An Independent Election Commission (IEC) worker sorts ballot boxes after they were transferred from polling stations to Kabul on April 6. Sabawppm / EPA
An Independent Election Commission (IEC) worker sorts ballot boxes after they were transferred from polling stations to Kabul on April 6. Sabawppm / EPA

More than 3,000 reports of violations in Afghanistan election



KABUL // Afghan authorities have received more than 3,000 reports of violations from last weekend’s presidential election, exceeding the tally following a 2009 vote that was marred by widespread fraud.

But just half the 3,103 complaints registered so far will be investigated, a complaints commission spokesman said, since the rest were reported by telephone and lacked the required supporting evidence.

The three front-runners have all complained of fraud in the April 5 vote meant to usher in Afghanistan’s first democratic transfer of power, as incumbent Hamid Karzai prepares to step down after more than 12 years as head of state.

Midnight on Monday was the deadline for reporting fraud and any irregularities, but the final figure is expected to rise as reports flow into Kabul along with ballot boxes from around the country.

A final tally could take days to become available, since observers, voters and other parties all had means to lodge complaints at polling stations.

“As soon as we get them, it is clear the final number is going to increase,” said Nader Mohseni, spokesman for the Independent Election Complaints Commission.

“We cannot ignore the fact that during the elections, there were instances of fraud and electoral violations.”

More than 2,000 complaints were investigated during the 2009 elections, which were tarnished by fraud that led to more than a million votes being scrapped.

Complaints against election commission staff made up 772 of the 1,573 complaints backed by documents this time round, with another 573 aimed at provincial council candidates, while presidential hopefuls faced 228 complaints.

Afghanistan held provincial council elections the same day.

World leaders have praised the April 5 vote as a success, because of the strong turnout of voters, estimated at 60 per cent of the 12 million eligible, and the failure of the Taliban to stage high-profile attacks on the day.

Urban participation was unexpectedly high, but it is unclear to what extent rural voters were deterred by the militant group and what role state officials, including the police, had in encouraging civilians to back a particular candidate.

In Afghanistan’s second city of Kandahar, for instance, residents complained police forced them to back a candidate supported by Mr Karzai’s brothers.

Mr Karzai’s administration said it would investigate fraud at every level.

“The ministry is committed to prosecuting individuals at any level, whether he is a provincial police chief, deputy minister or ordinary policeman,” said interior ministry spokesman Sediq Sediqqi.

There are also fears the Taliban may exploit easing security in the capital and elsewhere to ramp up attacks during the lengthy ballot counting process.

Preliminary tallies put former foreign minister Abdullah Abdullah in the lead in Kabul, but it could be weeks before a countrywide winner emerges.

Expectations are growing that Mr Abdullah will face a run-off with Ashraf Ghani, a former World Bank official with a programme of radical economic reform.

The former finance minister is expected to do well because of his strong Pashtun power base in the east and popularity in major cities, particularly among young people and women.

In the fiercely tribal south, young city-dwellers said they would ignore pressure by elders to vote for one of their own and back Mr Ghani because he presented the best prospects for reform.

Adding to his prospects for success, Mr Ghani’s running mate, Abdul Rashid Dostum, an ethnic Uzbek former guerrilla leader, holds sway over hundreds of thousands of voters in the north.

* Reuters

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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