The Angolan government, led by President Joao Lourenco, has disclosed plans to sell a minority 15% stake in Standard Bank de Angola, previously held by convicted tycoon Carlos Manuel De Sao Vicente.
This decision follows a 2020 presidential decree to seize a 49% stake in the bank from Vicente, who was later sentenced to nine years in jail for fraud and embezzlement.
According to a presidential decree, the government intends to sell up to 34% of Standard Bank de Angola through an initial public offering (IPO). The state will retain a 15% stake in the bank, while the Standard Bank Group currently holding a 51% stake, has the option to acquire an additional 24% through the IPO.
What happened to Carlos De Sao Vicente?
Carlos Sao Vicente, son-in-law to Angola’s first President Agostinho Neto, was a prominent figure in business and political circles.
He was given the monopoly of insuring the country’s lucrative, state-controlled oil industry during the presidency of José Eduardo dos Santos. ( Dos Santos was known for nepotism and often appointed close friends and family members to prominent positions).
Vicente headed the privately-owned company AAA Seguros group, which sold insurance and reinsurance contracts to the state oil company Sonangol. He also served as Chairman and CEO of AAA Seguros as well as managing director at Sonangol from 2000 to 2016.
However, in 2016, a presidential decree revoked AAA’s insurance role in the oil industry citing “non-transparent management.” Authorities claimed that Vicente used his position to siphon hundreds of millions of dollars from business conducted with foreign oil companies operating in Angola. Consequently, Vicente’s $900 million fortune in Swiss bank accounts was frozen.
“The Angolan attorney general’s office has initiated an investigation process related to evidence of crimes of embezzlement, conspiracy in economic activity, influence peddling, and money laundering. It has decided to seize AAA buildings, IU and IKA hotels located throughout the country,” read a 2016 news report by state broadcaster TPA.
Carlos De Sao jailed
In 2022, the mogul was sentenced to nine years in prison by an Angolan court. Vicente was also directed to pay $4.5 billion in compensation for damages to the Angolan state.
The court determined that the tycoon had embezzled over $1.2 billion from the country and had fraudulently accumulated a $3.6 billion fortune. As a result, the court ordered the seizure of his and his family’s assets.
In May 2023, Vicente’s bid to have $2.6 million released from his Singapore bank account failed. The magnate had shored up over $558 million in his Singaporean bank account, funds seized by the Commercial Affairs Department (CAD) on February 19, 2021. Accounts belonging to his wife, Irene, former President dos Santos’s daughter, and son, holding over $5 million and $10.5 million respectively, were also frozen.
Although he claimed that he needed the money to pay his legal fees in Singapore, Switzerland, and Angola, and for legal representations to various international organizations, Singapore’s Supreme Court dismissed his application.
The judge argued that it was difficult to determine the true extent of Vicente’s wealth, which in turn meant that his claim of having no other source of funds could not be verified.
“In the circumstances, I am unable to find as a fact that the applicant is unable to access funds which represent less than a fraction of a percentage of his wealth solely based on his bare assertions,” Justice Vincent Hoong said.
He added that Vicente’s family members were more than capable of raising the amount required to cover the infamous mogul’s legal expenses.
“It would not be unreasonable to expect the applicant to explore the possibility of seeking funds from his family. They have access to sufficient assets to pay his legal fees without undue hardship to themselves,” the judge added.
Ultimately, President Lourenco’s move to sell Vicente’s stake in Standard Bank is part of his broader strategies to recover the assets lost during former President Dos Santos’s reign.
Moreover, given Standard Bank’s standing as one of Africa’s largest lenders the IPO is sure to attract interest from investors. The funds generated from the sale will also help in boosting Angola’s economic initiatives.
