Given Bashar Al Assad’s brutal repression at home since 2011, it is no longer controversial internationally to address his possible connection to the murder of Rafik Hariri. Hussein Malla  /  AP Photo
Given Bashar Al Assad’s brutal repression at home since 2011, it is no longer controversial internationally to address his possible connection to the murder of Rafik Hariri. Hussein Malla / AP Photo

Hariri tribunal needs to recapture lost momentum



Last week, the Special Tribunal for Lebanon, which is trying suspects for the assassination of the former Lebanese prime minister Rafik Hariri, allowed prosecutors to present evidence on the deteriorating relationship between Mr Hariri and the Syrian regime in 2004-2005.

Defence lawyers described the decision as a major expansion in the Hariri trial. That's not surprising. Until now those indicted have been five members of Hizbollah, all accused of participating in the crime at the operational level. The initial indictment prepared by Daniel Bellemare, the Canadian former prosecutor of the special tribunal, made no mention of Syria.

This was damaging to the prosecution, because in his indictment Mr Bellemare offered no motive for the killing. There was an assumption in Lebanon that Syria got rid of Hariri because he intended to challenge them in the parliamentary elections of summer 2005, and would probably have won a majority. The tribunal’s decision now allows the prosecution to reinforce its case by bringing in the Syrian angle.

The United Nations investigation of the Hariri assassination went through several permutations of uneven quality. Initially, the UN named an Irish deputy police commissioner, Peter Fitzgerald, to prepare a preliminary report on what happened. On the basis of his findings it then appointed an independent commission to look into the crime more deeply.

Mr Fitzgerald did not directly accuse Syria, but he came as close as he could to doing so. He wrote that security in Lebanon was in Syria’s hands, and that the murder had taken “considerable finance, military precision in its execution, [and] substantial logistical support”. In other words it resulted from a conspiracy that the Syrian and Lebanese security services could hardly have helped noticing. On top of this, he accused pro-Syrian Lebanese officials of trying to cover up the crime scene.

The ensuing UN independent commission was first headed by Detlev Mehlis, a German judge. Like Mr Fitzgerald, he focused on Syrian involvement and interviewed several Syrian intelligence officials in Vienna. It was Mr Mehlis’s view that Syria was behind the assassination, and when he left his post in December 2005, he sought to take Bashar Al Assad’s witness statement, a decision that provoked Syrian anger.

Mr Mehlis was followed by a Belgian judge, Serge Brammertz, who did little to advance the investigation. This was confirmed to me by two senior Lebanese officials and a former UN investigator. Mr Brammertz’s progress reports prompted Mr Mehlis to later tell me that the investigation “had lost all momentum” since the Belgian had taken over.

Indeed, Mr Brammertz appeared to abandon the path of Syrian involvement. He never took Mr Al Assad’s statement, nor did he arrest anyone. Mr Mehlis had been on the verge of arresting Rustom Ghazaleh, who headed Syria’s intelligence apparatus in Lebanon, before deciding to leave this to his successor.

There were also serious doubts about Mr Brammertz’s handling of telecommunications data showing Hizbollah’s involvement in the assassination. A 2010 Canadian Broadcasting Corporation documentary echoed this, revealing that a report prepared by a Lebanese police investigator used telecommunications analysis to point the finger at Hizbollah. The report was misplaced by UN investigators, then rediscovered. Today it serves as the basis for the indictment of the Hizbollah members.

To many, Mr Brammertz was a careerist who grasped that the UN did not want to rock the boat with the Hariri investigation.

However, Mr Brammertz did one thing useful. In a report he provided a hypothesis for the Hariri killing, writing, “there is a layer of perpetrators between those who initially commissioned the crime and the actual perpetrators on the day of the crime, namely those who enabled the crime to occur.”

Today, that hypothesis seems even more probable, and the decision of the tribunal to open the door to an examination of Hariri’s tensions with Syria shows why. Syria’s leadership saw that a successful electoral challenge by Hariri would endanger its hegemony over Lebanon, and sought Hizbollah assistance to eliminate the threat. The party agreed, fearing that a weakened Syria could no longer protect Hizbollah’s arms and autonomy.

Mr Bellemare, Mr Brammertz’s successor, failed to consider this when preparing his indictment of Hizbollah members. True, he was working with the deficient file left by his Belgian counterpart, but he also never gave new impetus to the UN investigation after taking office.

Mr Bellemare’s indictment was not much appreciated by the man who succeeded him, Norman Farrell. The prosecution’s introduction of a Syrian motive into the trial appears to be a new effort to modify the initial Bellemare indictment. It is difficult to imagine that if prosecutors hear strong testimony pointing to a Syrian role, they will not amend the indictment yet again to include, perhaps, Mr Ghazaleh or even Mr Al Assad.

Indeed, Mr Mehlis left quite a bit of testimony pointing to Syria in his files. And given Mr Al Assad’s brutal repression at home since 2011, it is no longer so controversial internationally to address his possible connection to the Hariri killing – with many observers regarding it as implausible that the crime could have been carried out by subordinates without his knowledge.

It will be up to Mr Farrell to press forward with an accusation against Syrian officials. But as the tribunal pursues its course, one thing is becoming increasingly evident: the UN investigation of Hariri’s assassination fell far short of expectations, and prosecutors today are still struggling with that fact.

Michael Young is opinion editor of The Daily Star in Beirut

Twitter @BeirutCalling

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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.”

UAE v Gibraltar

What: International friendly

When: 7pm kick off

Where: Rugby Park, Dubai Sports City

Admission: Free

Online: The match will be broadcast live on Dubai Exiles’ Facebook page

UAE squad: Lucas Waddington (Dubai Exiles), Gio Fourie (Exiles), Craig Nutt (Abu Dhabi Harlequins), Phil Brady (Harlequins), Daniel Perry (Dubai Hurricanes), Esekaia Dranibota (Harlequins), Matt Mills (Exiles), Jaen Botes (Exiles), Kristian Stinson (Exiles), Murray Reason (Abu Dhabi Saracens), Dave Knight (Hurricanes), Ross Samson (Jebel Ali Dragons), DuRandt Gerber (Exiles), Saki Naisau (Dragons), Andrew Powell (Hurricanes), Emosi Vacanau (Harlequins), Niko Volavola (Dragons), Matt Richards (Dragons), Luke Stevenson (Harlequins), Josh Ives (Dubai Sports City Eagles), Sean Stevens (Saracens), Thinus Steyn (Exiles)

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