The Kuwait Public Pension Fund (PIFSS) achieved victory on Thursday in London court in its lawsuit against Group Man and several other investment companies. The fund had filed a complaint regarding money laundering related to bribes paid to Fahd Al-Rajaan, its former director. This lawsuit was filed in the High Court of London in 2019 against Al-Rajaan's assets, accusing him of embezzling approximately one billion dollars during his management period.
Judge's Decision and Corruption Dimensions
Judge Richard Jacobs stated in a summary of his ruling that "the claims of PIFSS for damages... were generally successful," but he also clarified that the amounts owed were still unspecified and that PIFSS's agreements with other defendants should be taken into account. Jacobs added that Al-Rajaan was involved in "proven widespread corruption" that included many individuals who had attained high government positions or roles in the financial services industry.
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Details of the Lawsuit and Its Consequences
Group Man announced that the court findings pertained to two subsidiaries and two former employees, and the company disagrees with the ruling "regarding liability and amount." The Kuwait Public Pension Fund had requested approximately 156 million dollars from Group Man, claiming that this investment manager played a role in the bribes paid to Al-Rajaan to secure PIFSS's investment in Group Man's products. Jacobs ruled that PIFSS is entitled to recover about 155 million dollars, although he noted that the final amount to be paid should consider agreements with other defendants.
This lawsuit was also filed against EFG Bank, which was contesting the case but announced in September that it had reached an agreement with PIFSS. Al-Rajaan, who served as the director of PIFSS from 1984 to 2014, was convicted in absentia in 2016 for corruption and embezzlement of public funds in Kuwait. He passed away in London in 2022.
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