Portugal Investigates Construction Giant Over Alleged Questionable Deals with Equatorial Guinea's Vice President

📷 Image source: media.icij.org

Portugal Launches Corruption Probe Into Mota-Engil's Equatorial Guinea Ties

Portuguese authorities have opened a formal investigation into Mota-Engil, one of Europe's largest construction conglomerates, over its business dealings with Equatorial Guinea's Vice President Teodoro Nguema Obiang Mangue. The probe comes amid growing international scrutiny of corruption risks in infrastructure projects across Africa.

Suspicious Contracts Under Microscope

According to documents reviewed by investigators, the inquiry focuses on multiple high-value contracts awarded to Mota-Engil by Equatorial Guinea's government between 2015-2023. These include the construction of the new capital city Oyala and several luxury real estate developments. Financial records suggest possible irregularities in payment flows and bidding processes.

Vice President's Lavish Lifestyle Raises Questions

The investigation particularly examines Obiang's relationship with Mota-Engil executives. The vice president, son of Equatorial Guinea's long-ruling president, is known for his extravagant spending, including a $100 million collection of luxury cars and multiple mansions worldwide. Anti-corruption watchdogs have long questioned how government officials in the oil-rich but poverty-stricken nation accumulate such wealth.

Pattern of Controversial African Deals

This isn't the first time Mota-Engil has faced scrutiny over its African operations. The company, which derives 60% of its revenue from the continent, has previously been accused of:

History of Corruption Allegations

- Overcharging Angola $200 million for road projects in 2019

- Bribery allegations in Mozambique's port expansion deals

- Workplace safety violations across multiple countries

Corporate Response

Mota-Engil released a statement asserting full cooperation with authorities while maintaining that all transactions were "fully compliant with applicable laws." The company emphasized its role in developing critical African infrastructure.

Broader Implications for EU-Africa Relations

The case highlights growing tensions between European anti-corruption efforts and African development priorities. Experts note:

Development vs. Governance Dilemma

"There's an inherent contradiction," explains Dr. Fatima Bello, an African political economy expert at Lisbon University. "European firms build essential infrastructure but often operate in governance systems where transparency is weak. This creates legal and ethical minefields."

EU Regulatory Pressure

The investigation follows strengthened EU anti-corruption directives requiring member states to more aggressively police their corporations' overseas dealings. Portugal's Socialist government has faced criticism for previously turning a blind eye to questionable African contracts that benefit Portuguese firms.

As the probe unfolds, it may test Portugal's commitment to combating transnational corruption while maintaining economic ties with resource-rich African nations. The outcome could set important precedents for how European companies operate in high-risk markets.

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