'Reuters': 'Social Security Institution' Wins Court Case in Britain Regarding Fehd Al-Rajjan's Bribes - Sarmad

• Court rules in favor of “Social Security” in recovering approximately $155 million from “M&G Group”

(London) – A court in London ruled on Thursday in favor of the Kuwait Pension Fund (Public Institution for Social Security) in its lawsuit against asset management firm M&G Group and other parties, in which the fund accused several banks and investment firms of laundering bribes paid to its late director, Fahad Al-Rajhan.

The Public Institution for Social Security filed a lawsuit against the heirs of Fahad Al-Rajhan in the High Court in London in 2019, accusing him of embezzling nearly $1 billion during his tenure.

In a summary of his ruling, Judge Richard Jacobs stated that “the claims of the Public Institution for Social Security for compensation… have generally succeeded,” noting that the exact amounts owed have not yet been determined and that any determination must take into account settlements the institution had reached.

The judge added that Al-Rajhan was involved in “proven corruption on a shocking scale, involving many individuals who rose to senior positions in the public sector or in the financial services industry.”

M&G Group said the court’s decision relates to two of its subsidiaries and two of its former employees, emphasizing that it disagrees with the ruling “both regarding liability and the value of compensation.”

The company did not state whether it intends to appeal the judgment.

The Public Institution for Social Security had sought approximately $156 million from M&G Group, alleging that the London-listed asset management firm was involved in bribes paid to Al-Rajhan in exchange for the institution’s investments in its products.

Judge Jacobs ruled that the institution is entitled to recover approximately $155 million, noting that the final amount to be paid will be subject to adjustments reflecting settlements reached with other defendants.

The lawsuit also included EFJ Bank, which defended itself in the case but announced in September that it had reached a settlement with the Public Institution for Social Security.

Al-Rajhan, who served as the general manager of the Public Institution for Social Security from 1984 to 2014, was convicted in absentia in Kuwait in 2016 on charges of corruption and embezzlement of public funds, and died in London in 2022.

Al-Rajhan and his associates received approximately $1 billion over two decades, described as commissions that banks and investment firms had no need to pay.