Mother of All Scandals on the Gulf. Desert Moby Dick May Surpass Others
“Oh, I get by with a little help from my friends,
Mmm, gonna try with a little help from my friends
Ooh, I get high with a little help from my friends
Yes I get by with a little help from my friends,
with a little help from my friends” The Fab Four
"A $10 billion Saudi fraud claim: Of the merchant families that dominate Saudi capitalism, few are as respected as the Gosaibis, a “blue-chip” clan which could borrow on the strength of its name alone. It was, therefore, a shock when in May parts of the family conglomerate, Ahmad Hamad Algosaibi & Brothers Company (AHA
, defaulted, prompting lawsuits in various countries. But on July 15th the shock turned to astonishment. In documents filed in New York’s state Supreme Court and seen by The Economist, AHAB claims that it has been the victim of a “massive fraud” orchestrated for years by Maan al-Sanea, a Saudi billionaire who is married to a daughter of one of AHAB’s founders. The company says Mr Sanea “misappropriated” around $10 billion in the alleged swindle………“………In this case, more is at stake. The Algosaibi group owes more than $9 billion to more than 120 banks all over the world. The uncertainty over its finances is making some of them wonder if it is worth lending to Saudi Arabia at all. The group’s creditors had hoped that the Saudi monarchy would step in to broker a truce between Mr Sanea and his aggrieved in-laws. Instead, an internecine family feud in a normally secretive kingdom will now be pursued in the open through the American courts. Like Ahab’s harpoon in “Moby Dick”, the allegations that AHAB has fired off may drag Saudi Arabia’s financial reputation into the vortex.”
All I can say for now is: Ma’an, I hardly knew ya….
“When it first emerged that one of the Saudi Arabia's most respected merchant family groups was facing financial difficulties, the news was met with shock throughout the Gulf....
“Although the oil-rich region had been hit by the global economic crisis, few understood why Ahmed Hamad Algosaibi and Brothers Company (AHA
had allowed one of its wholly owned companies - a Bahrain-based bank - to default. Then it was revealed that another of Saudi Arabia's best known companies, Saad Group, was facing similar difficulties after that company's owner, Maan al-Sanea, had his personal accounts frozen by the central bank……” Like an Arabian Phoenix , they shall rise again from their own ashes. It is alright, they shall rise again. They always do, with a little help from their friends.
Cheers
mhg
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