MON 20 - 11 - 2017
 
Date: Nov 10, 2017
Source: The Daily Star
Saudis question 208 in graft inquiry, $100B stolen
Reuters
ABU DHABI/DUBAI: Saudi authorities have questioned 208 people in an anti-corruption investigation and estimate at least $100 billion has been stolen through graft, a top official said Thursday as the inquiry expanded beyond the kingdom’s borders.

“Based on our investigations over the past three years, we estimate that at least $100 billion has been misused through systematic corruption and embezzlement over several decades,” Attorney-General Sheikh Saud al-Mojeb said in a statement.

Of the 208 people called in for questioning so far, seven have been released without charge, Sheikh Saud said, without naming them.

Dozens of princes, senior officials and prominent businessmen, including government ministers and billionaires, have been detained in the inquiry, which was announced last weekend and appears at least partly aimed at strengthening the power of Crown Prince Mohammad bin Salman.

The investigation has spread to the neighboring United Arab Emirates, as the UAE central bank has asked commercial banks and finance companies there to provide details of the accounts of 19 Saudi nationals, commercial bankers told Reuters Thursday.

Almost all of the 19, including billionaire Prince Alwaleed bin Talal and former National Guard chief Prince Miteb bin Abdullah, are known to be have been detained.

The commercial bankers said UAE authorities had not explained why they wanted the information, but the bankers believe the authorities were acting at the behest of the Saudi government, which has said it aims to recover illicit funds.

UAE central bank officials were not available to comment, while Saudi officials, who have frozen over 1,700 domestic bank accounts as part of the crackdown, did not respond to requests for comment.

The UAE, particularly Dubai, is one of the main places where wealthy Saudis park their money abroad. In addition to bank accounts, they buy luxury apartments and villas in Dubai and invest in the emirate’s volatile stock market.

Some wealthy Saudi individuals have been liquidating assets within Saudi Arabia, the UAE and other Gulf countries this week, apparently in an effort to move money out of the region and escape the crackdown, private bankers and fund managers said.

In Riyadh, rich individual investors have been selling equities heavily, although buying by state-linked funds has helped to support the market.

In Dubai, shares in real estate developers have sunk as investors worry about the impact on the property market of a pullout by Saudis.

The UAE commercial bankers said they had not been asked to freeze the Saudi accounts at their institutions, but they believed the central bank’s request for information might be a prelude to such action.

The risk of the accounts being frozen “jeopardizes Dubai’s pitch as a private banking center,” said a Gulf-based banker. “Banks in the UAE are full of Saudi money.”

One senior banker at an international lender with business in Saudi Arabia said that his institution had already frozen some accounts, both inside the kingdom and outside it, in response to Saudi government requests.

The bank is conducting its own investigations into accounts linked to people who have been detained, the banker said without elaborating further.

Another banker in the region said his institution was receiving more inquiries from Saudi clients about cross-border financial transactions, but it was handling the inquiries with extreme caution as there could be further action by regulators.

Saudi and foreign businessmen worry that the crackdown could hurt the economy if the freezing of bank accounts delays payments and companies become more cautious about investing.Mojeb Thursday repeated statements by other top officials that normal commercial activity had not been affected and that only personal bank accounts had been frozen, not corporate accounts. “Companies and banks are free to continue with transactions as usual.”


 
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