Kuwait Pension Fund Accuses Man Group and EFG of Laundering Bribes in $1 Billion London Trial

Kuwait’s public pension fund has accused asset manager Man Group, Swiss bank EFG, and others of laundering bribes paid to its late director, as a high-profile $1 billion trial commenced at London’s High Court on Monday. The Public Institution for Social Security (PIFSS), which oversees Kuwait’s pension and social security system, has brought legal action against the estate of Fahad Al Rajaan, who served as its director from 1984 to 2014.

Al Rajaan, who was convicted in absentia in 2016 for corruption and embezzlement of public funds in Kuwait, passed away in London in 2022. PIFSS alleges that over a span of two decades, Al Rajaan and his associates received at least $970 million in bribes, which were disguised as commission payments that banks and investment firms had no obligation to pay.

The Kuwaiti fund is pursuing claims against Man Group for approximately $156 million, arguing that the London-listed investment firm participated in bribery payments to Al Rajaan to secure PIFSS investments in Man’s financial products. However, Man Group, whose CEO Robyn Grew and her predecessors are set to testify, has strongly denied the allegations. A spokesperson for the company stated that Man is “robustly defending” the case and refuted the existence of any evidence supporting PIFSS’ claims.

“PIFSS has not identified any evidence showing that Man or its current or former employees knew of any wrongdoing,” the spokesperson asserted. The company’s lawyers further stated in court filings that Man had no knowledge of Al Rajaan’s corrupt dealings, adding that it “let alone (did it) intend for any bribery to occur.”

Swiss lender EFG Bank is also contesting the case, as PIFSS seeks around $450 million in damages, alleging that the bank facilitated the laundering of corrupt payments. EFG’s legal team dismissed the claims as groundless, with the bank’s lawyer, Camilla Bingham, arguing in court filings that “PIFSS’ bid to recover $450 million from a bank which paid no bribes and was not to any extent unjustly enriched through its relevant dealings is opportunistic and ill-conceived.” She further noted that Kuwaiti authorities had already recovered approximately $600 million in connection with the case.

The trial, which is expected to span nearly two years, is set to conclude in early 2026.

By fLEXI tEAM