Tunisian revolution claims victim in French cabinet as foreign minister quits



MARSEILLES // The protests that swept Zine El Abidine Ben Ali from power in Tunisia led to a major government casualty in France yesterday when one of Nicolas Sarkozy's key ministers was forced to resign.

Michèle Alliot-Marie fought to the end to save her position as foreign minister but finally succumbed to growing pressure to stand down after just three months in the role.

Her position was made untenable by a series of gaffes in her handling of the crisis in France's former colonies. She also failed to deal convincingly with claims that she and her family benefited from the hospitality of Mr Ben Ali's entourage during a Christmas holiday in Tunisia.

Mr Sarkozy decided at the weekend that there was no alternative to Ms Alliot-Marie's departure from office.

Nevertheless, her downfall represents a blow for the French president little more than a year before he is expected run a second term.

When she was appointed in November, Miss Alliot-Marie was seen by Mr Sarkozy's supporters as forming an essential part of a "fighting government".

Last night, the president was due to go on live television to address his nation on French international policy. His intention to do so was reportedly made known to Miss Alliot-Marie in tense exchanges with an Elysée adviser as she continued to resist resignation calls.

Before she returned from Kuwait's celebrations to mark 50 years of independence, the minister was adamant that she was "100 per cent committed" to her job "whatever happens when I land in Paris".

She is expected to be replaced by Alain Juppé, a former prime minister who was given a suspended prison sentence and temporarily banned from civic office on political corruption charges in 2004.

Mr Juppé's political comeback has been so significant that he is seen by some as a possible successor to the present prime minister, François Fillon, if the president decides, as predicted, on a grander reshuffle of his cabinet in the coming weeks.

The term may be resignation, but there is no doubt that Miss Alliot-Marie has effectively been fired.

One unnamed minister quoted by Agence France-Presse said at the weekend that Miss Alliot-Marie had to go, not least because of Mr Sarkozy's lowly standing in opinion polls. "Michele Alliot-Marie has fallen and dragged everyone with her," the minister said. "This must be stopped."

Her undoing - her steely character has been likened to that of the former British prime minister Margaret Thatcher, nicknamed the Iron Lady - began as the anti-government movement gathered force in North African.

First she offered French military expertise to help the authorities of Algeria and Tunisia deal with rioting. She later said she was "scandalised" by the interpretation placed on her remarks, but the riposte had little sway with critics.

Then it was revealed that even as the revolt grew in strength and determination, she and her partner, Patrick Ollier, also a government minister, and her elderly parents took a Tunisian Christmas holiday with free air travel supplied by an associate of Mr Ben Ali.

And although the minister was apparently unaware of the transactions, deliveries of tear gas grenades were made to Tunisia by a French company, with official clearance, during the earlier stages of the protests.

It was reported that her parents had bought a stake in a business owned by the same associate who provided air transport during the holiday.

The minister worsened her position with her combative and, according to the French press, misleading attempts to brush off the traces of scandal.

Newspapers accused her of adding "lies and untruths" to her mishandling of France's response to events in the Maghreb; But Miss Alliot-Marie seemed determined to ride out the storm.

"It is true that for several weeks there have been some controversies, rumours and attacks but I have explained that," she said on radio. "There were no illegal actions and no wrongdoing."

But leading members of the opposition socialist party were quick to condemn the minister.

Ségolène Royal, the defeated socialist candidate on the 2007 presidential elections, said Miss Alliot-Marie was copying Mr Sarkozy's approach of "building lies into the method of government" in a way that damaged the credibility of French international policy.

Another prominent socialist, François Hollande, said the president had to put an end to conduct that weakened France. "The diplomacy of France as a whole is lowered by the behaviour of (the minister)," he said.

Miss Alliot-Marie, who commands deep support at the heart of the ruling centre-right UMP party, said the attacks smacked of hypocrisy, citing the socialist party's own past cordial links with the Ben Ali regime.

But her hopes of survival were further jeopardised when a ministerial aide confirmed that despite earlier denials, she had a "brief telephone conversation" with Mr Ben Ali during her Tunisian holiday.

Dubai Bling season three

Cast: Loujain Adada, Zeina Khoury, Farhana Bodi, Ebraheem Al Samadi, Mona Kattan, and couples Safa & Fahad Siddiqui and DJ Bliss & Danya Mohammed 

Rating: 1/5

Match info

Deccan Gladiators 87-8

Asif Khan 25, Dwayne Bravo 2-16

Maratha Arabians 89-2

Chadwick Walton 51 not out

Arabians won the final by eight wickets

The biog

Name: Greg Heinricks

From: Alberta, western Canada

Record fish: 56kg sailfish

Member of: International Game Fish Association

Company: Arabian Divers and Sportfishing Charters

Countdown to Zero exhibition will show how disease can be beaten

Countdown to Zero: Defeating Disease, an international multimedia exhibition created by the American Museum of National History in collaboration with The Carter Center, will open in Abu Dhabi a  month before Reaching the Last Mile.

Opening on October 15 and running until November 15, the free exhibition opens at The Galleria mall on Al Maryah Island, and has already been seen at the Jimmy Carter Presidential Library and Museum in Atlanta, the American Museum of Natural History in New York, and the London School of Hygiene and Tropical Medicine.

 

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.”