Saudi Arabia 2017 Anti-Corruption Arrests

[somebozo]

Requesting Mods to make this stickey!

http://saudigazette.com.sa/article/...-to-unearth-graft-in-economic-cities-projects
Crackdown to unearth graft in economic cities’ projects
5 hours ago
400 views


Saudi Gazette
Saudi Gazette report

JEDDAH – The ongoing crackdown on corruption will also cover economic city projects in Rabigh, Madinah, Qassim and Jazan.

King Abdullah initiated the economic city projects in 2005 soon after ascending the Saudi throne after the death of King Fahd. King Abdullah Economic City in Rabigh was launched at the end of 2005 while the other three were inaugurated by the late king in 2006.

The four economic cities with advanced infrastructure facilities were expected to draw a combined capital investment of SR170 billion in 10 years and create more than 500,000 jobs for young Saudi men and women, Al-Watan Arabic daily reported.

It was announced that the four economic cities including Prince Abdulaziz Bin Mousaed Economic City in Hail, Knowledge Economic City in Madinah and Jazan Economic City would achieve five major objectives: Balanced regional development, diversification of revenue sources, creation of new job opportunities, transfer of knowledge and technology and modernization of infrastructure.

However, the four cities have failed to achieve their objectives due to shortcomings in implementation and corrupt practices.

The supreme committee to tackle corruption led by Crown Prince Muhammad Bin Salman has arrested a number of princes, ministers, business tycoons and senior officials as part of its efforts to combat graft and protect national interests.

Attorney General Saud Al-Mojeb said the actions carried out by the commission were undertaken “as part of the state’s judicial duty to combat corruption.”

He added: “The suspects are being granted the same rights and treatment as any other Saudi citizen. A suspect’s position or status does not influence the firm and fair application of justice.”

He vowed “a firm application of justice”, calling the operation “part of an overhaul to ensure transparency, openness and good governance.”

Crown Prince Muhammad has unveiled a raft of radical reforms, including lifting a ban on women driving, pledging to turn the country toward a more moderate interpretation of Islam, and launching an ambitious economic reform program designed to reduce the country’s dependence on oil.

King Abdullah Economic City was established in 2006 by a consortium of global real estate majors, including Emaar, a number of high-profile Saudi investors and government bodies, and the city’s master developer – Emaar.

KAEC is strategically located on the Red Sea coast with access to the world by sea, land rail and air. It is located between major shipping routes to Europe and Asia. It is the largest of the four economic cities in the country.

Saudi Arabian General Investment Authority (SAGIA) is leading the development of these cities. Jazan Economic City is strategically located along an important sea route connecting Europe, Africa and Asia, with a focus on the energy and manufacturing industries.

 

[somebozo]

Detained suspects face many charges
5 hours ago
4440 views


Saudi Gazette report

RIYADH — Bribery, embezzlement, money laundering and abuse of power are among the charges against dozens of princes, officials and businessmen detained in an anti-corruption probe, according to sources.

The Saudi Center for International Communication (CIC), an initiative of the Ministry of Culture and Information, said that sums of money that appear to be linked to corruption cases will be reimbursed to the Saudi state’s General Treasury.

A no-fly list has been drawn up and security forces in some Saudi airports were barring owners of private jets from taking off without a permit, a section of the Arabic press reported on Monday.

Eleven princes, four ministers and tens of former ministers were detained late on Saturday after Custodian of the Two Holy Mosques King Salman decreed the creation of an anti-corruption committee chaired by Crown Prince Muhammad Bin Salman.

The new body has been given broad powers to investigate cases, issue arrest warrants and travel restrictions, and seize assets.

The royal decree said the crackdown came in response to “exploitation by some of the weak souls who have put their own interests above the public interest, in order to, illicitly, accrue money.”

Saudis have praised the round-up of princes and ministers as long-awaited and necessary to modernize the economy.

Meanwhile, Kingdom Holding Company (KHC) in a press release issued on Monday said that it was aware of various media reports regarding activities in Saudi Arabia on Saturday (Nov. 4, 2017), which relate to the Company’s Chairman of the Board.

“The Company continues its normal business operations. The executive senior management affirms its full commitment to continue the Company’s work, its commitment to its investors and shareholders, and affirms the support of the government of the Kingdom of Saudi Arabia. Kingdom Holding is proud of this testimony,” the KHC statement said.

On Sunday, Attorney General Sheikh Saud Al-Mojeb said in a statement, “The suspects are being granted the same rights and treatment as any other Saudi citizen. A suspect’s position or status does not influence the firm and fair application of justice.”

Saudi Arabia freezes accounts of detained corruption suspects
15 hours ago
17380 views


Saudi authorities have announced that they will be freezing the bank accounts of suspects detained in the kingdom on corruption charges.

Officials said that there is "no preferential treatment" in the handling of their cases.

The Saudi Center for International Communication, an initiative of the Ministry of Culture and Information, said that sums of money that appear to be linked to corruption cases will be reimbursed to the Saudi state’s General Treasury.

The Saudi anti-corruption committee, which was set up on Saturday by King Salman's royal decree and chaired by Crown Prince Mohammed bin Salman, had arrested a number of princes and ministers. — Al Arabiya English

 

[AZADPAKISTAN2009]

There are proposed 4-10 years Prison term based on Newspapers

 

[Saif al-Arab]

@somebozo

All their assets will most likely be seized as well home and abroad so KSA is looking to earn close to 1 trillion USD (as per rumors so far) based on that alone. This includes unfolding other enormous corruption schemes by those involved (and their companies) and those of others (I suspect that there will be more arrests once the investigation is a bit older in nature). Not bad. At all.

https://twitter.com/x/status/927574837299642368

There are proposed 4-10 years Prison term based on Newspapers

People like Adel al-Fakeih should be executed just for his responsibility for the 2009 Jeddah Floods.



A bit of torture beforehand would not hurt either! I am sure that many would volunteer.

 

[somebozo]

@somebozo

All their assets will most likely be seized as well home and abroad so KSA is looking to earn close to 1 trillion USD (as per rumors so far) based on that alone. This includes unfolding other enormous corruption schemes by those involved and others (I suspect that there will be more arrests once the investigation is a bit older in nature). Not bad. At all.

https://twitter.com/x/status/927574837299642368

Correction..the estimate is between 1.5 to 2 Trillion Saudi Riyals, not USD.
This is what I read in the news earlier.

The "royal" culture in Saudi has aided and abetted a lot of corruption. That is if you are close to come prince or minister, it was win you business favors and a lot of easy money. This kind of culture is disliked by global corporations and investors as it undermines healthy competition by merit.

People like Adel al-Faqieh should be executed just for his responsibility for the 2009 Jeddah Floods.

Adel Fakieh has a lot of black spots to his name.
He ruined Jeddah, MOH, his so called labor reforms were absurdly expensive to the business and completely failed and he rescued form the liability by being appointed as planning minister. The list of his incompetency goes long!

 

[BATMAN]

http://www.lakeertv.com/ahmed-qureshi-reveals-reason-behind-why-saudi-prince-got-arrested/

 

[Saif al-Arab]

Correction..the estimate is between 1.5 to 2 Trillion Saudi Riyals, not USD.
This is what I read in the news earlier.

The "royal" culture in Saudi has aided and abetted a lot of corruption. That is if you are close to come prince or minister, it was win you business favors and a lot of easy money. This kind of culture is disliked by global corporations and investors as it undermines healthy competition by merit.



Adel Fakieh has a lot of black spots to his name.
He ruined Jeddah, MOH, his so called labor reforms were absurdly expensive to the business and completely failed and he rescued form the liability by being appointed as planning minister. The list of his incompetency goes long!

I hear 1 trillion USD (I am sure that this is just the beginning) but if it is for instance 2 trillion SAR, we are talking about 500 billion USD. That's an enormous amount of money. That's another NEOM. Anyway hopefully MbS will lead from the front as well. But I rather have a few (of the highest ranking people/most influential) being corrupt rather than 100's but in a perfect world corruption would be eradicated or limited to favors here and there. You can't remove it completely anywhere in the world but you can do a lot to limit it.

As for Al-Fakeih, it's better not to discuss him more here. You know my opinion of him. Let us just say that he is not exactly the most popular person or well-liked even among his "friends". I am truly baffled how he could survive for this long. Everyone and his dog knew what a """" up he committed back in 2009. It was just a question of time before a flood would cause a lot of damage to Jeddah. Newspapers and everyone knew it but somehow it was swept under the carpet. The result we all know. That should never be tolerated again. MbS made this very clear.

 

[somebozo]

http://www.lakeertv.com/ahmed-qureshi-reveals-reason-behind-why-saudi-prince-got-arrested/

These self appointed Pakistani experts on gulf politics cannot even deserve the designation of media jokers.
Walid Bin Talal father, Prince Talal was a well known rebel who later caved in to cheque book diplomacy and gave up dissidence for wealth.

Similarly the sons of late King Fahad and Naif have been quarreling factions inside the royal family.

This so called Ahmed Qureshi is making media ranking by simpleton explanations..

 

[Saif al-Arab]

These self appointed Pakistani experts on gulf politics cannot even deserve the designation of media jokers.
Walid Bin Talal father, Prince Talal was a well known rebel who later caved in to cheque book diplomacy and gave up dissidence for wealth.

Similarly the sons of late King Fahad and Naif have been quarreling factions inside the royal family.

This so called Ahmed Qureshi is making media ranking by simpleton explanations..

This is not limited to Pakistan. Westerners are not any better. 2 weeks ago BBC (supposed holy grail of Western media) had some former Somali expat that lived in KSA 10 years for 5 years with zero credentials to validate whether KSA will turn into the new Dubai (just a joke as that is not the goal by any account) when NEOM was discussed.

The level is just pathetic. I am finding myself laughing for the most. Not that it is much better on PDF, unfortunately.

Each single time those ignorant "experts" are proven wrong. Not sure for how long they want to embarrass themselves?

106.000 people have watched it.

At least Frank Gardener is somewhat knowledgeable but by all accounts no expert. They also had some old Saudi Arabian lady in the studio who I have never heard about.

BTW Al-Jazeera nowadays is just comedy on a whole other level.

 

[somebozo]

https://www.ft.com/content/2d461e2a-c1b2-11e7-a1d2-6786f39ef675

Oil price hits 2-year high as Saudi Arabia targets elite


Oil price hits 2-year high as Saudi Arabia targets elite Crude rises after crown prince crackdown leads to arrests of royals, ministers and tycoons Read next Saudi purge triggers investor uncertainty The speed and extent of Crown Prince Mohammed bin Salman’s reforms have prompted dissent among some members of the royal family © AFP Share on Twitter (opens new window) Share on Facebook (opens new window) Share on LinkedIn (opens new window) 226 Save to myFT YESTERDAY by Ahmed Al Omran in Riyadh and Simeon Kerr in Dubai Oil hit a fresh two-year high on Monday after the arrests over the weekend of at least 11 Saudi Arabian princes and dozens of senior officials and prominent businessmen by the country’s new anti-corruption commission. Brent crude was up 0.8 per cent at $62.55 a barrel on Monday — its highest level since July 2015 — as uncertainty over the situation in Riyadh added to other factors putting upward pressure on oil prices. Targets of the purge included billionaire tycoon Prince Alwaleed bin Talal, one of the world’s richest men and a significant investor in Twitter, Citigroup and many other international companies, people aware of the matter said. The private airport in Riyadh was closed to prevent personal jets being used to assist any escape, these people added. The arrests, first reported by the Saudi-owned Al Arabiya news channel, came just hours after King Salman ordered the establishment of a new anti-corruption commission and named his 32-year-old son, Crown Prince Mohammed bin Salman, to lead it. The international stature of the outspoken Prince Alwaleed, who has sparred with US president Donald Trump on Twitter and is estimated to be worth about $18bn, has amplified the global reaction to the crown prince’s domestic campaign. Shares in Kingdom Holdings, his investment company, fell 10 per cent on the Tadawul stock exchange, despite announcing a sharp rise in third-quarter earnings on Sunday. Government officials were not immediately available for comment. Al Arabiya did not initially offer details on the identities of the princes and officials who were arrested. Reuters quoted an unnamed senior Saudi official confirming the arrest of Prince Alwaleed and Ibrahim al-Assaf, a former finance minister. Recommended Crown prince tightens grip with lightning crackdown Comment: Prince Mohammed aims to win Saudi game of thrones Watch: Oil price climbs on Saudi Arabia’s purge Sheikh Saud Al Mojeb, attorney-general, said on Sunday that the corruption suspects would retain full legal privileges relating to their property and funds during the probe, adding: “There is an independent judicial process under way, which will be fully respected.” The governor of the Saudi Arabian General Investment Authority said the arrests were “a vital step in creating a fair and level playing field for all potential investors”. Heightened security around the Ritz-Carlton in Riyadh fuelled rumours that the detainees were being held in the luxury hotel, which only days earlier had hosted a big investment conference. Ritz owner Marriott International said it was evaluating the situation at the Riyadh hotel. The graft clampdown marks the crown prince’s most dramatic power play yet as he consolidates his domestic power base while pushing ahead with a radical economic reform programme to wean the country off oil revenues. In a reshuffle on Saturday evening, the king removed Prince Miteb bin Abdullah as minister of the national guard. Prince Miteb, a son of the late King Abdullah, had been regarded as a potential contender for the throne. “The dismissals and detentions of prominent princes as well as senior military officers suggest that Mohammed bin Salman is extending his iron grip to the ruling family, the military and the national guard to counter what appears to be more widespread opposition within the family as well as the military to his reforms and the Yemen war,” said James Dorsey, a senior fellow at Singapore’s Nanyang Technological University. The speed and extent of Prince Mohammed’s reforms have prompted dissent among some members of the royal family, who are afraid their privileged positions are in jeopardy and are calling for more consultation about the whirlwind changes affecting the country. Earlier this year, Prince Mohammed replaced his elder and more experienced cousin as crown prince, tightening his grip on power in the kingdom amid an expectation — denied by officials — that King Salman may soon abdicate. Adel Fakeih, the economy minister who has played a central role in Prince Mohammed’s domestic reforms, was also replaced in the reshuffle by Mohammed al-Tuwaijri, a former HSBC banker. Saudi Arabia purge targets elite Play video Many in the country have been urging action against corruption at the highest levels as austerity measures raise the cost of living for Saudi people. News of Saturday’s arrests quickly trended on Twitter in the kingdom. “This is the latest act of concentration of power in Saudi,” said Hasnain Malik, global head of equity research at the specialist frontier and emerging markets investment bank Exotix Capital. “As unprecedented and controversial as it may be, this centralisation might also be a necessary condition for pushing the austerity and transformation agenda, the benefits of which very few investors are pricing in.” Saudi Arabia’s top religious body came out in support of the crackdown, saying fighting corruption is “as important as fighting terrorism”, according to a statement posted on Twitter. Prince Mohammed said in a television interview earlier this year that corrupt officials would be held accountable. “No one who got involved in a corruption case will escape, regardless if he was a minister or a prince,” he said. The news came hours after Saudi forces intercepted a ballistic missile fired towards Riyadh’s airport, an escalation of the kingdom’s bloody war with Yemen. This article has been amended since original publication to clarify that the missile was not launched from near Riyadh airport.

 

[Saif al-Arab]

Saudi Stock Market Stages Stunning Reversal After Major Corruption Crackdown

Saudi government reportedly launches anti-corruption effort in apparent bid to consolidate power ahead of royal transition.

By Anne Stanley
and Brian Sozzi

Nov 5, 2017 10:37 AM EST

Saudi investors seem to like the strong-arm tactics of its rising millennial leader Mohammed bin Salman.

The Saudi stock market, Tadawul, reversed a more than 2% slide on Sunday to finish slightly positive after a major corruption crackdown orchestrated by Salman. Investors may be looking at the high-profile sweep as an opportunity for Saudi Arabia to unlock untapped economic potential.

Billionaire investor Saudi Prince Alwaleed Bin Talal and at least 10 other princes, plus current and former ministers, were arrested Saturday in a widespread corruption crackdown, according to numerous media reports.

Several U.S. news outlets reported that the arrests were announced over Al Arabiya, the Saudi-owned satellite network whose broadcasts are officially approved.

Prince Alwaleed, a member of the Saudi royal family, was reportedly detained on Saturday. He is a prominent billionaire investor with stakes in companies including Citigroup (C - Get Report) , Apple (AAPL - Get Report) and Twitter (TWTR - Get Report) . The prince controls the investment firm Kingdom Holding, which also has investments in News Corp (NWSA - Get Report) , Motorola Solutions (MSI - Get Report) , and Time Warner (TWX - Get Report) . The American-educated prince also controls several satellite television networks.

The Kingdom Holding website details its "significant" global investments, including financial services companies, hotel management and real estate, petrochemicals, and entertainment interests such as Euro Disney S.C.A, a subsidiary of The Walt Disney Company (DIS - Get Report) . The company also has major investments in consumer and retail, including Saks Fifth Avenue and eBay (EBAY - Get Report) , as well as agriculture, social media and technology companies.

https://twitter.com/x/status/893788673778610177

According to reports in the Wall Street Journal and the New York Times, the move by Saudi authorities apparently is part of an effort to consolidate power in the hands of the Saudi leadership. The Journal noted that the Saudi government has cracked down recently on dissent and government critics. It is expected that King Salman will abdicate in favor of his son, 32-year-old Crown Prince Mohammed bin Salman.

U.S. media publications reported that the king had announced the creation of an anti-corruption committee headed by the crown prince shortly before the committee ordered the arrests. According to the Wall Street Journal, King Salman ousted Economy Minister Adel Fakieh. He was succeeded by his deputy, Mohammed bin Mazyad al-Tuwajiri, a former banker at HSBC Holdings PLC (HSBC) , the Journal reported.

The Journal report also noted it was not known if the arrests were linked to the new anti-corruption committee, but said that according to the royal order, the anti-corruption drive was necessary "due to the propensity of some people for abuse, putting their personal interest above public interest, and stealing public funds."

https://www.thestreet.com/story/143...es-and-ministers-arrested-in-saudi-sweep.html

 

[somebozo]

Saudi economy vulnerable as corruption probe hits business old guard

Katie Paul
5 MIN READ


RIYADH (Reuters) - Two weeks ago the glitzy Ritz Carlton hotel in Riyadh was the site of an international conference promoting Saudi Arabia as an investment destination, with over 3,000 officials and business leaders attending.

Now the hotel is temporarily serving as a luxury prison where some of the kingdom’s political and business elite are being held in a widening crackdown on corruption that may change the way the economy works.

By detaining dozens of officials and tycoons, a new anti-corruption body headed by Crown Prince Mohammed bin Salman is seeking to dismantle systems of patronage and kick-backs that have distorted the economy for decades.


But it is a risky process, because the crackdown is hurting some of the kingdom’s top private businessmen - leaders of family conglomerates who have built much of the non-oil economy over the past few decades.

Many industries could suffer if investment by these families dries up in coming months, at a time when the economy has already fallen into recession because of low oil prices and austerity policies.

Meanwhile, a new breed of state-backed companies is rising to compete with the old guard; many of the new enterprises are linked to the Public Investment Fund (PIF), the kingdom’s top sovereign wealth fund. But it is not clear how smoothly the transition to these firms will happen.

“The rules of the game are changing. But they’re changing indiscriminately,” said one financial analyst in the region, declining to be named because of political sensitivities.

“Even people who thought they were within the rules don’t know if they will still be within those rules tomorrow. There’s just uncertainty.”


Some private businessmen in Saudi Arabia are now trying to move their money out of the country “while they still can”, the analyst said.

For many foreigners, the most shocking aspect of the purge has been the detention of billionaire Prince Alwaleed bin Talal, the flamboyant, internationally known chairman of investment firm Kingdom Holding.

But for Saudis, the names of other detainees have been equally stunning: Nasser bin Aqeel al-Tayyar, founder of the Al Tayyar Travel group; billionaire Saleh Kamel; and Bakr bin Laden, chairman of the huge Saudi Binladin construction conglomerate.

STATE CONTRACTS
The saga of the Binladin group underlines how the business environment is changing. Binladin and another big construction group, Saudi Oger, long enjoyed preferential access to the kingdom’s biggest projects and control over pricing as a result of their close relationships with royal patrons.

But the bottom fell out from under both companies last year, when a cash squeeze resulting from low oil prices caused the government to cancel or suspend projects and delay payments.

The firms faced multi-billion dollar debt restructurings; Binladin has laid off tens of thousands of people while Oger’s bankers say it has essentially stopped operating.

At the same time, state oil giant Saudi Aramco is moving to set up a construction company with local and international partners to build non-oil infrastructure in Saudi Arabia - potentially taking billions of dollars of business that would previously have gone to the family conglomerates.

Aramco and PIF, the sovereign fund, have also linked up with U.S. construction firm Jacobs Engineering to form a management company for strategic projects in the kingdom.

Many in the Saudi business world are celebrating the downfall of the old patronage system and the shift toward a “cleaner” business environment.

“It’s great news for the clean ones among us - 99.99 percent are ecstatic,” said one senior executive.

But others express disquiet about the possible economic fallout of the purge. Some are concerned that banks could start calling in loans to families implicated in the probe, using loan clauses that permit this in cases of legal jeopardy; this could collapse companies’ share prices.


Many new business deals may be put on hold. A businessman at a foreign technology services firm told Reuters he had been considering a venture with a Saudi partner, but decided against it this week because of the partner’s ties to the detained Bakr bin Laden.

The new anti-corruption commission has broad authority to seize assets at home and abroad. Some businessmen wonder if these powers could be used to pressure firms into participating in Prince Mohammed’s economic development projects.

“It’s the old royal fiefdoms that are not in the Al Salman branch of the royal family that are now being purged,” said a Western analyst.

“It’s a further centralizing of political and economic power, and a seizing of the private assets that those fiefdoms have accumulated.”

Held Saudi ex-officials face up to 10 years in jail


Manama: The former ministers and officials held by the Saudi authorities in a massive anti-corruption drive could face up to 10 years in jail under the ministers’ trial in the Saudi law.

Article Five of the law which deals with ministers and officials holding the rank of ministers stipulates a prison sentence between three and five years for breaching the oath taken before the king, Saudi daily Al Watan posted its website.

The detainees were not true with God and with the king, failed to protect the interests of the state and did not carry out their work with honesty, sincerity and loyalty, the daily added.

I do not discount the theory that some money laundered to Yemen may have been used to stage Houti war against Saudi. The corrupt and theif always want to hide in chaos after having completed their plunder...if a few missiles fell in Riyadh, the panic and economic crash would offer easy explanations and escape from the financial liabilities.

 

[The SC]

Interpol pursues wanted princes with "list of corruption" in Saudi Arabia..


"The movements of Saudi Arabia in all directions reflect wisdom and firm balance," the Egyptian president said, stressing that the only way to face the challenges in the Arab region is to unite and be together.


Trump commented on the king's campaign on corruption: "I have absolute confidence in King Salman and his crown prince and they know very well what they are doing"

Correction..the estimate is between 1.5 to 2 Trillion Saudi Riyals, not USD.
This is what I read in the news earlier.

The "royal" culture in Saudi has aided and abetted a lot of corruption. That is if you are close to come prince or minister, it was win you business favors and a lot of easy money. This kind of culture is disliked by global corporations and investors as it undermines healthy competition by merit.

1.2 to 1.5 trillion SR just for the period between 2010-2015..according to MBS estimates.. some people say it might go up to SR 5 trillion..

Attorney General: The detainees were questioned in cases of corruption in secret and we got a lot of evidence .. And this is what is happening is the first stage..

https://akhbaar24.argaam.com/article/detail/364874

 

[Yaseen1]

the money recovered will not benefit saudi public but will go in Mbs personal accounts in u.s and israel

 

[Saif al-Arab]

the money recovered will not benefit saudi public but will go in Mbs personal accounts in u.s and israel

Thanks for your inside knowledge, professor Nostradamus.

In other news;



If MbS wanted to increase corruption he would not have started to drain the swamp. How does it benefit a leader let alone a dynasty to not correct ills when you have your rule at stake? A president who is elected for a 4 year period does not care about anything else but his legacy. The worst thing that can happen is that he loses the next election or is removed (worst case scenario and it rarely happens). In case of a dynasty they can lose power forever if they continue to make mistakes. Especially in this era and time period.