In its forensic review of two of Abraaj Group Ltd.'s funds, audit firm Deloitte found that the Dubai-based private equity firm suffered from a "lack of adequate governance" and commingled around $95 million of fund money with its own money in a $1 billion healthcare fund and its fourth buyout fund due to liquidity problems, the Financial Times reported, citing briefing notes for creditors.
Deloitte, which was hired by Abraaj to examine its business after investors raised doubts over an earlier review conducted by KPMG, also said there was an overall weakness in the control framework of the private equity firm.
Deloitte, however, noted that all money has been accounted for and that it found no evidence that Abraaj embezzled or misappropriated funds, according to the June 10 report.
Abraaj has been facing controversy lately after some investors questioned its handling of the money they entrusted to it in the healthcare fund. Kuwait's Public Institution for Social Security recently filed liquidation proceedings against the group, a move that could thwart the Dubai firm's plans to restructure its debts totaling $1 billion.
