New York–A former Minister of Mines and Geology of the Republic of Guinea was sentenced today to seven years in prison, and three years of supervised release, for laundering bribes paid to him by executives of China Sonangol International Ltd. (China Sonangol) and China International Fund, SA (CIF).
Mahmoud Thiam, 50, of New York, New York, was sentenced by U.S. District Judge Denise L. Cote of the Southern District of New York. Thiam was convicted on May 3, after a seven-day trial of one count of transacting in criminally derived property and one count of money laundering.
“As a unanimous jury found at trial, Thiam abused his position as Guinea’s Minister of Mines to take millions in bribes from a Chinese conglomerate, and then launder that money through the American financial system,” said Acting U.S. Attorney Kim. “Enriching himself at the expense of one Africa’s poorest countries, Thiam used some of the Chinese bribe money to pay his children’s Manhattan private school tuition and to buy a $3.75 million estate in Dutchess County. Today’s sentence shows that if you send your crime proceeds to New York, whether from drug dealing, tax evasion or international bribery, you may very well find yourself at the front end of long federal prison term.”
According to evidence presented at trial, China Sonangol, CIF and their subsidiaries signed a series of agreements with Guinea that gave them lucrative mining rights in Guinea. In exchange for bribes paid by executives of China Sonangol and CIF, Thiam used his position as Minister of Mines to influence the Guinean government’s decision to enter into those agreements while serving as Guinea’s Minister of Mines and Geology from 2009 to 2010. The evidence further showed that Thiam participated in a scheme to launder the bribe payments from 2009 to 2011, during which time China Sonangol and CIF paid him $8.5 million through a bank account in Hong Kong. Thiam then transferred approximately $3.9 million to bank accounts in the U.S. and used the money to pay for luxury goods and other expenses. To conceal the bribe payments, Thiam falsely claimed to banks in Hong Kong and the U.S. that he was employed as a consultant and that the money was income from the sale of land that he earned before he was a minister.
The trial evidence showed that the purpose of the bribes was to obtain substantial rights and interests in natural resources in Guinea, including the right to be the first and strategic shareholder with Guinea of a national mining company into which Guinea had to, among other things, transfer all of its stakes in various mining projects and future mining permits or concessions that the government decided to develop on its own. China Sonangol and CIF, through their subsidiaries, also obtained exclusive and valuable rights to conduct business operations in a broad range of sectors of the Guinean economy, including mining.