Lebanon confirms Hariri aide tried to finger ex-general over assassination claims



BEIRUT // The Lebanese government yesterday confirmed that an aide to the prime minister had accused a former security official of demanding a payoff of US$15 million to drop his claims that the premier had pressed witnesses to implicate Syria and its Lebanese allies in the assassination in 2005 of Rafik Hariri.

The office of the prime minister, Saad Hariri, said in a statement that Mustafa Nasser had claimed this week that Jamil Sayyed, former director of Lebanon's general security division, had approached him about the possible payoff. Mr Sayyed and three other former security officials were arrested over the murder of Rafik Hariri and 22 others in a massive car bomb explosion in Beirut. The men, all military generals with close ties to Syria, spent four years in jail awaiting formal charges before being released in 2009. Mr Sayyed has claimed that Saad Hariri, son of Rafik, and his supporters pressed a series of later-discredited witnesses to finger Syria and its Lebanese allies for the murder. In a startling admission this month, Mr Hariri said he was hasty in blaming the Syrian regime for his father's death. He has denied Mr Sayyed's accusations, however.

Last week, Mr Sayyed gave a series of press conferences that threatened Mr Hariri's government, saying that if he "doesn't get justice from the courts, then he'll get it from the streets" and calling Mr Hariri a common thug. The comments drew a summons from prosecutors to explain his actions. Mr Sayyed, with the military support of Hizbollah, has refused to answer the summons despite threats of arrest and has denied several times that he sought payment from Mr Hariri.

The situation has shattered the year-old unity government led by Mr Hariri that includes several members of Hizbollah and its allies, once again pitting the Shiite group against Mr Hariri's predominately Sunni supporters in a struggle that threatens to spill onto the streets. The Druze leader Walid Jumblatt, a one-time ally of Mr Hariri, who is now neutral, warned in a local media interview that the situation was close to out of control.

"We have reached a regrettable situation. Truly it is a strange situation; and the country is witnessing systematic deterioration with the political rhetoric that will have an impact on security, politics and lives of the people and their morale," Mr Jumblatt said in the interview. "Many are asking whether they should stay or leave" the country, he added. @Email:mprothero@thenational.ae

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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.”

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