Thursday, March 31, 2011

Al Gosaibis sue former TIBC chief for billions - The National

Al Gosaibis sue former TIBC chief for billions - The National

Abu Dhabi's The National reports that the Algosaibis have launched a fresh legal claim of at least US$9 billion, though this time the claim is against Mr. Glenn Stewart, the former chief executive of their own, now bankrupt, company, The International Banking Corporation. The newspaper states that the Gosaibis lawsuit alleges "aiding and abetting fraud, breach of fiduciary duty, fraud, conspiracy to commit fraud, and unjust enrichment."

Mr Stewart, who left Bahrain last year for his native California, said in an e-mail to The National he had not yet seen the complaint and would respond in detail once he had had time to study the claims. He denied all the allegations.

Monday, March 14, 2011

Al Gosaibi faces a fresh $8.2bn claim - The National

Al Gosaibi faces a fresh $8.2bn claim - The National

The National (Abu Dhabi) carries a hugely intriguing story about a new US$8.2 billion claim against the Algosaibi family’s assets.


According to the newspaper, documents before the Grand Court of the Cayman Islands show that Grant Thornton, the liquidator to the Saad company businesses registered there, is “planning an action to retrieve that amount from the family [Algosaibi] partnership. The assets, Grant Thornton claims, are in the form of financial instruments, cash and land in Saudi Arabia.”


News of this claim would be a huge development in its own right, but it is the wider implications of this counter-claim that could be of major significance. As The National makes clear:


“Grant Thornton has previously been regarded as supportive of the al Gosaibi family's claims that it was the victim of a $10bn fraud perpetuated by Mr al Sanea, which he has consistently denied.


“The liquidator was appointed by the court to act for creditors of the Saad companies.


“The court document shows that Grant Thornton will contest Al Gosaibi's claim to be a fraud victim, and will say the partnership or individuals within it had knowledge and gave approval to Mr al Sanea in his business dealings.”


The potential importance of this new twist cannot be overstated. The Algosaibi case against Saad rests upon their accusation of a fraud perpetuated against them. With this reported counter-claim, Grant Thorton – independently appointed – appears to be arguing that it believes that the accusations against Saad are those that can be fought and won.


The last word on this issue should go to Steven Akers, the head of Grant Thornton’s recovery and reorganisation practice, quoted by The National:


"We have determined on advice that we have a robust defence to the claims against Saad entities and will be filing a substantial defence and very substantial counterclaim in this action."

Thursday, March 10, 2011

Bahrain: British bankers may face charges

Media reports this week suggest that the three British bankers, formerly executives at Awal Bank, may face charges in Bahrain. Alistair MacLeod, Cliff Giddings and Anthony James were only recently allowed to leave the country, having been the subject of a travel ban for nearly 18 months.

In an article on the 8th March, Britain’s The Daily Telegraph reports that Bahrain’s Public Prosecutor, Nawaf Abdulla Hamza, has announced that a hearing will take place – this Monday – in Bahrain’s lower criminal court.


As the newspaper explains, “In Bahrain, the court, not the prosecutor, has the power to bring criminal charges.” As such, we will not learn until this hearing what is the extent of any charges against the three men. However, it is noticeable that the hearing will take place in the lower court, which may give some indication as to the level and significance of the allegations against the three.

Next week promises to shed more light on the situation. Read the original Daily Telegraph report here.