Beware the colour of money – Part II

From Terror funds in Dalal Street?* (an extract)

“…Research & Analysis Wing (RAW) (has)…alerted the government and the Securities & Exchange Board of India (Sebi) about investments by Khalid bin Mahfouz — a prominent Saudi businessman alleged to have links with Osama bin Ladenin Indian companies through the stock market.

Sebi is now being asked to probe if Khalid has been investing in Indian markets and possibly raising funds to finance terrorism.

Khalid first came under the scanner following strong suspicion that he was siphoning off money from the National Commercial Bank, which was founded by his father, a money-changer, and transferring it to trusts engaged in funding terror outfits.

The Saudi tycoon of Yemeni origin got to control the National Commercial Bank and ran it till 1999. In 1997, he sold off his 20.7% stake. The entire clan had exited the bank by 2002, selling the remaining stake to a Saudi government investment fund.

The sudden severance of links triggered fresh suspicions. Khalid’s website, however, said that he stepped down due to ill health.

Khalid has been dogged by suspicions of illegality throughout his career. He was also a director of BCCI International, a bank that acquired an unsavoury reputation because of involvement in shady dealings before suddenly going bust. The circumstances leading to the shuttering of BCCI, which had allegedly become the conduit for Pakistan’s ISI as well as crime syndicates, had raised suspicion of diversion of funds.

…Khalid…has an estimated wealth of around $3 billion…(His) business interests…include real estate, investment in Thuraya Satellite and a portfolio quoted on the Saudi stock market.

…Though the finance ministry has sought to downplay the apprehensions, the assessment of intelligence agencies has been backed up by independent investigations by the US which has, post-9/11, moved aggressively to choke the flow of funds to terrorists. An international vigil is on against Saudi-based Islamic charities. 

***

Source: Times of India, 22 Sep 2007, 0000 hrs IST,Sidhartha,TNN

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2 Responses

  1. v.c.krishnan says:

    Dear Sir,
    Please understand that the matter you have stated is a “VERY SENSITIVE” topic. It deals with terrorism for which this country is ill prepared. You must understand the objective of the “ENGLISH MEDIA BRIGADE”. They will not like to debate, discuss or continue with any sort of investigation, including secret recordings through interviews as their objectives are different.
    Their avowed objective, in the first case is the destruction of “BHARAT” by fair means or foul. They will first like to destroy “BHARAT” and then concentrate on rebuilding “INDIA” as required by the “EVANGELISTS”.
    Any amount of information will get us no where. Only sleepless nights will be there for certain categories of people by this information.
    It is neccessary that the State Governments ruled by “Bharatyias” should set up sleuthing divisions so as to prevent such monies entering into the market which they control or thru companies which fall under their purview.
    Regards,
    vck

  2. Prakash says:

    This is a very serious issue and I dont think most countries still have a general policy on how to regulate these. The chinese now have a huge sovereign fund that has already invested in financial entities. The arab sovereign funds have come to “help” out the US and european banks during this subprime crisis. The effects of allowing sovereign funds in to free markets is still not known.