ADIA History and Negative Press

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Negative Press - ADIA

Negative press about ADIA has been published in reports from Reuters, Al Jazeera, Gulf News, and Business Insider, among other news organizations. Some information covered relates to lawsuits the company was involved in and allegations against the investment fund. Further details are in the findings below.

NEGATIVE PRESS ARTICLES

  • ADIA is believed to have been defrauded of $4 million by Citigroup in 2009. That year, the fund claimed that it was induced into investing $7.5 billion in Citigroup. Citigroup, then, reported that it would not bring certain Structured Investment Vehicles (SIV) to its balance sheet or raise any additional capital after the investment; however, it went ahead and brought the SIV into its balance sheet, wrote off $18.1 billion in subprime losses, and raised an additional $20 million in capital.
  • In November 2015, Al Jazeera reported that ADIA would be closing its London office. This was linked to claims that the UAE was using its financial reach to influence British foreign policy and that UAE officials promised the UK a $9 billion arms contract if there was a suppression of the Muslim Brotherhood.
  • In August 2011, Reuters reported that the Madoff Trustee sued ADIA, seeking money for victims of the Bernard Madoff Ponzi Scheme. ADIA was accused of withdrawing $300 million from Fairfield Sentry, a "feeder fund" which had transferred almost all its client assets to Bernard L. Madoff Investment Securities, LLC.
  • In August 2011, Gulf News reported that Fairfield Sentry also filed a lawsuit against ADIA, seeking the return of the same $300 million that the Madoff Trustee was seeking. The money was allegedly withdrawn from the "feeder funds" in 2005 and 2006 from Fairfield before the discovery of the Madoff fraud.
  • ADIA was named by Business Insider in a list of companies that made secret tax deals with the government of Luxembourg. The private deals were made to save the companies taxes.
  • Abu Dhabi Tycoon Khadem al-Qubasi, a former ADIA employee, was named in an article discussing the seizure of over $1 billion in assets. The article mentioned companies like ADIA as illustrators of an opaque Gulf business world which is funded by a lot of oil money.
  • In September 2013, ADIA was reported to have taken Citigroup back to court with further claims for the recovery of some of the bank's bailout after previous attempts failed. Citigroup stated that ADIA had made an assault on a federal court's ruling and that the new arbitration was only an improper attempt to litigate claims that could have been brought to light in the first arbitration.

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