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DFSA says Abraaj Group probe focused on senior management

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Dubai-based Abraaj Group, which once managed about $14 billion, was forced into liquidation last year after being accused of mismanaging investor funds.

Wednesday 24, July 2019 BY KUDAKWASHE MUZORIWA

The Dubai Financial Service Authority (DFSA) said that its probe into collapsed private equity firm Abraaj Group will focus on senior management who were responsible for the conduct of the affairs and funds as well as people who may have failed in their responsibilities to identify or report irregularities.

“This investigation is highly complex, on a wide scale and is being pursued vigorously,” stated DFSA Annual Report.

In August 2018, the DFSA stopped Abraaj Capital from taking on new business or moving money to Abraaj Investment Management as part of an investigation into the group and the regulator announced earlier this year that it was investigating Abraaj Capital and other relevant companies and persons involved in the Abraaj Group.

Additionally, the DFSA also said that it may make changes to its oversight procedures following last year's collapse of Abraaj Group.

“We will use all of our powers to deal with those who are found to be culpable,” Bryan Stirewalt, the Chief Executive of the DFSA said.

Abraaj Group, which filed for provisional liquidation in June 2018 in the Cayman Islands, was the largest buyout fund in the MENA region until it collapsed last year after a row with investors over the allegedly improper use of money in a $1 billion healthcare fund.

US prosecutors have charged several senior executives of Abraaj including its founder Arif Naqvi and former managing partner Mustafa Abdel-Wadood with criminal charges, accusing them of taking part in a massive international scheme to defraud investors.

Naqvi, who is in London and on bail will face a court hearing for an extradition to the US next year, the founder of Abraaj has denied any wrongdoing.

TAGS : Dubai Financial Service Authority, Abraaj Group, Arif Naqvi, Mustafa Abdel-Wadood , Abraaj Capital

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