10 July 2013

The lifestyles of the rich and corrupt exposed

Nine cars were sold off at an auction in Paris raising $3.6 million. Luxury names took the stage including Porche, Bugatti and Bentley.

The owner: Teodorin Obiang, son of Equatorial Guinea’s President Teodor Obiang. The cars were seized in 2011 when the younger Obiang was charged with embezzling public funds in France to buy real estate in Paris.
A dapper Teodorin Obiang emerges from his luxury car.
It is quite the collection for someone who earned an official salary of $7,000 a month during that time. He has also managed to purchase a $30 million home in Malibu and liberated an €18 million art collection from the walls of fashion designer Yves Saint Laurent.

The money comes largely from the oil that the country produces. The sale of oil makes it way into the smooth rides and stylish suits worn by the Obiang family.

Corruption may feel like a problem in a far off nation, but it is much closer to home than one expects, says Global Witness co-founder Charmain Gooch.

“Corruption is made possible by the actions of global facilitators,” says Gooch.

Banks and business in the United States and France played a role in Teodorin Obiang’s purchases.
He did business with global banks. A bank in Paris held accounts of companies controlled by him, one of which was used to buy the art ,and American banks, well, they funneled 73 million dollars into the States, some of which was used to buy that California mansion. 
And he didn’t do all of this in his own name either. He used shell companies. He used one to buy the property, and another, which was in somebody else’s name, to pay the huge bills it cost to run the place.
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