Legal Proceedings Initiated Against Former Cepsa President for Alleged Financial Fraud
Khadem Al-Qubaisi implicated in a scheme involving the controversial sale of the Torre Foster in Madrid
A recent ruling by the Audiencia Nacional in Spain has led to a court order for the arrest and asset seizure of Khadem Al-Qubaisi, the former president of Cepsa and CEO of the Abu Dhabi Investment Petroleum Company (IPIC).
The judge’s decision stems from allegations of a fraudulent transaction involving the sale of the Torre Foster, a prominent skyscraper in Madrid formerly owned by the now-nationalized Bankia.
The court record outlines a transaction completed on September 30, 2016, when Bankia sold the Torre Foster for €400 million to Muscari Property BV, a Luxembourg-based company associated with Al-Qubaisi.
Notably, Al-Qubaisi had secured an option to purchase the building in 2013, even while Cepsa, a significant tenant of the property, was under his management.
On the same day that Bankia completed the sale, Muscari Property BV had arranged to resell the document to Pontegadea, owned by Spanish billionaire Amancio Ortega, for €500 million, thus pocketing a purported profit of €100 million immediately after the acquisition.
Bankinter provided a bridge loan of €400 million to facilitate the transaction, with the funds sourced from deposits made by Pontegadea's investment arm.
Bankia had previously acquired the Torre Foster for approximately €815 million in 2007, resulting in significant losses from the recent sale due to the financial crisis which had impacted property prices in Spain.
The court documents detail that the sale to Muscari Property BV was structured through a formal option agreement, which was executed in a public deed on the day of the transaction.
According to judicial records, Al-Qubaisi's financial contribution to the deal consisted solely of a €10 million payment made in 2013 to secure the purchase option.
This option was acquired knowing that Cepsa, the company over which he presided, occupied 85% of the building as a tenant.
Bankia was reportedly under financial strain during this period, seeking liquidity in a challenging economic climate.
The judge's ruling also highlighted that executives from both Pontegadea and Bankinter were called to testify in relation to the dealings.
Bankinter has faced scrutiny and was fined €8 million by the Spanish Ministry of Economy due to its facilitation of transactions linked to Al-Qubaisi, despite being aware of his ongoing legal troubles.
Al-Qubaisi was previously detained in August 2016 amid separate allegations of fraud connected to the Malaysian sovereign wealth fund 1MDB.
The judge noted that Al-Qubaisi’s financial operations were permitted to continue through Bankinter, despite the growing concerns regarding his legal status.
The ruling indicates that further investigative actions could lead to the seizure of up to €35 million retained by Pontegadea as a safeguard against potential damage to the building.
In connection with those actions, other assets related to Al-Qubaisi in Spain, including additional properties and paintings, have also come under scrutiny as part of the broader investigation into money laundering and tax fraud.
The judge’s decision stems from allegations of a fraudulent transaction involving the sale of the Torre Foster, a prominent skyscraper in Madrid formerly owned by the now-nationalized Bankia.
The court record outlines a transaction completed on September 30, 2016, when Bankia sold the Torre Foster for €400 million to Muscari Property BV, a Luxembourg-based company associated with Al-Qubaisi.
Notably, Al-Qubaisi had secured an option to purchase the building in 2013, even while Cepsa, a significant tenant of the property, was under his management.
On the same day that Bankia completed the sale, Muscari Property BV had arranged to resell the document to Pontegadea, owned by Spanish billionaire Amancio Ortega, for €500 million, thus pocketing a purported profit of €100 million immediately after the acquisition.
Bankinter provided a bridge loan of €400 million to facilitate the transaction, with the funds sourced from deposits made by Pontegadea's investment arm.
Bankia had previously acquired the Torre Foster for approximately €815 million in 2007, resulting in significant losses from the recent sale due to the financial crisis which had impacted property prices in Spain.
The court documents detail that the sale to Muscari Property BV was structured through a formal option agreement, which was executed in a public deed on the day of the transaction.
According to judicial records, Al-Qubaisi's financial contribution to the deal consisted solely of a €10 million payment made in 2013 to secure the purchase option.
This option was acquired knowing that Cepsa, the company over which he presided, occupied 85% of the building as a tenant.
Bankia was reportedly under financial strain during this period, seeking liquidity in a challenging economic climate.
The judge's ruling also highlighted that executives from both Pontegadea and Bankinter were called to testify in relation to the dealings.
Bankinter has faced scrutiny and was fined €8 million by the Spanish Ministry of Economy due to its facilitation of transactions linked to Al-Qubaisi, despite being aware of his ongoing legal troubles.
Al-Qubaisi was previously detained in August 2016 amid separate allegations of fraud connected to the Malaysian sovereign wealth fund 1MDB.
The judge noted that Al-Qubaisi’s financial operations were permitted to continue through Bankinter, despite the growing concerns regarding his legal status.
The ruling indicates that further investigative actions could lead to the seizure of up to €35 million retained by Pontegadea as a safeguard against potential damage to the building.
In connection with those actions, other assets related to Al-Qubaisi in Spain, including additional properties and paintings, have also come under scrutiny as part of the broader investigation into money laundering and tax fraud.
Translation:
Translated by AI
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