A BITTER dispute between a pair of Saudi billionaire families over allegations that $US10 billion ($A11 billion) was embezzled has spilled over into a Sydney court.
The Federal Court yesterday heard that Saudi construction and finance billionaire Maan al-Sanea holds financial assets in Australia through one of his many companies based in the Caribbean tax haven of the Cayman Islands.
The family company that has accused Mr Sanea of stealing from them - Ahmad Hamad Al Gosaibi & Brothers - and other creditors are hoping to shore up these Australian assets so that it can salvage them when the company is liquidated.
The Al Gosaibi family and international banks are concerned the pool of assets will shrink if the Australian Taxation Office makes a grab for the $13 million it is owed, or if other Australian creditors make claims for payment.
The ATO's Operation Wickenby taskforce into illegal offshore tax schemes has been alerted to the case by the liquidators.
The overseas liquidators want all creditors - whether foreign or local - to be treated equally, ensuring the ATO can't jump the queue of creditors and issue a garnishee notice seizing cash in bank accounts and elsewhere.
Mr Sanea holds his Australian assets through the Cayman Islands company Saad Investments Company Ltd. It was placed in liquidation by a Cayman Islands court in July, after the Al Gosaibi family alleged that the companies had been financed with stolen funds.
Mr Sanea was involved in trading foreign currency. It is believed that funds could be held in Australian-based foreign-exchange accounts. He is married to an Al Gosaibi family member and is the former head of one of the family's business divisions. He denies the allegations of embezzlement.
The Britain and Cayman Islands-based liquidators of Saad Investments Company Ltd yesterday asked Justice Steven Rares for permission to be treated as if they were Australian liquidators. This would enable them to transfer money or assets held by the company in Australia to the Cayman Islands under special rules applying to the administration of failed overseas-based companies with Australian assets and foreign creditors.
Justice Rares yesterday appointed an Australian liquidator, Said Jahani, of insolvency firm Grant Thornton, to oversee the local assets. Justice Rares said this would ensure Australian-based cash or assets were not transferred overseas without the court's permission. An Australian liquidator can be held in contempt of court, whereas a British liquidator cannot.
''I'm not suggesting [the British liquidators] are not responsible people … but if something goes wrong I want somebody who can be sent to jail if need be,'' he said.
The British liquidators were unsuccessful in an attempt to have the case suppressed from publication by BusinessDay.
