Monday 18th October 2004

Hayel Saeed denies FoxNews allegations

Hayel Saeed Anam Group yesterday issued a denial of recent FoxNews reports purporting to link it and certain of its executives to Al-Qaïda. Hayel Saeed Anam Group is an international industrial and commercial group founded in the Yemen in 1938.

In a series of reports written by Claudia Roset and George Russell during 17th to 26th September 2004, FoxNews published allegations purporting to link Hayel Saeed Anam Group to Al-Qaïda.

Mr Abdul Rahman Hayel Saeed, one of the directors, who was personally named in the reports, stated:

"FoxNews allegations are absolutely untrue. Our company and everyone involved in it is deeply opposed to terrorism of all sorts. We have dedicated our lives and careers to the creation of peaceful and prosperous societies wherever we operate. We believe that terrorism in all its manifestations is to be deplored.

Imagine our shock, therefore, to see these stories published by FoxNews".

The facts are as follows:

1. FoxNews alleges that Mr Abdul Rahman Hayel Saeed ("Mr Saeed") and Hayel Saeed Anam Group ("HSA") are associated with Mr Nasruddin, named by the US Office of Public Affairs as a backer of Al-Qaïda. This is untrue. It is true that in 1982, HSA, along with other Gulf-based investors, was invited by Mr Nasruddin to participate in certain projects in Nigeria and consider other projects, which he was promoting. Mr Nasruddin was, as far as HSA was aware, a respectable and well established business man, based in Milan, where he was also the Kuwaiti honorary Consul. The projects did not proceed, since, after due diligence, HSA and the other investors withdrew in 1984. This led to a dispute which was finally resolved in 1987, and neither HSA nor Mr Saeed have had any business dealings with Mr Nasruddin or any of his entities since that time.

2. Fox alleges that since 1984 Mr Saeed has been an active member of MIGA, an entity associated with Mr Nasruddin, and named along with Mr Nasruddin as associated with Al-Qaïda. This is untrue. In early 1984, Mr Saeed was asked by Mr Nasruddin to be a founding member of a Chamber of Commerce to promote trade between Switzerland and the Gulf States. A Chamber of Commerce is not a company engaged in business; it holds exhibitions, publishes articles, promotes tourism etc. Mr Saeed agreed to this, but neither he nor HSA has ever been an active member of the Chamber or had anything to do with it. This is confirmed by the Register of Members on the public file. Indeed, they were not even aware that the Chamber had been established, let alone that it had changed its name to MIGA in 1996, twelve years after they ceased to be associated with Mr Nasruddin. The first they ever heard the name MIGA was when FoxNews wrote to them.

3. Fox alleges that as part of the alleged involvement with MIGA, Mr Saeed gave a power of attorney to Mr Nasruddin and that this power is continuing. This is untrue. In 1984, Mr Saeed gave Mr Nasruddin a "procura" authorising him "to sign in the name of the principal acting as founding partner, the public deed of establishment of the Association 'Chamber of Commerce, Industry and Tourism for the Arab Gulf States and Switzerland'." This is not a continuing power of attorney to Mr Nasruddin, as is clear from the document, which is of public record. The procura was discharged over 20 years ago when Mr Nasruddin apparently used it to sign the foundation deed of the Chamber of Commerce. No subsequent use by Mr Nasruddin of the procura was valid or authorised.

4. FoxNews speculates that Pacific Interlink, a Hayel Saeed Anam Group affiliate based in Malaysia, diverted funds to Saddam Hussein through the UN Oil-for-Food program. This is untrue. Pacific Interlink did participate in the UN Oil-for-Food program, as did many others (and still participates in the program of the Iraq government). It participated solely at an arms length basis, supervised by the UN. There is no shred of evidence to support this baseless allegation by FoxNews and the authors of the article. Pacific Interlink was not aware of any criticism of its contract as allegedly published by a US government agency (DCMA) cited by FoxNews, was never consulted or asked to comment by that agency and denies any over payment or making any "kick back" payments. Contrary to the express statement in the FoxNews report that "By DCMA estimates, Saddam overpaid Pacific Interlink on that contract...". Pacific Interlink is not named by the agency in its report.

Mr Saeed stated:

"We are very angry and concerned that such serious allegations can be made publicly against Hayel Saeed Anam Group and its executives. In the case of Pacific Interlink, the allegation was made in a letter dated September 16th, whereas FoxNews published the story the next day on September 17th, 2004."

The only communications previously received were a phone call and an email in April to Mr Saeed purporting to be from the FoxNews organisation, signed "Investigative Team, FoxNews". Although stated to be "urgent", this was never followed-up. It referred solely to "MIGA", of which Mr Saeed had never heard, making no mention of Mr Nasruddin. Mr Saeed's office treated this approach with great suspicion. Nonetheless, the HSA general counsel was asked to investigate any connection to an entity called MIGA; none was found.

On August 17th, a letter was faxed in the name of "Charles Nolan, Senior Producer, FoxNews" to Mr Saeed and another individual in the Group enquiring about Mr Nasruddin and MIGA and in general terms asking about HSA's role in the UN Oil-for-Food program. Mr Charles Nolan is a fictitious person who does not exist. Since neither of the recipients had heard of MIGA or recalled any power of attorney or had had any business with Mr Nasruddin for 20 years, they instructed the Group's general counsel and external legal adviser to conduct an investigation. That investigation, which went back over 20 years, established that the Chamber of Commerce had been established and had changed its name to MIGA in 1996, but produced no evidence of any business connection to MIGA or its predecessor, the Chamber of Commerce, or Mr Nasruddin, since 1984. On September 16th, as the investigation was being completed, a letter in the name of the same fictitious Mr Nolan was sent to Pacific Interlink, which for the first time spelt out the true nature of the unsubstantiated allegations being made against the Group and its executives. However, by then it was too late to respond, since on September 17th, the next day, FoxNews went into print with these unfounded allegations.

To summarise:

1. HSA and its executives have had no dealings with Mr Nasruddin, or his entities, for over 20 years.

2. HSA and its executives have never been aware or involved in MIGA.

3. Pacific Interlink is an ethical company, which obtained its contracts at arms length supervised by the UN and provided no support directly or indirectly to Saddam Hussein or any other party (see www.pilmalaysia.com).

HSA and its executives will take all appropriate steps to protect their good name if these unfounded allegations are repeated.