Our Advisory Board is concerned about what is happening in Equatorial Guinea.

It’s a small country

in West Africa that has a population of about 700,000. It has been ruled by the same family since
independence from Spain in 1968. Its current president, Teodoro Obiang Nguema, assumed office in
1979 when he deposed and executed his uncle. President Obiang is the longest ruling head of state in
the world. It appears that President Obiang intends to transfer power, at some point, to his eldest son,
Teodoro Obiang Mangue, also known as Teodorin.
Equatorial Guinea has become a significant producer of oil and gas in West Africa; recently surpassing
Gabon as the third largest producer in the region. Prior to the discovery of oil and gas, Equatorial
Guinea was one of the poorest countries in Sub-Saharan Africa. Today its per capita gross national
income is on par with some West European countries. Nevertheless, almost 77% of Equatoguineans
live in poverty (less than $2 a day) and its level of severe poverty in equivalent to Haiti and Chad.
According to Transparency International’s 2013 Index of Perceived Corruption, Equatorial Guinea is
the 19th most corrupt country in the world. All the oil and gas in Equatorial Guinea is produced by
four U.S. oil companies; Exxon Mobil, Marathon Oil, Noble Energy, and Hess. These companies have
been the subject of several investigations by U.S. authorities, without any findings of U.S. Foreign
Corrupt Practices Act violations. Nevertheless our Advisory Board is considering divesting these
companies simply because they do business in Equatorial Guinea.
The Advisory Board meets Tuesday, February 3, at 5:30 p.m. Would you please be ready to give a 10
to 15 minute report on the corruption of the Obiang family? The Advisory Board is aware that
Teodorin has faced legal actions in the U.S. and France. Please include in the report details of the
corruption alleged in those cases.
Thanks,
Frida, Vice President of Research, Norwegian Pension Fund

President Teodoro Obiang Nguema Mbasogo seized power from his uncle in 1979 and
was re-elected in 2009 with 95% of the vote.

Only 39% of one-year-olds are immunized against polio.7 Average life expectancy is
under 50 years;8 57% of the population lives without access to clean drinking water,
and 47% without access to safe plumbing;9 more than 51% of primary school teachers
lack adequate professional training; fourth-worst infant mortality rate in the world

The United Nations Development program measures the effectiveness of a govt. to

utilize a nation’s wealth to benefit its people. GDP 28/182 vs Human development
index 118 = -90 worst govt in the world
Transparency International’s “Corruption Perception Index”

a) Large-scale expropriations of properties and businesses from individual and

communal proprietors, executed under one or another legal pretext, such as
purported development needs,52 fictitious determinations of property
“abandonment,”53 by collection of – or forfeiture for alleged or actual failure to pay –
discriminatory “taxes,”54 technical disqualifications of legal title claims,55 or
payment of token compensation (“seldom provid[ing] equitable compensation or
alternate housing”)56 ; or with no legal pretext provided;57
b) Sham or sweetheart “co-investment” transactions by which leading members of
the Nguema/Mongomo group use their influence to obtain direct equity holdings in the
enterprises of foreign companies for little or no consideration;58
c) Rigged government procurement, construction, and licensing contracts “negotiated”
by officials irremediably tainted by conflicts of interest;59
d) Secret off-the-books “contributions” by foreign companies to or for the benefit of
leading members of the Nguema/Mongomo group;60
e) Use of political and economic power to ensure that the Nguema/Mongomo group’s
own private enterprises receive sole authorization for provision of all important local
goods and services – particularly land and labor – required for hydrocarbon extraction
activities;61 and
f) Direct diversion of millions of dollars from government revenue accounts into the
private accounts of senior officials, often through use of offshore shell corporations.

The kleptocracy initiative draws on civil forfeiture law, under which the Justice Department must show
by a preponderance of the evidence that assets it seeks to confiscate are linked to criminal acts.

France has charged the son of Equatorial Guinea's President Teodoro Obiang Nguema
of money laundering
Since 2011, the US government has been seeking to recover millions of dollars of
Teodorin Obiang's assets including a Gulfstream jet, yachts, a Malibu mansion and
nearly $2m in Michael Jackson memorabilia.  $80 million from proceeds of corruption

2012 His six-storey Paris villa, estimated to be worth more than $100m (£60.5m)