The detention compound at Guantanamo Bay US Naval Base in Cuba. AFP
The detention compound at Guantanamo Bay US Naval Base in Cuba. AFP
The detention compound at Guantanamo Bay US Naval Base in Cuba. AFP
The detention compound at Guantanamo Bay US Naval Base in Cuba. AFP

Pentagon chief loses bid to reject 9/11 plea deals, report says


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A military appeals court has ruled against Defence Secretary Lloyd Austin's efforts to throw out the plea deals for Khalid Sheikh Mohammed and two other defendants charged in the 9/11 attacks, according to a media report.

The appeals court released its ruling on Monday night, according to a US official. The decision puts back on track the agreements that would have the three men plead guilty to one of the deadliest attacks on the US in exchange for being spared the possibility of the death penalty.

Military prosecutors and lawyers for Mr Mohammed, the alleged planner of the attacks that killed about 3,000 people in New York and Washington, and two co-defendants reached the plea agreements after two years of government-approved negotiations. The deals were announced last summer.

Supporters of the plea agreements see them as a way of resolving the legally troubled case against the men at the US military commission at Guantanamo Bay naval base in Cuba. Pretrial hearings for Mr Mohammed, Walid bin Attash and Mustafa Al Hawsawi have been under way for more than a decade.

Within days of news of the plea deal this summer, Mr Austin issued a brief order saying he was nullifying them. He cited the gravity of the 9/11 attacks in saying that as Defence Secretary, he should decide on any plea agreements that would spare the defendants the possibility of a death sentence.

Defence lawyers said Mr Austin had no legal authority to reject a decision already approved by the Guantanamo court's highest authority and said the move amounted to unlawful interference in the case.

Mr Austin now has the option of taking his effort to throw out the plea deals to the US Court of Appeals for the District of Columbia Circuit.

The news comes after one of the longest-held detainees at Guantanamo was repatriated.

Ridah bin Saleh Al Yazidi's return to Tunisia after being detained in 2002 happened after a “rigorous” inter-agency review process, a Pentagon press release said. Mr Austin told Congress of his support to repatriate Mr Al Yazidi earlier last year.

His repatriation leaves 26 men at Guantanamo. This is down from a peak population of about 700 detained abroad and taken to the prison in the years after 2001.

Three others were repatriated this month. Fourteen await transfer to other countries. Only seven – including Mr Mohammed and his co-defendants – have active cases, while two others have been convicted and sentenced.

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.”

Global state-owned investor ranking by size

1.

United States

2.

China

3.

UAE

4.

Japan

5

Norway

6.

Canada

7.

Singapore

8.

Australia

9.

Saudi Arabia

10.

South Korea

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Updated: December 31, 2024, 5:16 PM