Zakir Naik's Islamic Research Foundation International charity was said to have 'fundamental failures in governance'.
Zakir Naik's Islamic Research Foundation International charity was said to have 'fundamental failures in governance'.
Zakir Naik's Islamic Research Foundation International charity was said to have 'fundamental failures in governance'.
Zakir Naik's Islamic Research Foundation International charity was said to have 'fundamental failures in governance'.

Peace TV founder Zakir Naik’s charity that funded hate speech channels shut down in UK


Nicky Harley
  • English
  • Arabic

A charity founded by Zakir Naik, a television personality whose Peace TV stations were fined in the UK for broadcasting hate speech, has been shut down due to misconduct.

UK charity watchdog the Charity Commission took action against Islamic Research Foundation International after an investigation into its funding of television channels that were fined by British media regulator Ofcom.

India-born Mr Naik ran two television stations, Peace TV and Peace TV Urdu, which were fined £300,000 in 2020 by Ofcom for broadcasting hate speech and incitement to commit murder.

They were funded by IRFI, which gave the stations more than £3.6 million ($4.48m)

Both stations gave up their licences in 2019 and no longer broadcast in Britain.

“The commission concluded that the trustees were responsible for repeated incidents of misconduct and/or mismanagement in the administration of the charity over a number of years,” the Charity Commission report said.

“There were fundamental failures in governance by the trustees which included not being able to identify and manage conflicts of interest appropriately.

“This contributed to the trustees failing to learn appropriate lessons from their decision to continue to fund Peace TV despite the numerous Ofcom breaches, which had occurred over a lengthy period which caused the charity material and reputational damage.

“The inquiry found that Dr Naik was the most prominent trustee, and he was also acknowledged by the other trustees as the driving force of the charity’s activities which included attracting donors and beneficiaries.

“The charity was ultimately found not to be viable and was therefore wound up and dissolved as a result of an order of the commission.”

The charity was officially removed from the register last week.

The satellite channels, which had claimed to reach two million viewers, were funded by the IRFI through appeals to the Muslim audience to contribute to fundraising.

Mr Naik, who is based in Malaysia, has been banned from entering the UK, India and Bangladesh and is accused by the Indian government of laundering £23m.

Britain barred him in 2010, citing “unacceptable behaviour”, although officials have never detailed the nature of this.

The Commission for Countering Extremism government organisation has previously cited Mr Naik’s actions as an example of the current laws failing to tackle Islamist extremism.

It has led to a review of the powers available to the authorities to take action against acts of hate.

Mr Naik continued to operate the channels until recently.

In March, India extended a ban on the Islamic Research Foundation group, also run by Mr Naik, for a further five years.

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Date started: March 2016

Founder: Hasib Khan

Based: Dubai

Employees: 40

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Tax authority targets shisha levy evasion

The Federal Tax Authority will track shisha imports with electronic markers to protect customers and ensure levies have been paid.

Khalid Ali Al Bustani, director of the tax authority, on Sunday said the move is to "prevent tax evasion and support the authority’s tax collection efforts".

The scheme’s first phase, which came into effect on 1st January, 2019, covers all types of imported and domestically produced and distributed cigarettes. As of May 1, importing any type of cigarettes without the digital marks will be prohibited.

He said the latest phase will see imported and locally produced shisha tobacco tracked by the final quarter of this year.

"The FTA also maintains ongoing communication with concerned companies, to help them adapt their systems to meet our requirements and coordinate between all parties involved," he said.

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The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.

Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.

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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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Anghami
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England v South Africa schedule
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  • Second Test: July 14-18, Trent Bridge, Nottingham, 2pm
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EMERGENCY PHONE NUMBERS

Estijaba – 8001717 –  number to call to request coronavirus testing

Ministry of Health and Prevention – 80011111

Dubai Health Authority – 800342 – The number to book a free video or voice consultation with a doctor or connect to a local health centre

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Knowledge and Human Development Authority – 8005432 ext. 4 for Covid-19 queries

 

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Updated: May 20, 2022, 12:16 PM