Investigation began with suspected bribes from work carried out by ‘Portuguese construction company’
Portugal’s PJ judicial police, the Spanish Tax Agency and Europol have dismantled a scheme that is alleged to have laundered, from Mallorca, more than €10 million from public works in Equatorial Guinea.
According to a press release issued today by the Spanish Tax Agency, eight people have been charged with money laundering and tax fraud, two of whom have been detained, including a Dutch citizen who is considered to be the ‘organiser’.
In addition, 11 properties valued at €5 million have been seized, as well as bank accounts, vehicles, watches and other items valued at more than €550,000.
Operation “Run Out” originated in 2021 with an investigation in Portugal relating to the activity in Equatorial Guinea of a Portuguese construction company and the possible diversion of “bribes” to the personal assets of those investigated.
Customs surveillance carried out its investigation into the alleged organiser of the scheme, finding “serious indications” of the concealment of funds of criminal origin in properties in Spain, through the use of shell companies and other instruments.
The search of the Dutch citizen’s home in 2022 allowed access to 13,000 paper documents and 43 electronic devices, nine bank accounts were frozen (with a balance of €200,000), and three vehicles (valued at more than €100,000), 15 luxury watches (valued at €150,000) and ownership of the lifetime use rights of a golf club (valued at €100,000) were seized.
The sale of 11 seized properties in Mallorca and several companies was also prohibited.
With this documentation, it was possible to find evidence “of a criminal conspiracy” through invoices issued by shell companies, false contracts and evidence of the diversion of “bribes” of 10% of the value of public works in Equatorial Guinea, as well as their subsequent laundering through a business network, an asset that was controlled by the alleged organiser.
The scam created a complex international business structure to channel illegal commissions – with companies in Cabo Verde, Liechtenstein, Cyprus and Belize – which transferred funds to investments controlled by the alleged organiser.
The structure was led by a partner in Liechtenstein, on which another partner ‘controlled by the Dutch national’ depended.
A significant part of the embezzled funds were hidden in investments in a property developer in Palma de Mallorca – and another part had been invested in the Netherlands through front companies to hide investments in a well-known cosmetics brand, worth more than €7 million – among other businesses.
For now, the name of the Portuguese construction company that appears to have ‘kick started’ investigations is not being publicised.
LUSA
