Arif Naqvi was arrested in Britain last month and has been awaiting possible extradition to the United States where he faces charges of defrauding investors
Aman Foundation UK faces winding up after Abraaj collapse
PKONWEB Report – The Pakistani founder of Abraaj Group, once one of the largest emerging markets private equity investors, has been given more time to raise a 15 million pound ($19.5 million) bail by a London court, a court official said on Friday.
Arif Naqvi was arrested in Britain last month and has been awaiting possible extradition to the United States where he faces charges of defrauding investors.
Naqvi was remanded in custody after the bail hearing at Westminster Magistrates Courton Friday was adjourned until May 17 because he failed to pay the bail conditions, the official said.
On May 3, Westminster Magistrates Court granted Naqvi bail on condition that he pay 15 million pounds and an additional surety of 650,000 pounds, as well as surrendering his Pakistani passport, remaining under 24-hour curfew at an address given to the court and wearing an electronic tag, a prosecution spokesman said at the time.
Dubai-based Abraaj had been the largest buyout fund in the Middle East and North Africa until it fell apart last year after a dispute with investors.
Naqvi has previously maintained his innocence. Under the U.S. charges, Naqvi is accused of inflating positions held by Abraaj in order to attract greater funds from them, causing them financial loss.
Aman Foundation faces winding up after Abraaj collapse
The British arm of a charity set up by Naqvi is set to wind up its operations as it faces scrutiny from UK regulators following the collapse of the private equity giant, The National reported.
The Charity Commission said it was “assessing information” following the arrest of Mr Naqvi on US fraud charges and would speak with trustees of the Aman Foundation UK about potential risks to the charity.
The British charity raised money for the larger Aman Foundation set up in Pakistan by the Naqvi family in 2008 to deliver health and education programs in the country.
Its work has included supplying a fleet of ambulances in a country where government health spending is among the lowest in the world.
But lawyers for the US authorities identified the Aman Foundation as a potential beneficiary for the “improper use” of $1 million of investors’ money after Mr Naqvi asked the Abraaj cash controller about diverting money from one fund to cover shortfalls elsewhere, according to court documents.
Aman Foundation UK offices at the Abraaj Group London’s headquarters in Mayfair moved out last year as part of insolvency cost-cutting measures.
The charity has also failed to file its accounts which were due at the end of April.
There is no suggestion of financial wrongdoing at the Aman Foundation UK but a source close to the charity said its likely winding up followed a failure by fund-raisers to secure significant sums to fund its plans.
It is understood that Mr Naqvi had no involvement in the running of the UK arm of the charity and is not listed as a trustee.
He is accused by US authorities of playing the lead role in a scheme to defraud investors in funds run by the Abraaj Group and of personally benefiting to the tune of hundreds of millions of pounds.