Abraaj arrests show long arm of the law amid need for tighter controls - The National:
Fourteen months after concerned investors commissioned an investigation into a $1 billion (Dh3.67bn) healthcare fund managed by the Abraaj Group, two former executives were charged with fraud in the US.
The arrests underscore the long arm of the law across jurisdictions and demonstrates that companies seeking international investment must withstand heightened scrutiny and demonstrate transparency, analysts say.
The arrests of Abraaj founder Arif Naqvi and former managing partner Mustafa Abdel-Wadood last week sent shock waves through the finance industry as it revealed the depth of the company's troubles. The scandal has also highlighted the need for local regulators to prosecute companies when corporate governance fails, according to asset managers, former Abraaj employees and analysts. International frameworks for financial regulation means executives committing a crime in one jurisdiction can be liable for their illegal activity in another.
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