Catalonia’s president, Carles Puigdemont, blasted the police operations as “unlawful”. AP Photo/Emilio Morenatti
Catalonia’s president, Carles Puigdemont, blasted the police operations as “unlawful”. AP Photo/Emilio Morenatti

Clash over Catalan vote heats up in Spain as police swoop in



Thousands of people supporting a contested referendum to split Catalonia from Spain took to Barcelona’s streets amid an intensifying government crackdown on the independence vote that included the arrests of a dozen regional officials Wednesday and the seizure of 10 million ballot papers.

The arrests — the first involving Catalan officials since the campaign to hold an independence vote began in earnest in 2011 — prompted the regional government and some of its supporters to say casting a ballot was as much about dignity as whether to break away from Spain.

Regional Catalan officials so far have vowed to ignore a Constitutional Court order to suspend the Oct. 1 referendum while judges assess its legality.

Spanish Prime Minister Mariano Rajoy warned them of “greater harm” if they don’t drop the referendum bid, which he called a “totalitarian act.”

“Disobedience of the law by a part of the political power is the opposite of democracy, it means an imposition, an injustice, the violation of people’s rights and an attack to democracy,” Rajoy said in a televised appearance on Wednesday night.

“If you care about the tranquility of most Catalans, give up this escalation of radicalism and disobedience,” the conservative leader said, addressing Catalan officials directly. “You are on time to avoid a greater harm.”

Catalan nationalists argue that self-determination is an inalienable right that can’t be curbed by any constitution. The prime minister’s determination to prevent the ballot has backing from the main Spanish opposition parties.

Some members of Rajoy’s conservative government have even referred to the standoff as democratic Spain’s greatest political crisis since 1981, a failed coup attempt in the country’s parliament that came only three years after the official end of Gen. Francisco Franco’s dictatorship.

Spanish Interior Ministry officials would not identify the arrested regional officials, saying the investigation was ongoing. The Catalan regional government confirmed that among them were Josep Maria Jove, secretary general of economic affairs, and Lluis Salvado, secretary of taxation. Jove is the No. 2 to the region’s vice president and economy chief, Oriol Junqueras.

The Catalonia branch of Spain’s High Court said Wednesday that some 20 people were being investigated for alleged disobedience, abuse of power and embezzlement related to the referendum. Police acting on a judge’s orders searched 42 premises, including six regional government offices, officials’ private offices and homes, as well as three companies in Barcelona, the court said in a statement.

The arrests risked stoking public anger in Catalonia, where pro-independence passions can run high. Several thousand independence supporters gathered to angrily protest the raids outside government offices in Barcelona, which is Catalonia’s capital. Some demonstrators sat down in the street to block police cars, while a few scuffled with police officers.

Later, protesters rejoiced when National Police officers left the headquarters of the anti-establishment CUP political party. The officers waited hours for a judge to sign off on a warrant to search the premises for referendum-related propaganda, but the permission never came.

Protests also occurred in other Catalan towns and in Spain’s capital, Madrid. There were no reports of arrests and one person was reported injured, according to the regional police.

At the demonstration outside the Catalan regional ministry of economy, protester Charo Rovira said she felt sad at the turn of events.

“Catalonia is practically in a state of siege,” she said. She added that the arrested politicians were merely acting according to the will of the people.

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Catalonia’s president, Carles Puigdemont, blasted the police operations as “unlawful” and accused the national government of adopting a “totalitarian attitude.” He accused Madrid of bringing a state of emergency to Catalonia and of effectively cancelling the northeastern region’s self-rule.

His televised statement came as Spain’s Finance Ministry said it was imposing further controls over the Catalan government’s finances to ensure no public money is used for the referendum.

Finance Minister Cristobal Montoro’s order means that virtually all of Catalonia’s public spending will be handled in Madrid and that no credits could be requested for non-essential payments.

Catalonia represents a fifth of Spain’s 1.1-trillion-euro ($1.32 trillion) economy and enjoys wide self-government authority, although key areas such as infrastructure and taxes are in the hands of central authorities. The region’s 7.5 million inhabitants overwhelmingly favor holding a referendum, but are roughly evenly divided over independence.

As part of the crackdown, police confiscated nearly 10 million ballot papers, the Interior Ministry said. Polling station signs and documents for election officers were also seized during a raid on a warehouse in a small town outside Barcelona.

“Today the government of Rajoy has crossed a very dangerous red line,” Jordi Sanchez, president of Catalan National Assembly, a civic group leading the independence drive said. “We will do all we can for democracy and freedom to prevail.”

Barcelona Football Club, which is popular around the world, waded into the controversy, too. The soccer team said it “condemns any act that may impede the free exercise of (democratic) rights” and vowed to “continue to support the will of the majority of Catalan people, and will do so in a civil, peaceful, and exemplary way.”

Spain’s Interior Ministry canceled time off and scheduled leave for Civil Guard and National Police officers who are being deployed to ensure the vote doesn’t happen. It gave no details on the number of agents involved.

Water waste

In the UAE’s arid climate, small shrubs, bushes and flower beds usually require about six litres of water per square metre, daily. That increases to 12 litres per square metre a day for small trees, and 300 litres for palm trees.

Horticulturists suggest the best time for watering is before 8am or after 6pm, when water won't be dried up by the sun.

A global report published by the Water Resources Institute in August, ranked the UAE 10th out of 164 nations where water supplies are most stretched.

The Emirates is the world’s third largest per capita water consumer after the US and Canada.

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”