Bahrain charges TIBC, Awal execs

Bahraini authorities have filed money laundering charges against several executives with two Bahraini banks – the International Banking Corp. (TIBC) and Awal Bank.

TIBC is said to be controlled by the Saudi Algosaibi family although the Algosaibis maintain that the bank was incorporated without their knowledge. Awal Bank is chaired by Saudi businessman Maan Al Sanea, who is also the chairman of the Saad Group.

In line with Bahraini law, the public prosecutor’s office did not identify the defendants with TIBC and Awal Bank, and authorities said the case was referred to the Lower Criminal Court for a March 14 hearing.

“We greatly respect the government of Bahrain in their efforts to criminally charge those who orchestrated this massive fraud against our family and the hundreds of financial institutions that are involved,” the Algosaibi family said in a statement sent to Emirates 24|7.

“This fraud took place around the world and we continue to work with the many government authorities seeking answers as to how much money moved through so many financial systems without detection,” the statement added.

Both banks were placed under administration in 2009 after they defaulted on their loans and the Algosaibi and Saad families, which are related, entered into a financial dispute for billions of dollars in missing money. AHAB’s alleged exposure in the dispute is $9.2b.

Al-Sanea has repeatedly denied any wrongdoing and his spokesperson earlier told Emirates 24|7 that Saad Group has had no business links with AHAB “except on an arms’ length commercial basis” and that “AHAB has no interest in Saad Group company or in any business owned or controlled by Maan Al-Sanea”. Al-Sanea is married to the daughter of Abdelaziz Algosaibi, one of the founders of AHAB and has worked for the Algosaibi family in the past.

"TIBC was established in 2003 and, upon its incorporation, the shareholders of record was AHAB (93 per cent).  The remaining shares (7 per cent) were recorded as held by Mr Al Sanea and his wife. TIBC was however a sham business," Eric Lewis, AHAB’s chief legal advisor and partner of Baach, Robinson & Lewis, told this website in an emailed statement. "TIBC’s operations were concealed from AHAB and the AHAB partners were unaware of their existence until after the discovery of the fraud," he added.

Bahrain’s Central Bank reportedly hired forensic investigation firm Kroll to look into the banks’ collapse, but the results of the investigation have not been made public.

“The family will continue to pursue the best resolution of this matter with all stakeholders and at the same time look to ensure that all of those who committed this crime be held responsible through both civil and criminal courts,” said Lewis.

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