By Matthew Russell Lee
www.innercitypress.com/banks1eguinea021510.html
UNITED NATIONS, February 15 -- Ten days after the release by the U.S. Senate of a reporting on evasion by the son of Equatorial Guinea's President for Life Teodoro Nguema Obiang Mangue of anti-money laundering controls by and at Citigroup, Bank of America, Wachovia / Wells Fargo and others, the Obiang regime fired back, calling the report racist and citing in its defense the election of Barack Obama.
Inner City Press is putting the Obiangs' memo online, here.
The Senate report exhaustively shows how Teodorin and his lawyers moved tens of millions of dollars through Citibank and Wachovia (owned by Wells Fargo since the financial meltdown), and used accounts at Bank of America, City National and other banks. The report described how Teodorin
"brought over $100 million into the United States using wire transfer systems at just two U.S. financial institutions, Wachovia Bank and Citibank. Neither system had been programmed to detect or block wire transfers bearing his name. In 2009... Citibank declined to take the same action due to projections that identifying, freezing, and investigating these wire transfers would generate too much work for its anti-money laundering staff...From 2004 to 2007, Mr. Obiang used accounts at three U.S. banks, Union Bank of California, Bank of America, and Citibank, often with Mr. Berger’s assistance, to deposit, transfer and spend nearly $10 million. Most of these funds were wire transferred from accounts in Equatorial Guinea held in the name of Mr. Obiang or two EG companies he controlled, Somagui Forestal and Socage."
To this, the Government of Equatorial Guinea in a communique sent to the Press on February 15, the President's Day holiday in the U.S., argues that
"According to Equatoguinean legislation, as occurs exactly in the most of the world, the natural and legal persons, as occurs in this case with the Ministry of Agriculture and Forestry, are perfectly authorized to do business and maintain other types of jobs at the margin of their Ministerial obligations."
Teodorin's "marginal" business includes a $30 million mansion in Malibu, a jet and recording studio, among other things. Previously he and his president for life father Teodoro Obiang Nguema Mbasogo moved their money, like Pinochet, into the U.S. through Riggs Bank.
Inner City Press and its Fair Finance Watch dug into these connections, including to Spain's Santander Bank and HSBC, when the Obiang disgraced Riggs was being sold to PNC Bank. Click here for coverage in Le Monde, in French.
The U.S. Federal Reserve did little at that time. With the major banks it regulates now implicated again in corrupt money laundering, what will the supposedly chastened Federal Reserve do?
The "Equatoguinean" response complains at the Senate report deals only with African corruption -- Angola with HSBC, Gabon's Omar Bongo with Citigroup, Nigeria's Abubakar with Suntrust and the ubiquitous Citibank -- and not any other continent. In this, it echoes the defenders of Sudan's Omar al Bashir, that the International Criminal Court and its prosecutor Luis Moreno Ocampo have so far indicted only African defendants.
But Equatorial Guinea goes further. Its cover email to Inner City Press argues that "it can be considered as an authentic insult to Africa, and more so after the people of the United States have voted in the majority for a President of African origin."
Then, in capital letters, Equatorial Guinea screams that
"In Africa and in Equatorial Guinea we are tired of BEING TREATED FOR CENTURIES LIKE INHUMAN BEASTS, ON WHICH ALL THE BRUTAL AND EVIL BEHAVIOURS POSSIBLE ARE BLAMED. This is again so verifiable in this case that even different media of the United States have written these days, in regards to this case, THAT THE FAMILY OBIANG PRACTICES CANNIBALISM."
Another of the ICC's and Ocampo's indictees, Jean Pierre Bemba the previous Vice President of the Congo, argued during his campaign against Joseph Kabila that, "I am not a cannibal!"
The Equatoguinean defense that's closest to the mark is that
"We also wish to put on the record that the United States is the country from which comes the highest foreign investment in Equatorial Guinea, which exceeds 12 billion USA dollars, and that no American corporation has complained of fraudulent behaviour of the Government. We also expect the Senate Subcommittee to be consistent with the criteria of the North American companies."
Or should it be the other way around? Major U.S. investors with the Obiangs include ExxonMobil, Marathon Oil, Hess Corporation, and Noble Energy. We will have more on all this.
