICIJ have called the documents the Luanda Leaks.
The oil connection
One of the most suspicious deals was run from London through a UK subsidiary of the Angolan state oil company Sonangol.
Ms Dos Santos had been put in charge of the struggling Sonangol in 2016, thanks to a presidential decree from her father Jose Eduardo dos Santos, who kept a tight grip on his country for the 38 years he was in power.
But when he retired as president in September 2017, her position was soon under threat, even though his hand-picked successor came from the same party. Ms Dos Santos was sacked two months later.
Many Angolans have been surprised at the way that President João Lourenço has gone after the business interests of his predecessor’s family.
The leaked documents show that as she left Sonangol, Ms Dos Santos approved $58m of suspicious payments to a consultancy company in Dubai called Matter Business Solutions.
She says she has no financial interest in Matter, but the leaked documents reveal it was run by her business manager and owned by a friend.
Panorama understands that Matter sent more than 50 invoices to Sonangol in London on the day that she was fired.
Ms Dos Santos appears to have approved payments to her friend’s company after she was sacked.
Although some consultancy work had been carried out by Matter, there’s very little detail on the invoices to justify such large bills.
One asks for €472,196 for unspecified expenses – another asks for $928,517 for unspecified legal services.
Two of the invoices – each for €676,339.97 – are for exactly the same work on the same date and Ms Dos Santos signed them both off anyway.
Lawyers for Matter Business Solutions say it was brought in to help restructure the oil industry in Angola, and that the invoices were for work that had already been carried out by other consultancy companies it had hired.
Ms Dos Santos’s lawyers said her actions with regard to the Matter payments were entirely lawful and that she had not authorised payments after she had been dismissed from Sonangol.
The ICIJ and Panorama have also uncovered new details about the business deals that made Ms Dos Santos rich.
Much of her fortune is based on her ownership of a stake in the Portuguese energy company Galp, which one of her companies bought from Sonangol in 2006.
The documents show it only had to pay 15% of the price upfront and that the remaining €63m ($70m) was turned into a low-interest loan from Sonangol.
Under the generous terms of the loan, her debt to the Angolan people didn’t have to be repaid for 11 years.
Her stake in Galp is now worth more than €750m.
Ms Dos Santos’s company did offer to repay the Sonangol loan in 2017.
The repayment offer should have been rejected because it didn’t include almost €9m of interest owing.
But Ms Dos Santos was in charge of Sonangol at the time and she accepted the money as full payment of her own debt.
She was fired six days later and the payment was returned by the new Sonangol management.
Ms Dos Santos says she initiated the purchase of the stake in Galp, and that Sonangol made money from the deal as well.
The diamond connection
It’s a similar story in the diamond industry.
Ms Dos Santos’s husband, Sindika Dokolo, signed a one-sided agreement in 2012 with Angolan state diamond company Sodiam.
They were supposed to be 50-50 partners in a deal to buy a stake in the Swiss luxury jeweller De Grisogono.
But it was funded by the state company. The documents show that 18 months after the deal, Sodiam had put $79m into the partnership, while Mr Dokolo had only invested $4m. Sodiam also awarded him a €5m success fee for brokering the deal, so he didn’t have to use any of his own money.
The diamond deal gets even worse for the Angolan people.
The documents reveal how Sodiam borrowed all the cash from a private bank in which Ms Dos Santos is the biggest shareholder.
Sodiam has to pay 9% interest and the loan was guaranteed by a presidential decree from her father, so Ms Dos Santos’s bank cannot lose out.
Bravo da Rosa, the new chief executive of Sodiam, told Panorama that the Angolan people hadn’t got a single dollar back from the deal: “In the end, when we have finished paying back this loan, Sodiam will have lost more than $200m.”
The former president also gave Ms Dos Santos’s husband the right to buy some of Angola’s raw diamonds.
Reuters news agency, in a subsequent report, said that Ms. Dos Santos, is under scrutiny by her bank and the Angolan government after the leaked documents showed how she exploited the country’s wealth to enrich herself.
EuroBic, a Lisbon-based arm of a bank where Ms. Dos Santos is the biggest shareholder, said last week Monday that it was ending its “commercial relationship” with her and investigating transfers worth tens of millions of dollars, transactions that were revealed last week by news outlets working with the Washington-based International Consortium of Investigative Journalists.
Angola’s attorney general said that the government would “use all possible means” to bring Ms. Dos Santos back to the country, where she faces possible corruption charges and where her assets were frozen last month, along with her husband’s and those of a Portuguese business associate, Agence France-Presse reported. The Angolan government, led until September 2017 by her father, José Eduardo dos Santos, said the three were responsible for more than $1 billion in lost government money.
The leaked documents, which include emails, invoices, slide presentations and contracts, provided a paper trail showing how Ms. dos Santos and her husband, Sindika Dokolo, amassed a fortune of more than $2 billion through their stakes in vital Angolan industries like telecommunications, diamonds and construction. Angola, rich in oil and diamonds, is nevertheless impoverished, with one of the world’s highest infant mortality rates and endemic corruption.
Reuters revealed too that the director of private banking at small Portuguese lender Eurobic and manager of Angola’s oil firm Sonangol’s account at the bank, Nuno Ribeiro da Cunha, was found dead at his house in Lisbon on Wednesday, Lusa news agency said on Thursday, citing a police source.
The same police source told Lusa that “everything points to suicide”. Police officials could not be immediately reached for comment.

 

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