Marina Investor and BCCI
Whenever the public attention is captured by an international scandal as far-reaching as the one surrounding the Bank of Credit & Commerce International (BCCI), the stampede to uncover and bring to justice those responsible can sometimes have unintended consequences.
The web of deceit surrounding BCCI has caught many unsuspecting victims. In a zealous rush to report the latest ugly development, one of the most cherished principles of American justice--the presumption of innocence until proven guilty--can be compromised in a wave of hasty accusations based on questionable information.
For the past three months, Sheik Abdul Aziz al Ibrahim, a Saudi investor in several properties in Marina del Rey, has been just such a victim. Ever since the Ibrahim name appeared inexplicably in a press report about an audit of BCCI, the sheik and his family have been thrust into the center of the BCCI controversy.
In an audit of BCCI activities from the late ‘80s, the British accounting firm of Price Waterhouse “uncovered” several alleged loans to Sheik Ibrahim and others in his family. Yet the auditors could find no documentation, no liens on property--in short, no real evidence that such a loan had ever been made. All along, we stated we had no loans from BCCI, although we freely acknowledged that substantial deposits had been held at BCCI along with hundreds of other legitimate customers.
Despite the glaring lack of evidence, and our protestations to the contrary, the Sheik was presumed guilty of some wrongdoing in the BCCI scandal. For this reason--but more important, for the sake of proceeding with the long-term development and revitalization that the citizens of Marina del Rey deserve--we welcomed the county supervisors’ intensive investigation of the BCCI relationship. Confident of our innocence, we have cooperated fully at every stage of this investigation.
The final report of the Los Angeles County investigation has fully vindicated Sheik Ibrahim and confirmed his role as a depositor and “customer of the bank.” Like so many other depositors, it seems Sheik Ibrahim fell victim to what the Price Waterhouse audit called BCCI’s practice of “massive and widespread fraud.” The county report confirms that the BCCI loans attributed to Sheik Ibrahim were entirely fictitious, and no funds borrowed from BCCI ever were used in the Marina del Rey project. As part of BCCI’s pattern of wrongdoing, the bank apparently concocted fictionalized loans to customers in order to inflate its assets.
In fact, far from receiving any loans from BCCI, the closing of the bank has meant the loss to Sheik Ibrahim of several million dollars in deposits that will probably never be recovered. Despite the personal pain this whole BCCI affair has caused, it has not distracted us from the major task at hand--the redevelopment and revitalization of Marina del Rey.
We now hope to turn our full attention to a comprehensive reorganization plan that can settle all differences with the marina partnership, and allow us to move forward. We are ready to continue to work closely with the L.A. County staff, the local business community and the marina lessees to ensure that our efforts are consistent with the best interests of the people of Los Angeles County. We have always said and acted on the premise that our interest in the marina was long-term.
We believe the future holds great potential for Marina del Rey, and we are determined to play an active role in its revitalization. The people of L.A. County deserve nothing less.
ABDUL AZIZ AL SHEHALL
Adviser to Sheik Ibrahim
Los Angeles
