At least 200 people were killed and more than 6,000 injured in the Beirut Port blast. EPA
At least 200 people were killed and more than 6,000 injured in the Beirut Port blast. EPA
At least 200 people were killed and more than 6,000 injured in the Beirut Port blast. EPA
At least 200 people were killed and more than 6,000 injured in the Beirut Port blast. EPA

US court rules case against company involved in Beirut blast can proceed


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A US court has denied an energy company's motion to dismiss a lawsuit filed on behalf of nine victims of the deadly port explosion in Beirut three years ago.

The August 31 ruling was highlighted on Thursday by Accountability Now, the Swiss non-profit group suing TGS, an international geophysical and energy company whose operational headquarters are in Houston.

The lawsuit, filed last year in federal court in Texas, alleges that seismic study firm Spectrum, which TGS acquired in 2019, played a pivotal role in unloading the ammonium nitrate that exploded in the Beirut port.

“This marks another step towards accountability, but our goal is that justice prevail for all victims, both in Lebanon and abroad,” Accountability Now's Zena Wakim told The National.

In his ruling, US District Judge Kenneth Hoyt said a jury should hear the case.

Because Spectrum would have been aware of the Lebanese laws that regulated stores of ammonium nitrate, particularly in relation to a residential area, “it may have” legal exposure, he wrote.

A TGS representative did not immediately respond to a request for comment. TGS has previously denied all allegations raised in the lawsuit.

In Lebanon, the investigation remains at a standstill because of political obstructions. Despite repeated calls from the international community, no senior officials have yet been held accountable for the tragedy.

About 2,750 tonnes of ammonium nitrate, which is used as a fertiliser in agriculture and is a key ingredient in the production of explosives, was shipped to Beirut in 2013 on the Moldovan-flagged vessel Rhosus.

The Rhosus had been chartered in 2013 by Spectrum.

The chemicals detonated seven years later, claiming the lives of more than 200 people and devastating large parts of the capital, in one of the largest non-nuclear explosions in history.

Last year, Accountability Now filed a $250 million claim against TGS, saying it was responsible for any “wrongful conduct” by Spectrum.

Any proceeds from the case will be shared with a “special recovery fund” for all the blast victims and in support of “social relief project in Lebanon”, according to a statement from Accountability Now.

TGS had submitted motions to dismiss the case, all of which were rejected by the US Court.

Ms Wakim expressed hope that the US investigation could reveal information that might “unravel the chain that led to the explosion” and assist Lebanon's stalled inquiry.

“The next step is the full discovery process," she said, referring to the US court procedure where both sides are allowed to request evidence and witness lists from each other.

In this case, it “involves tens of thousands of documents, including correspondence held between Spectrum and Lebanese officials, which will allow us to obtain information that the Lebanese judge might not be able to access", Ms Wakim said.

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Initial investment: Undisclosed 

Milestones on the road to union

1970

October 26: Bahrain withdraws from a proposal to create a federation of nine with the seven Trucial States and Qatar. 

December: Ahmed Al Suwaidi visits New York to discuss potential UN membership.

1971

March 1:  Alex Douglas Hume, Conservative foreign secretary confirms that Britain will leave the Gulf and “strongly supports” the creation of a Union of Arab Emirates.

July 12: Historic meeting at which Sheikh Zayed and Sheikh Rashid make a binding agreement to create what will become the UAE.

July 18: It is announced that the UAE will be formed from six emirates, with a proposed constitution signed. RAK is not yet part of the agreement.

August 6:  The fifth anniversary of Sheikh Zayed becoming Ruler of Abu Dhabi, with official celebrations deferred until later in the year.

August 15: Bahrain becomes independent.

September 3: Qatar becomes independent.

November 23-25: Meeting with Sheikh Zayed and Sheikh Rashid and senior British officials to fix December 2 as date of creation of the UAE.

November 29:  At 5.30pm Iranian forces seize the Greater and Lesser Tunbs by force.

November 30: Despite  a power sharing agreement, Tehran takes full control of Abu Musa. 

November 31: UK officials visit all six participating Emirates to formally end the Trucial States treaties

December 2: 11am, Dubai. New Supreme Council formally elects Sheikh Zayed as President. Treaty of Friendship signed with the UK. 11.30am. Flag raising ceremony at Union House and Al Manhal Palace in Abu Dhabi witnessed by Sheikh Khalifa, then Crown Prince of Abu Dhabi.

December 6: Arab League formally admits the UAE. The first British Ambassador presents his credentials to Sheikh Zayed.

December 9: UAE joins the United Nations.

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Date started: 2015

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Sector: Online grocery delivery

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Plays golf once a week

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Completed a Bachelor of Commerce degree in Loyola College, Chennai, India

2019 is a milestone because he completes 50 years in business

 

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Who has lived at The Bishops Avenue?
  • George Sainsbury of the supermarket dynasty, sugar magnate William Park Lyle and actress Dame Gracie Fields were residents in the 1930s when the street was only known as ‘Millionaires’ Row’.
  • Then came the international super rich, including the last king of Greece, Constantine II, the Sultan of Brunei and Indian steel magnate Lakshmi Mittal who was at one point ranked the third richest person in the world.
  • Turkish tycoon Halis Torprak sold his mansion for £50m in 2008 after spending just two days there. The House of Saud sold 10 properties on the road in 2013 for almost £80m.
  • Other residents have included Iraqi businessman Nemir Kirdar, singer Ariana Grande, holiday camp impresario Sir Billy Butlin, businessman Asil Nadir, Paul McCartney’s former wife Heather Mills. 
Hunting park to luxury living
  • Land was originally the Bishop of London's hunting park, hence the name
  • The road was laid out in the mid 19th Century, meandering through woodland and farmland
  • Its earliest houses at the turn of the 20th Century were substantial detached properties with extensive grounds

 

Updated: September 12, 2023, 9:21 AM