Down in the dumps: China lawmaker given 5 years for sinkhole


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BEIJING // A Chinese politician was sentenced to five years in jail Friday for trying to dig a basement under his Beijing home so deep it created a giant sinkhole that swallowed four of his neighbours’ houses.

The Beijing Xicheg District People’s Court ruled that Li Baojun and two men he hired to expand his courtyard home five storeys underground had violated construction safety regulations.

As well as swallowing four houses, the sinkhole caused a major thoroughfare in the capital to collapse. The damage caused was put at more than 5 million yuan ($750,000).

The court judgement stated that the trio’s actions “endangered public safety” and they were “deeply responsible for the criminal accident”.

Li’s house, in a historic neighbourhood in Beijing’s Xicheng district, was also brought down when his ambitious extension plans went awry in January 2015.

Fifteen of his neighbours were reportedly left homeless, although no one was injured.

Photos posted online and in Chinese state media showed a gaping 10-metre-deep (35-foot-deep) hole extending into a roadway, blocked off by tarpaulins and traffic cones.

Li is a member of the local People’s Congress in the eastern city of Xuzhou and heads an auto parts company, the court said.

A total of 1,400 cubic metres (50,000 cubic feet) of concrete were needed to fill the hole.

Despite decades of development, the centre of the Chinese capital still has pockets of ancient courtyard homes with traditional roofs, packed along narrow alleys. Some have been renovated into luxury residences that can command huge rents.

Li had been granted a permit to restore the courtyard, but not to build a basement.

He said he needed to consider whether he would appeal, the court said.

Construction projects in China must be approved by local authorities, but laws are poorly enforced.

In recent years, a series of illegal structures has provoked reactions from humour to anger in China, among them a rock villa on top of a 26-storey Beijing apartment tower that sparked an outcry over the contempt for public safety by the country’s rich.

* Agence France-Presse

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Global state-owned investor ranking by size

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United States

2.

China

3.

UAE

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Japan

5

Norway

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Canada

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Singapore

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Australia

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Saudi Arabia

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South Korea

How Islam's view of posthumous transplant surgery changed

Transplants from the deceased have been carried out in hospitals across the globe for decades, but in some countries in the Middle East, including the UAE, the practise was banned until relatively recently.

Opinion has been divided as to whether organ donations from a deceased person is permissible in Islam.

The body is viewed as sacred, during and after death, thus prohibiting cremation and tattoos.

One school of thought viewed the removal of organs after death as equally impermissible.

That view has largely changed, and among scholars and indeed many in society, to be seen as permissible to save another life.

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If you go

The flights

There are direct flights from Dubai to Sofia with FlyDubai (www.flydubai.com) and Wizz Air (www.wizzair.com), from Dh1,164 and Dh822 return including taxes, respectively.

The trip

Plovdiv is 150km from Sofia, with an hourly bus service taking around 2 hours and costing $16 (Dh58). The Rhodopes can be reached from Sofia in between 2-4hours.

The trip was organised by Bulguides (www.bulguides.com), which organises guided trips throughout Bulgaria. Guiding, accommodation, food and transfers from Plovdiv to the mountains and back costs around 170 USD for a four-day, three-night trip.

 

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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Transmission: Nine-speed automatic

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Fuel economy, combined: 8.0L / 100km

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