Interpol vice president Alexander Prokopchuk (L) and and Meng Hongwei, president of Interpol, attend the opening of the Interpol World Congress in Singapore on July 4, 2017. / AFP / ROSLAN RAHMAN
Interpol vice president Alexander Prokopchuk (L) and and Meng Hongwei, president of Interpol, attend the opening of the Interpol World Congress in Singapore on July 4, 2017. / AFP / ROSLAN RAHMAN
Interpol vice president Alexander Prokopchuk (L) and and Meng Hongwei, president of Interpol, attend the opening of the Interpol World Congress in Singapore on July 4, 2017. / AFP / ROSLAN RAHMAN
Interpol vice president Alexander Prokopchuk (L) and and Meng Hongwei, president of Interpol, attend the opening of the Interpol World Congress in Singapore on July 4, 2017. / AFP / ROSLAN RAHMAN

Interpol on the brink as Putin crony set to take over


Gareth Browne
  • English
  • Arabic

The future of Interpol was questioned on Tuesday, as a close associate of Vladimir Putin looked set to win election as the organisation's new president on Wednesday.

Alexander Prokopchuk, a general in the Russian interior ministry, is the front-runner of two candidates contesting the election, which was triggered by the disappearance of Meng Hongwei, who is reportedly under arrest in his native China.

European countries, including Lithuania and Ukraine, have threatened to pull out of the International Criminal Police Organisation (Interpol) and critics of Vladimir Putin have warned they are threatened by development.

The resignation of Mr Meng followed his detention in China on corruption charges. The final vote is scheduled to take place at the organisation’s annual conference on Wednesday in Dubai,

One of the main issue of contention is Russia’s use of the organisation's red notices, the system by which arrest warrants are notified across borders. While Red Notice alerts are designed to catch suspected criminals who have travelled to foreign countries, critics say Russia has attempted to use the alerts in politically motivated arrests.

At a press conference in London, two high-profile figures who have been targeted in an alleged manipulation of the Interpol mechanism, condemned the campaign to have Mr Prokopchuk elected president.

Bill Browder, a British financier was arrested in Spain this year as a result of a red notice in his name issued by Russia. It was later disregarded as politically motivated. He said that Mr Prokopchuk’s election would be “like putting the mafia in charge” of the police.

"I can't imagine a more inappropriate person than the architect of the abuse doled out to me by Russia through Interpol,” he said.

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Russian dissident and former billionaire, Mikhail Khordorkovsky, has had a number of red notices issued against him. He warned that Mr Prokopchuk’s election could have serious consequences for data sharing between international police forces. “I am seriously concerned that a representative of the Kremlin will have access to the Interpol database," he said.

Ben Keith, a barrister at 5 St Andrew's Hill, who works with international warrants, told The National that voting states should have a last-minute rethink. "Appointing Prokopchuk hands legitimacy for abuse of Interpol to Putin and puts his cronies in charge," he said. "Russia already uses Interpol to pursue opponents for political and financial ends. Appointing him as president give credence to corrupt practices and allows Russia to claim legitimacy for flagrant breaches of international law and human rights."

Mr Browder warned that western nations might have to consider their future in the organisation in the event of Mr Prokopchuk’s election. “If a Russian heads Interpol, the West will have to look for Plan B,” he said.

Indeed, it appeared that was already the case, as Ukraine’s Interior Minister, Arsen Avakov describing the potential appointment as absurd, said Ukraine may be pull out of the 194-member organisation should the Russian win the presidential election. Lithuania’s parliament voted unanimously to consider withdrawing in the event of Mr Prokopchuk’s election.

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How the UAE gratuity payment is calculated now

Employees leaving an organisation are entitled to an end-of-service gratuity after completing at least one year of service.

The tenure is calculated on the number of days worked and does not include lengthy leave periods, such as a sabbatical. If you have worked for a company between one and five years, you are paid 21 days of pay based on your final basic salary. After five years, however, you are entitled to 30 days of pay. The total lump sum you receive is based on the duration of your employment.

1. For those who have worked between one and five years, on a basic salary of Dh10,000 (calculation based on 30 days):

a. Dh10,000 ÷ 30 = Dh333.33. Your daily wage is Dh333.33

b. Dh333.33 x 21 = Dh7,000. So 21 days salary equates to Dh7,000 in gratuity entitlement for each year of service. Multiply this figure for every year of service up to five years.

2. For those who have worked more than five years

c. 333.33 x 30 = Dh10,000. So 30 days’ salary is Dh10,000 in gratuity entitlement for each year of service.

Note: The maximum figure cannot exceed two years total salary figure.

The specs

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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.”

The specs: 2018 Mercedes-Benz E 300 Cabriolet

Price, base / as tested: Dh275,250 / Dh328,465

Engine: 2.0-litre four-cylinder

Power: 245hp @ 5,500rpm

Torque: 370Nm @ 1,300rpm

Transmission: Nine-speed automatic

Fuel consumption, combined: 7.0L / 100km