Dubai-based Abraaj Group is facing allegations of misused funds, commingled about $95 million after it faced cash shortages, Bloomberg has reported, citing a report by Deloitte.
There was commingling of Abraaj’s own money in the health-care fund and its fourth fund, said the report which was presented to creditors on June 4.
Money from Abraaj’s $1 billion health-care fund was used to pay management fees and other expenses, Deloitte said. Abraaj still owes $94.6 million to its so-called Private Equity Fund IV, but all money has been accounted for and there’s no evidence of embezzlement or misappropriation.
The buyout firm has faced pressure since February when some of its investors commissioned an audit to probe the alleged mismanagement of money in its health-care fund.
Kuwait’s Public Institution for Social Security last week filed a petition for the liquidation of the holding firm.
Deloitte said there was a lack of adequate governance at Abraaj and an overall weakness in its control framework, Bloomberg reported.
Abraaj last week said it expects its creditors to agree to a standstill on debt payments after the June 4 meeting.
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