Scotland Yard confirms Abraaj chief arrested on US request
April 13, 2019
LONDON: Scotland Yard has confirmed that Pakistani emerging markets business magnate Arif Naqvi was arrested at Heathrow airport on the request of American authorities over “alleged fraud” following recommendations by the US Securities and Exchange Commission.
A police spokesman told Geo.tv that Arif Naqvi, 58, was arrested at Heathrow Airport on Wednesday by officers from the Met’s Extradition Unit on behalf of US authorities. The police confirmed that Naqvi was remanded in custody and his bail hearing will be held in about a week.
Separately, a police source informed that there is no case against Naqvi in Britain, where he lives permanently. While arresting Naqvi, the Metropolitan Police acted on behalf of the US government, the source said.
The arrest came after the founder of the collapsed Dubai-based private-equity firm The Abraaj Group was charged with fraud and conspiracy in New York in relation to the collapse of the equity firm he headed.
Assistant US Attorney Andrea Griswold said at a hearing in Manhattan federal court on Thursday that Naqvi, the Pakistan-born Abraaj founder and Chief Executive, and managing partner Mustafa Abdel-Wadood were arrested in London and New York respectively and charged with fraud and conspiracy. Both of them have pleaded not guilty, denying each and every charge against them.
Abraaj was the largest private equity player in the Middle East until its collapse last year following a row with investors that included the Gates Foundation over a $1 billion health care fund. American prosecutors have alleged that the Abraaj executives defrauded their investors, including the Bill & Melinda Gates Foundation.
Abdel-Wadood appeared at the hearing in Manhattan and pleaded not guilty to securities fraud, wire fraud and conspiracy charges.
American prosecutor said that they would like to have Arif Naqvi extradited to the US to face charges but its understood that lawyers for Naqvi will resist the move since the collapse of the fund has nothing to do with Naqvi in person and there is no personal liability in this case.
Naqvi has always denied any wrongdoing related to the collapse. Abraaj, one of the largest emerging-markets private equity investors, claiming $14bn of assets under management, was sent into a death spiral last year after investors complained about mishandling of their monies in the group’s healthcare fund.
Naqvi has previously denied reports in some sections of media that he was involved in corruption either at the Abraaj or in the sale of Pakistan’s K-Electric. He had denied any misuse or appropriation of Abraaj funds.
Naqvi maintains that the allegations “are entirely false”. He has strongly maintained that he “neither misused nor misappropriated any Abraaj funds.”
“There was nothing untoward about my requests for transfers or Abraaj Group funds to me or my family, or for my personal investments or obligations,” he had said.
“In drawing down funds from Abraaj, I acted in accordance with the arrangements put in place by the Abraaj Group,” he had said when the issue started, adding that any drawdowns were “properly recorded and accounted for”.
Naqvi has maintained that the use of monies from Abraaj’s healthcare fund for general corporate purposes was undertaken only after having “sought and received independent legal advice as to whether it was permissible”.
