Former Africa’s wealthiest woman, Isabel dos Santos, has suffered a legal setback as her assets totalling $734 million face a freeze following an unfavourable ruling in a case brought against her by Angolan telecoms operator Unitel.
The legal dispute stemmed from loans extended to the Dutch company Unitel International Holdings (UIH) in 2012 and 2013.
Dos Santos, who was a director at Unitel during that period, facilitated these loans to finance UIH’s acquisition of shares in various telecom companies.
Unitel, aiming to safeguard its interests, pursued a global freezing order to prevent dos Santos from moving her assets beyond the company’s jurisdiction.
In a significant development on Wednesday, a London judge sided with Unitel, granting the freezing order.
According to Bloomberg, which first reported the news, the order encompasses dos Santos’ properties in London, Dubai, and Monaco, collectively valued at over $100 million.
Throughout the legal proceedings, Unitel argued that the loan terms were “uncommercial,” featuring disproportionately low interest rates, and were sought by dos Santos for her gain.
The judge’s decision emphasized dos Santos’ association with Unitel until November 2020, highlighting that the company is effectively controlled by the Angolan State.
Backstory
In 2013, Forbes initially crowned Isabel Dos Santos as Africa’s wealthiest woman, with a net worth of $3 billion recognizing her substantial stakes in Angolan companies.
However, her financial standing underwent a dramatic shift in 2020 when she fell from grace to grass and was ousted from the list of the continent’s richest women.
- This followed her arrest and accusations by Angolan authorities, alleging embezzlement and money laundering that reportedly cost the nation over $5 billion during her father’s 38-year rule.
- In response, the authorities froze her assets, and Dos Santos vehemently denied the charges.
- Dos Santos’ legal team contended that the lawsuit was a politically motivated campaign orchestrated at the behest of the Angolan government. They emphasized the need to view the case within the context of political rivalries.
What you should know
Suspicions had lingered for decades regarding the financial practices of former president Dos Santos, who assumed power in 1979, with the widespread belief that he was depleting Angola’s resources on a massive scale.
- Doubts persisted about his daughter’s claim that her immense wealth was amassed through legitimate business acumen.
- The turning point came after Dos Santos stepped down as president in 2017, succeeded by Lourenço, when evidence began to emerge.
- The 2020 Luanda Leaks, published by the International Consortium of Investigative Journalists (ICIJ) and other media outlets, substantiated longstanding rumours.
- The exposé laid bare how Dos Santos accumulated her wealth through the preferential allocation of companies, public contracts, tax breaks, telecom licenses, diamond mining rights, and favourable loans.
- Notably, she was appointed as the chief executive of the state oil company Sonangol—a pivotal position in a country heavily reliant on oil revenue. But Angola’s new president Joao Lourenco, removed her from that role in November 2017.
In a significant development, INTERPOL issued a Red Notice late last year, urging all governments to provisionally arrest Dos Santos pending local legal proceedings.