LONDON: Abraaj tapped investor money because of cash shortages at the group, a report from Deloitte found.
Money from Abraaj’s $1 billion health care fund was used to pay management fees and other expenses, Deloitte said in a forensic report which found no evidence of embezzlement.
The accounting firm, which was hired by Abraaj to examine its finances, concluded there was mixing of Abraaj’s own money in a health care fund and its fourth fund, according to a summary of the Deloitte report that was presented to creditors on June 4 and seen by Bloomberg News.
Deloitte said there was a lack of adequate governance at Abraaj and an overall weakness in its control framework, Bloomberg reported.
The firm faced a cash shortage when the sale of Pakistani utility K-Electric was delayed, the accounting company said.
Deloitte has presented its findings to the Dubai Financial Services Authority.
Abraaj last week said it expects its creditors to agree to a standstill on debt payments after a June 4 meeting.
Deloitte was engaged by the private equity outfit after an earlier review by KPMG triggered by concerns raised by investors that included the Bill & Melinda Gates Foundation.
