Aatish Shabin, who died after being left alone in a school bus last year.
Aatish Shabin, who died after being left alone in a school bus last year.

Father of Aatish is 'appalled' by death



ABU DHABI // The family of a young boy who died after being locked in a school bus last year said the death of four-year-old Aiman Zeeshanuddin in similar circumstances on Thursday could and should have been avoided. "I am appalled; I really don't have any words," said Shabin Sreedharan, the father of Aatish Shabin, who died last year.

"You cannot call this progress. Last year, it was the first instance of what happened. After that, after all that everyone went through, I cannot come to think of it. I am appalled at the system." Aatish, who had been attending the Merryland Kindergarten in Abu Dhabi for barely a month, died on April 24 last year. Police attributed the death to "cardiorespiratory arrest", ruling out heat exhaustion and suffocation.

"No physical factor contributed to his death," a police spokesman said at the time. "His death was not caused by confinement." The parents requested that an autopsy not be conducted. The bus driver was arrested, then released on bail. No further police action was taken. Merryland Kindergarten was fined Dh5,000 (US$1,360), but the school denied any complicity in Aatish's death, saying that transportation arrangements for pupils were the responsibility of the parents. The school said in a statement that it only introduced parents to the bus companies.

In February, following a string of accidents in which schoolchildren died after being struck by vehicles, the Ministry of Education provided money for schools to hire staff members to oversee bus rides for young children. Merryland Kindergarten had been ordered to appoint such supervisors following the death of Aatish. "Once again, I am not sure who should be held responsible," Mr Sreedharan said.

"No one takes responsibility here. This shows that nothing has been enforced. Something basic should have been kept in place. These sort of basic things should be very well enforced." He said measures should have been followed in all schools following his son's death. "Even keeping a simple checklist; that can be done," Mr Sreedharan suggested. "I wish some stern action had been taken last year that would've sent out a strong message. Maybe revoke the license of the school - that sends a message. Because of that, people did not fully grasp the seriousness of the situation.

"Just a year has passed and we hear this news. I was surprised at why this was being repeated. Here, things are taken for granted. You're not transporting goods. It's a life in a bus. Something is not right." Mr Sreedharan, whose wife gave birth to a son two months ago, added: "Accidents do happen. If a child is crossing the street and is struck by a car, that is an accident. This is not an accident."

According to Aatish's bus driver, Ali Baba, the boy was discovered unconscious several hours after he stopped the vehicle at the school. In an interview with The National last year, he said he had asked the conductor if all the children had left the bus before driving off. He believes that Aatish fell asleep in the back. Mr Sreedharan said: "When your child is in someone else's mercy, you are helpless. When you pay the school fees, you expect something, that they will look after your child. But in these cases, ignoring a child is a form of child abuse."

sbhattacharya@thenational.ae * With additional reporting by Matt Kwong

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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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The Melbourne Mercer Global Pension Index

The Melbourne Mercer Global Pension Index

Mazen Abukhater, principal and actuary at global consultancy Mercer, Middle East, says the company’s Melbourne Mercer Global Pension Index - which benchmarks 34 pension schemes across the globe to assess their adequacy, sustainability and integrity - included Saudi Arabia for the first time this year to offer a glimpse into the region.

The index highlighted fundamental issues for all 34 countries, such as a rapid ageing population and a low growth / low interest environment putting pressure on expected returns. It also highlighted the increasing popularity around the world of defined contribution schemes.

“Average life expectancy has been increasing by about three years every 10 years. Someone born in 1947 is expected to live until 85 whereas someone born in 2007 is expected to live to 103,” Mr Abukhater told the Mena Pensions Conference.

“Are our systems equipped to handle these kind of life expectancies in the future? If so many people retire at 60, they are going to be in retirement for 43 years – so we need to adapt our retirement age to our changing life expectancy.”

Saudi Arabia came in the middle of Mercer’s ranking with a score of 58.9. The report said the country's index could be raised by improving the minimum level of support for the poorest aged individuals and increasing the labour force participation rate at older ages as life expectancies rise.

Mr Abukhater said the challenges of an ageing population, increased life expectancy and some individuals relying solely on their government for financial support in their retirement years will put the system under strain.

“To relieve that pressure, governments need to consider whether it is time to switch to a defined contribution scheme so that individuals can supplement their own future with the help of government support,” he said.

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