Connect with us

News

PwC and Saudi Arabia’s sovereign wealth fund clash over hiring of executive

Published

on

PwC and Saudi Arabia’s sovereign wealth fund clash over hiring of executive

Unlock the Editor’s Digest for free

Saudi Arabia’s sovereign wealth fund and PwC clashed over the Big Four firm’s plans to hire a senior executive from one of the fund’s most important projects, as relations between the two sides deteriorated last year, said people familiar with the matter.

The Public Investment Fund last month imposed a one-year ban on handing new advisory work to PwC, which has been one of the consultants on Neom, a futuristic $500bn development along the Red Sea coast that is being managed by PIF.

The decision dealt a blow to PwC’s business in Saudi Arabia, which has been among the fastest-growing in its global network, and raised broader questions about the country’s extensive use of international consultants.

Advertisement

PwC’s attempt to hire Neom’s chief internal audit officer, Jason Davies, caused upset inside PIF, said five people familiar with the dispute. He had been employed by Neom since 2020 and had agreed to move to PwC in the middle of last year, some of the people said.

The situation caused “friction and angst” between PIF and PwC, one of the people said. Hiring a senior executive from a client causes “a lot of aggravation” and “doesn’t look good”, said another of the people.

Davies, who previously worked at Deloitte and Tesco in the UK, left Neom in September, according to his posts on LinkedIn, but ultimately did not join PwC. He did not respond to a request for comment.

While at Neom, Davies had been the subject of a glowing profile on PwC’s website where he described building Neom’s internal audit function, which monitors financial reporting and compliance. The page has since been taken down and now redirects to a PwC homepage.

Several people familiar with the matter described the clash over Davies’ role as a factor in the deteriorating relationship between PIF and PwC that culminated in last month’s ban.

Advertisement

PwC will be allowed to continue its consulting projects that are already under way for PIF, and its audit work in Saudi Arabia will not be affected, but it will not be allowed to bid on further work for the fund.

PwC and PIF declined to comment.

PwC’s Middle East operations are part of PwC UK and have propped up revenue growth at a time of sluggish consulting demand in Britain.

Sales at the Middle East business grew by 26 per cent in the year to June 2024, while UK revenues increased 3 per cent. The Middle East business accounted for almost one-third of PwC’s total revenues of £6.3bn across the UK and Middle East for the 12-month period.

Over the past decade, consultants have flocked to Saudi Arabia after Crown Prince Mohammed bin Salman launched ambitious plans to develop the conservative nation and reduce its dependency on oil. 

Advertisement

The $925bn PIF has been the main vehicle driving the changes as it has become the dominant force in the economy, spending hundreds of billions of dollars on mega-projects and the establishment of new companies. 

Neom, a vast project including plans for a linear city called The Line, a ski resort, and logistics and tourism sites, is regarded as the prince’s flagship project and has provided a feast of fees for consulting firms.

But after almost a decade of frenetic spending, Riyadh has over the past year been tightening its belt and reprioritising its spending on developments, with some projects being delayed and others scaled back. Government entities and consultants also face growing pressure to deliver returns and prove their value.

News

Supreme Court blocks redrawing of New York congressional map, dealing a win for GOP

Published

on

Supreme Court blocks redrawing of New York congressional map, dealing a win for GOP

The Supreme Court

Win McNamee/Getty Images


hide caption

toggle caption

Advertisement

Win McNamee/Getty Images

The Supreme Court on Monday intervened in New York’s redistricting process, blocking a lower court decision that would likely have flipped a Republican congressional district into a Democratic district.    
  
At issue is the midterm redrawing of New York’s 11th congressional district, including Staten Island and a small part of Brooklyn. The district is currently held by a Republican, but on Jan. 21, a state Supreme Court judge ruled that the current district dilutes the power of Black and Latino voters in violation of the state constitution.  
  
GOP Rep. Nicole Malliotakis, who represents the district, and the Republican co-chair of the state Board of Elections promptly appealed to the U.S. Supreme Court, asking the justices to block the redrawing as an unconstitutional “racial gerrymander.” New York’s congressional election cycle was set to officially begin Feb. 24, the opening day for candidates to seek placement on the ballot.  
  
As in this year’s prior mid-decade redistricting fights — in Texas and California — the Trump administration backed the Republicans.   
 
Voters and the State of New York contended it’s too soon for the Supreme Court to wade into this dispute. New York’s highest state court has not issued a final judgment, so the voters asserted that if the Supreme Court grants relief now “future stay applicants will see little purpose in waiting for state court rulings before coming to this Court” and “be rewarded for such gamesmanship.” The state argues this is an issue for “New York courts, not federal courts” to resolve, and there is sufficient time for the dispute to be resolved on the merits. 
  
The court majority explained the decision to intervene in 101 words, which the three dissenting liberal justices  summarized as “Rules for thee, but not for me.” 
 
The unsigned majority order does not explain the Court’s rationale. It says only how long the stay will last, until the case moves through the New York State appeals courts. If, however, the losing party petitions and the court agrees to hear the challenge, the stay extends until the final opinion is announced. 
 
Dissenting from the decision were Justices Sonia Sotomayor, Elena Kagan, and Ketanji Brown Jackson. Writing for the three, Sotomayor  said that  if nonfinal decisions of a state trial court can be brought to highest court, “then every decision from any court is now fair game.” More immediately, she noted, “By granting these applications, the Court thrusts itself into the middle of every election-law dispute around the country, even as many States redraw their congressional maps ahead of the 2026 election.” 

Monday’s Supreme Court action deviates from the court’s hands-off pattern in these mid-term redistricting fights this year. In two previous cases — from Texas and California — the court refused to intervene, allowing newly drawn maps to stay in effect.  
  
Requests for Supreme Court intervention on redistricting issues has been a recurring theme this term, a trend that is likely to grow.  Earlier last month  the high court allowed California to use a voter-approved, Democratic-friendly map.  California’s redistricting came in response to a GOP-friendly redistricting plan in Texas that the Supreme Court also permitted to move forward. These redistricting efforts are expected to offset one another.     
   
But the high court itself has yet to rule on a challenge to Louisiana’s voting map, which was drawn by the state legislature after the decennial census in order to create a second majority-Black district.  Since the drawing of that second majority-black district, the state has backed away from that map, hoping to return to a plan that provides for only one majority-minority district.    
     
The Supreme Court’s consideration of the Louisiana case has stretched across two terms. The justices failed to resolve the case last term and chose to order a second round of arguments this term adding a new question: Does the state’s intentional creation of a second majority-minority district violate the constitution’s Fourteenth and Fifteenth Amendments’ guarantee of the right to vote and the authority of Congress to enforce that mandate?    
Following the addition of the new question, the state of Louisiana flipped positions to oppose the map it had just drawn and defended in court. Whether the Supreme Court follows suit remains to be seen. But the tone of the October argument suggested that the court’s conservative supermajority is likely to continue undercutting the 1965 Voting Rights Act.   

Advertisement
Continue Reading

News

Map: Earthquake Shakes Central California

Published

on

Map: Earthquake Shakes Central California

Note: Map shows the area with a shake intensity of 3 or greater, which U.S.G.S. defines as “weak,” though the earthquake may be felt outside the areas shown.  All times on the map are Pacific time. The New York Times

A minor earthquake with a preliminary magnitude of 3.5 struck in Central California on Monday, according to the United States Geological Survey.

The temblor happened at 7:17 a.m. Pacific time about 6 miles northwest of Pinnacles, Calif., data from the agency shows.

As seismologists review available data, they may revise the earthquake’s reported magnitude. Additional information collected about the earthquake may also prompt U.S.G.S. scientists to update the shake-severity map.

Source: United States Geological Survey | Notes: Shaking categories are based on the Modified Mercalli Intensity scale. When aftershock data is available, the corresponding maps and charts include earthquakes within 100 miles and seven days of the initial quake. All times above are Pacific time. Shake data is as of Monday, March 2 at 10:20 a.m. Eastern. Aftershocks data is as of Monday, March 2 at 11:18 a.m. Eastern.

Advertisement
Continue Reading

News

US says Kuwait accidentally shot down 3 American jets

Published

on

US says Kuwait accidentally shot down 3 American jets

The U.S. and Israel have been conducting strikes against targets in Iran since Saturday morning, with the aim of toppling Tehran’s clerical regime. Iran has fired back, with retaliatory assaults featuring missiles and drones targeting several Gulf countries and American bases in the Middle East.

“All six aircrew ejected safely, have been safely recovered, and are in stable condition. Kuwait has acknowledged this incident, and we are grateful for the efforts of the Kuwaiti defense forces and their support in this ongoing operation,” Central Command said.

“The cause of the incident is under investigation. Additional information will be released as it becomes available,” it added.

In a separate statement later Monday, Central Command said that American forces had been killed during combat since the strikes began.

“As of 7:30 am ET, March 2, four U.S. service members have been killed in action. The fourth service member, who was seriously wounded during Iran’s initial attacks, eventually succumbed to their injuries,” it said.

Advertisement

Major combat operations continue and our response effort is ongoing. The identities of the fallen are being withheld until 24 hours after next of kin notification,” Central Command added.

This story has been updated.

Continue Reading

Trending