"I am going to fight the case to the very end," says Michael Smith, in prison in Bangkok.
"I am going to fight the case to the very end," says Michael Smith, in prison in Bangkok.

Briton vows to fight extradition



BANGKOK // A former property manager facing charges of embezzlement in Dubai has said he is confident he can win his fight against being extradited from Thailand, where he is being held in a high-security prison.

Michael Smith, a 43-year-old Briton, has repeatedly protested his innocence since being arrested by the Thai police in Bangkok in May. He is alleged to have stolen US$600,000 (Dh2.2 million) from the property company Limitless, a unit of Dubai government-owned Dubai World, while he worked there in the first five months of 2008. "I am going to fight the case to the very end," Mr Smith said in an interview with The National from his jail cell.

He is due to appear at the Bangkok criminal court tomorrow for the next hearing of the extradition process. "I am reading a lot about extradition laws and treaties and am becoming something of an expert in these matters," said Mr Smith. "So I am bewildered as to why the Thai authorities believe I can be sent back to the UAE when there is no extraction treaty." Thailand has no extradition treaty with the UAE, but judicial officials here have requested extradition proceedings.

The Dubai authorities are seeking Mr Smith's extradition to face charges of forgery, betrayal of trust and illegal possession of stolen funds. Mr Smith has denied accusations of funnelling workers' salaries into his personal account while working as a senior personnel manager at Limitless between March and May 2008. He also denies setting up his own recruitment company to siphon off the funds. "So far, the UAE authorities have not produced any details or evidence of the crimes I am supposed to have committed," said Mr Smith.

"All the Thai authorities have is a statement from a prosecutor in Dubai to the police here - that's not evidence." Mr Smith, from London, started working in Dubai in 2007. He said he left Limitless in June 2008 because he could not accept the company's employment policies. He went to Thailand and was arrested in May last year as he left a restaurant in Bangkok's Soi Nana area with his Thai wife.

Since then, he has been held in Klong Prem Central Prison, which houses up to 20,000 inmates, on the outskirts of the Thai capital. He has twice been refused bail after prosecutors said he was considered a flight risk. Prosecution witnesses gave evidence at the Bangkok criminal court in November last year and the case was adjourned for Mr Smith's counsel to prepare their defence. Under international treaties, an extradition can proceed in the absence of a specific treaty only when the other side has shown willingness to reciprocate.

The UAE and Thai governments are currently negotiating an extradition treaty. A draft agreement was signed after talks in Dubai this month. The next round of talks is scheduled to take place in Bangkok next month, with the treaty likely to be signed in July. "It will not be retroactive and will not affect the case of Michael Bryan Smith," said Thailand's deputy foreign minister, Panich Vikitsreth, who is overseeing the treaty negotiations.

The existing treaties and international laws would cover that, he added. Asked to comment on Mr Smith's case, Limitless said the matter was being handled by the authorities. "Limitless extended its full co-operation to the concerned authorities following Mr Smith's arrest last year," the company said in a statement yesterday. "Control of the matter is in the hands of these authorities." foreign.desk@thenational.ae

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.”

Ziina users can donate to relief efforts in Beirut

Ziina users will be able to use the app to help relief efforts in Beirut, which has been left reeling after an August blast caused an estimated $15 billion in damage and left thousands homeless. Ziina has partnered with the United Nations High Commissioner for Refugees to raise money for the Lebanese capital, co-founder Faisal Toukan says. “As of October 1, the UNHCR has the first certified badge on Ziina and is automatically part of user's top friends' list during this campaign. Users can now donate any amount to the Beirut relief with two clicks. The money raised will go towards rebuilding houses for the families that were impacted by the explosion.”

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