In a bold move, the Senate’s permanent subcommittee on investigations, led by Democratic Senator Richard Blumenthal of Connecticut, issued a subpoena targeting Saudi Arabia’s $700 billion sovereign wealth fund, the Public Investment Fund (PIF). This action came after the PIF refused to voluntarily disclose information about its dealings in the United States.
The focus of the subpoena is on the PIF’s wholly-owned US subsidiaries, particularly in connection to a proposed golf deal and “related investments throughout the United States.” Notably, the PIF is also the majority owner of the Newcastle United football club.
The committee hearing, which took place on Wednesday, was initially intended to scrutinize Saudi’s controversial proposed golf merger. However, it quickly evolved into a discussion about Saudi Arabia’s record of human rights abuses, alleged involvement in the 9/11 terrorist attacks, and concerns about the nation’s attempts to acquire assets of national significance.
Senators expressed frustration at the PIF’s lack of cooperation with voluntary disclosure requests, viewing it as an attempt by Saudi officials to shield themselves from US law. Senator Blumenthal stressed, “The Saudi Public Investment Fund cannot have it both ways: if it wants to engage with the United States commercially, it must be subject to United States law and oversight.”
Expert witnesses described the PIF as deeply intertwined with the Saudi state and Crown Prince Mohammed, highlighting the lack of transparency and accountability in the fund’s operations.
One striking revelation during the hearing was the role of PIF-owned company jets in transporting the killers of Jamal Khashoggi, the Washington Post journalist who was murdered in 2018. Senator Blumenthal emphasized the PIF’s involvement in Saudi Arabia’s most abhorrent acts.
The PIF’s involvement in financing Neom, a desert city central to Prince Mohammed’s Vision 2030 economic plan, was also scrutinized. Members of a tribe opposing the Neom project have been sentenced to death.
Whether the PIF will comply with the subpoena remains uncertain. The fund has presented contradictory stances, seeking diplomatic protections like sovereign immunity in the US while denying direct government influence in its UK dealings, such as the Newcastle United takeover.
Notably, this hearing showcased a rare instance of bipartisan agreement, as both Democrats and Republicans expressed concerns about Saudi’s role in 9/11 and broader issues related to the PIF. Senator Ron Johnson acknowledged that the investigation had expanded beyond the initial PGA golf deal inquiry and speculated about Senator Blumenthal’s broader goals in pursuing this investigation. The future of this investigation remains an intriguing question.
