Consultants tell Senate they face prison for aiding probe into Saudi Public Investment Fund

Record ID: 1765378

  • Title: Consultants tell Senate they face prison for aiding probe into Saudi Public Investment Fund
  • Date: 8th February 2024
  • Summary: WASHINGTON, D.C., UNITED STATES (FEBRUARY 7, 2024) (SENATE TV) PERMANENT SUBCOMMITTEE ON INVESTIGATIONS SWEARING IN WITNESSES (SOUNDBITE) (English) DEMOCRATIC SENATOR FROM CONNECTICUT, RICHARD BLUMENTHAL, SAYING: "It's simply staggering to me that American companies are not only willing to accept this claim allowing the Saudi government to determine what is permitted to pr
  • Embargoed: 22nd February 2024 03:06
  • Keywords: Boston Consulting Group LIV Golf M. Klein & Company McKinsey & Company PGA Permanent Subcommittee on Investigations Saudi Arabia’s Public Investment Fund Senate Teneo
  • Location: WASHINGTON, D.C., UNITED STATES
  • City: WASHINGTON, D.C., UNITED STATES
  • Country: US
  • Topics: Lawmaking,North America,Government/Politics
  • Reuters ID: LVA001877508022024RP1
  • Aspect Ratio: 16:9
  • Story Text:Speaking before the Senate's Permanent Subcommittee on Investigations on Wednesday (February 7) consultants said their firms face prison time for fully disclosing their involvement in advising the Saudi Arabia's Public Investment Fund.
    Representatives from Boston Consulting Group, M. Klein & Company, McKinsey & Company, and Teneo told Senators a Saudi court had issued an injunction prohibiting the disclosure of materials, a violation of which, according to the consultants, could carry penalties of up to 20 years imprisonment and monetary fines.
    The executives also said they oppose the court's injunction.
    Bob Sternfels, from McKinsey & Company, said the firm's involvement on the topic of golf predates the launch of LIV Golf, which is mainly financed by Saudi Arabia's Public Investment Fund.
    Rich Lesser, the global chair of Boston Consulting Group, said they had not work with the PIF on LIV golf or its investments in sports in the United States.
    Last June the PGA Tour announced the "framework agreement" for a shock merger with the PIF, which funds new rival league LIV Golf, as well as with the DP World Tour. While the PGA Tour has taken on a new investment partner made up of U.S.-based sports ownership groups, called Strategic Sports Group, it is said to still be in negotiations with the PIF.
    It remains to be seen if the PGA merging with its only rival will be allowed under federal antitrust law.
    (Production: Gerardo Gomez)
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