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| Dominican Republic - President Luis Abinader |
About
Luis Abinader is the wealthiest public official in the Dominican Republic.
His net worth is approximately $70 million, according to a public declaration of assets he filed one month after he was elected president in 2020.
Before becoming president, Abinader was the general manager of Grupo Abicor, his family’s business consortium, which was started by his father, a former senator and minister of finance. The conglomerate includes a real estate and construction firm focused mainly on the tourism industry, a cement factory and a private university.
Abinader has been involved in politics for more than 15 years but never held public office before becoming president. He ran unsuccessfully for president in 2016 and for vice president in 2012. He won the presidency in 2020, following a wave of anti-corruption protests, and vowed to run an “honest and ethical” government. Two months after winning the election, Abinader announced that he was transferring all of his assets to a trust for the duration of his four-year term.
Political Career
- President (2020-present)
Leaked Details in the Pandora Papers
Leaked documents show that Abinader is linked to two Panamanian companies: Littlecot Inc., which he owns with his sister and brother, and Padreso SA, of which the three siblings are shareholders.
Both companies were created before Abinader became president. Littlecot was incorporated in 2011, and Padreso was set up in 2014. Records show that they were created to hold assets in the Dominican Republic, but the documents don’t include details about those holdings.
Abinader told ICIJ that Littlecot Inc. holds a family property in the Dominican Republic. Padresso SA holds shares of six other entities that own properties and extensions of the private university owned by his family.
Additional documents indicate that both companies originally had bearer shares, which are not registered as the property of a particular owner. In 2015, a law took effect in Panama, requiring companies to disclose the identity of the owners of such shares. In 2018, an attorney for the Abinaders filed a form with the Overseas Management Co., an offshore services provider, that disclosed the names of the siblings as the shareholders of the companies, instead of “the bearer.”
About the bearer shares, Abinader said: “These companies were incorporated by consultants we engaged to acquire the companies in the selected jurisdictions. To facilitate business transactions with clients and reduce the companies’ administrative burden during incorporation, some attorneys tend to use bearer shares. Once any of the companies is assigned to a particular client, in our case, bearer shares are converted to ordinary shares and are included within the family structure in an expedited manner.”
As to why he owns offshore entities, Abinader said: “Up until the end of 2008, the Dominican Republic’s legal system did not have an efficient and updated corporations’ law. Using Dominican companies to purchase assets or exchange goods abroad used to (and still does) pose challenges given the lack of recognition that local companies have in foreign jurisdictions. On the other hand, our legal system did allow for foreign entities to perform operations and acquire assets in the country.
“In order to organize the most efficient structure for our family, we created a framework of companies in several jurisdictions: local entities for the holding of fixed assets in the Dominican Republic and perform operations in the country, and holding companies in foreign jurisdictions for assets and operations that could cover more than one jurisdiction and therefore facilitate the opening of accounts, transfer of shares, universal recognition of such entities, a strong system of corporate governance, among other benefits.”
When he became president, Abinader declared both companies and at least seven other offshore companies grouped under a revocable trust.
Secrecy Broker
At the heart of the Pandora Papers are 14 offshore firms that help clients establish companies in secrecy jurisdictions. This profile draws on leaked data from these providers:
1. OMC
Overseas Management Co., Inc, or OMC, is headquartered in Panama and provides a variety of offshore services to wealthy clients — and to 21 politicians and public officials identified in the Pandora Papers. Here are some of the top political figures involved.
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