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Article

27 Jan 2020

Author:
International Consortium of Investigative Journalists

Consultancy firms allegedly enabled tax avoidance & corruption in Angola

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"The Enablers: Western advisers helped an autocrat’s daughter amass and shield a fortune", 19 January 2020

[This report]...offers a window into the lightly regulated professional services sector, which over the years has become a cornerstone of a thriving offshore industry that drives [global] money laundering, tax avoidance and public corruption. Dos Santos made her fortune by taking a cut of Angola’s wealth (often courtesy of government decrees signed by her father), [from]...from insider deals, preferential loans and contracts fueled by public money, a review by the International Consortium of Investigative Journalists and 36 media partners found. Over the last two decades, she acquired valuable stakes in every important Angolan industry, including oil, diamonds, telecom and banking.

The [Internatonal Consortium of Investigative Journalists reports that]...[a]ccountants disregarded red flags,...prominent Portuguese law firms helped set up shell companies and move money for dos Santos [and] [c]onsultants advised them on ways to...avoid taxes. “The incentive structure makes it still too easy and too lucrative and not risky enough for them to engage in that dirty business,” said Markus Meinzer, director of financial secrecy at the Tax Justice Network...

...[Boston Consulting Group] said...“it reviewed the payment structures and contracts, as we do for all projects, to ensure compliance with established policies and avoid corruption and other risk".

...Deloitte, Ernst & Young and KPMG...cited confidentiality restrictions in declining to answer specific questions about their work. Deloitte and KPMG said they review clients annually...

EY Portugal (an Ernst & Young member firm) said it reviews its client-acceptance procedures every year to make sure that they comply with current laws.