Post #360

Looting Angola's Sovereign Wealth Fund 🇦🇴 [ Budget Hole ] If a government does take money away from oil companies, that still doesn't mean it is able to spend it properly 💲 Countries that receive windfall revenues from resources often realise that simply spending them is not very wise and create special funds that are supposed to invest in the developmentofnon-extractive sectors, such as construction or IT. Just as often, these funds end up overrun by corruption. 🛢 One such example was Angola’s Sovereign Wealth Fund (FSDEA), created to invest revenues from oil sales but in practice becoming a source of enrichment for elite circles. 💲 Angola established the FSDEA in 2012 with an investment of $5 billion. The fund’s goal was “to promote growth, prosperity, and social and economic development.” 🚮 That same year, Angola’s president, José Eduardo dos Santos, appointed his son, José Filomeno dos Santos, as chairman of the FSDEA. Since managing a state fund is always more enjoyable together with friends, the president’s son invited the firm of his friend Jean-Claude Bastos to manage the fund’s investments. 🥅 From there the scheme was simple: Jean-Claude Bastos' consulting company received fees for its services, which is already corruption. The consulting firm also advised the fund to invest in other projects of the Angolan prince’s friend. 💸 In total, at least $150 million was lost through such schemes. Another $3 billion remained under the management of Jean-Claude Bastos until 2019, when Angola’s new government began to untangle the fund’s affairs and regained control over its assets. Both Bastos and the president’s son appeared before an Angolan court, but were later acquitted. 🛢 Angola is one of the largest oil producers in Africa, with production contributing about 50% of the nation’s GDP and >90% of its exports, yet it is simultaneously in the top-10 unequal countries in the world as measured by the Gini coefficient. #BudgetHole ➡️ Follow to stay informed - @devilsbelow