Al Badie Group mired in corruption (part 2)

Following on from our Part 1 report detailing the corruption and bribe demanded by Khaled Al Badie that led to the Sweet Plc Corruption prosecution by the UK Serious Fraud Office  we focus in this report on the corrupt behaviour of Khaled’s father Mohammed Al Badie and Khaled Al Badie, President and Vice President respectively of Al Badie Group and their close lieutenant and henchman Majid Shunnag.

On or about 10th November, 1998 Alliance Bechtel Linde – ABL (a joint venture of Bechtel Corporation of the USA and Linde of Germany) was awarded a $600 million contract by Borouge, a joint venture of Abu Dhabi National Oil Company (Adnoc) and Borealis A/S to build an Ethylene Cracker unit at Al Ruwais in Abu Dhabi.

It has emerged that Mohammed Al Badie bribed high ranking public servants in the service of the Emirate of Abu Dhabi. The public servants were carefully selected for their positions of power ability to influence the award of the contract to build the Al Ruwais cracker.  According to records Al Badie would pay them a percentage of his agency fees receivable from ABL, should ABL be awarded the contract.

In taped conversations we have listened to and relevant documents, Majid Shunnag, the Al Badies’ then right-hand man in charge of the ABL office file, stated that a public official who is “ex ADNOC” and therefore knowledgeable about the contract awards was the recipient of payments from Mohammed Al Badie.  It was revealed in the Panama Papers Leaks in 2017 that Mohammed Al Badie was the beneficial owner of several secret offshore companies so making illegal payments to 3rd party public servants could have been done without disclosure. It is understood that the receipt of illegal payments by public servants was not investigated by the Abu Dhabi authorities at the time.

It can be deduced from the available correspondence in 2015 between lawyers representing consultants and Bechtel that Bechtel did not conduct an in-house investigation into the payments made to public officials by their agents the Al Badie Group or its owners. Had Bechtel conducted such an investigation and in the event confirmed the payments by Al Badie to public servants they would have been obligated to report the illegal payments to the US Department of Justice under US FCPA legislation.

In forthcoming Part 3 we will report on the theft and diversion to the Al Badies and Majid Shunnag of contractually agreed payments to various service providers and consultants to Al Badie Group using threats, intimidation and extortion. We will also report on irregularities surrounding the Al Badies’ involvement and theft of consultants’ legitimate remunerations in the sale of Neste Oy’s 50% stake in Denmark-based petrochemicals group Borealis to Austrian-based OMV and IPIC (International Petroleum Investment Company) of Abu Dhabi, United Arab Emirates for almost FM4bn ($756m).

 

http://www.bechtel.com/newsroom/releases/1998/11/bechtel-linde-awarded-abu-dhabi-ethylene-plant/

 

https://www.icis.com/resources/news/1997/09/15/39535/neste-sells-borealis-stake-to-omv-ipic/

 

https://www.albadiegroup.com

 

https://offshoreleaks.icij.org/search?utf8=✓&q=Badie&e=&commit=Search