Saudi crown prince targets corruption
Royal billionaire among dozens arrested
SAUDI Arabia has arrested dozens of princes, senior military officers, businessmen and top officials – including a well-known royal billionaire with extensive holdings in Western companies – as part of a sweeping purported anti-corruption probe that further cements control in the hands of its young crown prince.
A high-level employee at Prince Alwaleed bin Talal’s Kingdom Holding Co said the royal, who is one of the world’s richest men, was among those detained overnight on Saturday. The company’s stock was down nearly 9% in trading on the Saudi stock exchange yesterday.
Reports suggested those detained were being held at the Ritz Carlton in Riyadh, which only days earlier hosted a major investment conference with global business titans from the US, Japan and other countries. A Saudi official said other fivestar hotels across the capital were also being used to hold some of those arrested.
The surprise arrests, which also reportedly include two of the late King Abdullah’s sons, were hailed by pro-government media outlets as the greatest sign yet that Crown Prince Mohammed bin Salman is keeping his promise to reform the country, long been plagued by allegations of corruption at the highest levels of government.
Analysts have suggested the arrest of once-untouchable members of the royal family is the latest sign that the 32-year-old crown prince is moving to quash potential rivals or critics. The prince’s swift rise to power has unnerved more experienced, elder members of the ruling Al Saud family, which has long ruled by consensus, though ultimate decision-making remains with the monarch.
The king named his son, the crown prince, as head of an anti-corruption committee established late on Saturday, just hours before its arrest of top officials.
A Saudi government official with close ties to security says 11 princes and 38 others are being held. The official spoke to the AP on condition of anonymity.
Marriott International said it was currently evaluating the situation at the Ritz-Carlton in Riyadh. “As a matter of guest privacy, we do not discuss the guests or groups with whom we do business or may be visitors of the hotel,” the statement added.
The scale of the arrests is unprecedented in Saudi Arabia, where senior royals and their business associates were seen as operating above the law. Saudi nationals have long complained of rampant corruption in government and of public funds being squandered or misused by people in power.
Shortly before the arrests, King Salman had ousted Prince Miteb bin Abdullah from his post as head of the National Guard. The prince is reportedly among those detained in the sweep, as is his brother, Prince Turki bin Abdullah, who was once governor of Riyadh. Both are sons of the late King Abdullah, who ruled before his half-brother King Salman.
Prince Miteb was once considered a contender for the throne.
Saudi Twitter accounts released several other names of those arrested, such as: Alwalid al-Ibrahim, a Saudi businessman with ties to the royal family who runs the Arabic satellite group MBC; Amr al-Dabbagh, the former head of the Saudi Arabian General Investment Authority; Ibrahim Assaf, the former finance minister; and Bakr Binladin, head of the Saudi Binladin Group, a major business conglomerate.
“The dismissals and detentions suggest that Prince Mohammed rather than forging alliances is extending his iron grip to the ruling family, the military, and the national guard to counter what appears to be more widespread opposition within the family as well as the military to his reforms and the Yemen war,” said James M Dorsey, a Gulf specialist and senior fellow at Nanyang Technological University in Singapore.
Saudi Arabia said it had intercepted a ballistic missile fired from Yemen at Riyadh International Airport, on the outskirts of the capital late on Saturday. The crown prince, as defence minister, oversees the stalemated war against Yemen’s Iranian-allied rebels.
The Finance Ministry said the anti-corruption probe “opens a new era of transparency and accountability”, enhances confidence in the rule of law and improves the kingdom’s investment climate.
It is not clear what Prince Alwaleed or others are being investigated for.
The Saudi-owned Al-Arabiya news channel said the anti-corruption probe was looking into the response to flooding in Jiddah that killed around 120 people in 2009 and devastated the city again in 2011, as well as the government’s handling of a Corona virus outbreak that has killed several hundred people in recent years.
Prince Alwaleed has many investments including in Twitter, Apple, Rupert Murdoch’s News Corp, Citigroup, and the Four Seasons, Fairmont and Movenpick hotel chains. He is also an investor in ride-sharing services Lyft and Careem.
The prince, often pictured on his 85.65m superyacht in the Mediterranean, is among the most outspoken Saudi royals and a long-time advocate for women’s rights. He is also majority owner of the popular Rotana Group of Arabic channels.
There was no response from Kingdom Holding for comment as of yesterday afternoon.
The kingdom’s top council of clerics issued a statement saying it is an Islamic duty to fight corruption – essentially giving religious backing to the high-level arrests being reported.
A top royal court official, Badr al-Asaker, appeared to confirm the arrests on Twitter yesterday, describing a “historic and black night against the corrupt”.
The government said the anti-corruption committee has the right to issue arrest warrants, impose travel restrictions and freeze bank accounts. It can also trace funds, prevent the transfer of funds or the liquidation of assets, and take other precautionary measures until cases are referred to the judiciary.
Meanwhile, Prince Miteb was replaced by a lesser-known royal, Prince Khalid bin Ayyaf al-Muqrin, to head the National Guard – a prestigious force tasked with protecting the royal family, important holy sites in Mecca and Medina, and oil and gas sites.
Just three months earlier, Prince Mohammed bin Nayef was plucked from the line of succession and from his post as interior minister, overseeing internal security. This laid the groundwork for the king’s son to claim the mantle of crown prince. – AP