The US Senate Subpoenas Saudi Arabian Public Investment Fund’s US Subsidiary over Controversial PGA-LIV Merger
The US Senate has issued a subpoena to the US subsidiary of Saudi Arabia’s Public Investment Fund (PIF) for additional information regarding the contentious merger between rival golf tournaments PGA and LIV. The Senate’s permanent subcommittee on investigations has demanded documents related to PIF’s acquisition of American golf and related investments after the sovereign wealth fund of the kingdom declined to comply voluntarily with the information requests. Specifically, the Senate is requesting records of PIF’s investments, assets, and organizational structure in the US.
Saudi Arabia, having initiated a golf league called LIV, financed the takeover of PGA Tour, a deal that was officially announced in June. This transaction has been viewed as an attempt by Saudi Arabia to improve its reputation, given its notoriety for human rights abuses and destructive fossil fuel production, a practice commonly known as “sportswashing.” During a Senate hearing in July, Richard Blumenthal, a Democrat from Connecticut and one of the signatories on the recent subpoena, referred to the PGA-LIV merger as a means for the “brutal, repressive regime” to “buy influence” in US sports and cleanse its tainted public image.
The Checkered Reign of Saudi Arabia’s Crown Prince
Saudi Arabia’s Crown Prince, Mohammed bin Salman, has encountered substantial controversy during his leadership. He has been accused of ordering the murder of journalists, imprisoning dissidents, and supporting terrorism. Despite these allegations, bin Salman possesses significant decision-making authority, showcasing his power by selectively and expeditiously approving desired investments. The lack of transparency and independence in PIF’s operations was a point of emphasis during Human Rights Watch’s Joey Shea’s testimony at the Senate hearing.
Highlighting Saudi Arabia’s Human Rights Violations
Experts and concerned senators provided evidence of PIF’s involvement in escalating human rights abuses under bin Salman’s leadership. Specific instances included:
- High-ranking Saudi officials implicated in the murder of journalist Jamal Khashoggi in 2018 evaded accountability. PIF, which Saudi Arabia owns, possesses a company that used planes to transport Khashoggi’s killers from Saudi Arabia to Turkey, where the Washington Post journalist was murdered. The CIA has asserted that bin Salman authorized this operation.
- During his time as defense minister from 2015 to 2022, bin Salman was responsible for numerous indiscriminate and disproportionate airstrikes on Yemeni civilians and civilian structures, such as homes, schools, hospitals, markets, and mosques, according to Shea.
- Saudi government documents submitted in a Canadian court case revealed that in 2017, one of bin Salman’s advisers instructed Yasir al-Rumayyan, the supervisor of PIF, to transfer 20 companies obtained as part of an “anti-corruption campaign” directly to the fund’s ownership. Shea stated that there is a risk that these companies were transferred without due process.
- Saudi border guards faced accusations of mass killings of Ethiopian migrants and asylum seekers in August.
- A local tribe that opposed the development of the Neom desert city received death sentences.
- Republican Senator Ron Johnson, who has consistently urged the Department of Justice and the FBI to disclose complete and unredacted records of Saudi Arabia’s involvement, focused his testimony on the kingdom’s connection to the 9/11 attacks.
The Central Figure: Yasir Al-Rumayyan
Yasir Al-Rumayyan, set to become the chairman of the newly-formed global golf tour after the PGA-LIV merger, has no golf background like Jay Monahan, the PGA Tour commissioner who will serve as CEO. Al-Rumayyan’s appointment stems from his close association with bin Salman, as he is referred to as a “close confidante” who manipulates actions behind the scenes. Before the PGA-LIV deal, Al-Rumayyan became chairman of the Newcastle United football club and the state-owned petroleum company Aramco. Although invited to testify at a US Senate hearing on July 11, Al-Rumayyan declined.
Key Facts about PIF’s International Influence
- PIF plans to contribute $1 billion to the new golf entity resulting from the PGA-LIV merger.
- In 2016, PIF invested $3.5 billion in Uber, securing a board seat for Al-Rumayyan. Since then, PIF has invested in various US corporations, including Meta, JP Morgan, Starbucks, Microsoft, Electronic Arts, and more.
- PIF owns an 80% stake in the Newcastle United football club in the UK.
- According to the Peterson Institute for International Economics (PIIE), PIF’s transparency, governance, and accountability earned it a score of 39 out of 100. Out of the 64 funds assessed, PIF ranked 56th.
- Bin Salman purchased a home worth $60 million for Al-Rumayyan near the Saudi presidential palace.
- PIF currently manages assets worth $700 billion, and bin Salman anticipates that PIF will control $2 trillion in assets by 2030.
Related Stories
- An overview of the Saudi Arabian sportswashing plan and the sports involved.
- Saudi Arabia’s ambition to replicate its success with golf through LIV by infiltrating cricket.
- The struggles faced by Saudi Arabia as oil prices plummet to undesirable levels.
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