FILE - In this March 9, 2012 file photo, Zhou Yongkang, then Chinese Communist Party Politburo Standing Committee member in charge of security, attends a plenary session of the National People's Congress at the Great Hall of the People in Beijing, China. Chinese government prosecutors announced Friday, April 3, 2015 that Zhou has been formally charged with corruption and leaking of state secrets, setting the stage for him to become the highest-level politician to stand trial in China in more than three decades. (AP Photo/Ng Han Guan, File)
FILE - In this March 9, 2012 file photo, Zhou Yongkang, then Chinese Communist Party Politburo Standing Committee member in charge of security, attends a plenary session of the National People's CongrShow more

China’s ex-security chief facing corruption charges



BEIJING // China’s former security chief Zhou Yongkang was charged on Friday with bribery, abuse of power and disclosing state secrets, making him the most senior official to be prosecuted in decades and setting the stage for a dramatic trial.

Mr Zhou, viewed as an adversary of president Xi Jinping, is the most prominent victim of the Communist Party’s much-publicised anti-corruption drive, which has targeted high-level “tigers” as well as low-level “flies”.

He had a background in the oil industry and accumulated vast power as he rose through the ranks to become a member of the ruling party’s elite Politburo Standing Committee (PSC), the most powerful body in China.

“The defendant Zhou Yongkang ... took advantage of his posts to seek gains for others and illegally took huge property and assets from others, abused his power, causing huge losses to public property and the interests of the state and the people,” said the indictment, posted online by prosecutors.

“The social impact is vile and the circumstances were extraordinarily severe,” it said, adding that Mr Zhou also “intentionally leaked state secrets”.

The document was filed with a court in the northern port of Tianjin, the prosecutors said, but gave no indication of a trial date.

Chinese courts are closely controlled by the ruling party and a guilty verdict is a certainty.

The proceedings will be the most significant in China since the infamous Gang of Four – which included Mao Zedong’s widow, Jiang Qing – were put on trial and blamed for the chaos of the Cultural Revolution.

Mr Xi has consolidated enormous power since taking office in 2012 and Mr Zhou’s fate will “establish [the president]’s ultimate authority over the entire country”, said Willy Lam, a politics specialist at the Chinese University of Hong Kong.

“This will strike fear into the hearts of his opponents or potential opponents, because Xi Jinping has total control over the entire anti-corruption apparatus,” he added.

Mr Zhou’s fall sent shock waves through the ruling party. After months of rumours, party authorities announced last July that they were investigating him, and he was expelled from the party and formally arrested in December.

Now 72, Mr Zhou retired in 2012 as part of a once-a-decade leadership handover, but senior Chinese politicians normally remain significant players even after officially stepping down, and are generally immune from retribution.

Days after Mr Zhou's arrest, the Communist Party's flagship newspaper, the People's Daily, branded him a "traitor" and likened him to several past turncoats who were all executed, setting off speculation that the former security chief himself could face a similar fate.

Under Chinese law, bribery can carry the death penalty in some circumstances, while the maximum penalty for leaking state secrets is seven years in prison.

Politics specialist Mr Lam said a suspended death sentence – normally commuted to life imprisonment – was possible, but added: “This is the most senior official since the Cultural Revolution to have been incriminated for corruption. So to set an example to all, Xi Jinping might favour a death sentence.”

Communist authorities have touted the anti-corruption drive as a root-and-branch reform of the party to address an issue that causes deep and widespread public anger.

But critics note that China has failed to implement institutional safeguards against graft, such as public asset disclosure, an independent judiciary, and free media, leaving the effort open to being used for political faction-fighting.

The Communist party is riven by internal divisions but consistently seeks to present a united front to outsiders.

Several of Mr Zhou’s associates have also been brought down in the campaign, among them Jiang Jiemin, former head of the body that regulates China’s state-owned firms.

He is also a former head of the China National Petroleum Corporation, a post previously held by Mr Zhou, and the two are reportedly part of a Communist Party faction with roots in the oil industry, known as the “petroleum gang”.

The hearings will be the first time that Mr Zhou has been seen in public since October 2013. Officials have promised that the hearings will be open, in accordance with Chinese law, but attendance at previous high-profile cases has been closely controlled.

The China director of Human Rights Watch, Sophie Richardson, said on Twitter: “Zhou Yongkang, pivotal in denying so many the right to a fair trial, won’t get one himself.”

* Agence France-Presse

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Daniella Weiss and Nachala
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Runs a settler outpost named Zohar’s Farm and has previously faced charges of violence against Palestinians. He was indicted by Israel’s State Attorney’s Office in September for allegedly participating in a violent attack against Palestinians and activists in the West Bank village of Muarrajat.

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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.”