Two more senior Abraaj executives said to resign

Two senior executives have resigned from the private-equity firm Abraaj Group – which is alleged to have misused money - just months after taking their positions, according to a report in the Wall Street Journal.

According to the newspaper, Bisher Barazi, the chief financial officer of the firm’s private-equity unit, as well as its chief operating officer, Matthew McGuire, have both resigned.

Dubai's Abraaj hit by more senior departures

Dubai-based Abraaj, which manages about $13.6 billion, is reorganising the business

Both men took their roles during a February reorganisation which saw founder and CEO Arif Naqvi cede control of the asset management unit. A company e-mail reviewed by the Wall Street Journal said that “recent developments” prompted McGuire to resign his position.

Two separate examinations into Abraaj’s misue of money found potential irregularities in its $1 billion healthcare fund as well as a number of other investment vehicles.

An audit commissioned several months ago by a number of high-profile investors – including the Bill & Melinda Gates Foundation – suggested that money from the fund was being diverted elsewhere.

A separate review by Deloitte found possible discrepancies in accounting in other investment vehicles. According to Bloomberg, those finding are still being discussed with the Dubai Financial Services Authority.

Abraaj, which is the Middle East’s biggest buyout firm, is current reorganising its structure in the wake of the allegations. This company this month is said to have informed creditors that the sale of a stake in its fund-management unit and its Pakistani utility unit will help resolve liquidity issues.

Additionally, last week it was reported that the firm is in talks to sell its stake in Dubai’s Middlesex University to Amanat Holdings.