Mehdi Hashemi was accused of misusing funds when he ran the Iranian Fuel Conservation Co.
Mehdi Hashemi was accused of misusing funds when he ran the Iranian Fuel Conservation Co.

Hardliners target Rafsanjani allies



TEHRAN // In the latest twist to Iran's post-election developments, hardliners are demanding the prosecution of two people with ties to Akbar Hashemi Rafsanjani, the chairman of the Expediency Council, on financial and political corruption charges. The hardliners want to see Mehdi Hashemi, Mr Rafasnjani's youngest son, plus a political ally of the cleric charged based on allegations made by a defendant during the trial this week of several reformist former officials, politicians and activists related to the unrest following the June 12 election. Hamid Rasai, a hardline lawmaker, said the country's chief justice, Ayatollah Sadeq Larijani, must destroy the influence of the children of top officials and the powerful by conducting an investigation of the allegations made against Mr Hashemi and Abdollah Jasbi, the chancellor of the Free University. Mr Rasai made his comments to a government mouthpiece, the Iran newspaper. Referring to Mr Hashemi, he said Ayatollah Larijani must warn the top officials that their children are not exempt from justice. Allegations of misappropriation of government money and money laundering were levelled at Mr Hashemi and Mr Jasbi by Hamzeh Karami, the chief editor of Jomhuriyat, a reformist news portal, and a former employee of the government affiliated Iranian Fuel Conservation Co. Mr Karami accused Mr Hashemi, the head of the company at the time, of spending about US$2 million (Dh7.34m) of public money for his father's presidential election campaign in 2005. In one case, about $500,000 was paid to a publishing house to print one million copies of a book, but only 25,000 copies were made and the rest of the money went into Mr Rafsanjani's campaign activities, Mr Karami claimed. He alleged that Mr Hashemi did not believe in spending personal financial resources for political campaigns. He told the court Mr Rafsanjani's son resorted to extensive money laundering to cover up the alleged fraud. "He exchanged the money into dollars and back into rials several times and said that was meant to hide the source of the money," the defendant told the court. Mr Karami accused Mr Jasbi of putting the resources of Free University, which has more than 1.5 million students, at the disposal of the opposition and of conspiring to prevent the re-election of Mahmoud Ahmadinejad as president this year. These resources were used by Mr Hashemi towards trying to unseat Mr Ahmadinejad and for spreading vote-rigging rumours after the announcement of election results through the opposition media, Mr Karami alleged. Pro-Ahmadinejad hardliners consider Free University, which is a non-benefit foundation, a source of political campaign financing for Mr Rafsanjani. Mr Karami was arrested after the elections and charged with using journalistic activities to act against national security. Mr Karami, whose trial was broadcast on state-run television, defended himself. Mr Hashemi immediately denied the allegations made against him during the trial and in a letter addressed to Ezzatollah Zarghami, the head of the state-run Islamic Republic of Iran Broadcasting organisation, demanded airtime to defend against the allegations made by Mr Karami. Mr Zarghami has not responded to Mr Hashemi's demand. Mr Hashemi's letter also said Mr Rafsanjani and his family have filed a suit with the justice system against Mr Ahmadinejad. Mr Rafsanjani's failure to congratulate Mr Ahmadinejad following the announcement of the election results this year, his refusal to attend the president's second-term inauguration ceremonies and his support for the opposition has hugely angered pro-Ahmadinejad hardliners. They allege that Mr Rafsanjani has been scheming against Mr Ahmadinejad since he lost to him in the presidential elections in 2005. "The process of sabotage and extensive political, security and economic activities of Rafsanjani and his clan against Ahmadinejad and his government began immediately after the elections" in 2005, the Iran newspaper wrote yesterday. "Mr Rafsanjani's message to the head of one of the Arab countries [four years ago] about the downfall of Ahmadinejad's government within six months very clearly demonstrates the time of the commencement of the efforts by the head of the Expediency Council [Mr Rafsanjani] against the president. Rafsanjani's office and house were the location of meetings for counteracting Ahmadinejad," the paper wrote. Mr Rafsanjani and his children have long been the target of financial corruption allegations made by hardliners and conservatives, including Mr Ahmadinejad himself. In 2005 Mr Rafsanjani alleged that the rival camp was waging an extensive character assassination campaign against him and his family. Mr Rafsanjani never accepted the results of the 2005 elections and did not congratulate Mr Ahmadinejad for his victory. During a controversial televised debate with Mir Hossein Mousavi, the lead reformist contender, one week before June 12 elections, Mr Ahmadinejad alleged that Mr Rafsanjani, not a candidate himself this time, was masterminding the campaign to prevent him from being elected to a second term in office. He also explicitly accused two of Mr Rafsanjani's children of fostering aristocracy as well as financial corruption and said they had been evading legal prosecution by the merit of their father's influence. msinaiee@thenational.ae

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THE BIO

Age: 30

Favourite book: The Power of Habit

Favourite quote: "The world is full of good people, if you cannot find one, be one"

Favourite exercise: The snatch

Favourite colour: Blue

Real estate tokenisation project

Dubai launched the pilot phase of its real estate tokenisation project last month.

The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.

Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.

England ODI squad

Eoin Morgan (captain), Moeen Ali, Jonny Bairstow, Jake Ball, Sam Billings, Jos Buttler, Tom Curran, Alex Hales, Liam Plunkett, Adil Rashid, Joe Root, Jason Roy, Ben Stokes, David Willey, Chris Woakes, Mark Wood.

At a glance

Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.

 

Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year

 

Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month

 

Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30 

 

Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse

 

Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth

 

Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances

COMPANY PROFILE
Name: Kumulus Water
 
Started: 2021
 
Founders: Iheb Triki and Mohamed Ali Abid
 
Based: Tunisia 
 
Sector: Water technology 
 
Number of staff: 22 
 
Investment raised: $4 million 

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.”

The specs: 2018 BMW X2 and X3

Price, as tested: Dh255,150 (X2); Dh383,250 (X3)

Engine: 2.0-litre turbocharged inline four-cylinder (X2); 3.0-litre twin-turbo inline six-cylinder (X3)

Power 192hp @ 5,000rpm (X2); 355hp @ 5,500rpm (X3)

Torque: 280Nm @ 1,350rpm (X2); 500Nm @ 1,520rpm (X3)

Transmission: Seven-speed automatic (X2); Eight-speed automatic (X3)

Fuel consumption, combined: 5.7L / 100km (X2); 8.3L / 100km (X3)

Company profile

Company: Verity

Date started: May 2021

Founders: Kamal Al-Samarrai, Dina Shoman and Omar Al Sharif

Based: Dubai

Sector: FinTech

Size: four team members

Stage: Intially bootstrapped but recently closed its first pre-seed round of $800,000

Investors: Wamda, VentureSouq, Beyond Capital and regional angel investors

Keane on …

Liverpool’s Uefa Champions League bid: “They’re great. With the attacking force they have, for me, they’re certainly one of the favourites. You look at the teams left in it - they’re capable of scoring against anybody at any given time. Defensively they’ve been good, so I don’t see any reason why they couldn’t go on and win it.”

Mohamed Salah’s debut campaign at Anfield: “Unbelievable. He’s been phenomenal. You can name the front three, but for him on a personal level, he’s been unreal. He’s been great to watch and hopefully he can continue now until the end of the season - which I’m sure he will, because he’s been in fine form. He’s been incredible this season.”

Zlatan Ibrahimovic’s instant impact at former club LA Galaxy: “Brilliant. It’s been a great start for him and for the club. They were crying out for another big name there. They were lacking that, for the prestige of LA Galaxy. And now they have one of the finest stars. I hope they can go win something this year.”

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