The New York Times and CNN revealed a series of documents confirming Saudi Crown Prince Mohammed bin Salman’s lavish spending at Donald Trump’s Washington hotel during periods when he was seeking to influence the Trump administration.
The new documents offer concrete evidence of the rare practice of foreign governments spending money directly with businesses owned by a sitting president, which Democrats on the House Oversight Committee say raise new questions about possible efforts to influence Trump through his companies while he was in the White House, the New York Times reads.
According to the paper, the Trump family has struck a deal with a Saudi-based real estate company to license its name to a housing and golf complex that will be built in Oman, renewing a swirl of questions about former President Donald J. Trump’s mixing of politics and business just as he appears poised to announce a third presidential candidacy
News of the deal, the first such international marketing agreement the Trump Organization has negotiated since Mr. Trump left the White House, emerged as the former president already faces a string of investigations into his business.
Trump has also forged a relationship with the Saudi-backed LIV golf network, which recently held an event at his Doral course in Florida. At that event, Trump defended the Saudis over questions about human rights abuses there.
Lavish Saudi Spending
From March 7, 2018, to March 14, 2018, the Saudi Ministry of Defense spent more than $85,000, including renting several $10,500 suites. Two officials who stayed there were referred to as “His Excellency,” indicating that the Saudi royal family or senior government ministers were patronizing the Trump hotel.
Global Village Space earlier published a report by the senior fellow James Dorsey, confirming that the Saudi kingdom is betting on a better reception in Washington if Democrats lose control of Congress in this year’s midterm elections and/or Donald J. Trump or a Republican candidate with similar inclinations wins the White House in the 2024 presidential election.
The Saudi approach signals that the kingdom has not given up on the United States, although it has lost faith in Mr. Biden because of his attitude towards Crown Prince Mohammed bin Salman and his efforts to revive a nuclear accord with Iran, the report pointed out.
Bin Salman suggested what his thinking may be when he approved a US$2 billion investment by Saudi Arabia’s sovereign wealth fund, the Public Investment Fund (PIF), in a controversial private equity fund against the advice of the PIF’s screening panel.
The private equity fund, Affinity Partners, was recently created by Jared Kushner, Trump’s son-in-law and erstwhile advisor, who has maintained a close relationship with the crown prince.
In a slide presentation, Affinity Partners touts the vehicle’s inroads in Saudi Arabia, the Organisation of Oil Exporting Countries (OPEC), and its partners, including Russia, on the back of Kushner’s years in the White House.
Last year, PIF invested US$1 billion in Liberty Strategic Capital, a private equity vehicle established by Steven Mnuchin, Trump’s erstwhile treasury secretary and a former Wall Street finance executive.
However, PIF professionals raised objections to take a stake in Affinity Partners.
The Saudi fund’s screening panel cited as reasons not to invest “the inexperience of the Affinity Fund management;” an “unsatisfactory in all aspects” due diligence report; a proposed asset management fee that seemed “excessive;” and “public relations risks.”
Analysts have suggested that Bin Salman, who chairs the PIF, rewarded Kushner for his support on multiple occasions during the Trump presidency.
Social Media Rage
Meanwhile, Saudi online activists took to social media to denounce Ibn Salman’s huge spending to boost his international image, while Saudi Arabia’s unemployment and poverty rate continue to rise.
