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European Banks Complicit as Corrupt African Leaders Plunder Their Home Economies

European Banks Complicit as Corrupt African Leaders Plunder Their Home Economies

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European banks have allegedly been complicit as corrupt African leaders pilfer the wealth in their economies within the billions of bucks. The Angolan govt on Monday arrested the son of ex-president Jose dos Santos for stealing $500 million from the rustic’s sovereign wealth fund, with the assistance of a British financial institution. It is just a few days in the past that Nigeria demanded financial institution in Europe returns $100 million laundered by means of former dictator Sani Abacha. In Liberia, ex-central financial institution governor Milton Weeks is underneath investigation for the $104 million that vanished from state coffers.

Also learn: Pushing The Boundaries Of Economic Change: Bitcoin As A Medium Of Exchange In Africa

Angola Police Arrest Ex-President’s Son Over Allegations of $500 Million Plunder

Police in Angola on Monday arrested the son of former president Jose Eduardo dos Santos, over a corruption case involving the alleged unlawful switch of $500 million of public finances to a British financial institution, consistent with a report by means of Bloomberg.

Jose Filomeno dos Santos used to be positioned in “preventive detention”, Angolan government say.

European Banks Complicit as Corrupt African Leaders Plunder Their Home Economies
Jose Filomeno dos Santos

He had to begin with attempted to twine the finances to the London department of Swiss financial institution Credit Suisse the usage of “forged documents”, however British government blocked the switch “suspecting foul play,” say earlier reports.

The switch later sailed thru, this time allegedly by means of an HSBC Holdings % account within the United Kingdom, Bloomberg reported, quoting the Angolan prosecutor normal Alvaro Da Silva Joao.

“The evidence gathered resulted in sufficient indications that the defendants have been involved in practices of various crimes including criminal associations, receipt of undue advantage, corruption, participation in unlawful business, money laundering, embezzlement, fraud among others,” he stated.

Angola’s Finance Ministry says dos Santos, who used to be head of the rustic’s $five billion wealth fund, disguised the switch as a venture aimed toward attracting funding in Angola with the assistance of a pretend ensure from a financial institution in Europe.

European Banks Complicit as Corrupt African Leaders Plunder Their Home Economies

Appointed by means of his father to go the wealth fund in 2013, dos Santos used to be sacked previous this 12 months after he used to be charged with misappropriating public finances to the track of $500 million from the National Bank of Angola. He promised to conform to investigations on the time.

His arrest, along with Angolan-Swiss businessman Jean-Claude Bastos de Morais, is a part of President Joao Lourenco’s plans to rid Africa’s quantity two oil manufacturer of corruption. Angola is ranked by means of the Transparency International a number of the international best 20 maximum corrupt nations.

Former Transport Minister Augusto da Silva Tomas has additionally been arrested over allegations of embezzlement, native media reported.

Banks Face Criticism Over Growing Trend

The newest construction comes at a time when European banks have confronted grievance for allegedly helping corrupt African leaders siphon billions of bucks from the impoverished continent. According to the African Capacity Building Foundation, the continent loses as much as $50 billion in illicit monetary flows every 12 months.

Nigerian President Muhammad Buhari closing week demanded that HSBC Bank go back as much as $100 million it allegedly helped former dictator Sani Abacha launder from the Nigerian financial system.

European Banks Complicit as Corrupt African Leaders Plunder Their Home Economies

In 2006, Switzerland passed again $500 million of the Abacha loot to Nigeria – the primary time any financial institution in Europe had returned stolen cash to a rustic in Africa.

Liberia has indicated that it’s investigating its former central financial institution governor Milton Weeks and Charles Sirleaf, son of the previous president Ellen Johnson Sirleaf, over $104 million that vanished from state coffers.

HSBC Holdings % is without doubt one of the greatest banking and fiscal products and services organisations on the planet. HSBC’s global community contains round 7,500 places of work in over 80 nations and territories in Europe, the Asia-Pacific area, the Americas, the Middle East, and Africa.

But the company has been pressured to pay billions of bucks in fines for cash laundering and different monetary crimes. In the United States, HSBC paid $1.92 billion for serving to to facilitate the laundering of Mexican drug cash, and a number of other million have been paid in Hong Kong for systemic deficiencies.

Cryptocurrency to Stem The Flow of Illicit Transfers

Cyptocurrency is noticed as key to serving to African nations battle corruption and illicit transfers.

A record by means of Enrique and Eduardo Aldaz-Carrol published at the Brookings Institution website online printed that: “cryptocurrency and blockchain could help prevent fraud and corruption, reduce the costs of enforcement thanks to easily accessible information and faster crosschecks, and help supervise implementation and monitor efficiency and effectiveness of spending, increasing development impact”.

Do you assume that banks in Europe are contributing to the cave in of African economies? Let us know the way you are feeling within the feedback phase beneath.


Images by means of Shutterstock, Trading View, and Satoshi Pulse.


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