Kuwait pension fund's $1 billion corruption lawsuit begins in UK court

LONDON (Reuters) - Kuwait's public pension fund accused asset manager Man Group, Swiss bank EFG and others of laundering bribes paid to its late director as a year-long $1 billion trial began at London's High Court on Monday.

The Public Institution for Social Security (PIFSS), which operates Kuwait's social security and pension scheme, is suing the estate of Fahad Al Rajaan, its director from 1984 to 2014.

Al Rajaan was in 2016 convicted in his absence of corruption and embezzling public money in Kuwait and died in London in 2022.

PIFSS alleges that, over the course of two decades, Al Rajaan and his associates received at least $970 million in bribes, described as commission payments which banks and investment companies did not need to pay.

It is suing Man Group seeking around $156 million, alleging the London-listed fund was involved in bribes paid to Al Rajaan to obtain PIFSS investment in Man products.

But Man – whose CEO Robyn Grew and her predecessors are due to give evidence – say there is no evidence for PIFSS' case, which a spokesperson said it is "robustly defending".

"PIFSS has not identified any evidence showing that Man or its current or former employees knew of any wrongdoing," the spokesperson said.

Its lawyers said in court filings that Man knew nothing about Al Rajaan's corruption "let alone (did it) intend for any bribery to occur".

EFG Bank is also fighting the case, in which PIFSS is seeking around $450 million for allegedly helping to launder corrupt payments.

"PIFSS' bid to recover $450 million from a bank which paid no bribes and was not to any extent unjustly enriched through its relevant dealings is opportunistic and ill-conceived," its lawyer Camilla Bingham said in court filings.

She added that the Kuwaiti state had already recovered around $600 million.

The trial is due to conclude in early 2026.

(Reporting by Sam Tobin; Editing by Angus MacSwan)