The British government has announced it is reviewing all of its work with Oxfam amid allegations that the charity covered up a scandal involving its staff using prostitutes in Haiti after the 2010 earthquake.
The Department for International Development said on Saturday that it had no tolerance for sexual misconduct and that the charity needed to explain "the way this appalling abuse of vulnerable people was dealt with".
"The International Development Secretary is reviewing our current work with Oxfam and has requested a meeting with the senior team at the earliest opportunity," a DFID spokesperson said.
It comes after an investigation by British newspaper The Times found the charity, which is headquartered in Oxford, UK, allowed three men to resign and sacked four others who had been accused of gross misconduct following an inquiry into sexual exploitation by aid workers in Haiti.
Oxfam’s staff had been on the poverty-stricken island as part of a massive international relief effort after a devastating earthquake in 2010, which killed 220,000 people and left 1.5 million displaced.
Oxfam’s chief executive Mark Goldring insisted there was no cover-up, telling the BBC: "We were very open with the public that we were ashamed of the behaviour of our staff. We still are."
He added that he is “absolutely committed… to wipe out that kind of behaviour from Oxfam and rebuild that relationship of trust [with the public]."
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Oxfam has said it launched an immediate internal investigation in 2011 which found a "culture of impunity" among some staff.
"The behaviour of some members of Oxfam staff uncovered in Haiti in 2011 was totally unacceptable, contrary to our values and the high standards we expect of our staff," it said a statement on Friday.
"Our primary aim was always to root out and take action against those involved and we publicly announced, including to media, both the investigation and the action we took as a result."
But in its statement, DFID said the charity had fallen short and that it had “serious questions” to answer. Oxfam received nearly £32 million in funding from DFID last year.
The DFID spokesperson added: "We acknowledge that hundreds of Oxfam staff have done no wrong and work tirelessly for the people they serve, but the handling by the senior team about this investigation and their openness with us and the charity commission showed a lack of judgement.
"We have a zero tolerance policy for the type of activity that took place in this instance, and we expect our partners to as well."
According to sources cited by The Times, groups of young prostitutes were invited to homes and guesthouses paid for by the charity for sex parties.
In further revelations, the paper reported that Oxfam failed to warn other aid agencies about the implicated staff, which allowed them to get jobs among vulnerable people in other disaster areas.
Roland van Hauwermeiren, 68, who Oxfam has confirmed was forced to resign as Haiti country director in 2011 after allegedly admitting hiring prostitutes, went on to become head of mission for Action Against Hunger in Bangladesh in 2014, according to The Times.
The French charity told the paper it made pre-employment checks but that Oxfam "did not share with us any warning regarding [his] unethical conduct, the reasons for his resignation or the results of internal inquiry".
"Moreover we received positive references from former Oxfam staff who worked with him, among them a [former] HR person," a spokesman added.
Disclaimer
Director: Alfonso Cuaron
Stars: Cate Blanchett, Kevin Kline, Lesley Manville
Rating: 4/5
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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.”
Miss Granny
Director: Joyce Bernal
Starring: Sarah Geronimo, James Reid, Xian Lim, Nova Villa
3/5
(Tagalog with Eng/Ar subtitles)
Director: Laxman Utekar
Cast: Vicky Kaushal, Akshaye Khanna, Diana Penty, Vineet Kumar Singh, Rashmika Mandanna
Rating: 1/5
'O'
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Match info:
Portugal 1
Ronaldo (4')
Morocco 0
Results
Stage 4
1. Dylan Groenewegen (NED) Jumbo-Visma 04:16:13
2. Gaviria (COL) UAE Team Emirates
3. Pascal Ackermann (GER) Bora-Hansgrohe
4. Sam Bennett (IRL) Deceuninck-QuickStep
5. Caleb Ewan (AUS) Lotto Soudal
General Classification:
1. Adam Yates (GBR) Mitchelton-Scott 16:46:15
2. Tadej Pogacar (SLO) UAE Team Emirates 0:01:07
3. Alexey Lutsenko (KAZ) Astana Pro Team 0:01:35
4. David Gaudu (FRA) Groupama-FDJ 0:01:40
5. Rafal Majka (POL) Bora-Hansgrohe
Volvo ES90 Specs
Engine: Electric single motor (96kW), twin motor (106kW) and twin motor performance (106kW)
Power: 333hp, 449hp, 680hp
Torque: 480Nm, 670Nm, 870Nm
On sale: Later in 2025 or early 2026, depending on region
Price: Exact regional pricing TBA
MATCH INFO
Norwich City 0 Southampton 3 (Ings 49', Armstrong 54', Redmond 79')