Bangladesh News

Monday
Oct 23rd
Home arrow News arrow Business News arrow US judge blocks prince Bandarís funds transfer
US judge blocks prince Bandarís funds transfer PDF Print E-mail
Tuesday, 12 February 2008

Associated Press . Washington

A federal judge has temporarily blocked Prince Bandar bin Sultan, the former Saudi ambassador to the United States, from removing real estate sales proceeds from the United States pending resolution of a class-action lawsuit.

The suit filed last September by a tiny Michigan city retirement system accuses current and former directors of BAE Systems PLC, a giant British defense company, of breaches of fiduciary duties in connection with $2 billion or more in alleged illegal bribes paid to Bandar in connection with an $86 billion BAE arms sale to Saudi Arabia in 1985. Bandar also is named a defendant in the suit, along with the former Riggs Bank of Washington and its successor, PNC Financial Group.

BAE and Bandar have strongly denied that illegal payments were made to Bandar. Without ruling on the merits of the case, US district judge Rosemary M Collyer said in a temporary restraining order, signed February 5, that the suit by the City of Harper Woods Employees’ Retirement System raises serious questions of law that warrant a temporary order keeping Bandar from taking the proceeds of real estate sales out of US-based accounts.

The order directs that such sales proceeds ‘be deposited and/or invested pursuant to a prudent man standard’ in US accounts, but specifically notes that it ‘does not prevent him from selling real property’ and ‘only interferes with his ability to invest and/or deposit any sales proceeds in a minimal way.’ The order further notes that ‘it may, of course, be terminated or modified upon application to the Court by Prince Bandar.’ A hearing was set for February 14 on whether to issue a preliminary injunction extending the temporary order.

The retirement system suit maintains that Bandar used funds illicitly obtained from BAE Systems to acquire US real estate, including a Colorado ranch and mansion once placed on the market at $135 million and the former William Randolph Hearst mansion in California, offered for sale last summer at $165 million. Harper Woods is a community of 14,200 people covering 2.63 square miles bordering the northeast corner of Detroit. It is the home of Eastland Center, one of the Detroit area’s first enclosed shopping malls.

A message seeking comment on the case was left Saturday night at the office of Harper Woods City Manager James Leidlein. Bandar had denied previously through a London law firm that he received improper commissions through accounts at Riggs Bank in Washington. ‘The accounts at Riggs Bank were in the name of the Saudi Arabian Ministry of Defense and Aviation.

Any payments into those accounts made by BAE were pursuant to the Al-Yamamah contracts and as such would not in any way have been secret from the parties to those contracts,’ Bandar’s statement said.

Comments Add New
Write comment
Name:
Email:
  We don't publish your mail. See privacy policy.
Title:
Please input the anti-spam code that you can read in the image.
 
< Prev   Next >