In this file photo taken on June 19, 2014, ISIL militants stand with a captured Iraqi army Humvee at a checkpoint outside Beiji refinery, some 250 kilometers north of Baghdad, Iraq. In mid-November, Shiite general Abdul-Wahab Al Saadi's forces successfully recaptured the oil refinery city of Beiji from the militants. AP Photo
In this file photo taken on June 19, 2014, ISIL militants stand with a captured Iraqi army Humvee at a checkpoint outside Beiji refinery, some 250 kilometers north of Baghdad, Iraq. In mid-November, Shiite general Abdul-Wahab Al Saadi's forces successfully recaptured the oil refinery city of Beiji from the militants. AP Photo
In this file photo taken on June 19, 2014, ISIL militants stand with a captured Iraqi army Humvee at a checkpoint outside Beiji refinery, some 250 kilometers north of Baghdad, Iraq. In mid-November, Shiite general Abdul-Wahab Al Saadi's forces successfully recaptured the oil refinery city of Beiji from the militants. AP Photo
In this file photo taken on June 19, 2014, ISIL militants stand with a captured Iraqi army Humvee at a checkpoint outside Beiji refinery, some 250 kilometers north of Baghdad, Iraq. In mid-November, S

Iraqi general deeply pessimistic about military’s weaknesses


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BAGHDAD // Lieutenant General Abdul-Wahab Al Saadi had 225 fighters, a single Abrams tank, a pair of mortars, two artillery pieces and about 40 armoured Humvees when he set out to retake a strategic city in northern Iraq that had been captured by ISIL in the summer.

It took 30 days for his force to make the agonisingly slow 40 kilometre journey through roadside bombs and suicide car attacks, before successfully laying siege to the oil refinery city of Beiji in mid-November. The entire campaign cost 12 lives and about 30 injured among Lt Gen Al Saadi’s troops, while he estimates his forces killed around 1,500 ISIL fighters.

The campaign earned him the biggest battlefield victory by Iraqi forces since ISIL fighters swept over most of northern and western Iraq in a summer blitz, prompting the collapse of the military.

Yet the general is deeply pessimistic.

Lt Gen Al Saadi, who is second-in-command of the army’s elite counterterrorism forces, says Iraq’s military lacks weapons, equipment and battle-ready troops and that US air support has been erratic. Meanwhile, both the military and government remain riddled with corruption, he believes, while most of the senior generals who were serving when the military fell apart had skills “more suited to World War II”.

“If things don’t get better,” he says, “the country could end up divided” between its Shiite, Sunni and Kurdish populations.

The US-trained general believes ISIL are beatable when confronted with a proper force, but worries that the military’s multiple weaknesses prevent it from doing so. Already, ISIL militants are back on the outskirts of Beiji, he says, and there aren’t enough men left to hold the city.

A Baghdad-born Shiite with family roots in southern Iraq, Lt Gen Al Saadi complains of “excesses” by some of the Shiite volunteers who joined the fight against the Sunni militants and on whom the military has come to rely.

“I am a military man, and they don’t respect the rules by which we operate,” he said. Volunteers, for example, looted homes in government-controlled areas around the Sunni city of Tikrit and tried to intimidate army officers. And during Lt Gen Al Saaadi’s march to Beiji, some of the volunteers whom he deployed as a rearguard left their posts.

Speaking at his office in one of Saddam Hussein’s Baghdad palaces, the chain-smoking general wore a baseball cap and green sweater — the same outfit he wears on the front lines — without a helmet or body armour or any indications of his rank. In the Beiji campaign, Lt Gen Al Saadi was wounded by shrapnel in his arm and dangerously close to his eye. These were on top of the wounds he suffered last summer in the western province of Anbar.

On his office walls hung photos of himself with Iraq’s former prime minister, Nouri Al Maliki. The general says he had a close relationship with Mr Al Maliki during his eight years in office. But he believes the Shiite leader bears the “moral responsibility” for the military’s collapse against ISIL.

Mr Al Maliki stepped down in August and was replaced by Haider Al Abadi, who has sought to draw Sunni support against the militants. According to Lt Gen Al Saadi, the current prime minister has largely left the military to run the war against ISIL as it sees fit. Mr Al Abadi has also pushed aside dozens of corrupt or inefficient officers, and stopped payments of millions of dollars in salaries to thousands of nonexistent troops, or “ghost soldiers.”

Lt Gen Al Saadi is the head of military operations in Salahuddin province, where Beiji is located, and his troops were stationed in a base outside Tikrit. ISIL holds Tikrit itself and most of the surrounding area.

A veteran of Iraq’s 1980-88 war against Iran, the general says he turned down offers of help from Iranian military advisers in retaking Beiji. This is despite the fact Iran has been closely helping Iraq’s government in the fight against ISIL.

“If I had accepted help from non-Iraqis, the history books will say the victory was not ours, the Iraqis,” Lt Gen Al Saadi said.

He had troubles from the outset with top military leaders in Baghdad who wanted Beiji retaken quickly.

“I told them I can reach Beiji from Tikrit in three days, but I will lose many of my men,” he said. “[I] told them I will do it my way and get Beiji back. They were unhappy, but they had no choice.”

Setting out from Tikrit in mid-October, the general advanced slowly, abandoning the main road he knew was infested with roadside bombs. Instead, Lt Gen Al Saadi and his men went by foot through the desert, parallel to the road.

Each day, they walked several kilometres before stopping and building a sand barrier on the main road to fend off suicide car bombers. Meanwhile, engineers would clear roadside bombs. Once the road was cleared, the Humvees and lone tank would proceed up to the barrier where they would wait until another stretch of the road was cleared.

Officials in Baghdad repeatedly phoned the general to complain he was moving too slowly. “I told them again and again that I need to move cautiously to protect my men,” Lt Gen Al Saadi said — though he added that prime minister Al Abadi had also called him to express support.

It took the general and his men three weeks to reach Beiji — fighting all the way — then another week to take the town. More than two dozen suicide car bombs were hurled at them and Lt Gen Al Saadi says logistical bottlenecks in the military left him with only one earth-mover to construct sand barriers. The general is also sceptical that the United States are serious in helping Iraq defeat ISIL with its coalition air campaign.

“Sometimes, they would carry out air strikes that I never asked for, and at other times I begged them for a single air strike and they never did it,” he said. “I don’t think they trust Iraq’s government or military.”

* Associated Press

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Lt Gen Erik Petersen, deputy chief of programs, US Army, has argued it took a “three decade holiday” on modernising tanks. 

“There clearly remains a significant armoured heavy ground manoeuvre threat in this world and maintaining a world class armoured force is absolutely vital,” the general said in London last week.

“We are developing next generation capabilities to compete with and deter adversaries to prevent opportunism or miscalculation, and, if necessary, defeat any foe decisively.”

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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.”

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Formula 1 second practice, 5pm

Formula 2 qualifying, 7pm

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1. New Zealand Daniel Meech – Fine (name of horse), Richard Gardner – Calisto, Bruce Goodin - Backatorps Danny V, Samantha McIntosh – Check In. Team total First round: 200.22; Second round: 201.75 – Penalties 12 (jump-off 40.16 seconds) Prize €64,000

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3. Italy Luca Maria Moneta – Connery, Luca Coata – Crandessa, Simone Coata – Dardonge, Natale Chiaudani – Almero. Team total 130.82/198.-4 – P20. Prize €32,000

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Result: Winners play at Asia Cup in Dubai and Abu Dhabi in September

Fixtures:

Wed Aug 29: Malaysia v Hong Kong, Nepal v Oman, UAE v Singapore

Thu Aug 30: UAE v Nepal, Hong Kong v Singapore, Malaysia v Oman

Sat Sep 1: UAE v Hong Kong, Oman v Singapore, Malaysia v Nepal

Sun Sep 2: Hong Kong v Oman, Malaysia v UAE, Nepal v Singapore

Tue Sep 4: Malaysia v Singapore, UAE v Oman, Nepal v Hong Kong

Thu Sep 6: Final

 

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Teams: Afghanistan, Bangladesh, India, Pakistan, Sri Lanka, plus the winner of the Qualifier

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