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Ethiopia: Saudi Arabia to confiscate $300b assets of Alwaleed, others

Mohammad al-Amoudi at $10.4 billion

Saudi Arabia has announced it will confiscate money and assets, running into $300billion held by dozens of top officials and businessmen detained in an anti-corruption crackdown.

The Saudi attorney-general said detailed questioning of detainees had already produced “a great deal of evidence”, but gave no more details.

Businessmen in detention include international investor Prince Prince Alwaleed bin Talal, whose wealth was estimated by Forbes magazine before the crackdown at $17 billion; Mohammad al-Amoudi at $10.4 billion, with construction, agriculture and energy companies in Sweden, Saudi Arabia and Ethiopia; and finance and healthcare magnate Saleh Kamel at $2.3 billion.

A large amount of the funds are believed by financial sources to be held offshore in bank accounts, portfolio investments, corporate shareholdings and real estate. Many of the businessmen detained have private planes — one has a Boeing 747 airliner.

And a study by the U.S. National Bureau of Economic Research estimated Saudis have stashed away wealth equivalent to over 55 percent of the country’s gross domestic product in foreign tax havens — an amount exceeding $300 billion.

But the experiences of two other Arab states trying to recover stolen money, Egypt and Tunisia, suggest Riyadh may face years of legal and diplomatic battles to secure assets held abroad. Even then success is not guaranteed.

The anti-corruption committee that detained princes, tycoons and ministers at the weekend has the power under a royal decree to take “whatever measures are deemed necessary” to seize companies, funds and other assets without waiting for the results of criminal investigations.

The offshore scrutiny of assets has already begun in the Gulf region, where Saudi Arabia regularly shares information.

The United Arab Emirates’ central bank and securities regulator has asked banks and finance companies there to provide information on the accounts of 19 Saudi citizens, banking sources told Reuters on Thursday.

The Saudi committee has not given details of the allegations individuals face, though Saudi officials say they include money laundering, bribery, extortion and taking advantage of public office for personal gain.

Riyadh has also set no timetable for its confiscations, although banking sources say more than 1,700 domestic bank accounts have already been frozen at the request of the central bank.

If the committee were to try to retrieve all the revenue that has been lost to corruption, from bribes to illegal expropriation of land, the total would be $800 billion, an official at the Riyadh Chamber of Commerce and Industry has estimated.

But Egypt and Tunisia’s experiences show that although asset freezes can be arranged within months, repatriating the money can take many years.

Cairo has tried unsuccessfully for five years to retrieve about 85 million pounds ($111 million)in British bank accounts belonging to the inner circle of former President Hosni Mubarak.

British officials have said they are bound by British law, which requires the Egyptians to provide them with criminal convictions first.

Tunisia has so far recovered only a small portion of about $35 million claimed from Switzerland following the 2011 revolution that inspired the Arab Spring uprising.

There are some precedents that could give Saudi Arabia cause for hope that it will be able to repatriate money.

Last year, Nigeria and Switzerland signed a deal paving the way for the return of over $300 million confiscated from the family of Nigeria’s former military ruler Sani Abacha.

Requests from Egypt, Tunisia, Libya and Syria have led to nearly 1 billion Swiss francs ($1 billion) of assets being frozen by Swiss authorities.

But the efforts of Egypt and Tunisia to retrieve the money have stumbled over a requirement to submit evidence that would be admissible in Western legal systems, proving the beneficial owners of the assets and showing that corruption has taken place. Often assets are held in complex offshore vehicles making it hard to show who really owns them.

Repatriating assets could be so hard that Riyadh may try to avoid foreign legal action altogether in many cases, instead making deals with detained tycoons and princes that in effect legalize their fortunes in exchange for a share of their money, some bankers and consultants say.

“The government will also strike deals with businessmen and royals to avoid arrest, but only as part of a greater commitment to the local economy,” said Ayham Kamel, Eurasia Group’s practice head, Middle East & North Africa in a note.

Source: Vanguard

One comment

  1. I told you I am enjoying the show since the day of the arrests. Between the dreaded Wahhabis that is!!! Remember these are individuals including those in the ruling circle with bodies of our time but with the minds of the pre Dark Age era. They hack human limbs that were beautifully crafted by The Almighty Our Creator for stealing, right? Don’t be fooled by the news of the prisoners being kept at glitzy Ritz Hotel. The rumor is that they were given blankets only to slip on. And the new and upcoming prince is said to have caught the drift coming from certain members of the elite group bad mouthing him about the permission given to women to drive a car on their own and to go to stadiums for sport occasions. He will not let them go that easily. First of all they may not be allowed to leave the country even if are fortunate enough to escape the sword. These are the most merciless creatures that ever crawled on this good earth. Once their property is confiscated they will be up for grabs by the young and equally ambitious prince. Also he has been in a foul mood that the Yemeni affair is not going well for him at all. He is like a raging bull now. He will gore anyone standing on his way. We will see heads rolling one of these days.

    Now I want to pose a question to everyone who reads this comment. Will you be trying to tell me that Al-Moudi who is now in the slammer for scamming his own adapted country did not do the same to another country of what the Wahhabis call ‘Khadams, abd’s(niggers)? Are you? Come on man!!! It was no wonder why the late PM and top enchiladas of the old country were piling praise upon praise on him. He is the owner of a gold mine in the old country, right? Was every ounce of gold that was collected at the mines was properly accounted for? How about the tax on revenue? Was the right tax revenue collected to the nation’s coffers? Was it? Who audited that? You will be mocking me if you try to tell me that the audit was done by one of the regime’s employees. Please don’t do that to me. Some operatives of the regime have told me on a different website that every ounce and dollar was accounted for. By which independent office? Do you know what an independent body means? Get outta here!!! For sure that dog don’t hunt!!!!

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