Brazilian President Michel Temer defended members of his family about alleged corruption scandals at a press conference at the Planalto Palace, in Brasilia, Brazil, 27 April 2018. EPA/JOEDSON ALVES
Brazilian President Michel Temer defended members of his family about alleged corruption scandals at a press conference at the Planalto Palace, in Brasilia, Brazil, 27 April 2018. EPA/JOEDSON ALVES

I’m no money launderer, says Brazilian president



Brazilian President Michel Temer took to television Friday to deny a report that he has laundered money and said he would urge his security minister to investigate how the allegations were leaked to the news media. 
Brazil's top court has authorised an investigation into whether Mr Temer accepted a bribe in exchange for a signing a decree favourable to operators at the country's largest port in Santos. 
The Folha de S. Paulo newspaper reported Friday that Federal Police suspect Mr Temer hid the alleged bribe by purchasing properties in the names of relatives, including his wife and his 9-year-old son. The paper did not name its source, and the police did not immediately respond to a request for comment. 
In a hastily arranged televised address, Mr Temer called the accusations lies and said that his income over the past 60 years has been entirely sufficient to justify the property purchases he had made. 
"Only an irresponsible person, an ill-intentioned person would dare try to incriminate my family, my son of nine years old, as money launderers," he said to the journalists. "What world are we in? I tell you, sirs, it's incredible, it's revolting." 
He also expressed dismay that the media received information he said his own defence team had been denied. He said he would "suggest" to Public Security Minister Raul Jungmann that he investigate the leaks. Jungmann's office did not immediately respond to a request for comment.

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The investigation into the ports is one of several accusations against Mr Temer, and this is not the first time he has taken to the airwaves to declare his innocence. 
Brazil's attorney general has already officially accused Mr Temer of corruption twice, presenting charges of bribery, leading a criminal organisation and obstruction of justice. But a sitting president can only be tried if Congress' lower house accepts the charges, and Mr Temer survived both votes in that chamber. He can still be tried after he leaves office. 
He is now facing potentially a third accusation in the ports case. Recently, some friends and allies of Mr Temer were arrested in a sign the investigation is moving forward, though investigators have repeatedly asked the courts to give them more time to look into the case.

COMPANY PROFILE
Name: Kumulus Water
 
Started: 2021
 
Founders: Iheb Triki and Mohamed Ali Abid
 
Based: Tunisia 
 
Sector: Water technology 
 
Number of staff: 22 
 
Investment raised: $4 million 
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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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Our legal consultant

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants

Lampedusa: Gateway to Europe
Pietro Bartolo and Lidia Tilotta
Quercus

A State of Passion

Directors: Carol Mansour and Muna Khalidi

Stars: Dr Ghassan Abu-Sittah

Rating: 4/5