Corrupt politicians and dodgy businesses are stealing millions of dollars from the countries they are supposed to serve, using phantom firms and tax havens to do it. They often then buy valuable property overseas in the most desirable parts of the world.
ONE is campaigning to expose phantom firms and stop resources that could be used to tackle poverty being siphoned out of Africa in dodgy deals. We’re calling for information about who owns companies and trusts to be made public, starting in the UK. Add your support by signing our petition.
The good news is, these dodgy dealers don’t always get away with it. Come along for a virtual tour of some of the seized properties of disgraced politicians and company bosses.
One of the most prolific buyers of property on our tour is Cecilia Ibru, former Managing Director of Oceanic Bank who was sentenced to six months in prison for fraud and ordered to hand over $1.2bn in cash and assets. Authorities seized an incredible 103 properties in the United States, Nigeria, South Africa, Dubai, and London.
Global Witness has called phantom firms the ‘getaway car’ for the proceeds of illegal financial activity. Teodorin Obiang knows the value of a getaway car. The son of President Obiang of Equatorial Guinea has had estates seized in Malibu, California and Paris, as well as sports cars and Michael Jackson memorabilia valued at $1.8m (including a while jewel-encrusted glove from the Bad tour).
Phantom firms are fake companies set up to hide the identity of the people who control them, often only existing on paper. They are used to move money out of developing countries and into bank accounts, which can then be used to buy properties like these.
Though famous for her vast shoe collection, Imelda Marcos, wife of former President of the Philippines Ferdinand Marcos, also had a penchant for New York real estate. The World Bank’s Stolen Asset Recovery Initiative estimates they siphoned between $5-10bn from the country.
What role to banks play in all of this? Some, unwittingly or otherwise, have helped their clients launder money. The Saudi Arabian royal family, the Chilean dictator Augusto Pinochet, and the Obiang family of Equatorial Guinea all banked at Washington, DC-based Riggs Bank.
Riggs was investigated by the FBI and Congress for terrorist financing and money laundering. According to a US Senate investigation, Riggs Bank accepted cash deposits of $1m or more for accounts linked to officials from Equatorial Guinea. An employee of the bank testified that, on at least two occasions, these cash deposits arrived at the bank in suitcases weighing as much as 60 lbs. In violation of US law, the bank failed to report this as suspicious activity and were fined $50m.
ONE is taking on the phantom firms that enable billions to be stolen from the countries that most desperately need it. Right now the UK government is considering proposals to crack down on phantom firms and other European countries will be doing the same soon.
Sign our petition now and help ensure that resources are used to fight extreme poverty rather than lost to dodgy deals.