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Angolan sovereign wealth fund ‘outraged’ by improper use of funds

Approximate reading time: 2 minutes

The Angolan sovereign wealth fund simply known as FSDEA axed Swiss-based asset manager, Quantum Global after discovering mismanagement of its funds.

This came after state prosecutors charged Jose Filomeno dos Santos, former chairman of the FSDEA and close friend of Quantum founder, Jean Claude Bastos de Morais with fraud. Dos Santos is also son of former Angolan president, Jose Eduardo dos Santos. The prosecutors alleged that the former president’s son transferred $500 million from the Angolan central bank to a UK registered bank account.

The current president, Joao Lourenco has pushed ahead with removing allies of dos Santos from positions of power. Which has led to the sacking of Quantum Global as FSEDA’s fund manager. Quantum has continuously denied any misconduct and claim FSDEA has violated  contractual obligations.

In April, the fund escalated the matter to UK courts in an attempt to trace transactions made by either Dos Santos or Quantum in connection with the sovereign wealth fund. In which, Quantum was issued with a global freeze order. During the hearing at UK courts, Reuters reported that,

“After a visit by Angolan officials, Mauritius froze bank accounts and suspended business licenses linked to QG Investments Africa Management, a firm run by Bastos de Morais and which also invested money on behalf of the sovereign wealth fund.”

During the same period, Swiss authorities raided several premises including Quantum Global offices to investigate the fund’s claim. However, the UK High Court lifted the freezing order in late July. The judge said, “the freezing order should be discharged in its entirety and no fresh freezing order granted.”

Though, Dos Santos and Quantum have refused to be held to account, it seems Joao’s government will continue pursuing the case until funds are recovered.

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