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Saudi authorities detain billionaire prince for corruption

Published: November 05, 2017 19:52:11 | Updated: November 09, 2017 23:51:40


Saudi authorities detained a billionaire global investor and the head of the National Guard as part of an anti-corruption purge that consolidates Crown Prince Mohammed bin Salman’s hold on power.

Prince Alwaleed bin Talal, who owns investment firm Kingdom Holding, was among 11 princes, four ministers and tens of former ministers detained, two senior Saudi officials told Reuters on Sunday.

A top security official, Prince Miteb bin Abdullah, was detained and replaced as minister of the powerful National Guard by Prince Khaled bin Ayyaf. This consolidates Prince Mohammed’s bin Salman’s control of security institutions which had previously been headed by separate branches of the ruling family.

News of the purge came in the early hours of Sunday after King Salman decreed the creation of an anti-corruption committee chaired by his 32-year-old son Prince Mohammed, who has amassed power since rising from obscurity less than three years ago.

The new body was given broad powers to investigate cases, issue arrest warrants and travel restrictions and freeze assets.

“The homeland will not exist unless corruption is uprooted and the corrupt are held accountable,” the royal decree said, reports Reuters.

Analysts said the goal of the purge went beyond corruption and aimed to remove potential opposition to Prince Mohammed as he pushes an ambitious and controversial reform agenda.

In September, he announced that a ban on women driving would be lifted and he is trying to break decades of conservative tradition by promoting public entertainment and visits by foreign tourists.

In economic policy, he has slashed state spending in some areas and plans a big sale of state assets.

“The most recent crackdown breaks with the tradition of consensus within the ruling family whose secretive inner workings are equivalent to those of the Kremlin at the time of the Soviet Union,” wrote James Dorsey, a senior fellow at Singapore’s S. Rajaratnam School of International Studies.

“Prince Mohammed, rather than forging alliances, is extending his iron grip to the ruling family, the military, and the National Guard to counter what appears to be more widespread opposition within the family as well as the military to his reforms and the Yemen war,” Dorsey said.

An economist at a big Gulf bank, who declined to be named because of political sensitivities, said nobody in Saudi Arabia believed corruption was at the root of the purge.

“It’s about consolidating power and frustration that reforms haven’t been happening fast enough,” the economist said.

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