Corruption probe in Saudi widens to include retired military officers

A Saudi official familiar with ongoing investigations into corruption cases and the results of the campaign led by Crown Prince Mohammed bin Salman has revealed that the purges have widens to the military sector.

The senior official said 14 retired officers who worked at the Ministry of Defense and two retired National Guard officers had been detained on suspicion of being involved in financial contracts that were deemed corrupt. No active-duty officers have been arrested, he said.

Suspects are offered settlements to avoid trial, the official said on condition of anonymity to discuss the ongoing investigation. If they accept, talks are then carried out by a special committee to work out the details. The talks involve the amounts authorities believe suspects have amassed illegally, not their entire wealth, and authorities estimate the state could recover between $50 billion and $100 billion, the official said.

Saudi Arabia’s market regulator has frozen the trading accounts of people detained or investigated, people familiar with the matter have said. Saudi authorities allege at least $100 billion has been siphoned off over decades through corruption and embezzlement.

The purge won’t harm foreign investment or the kingdom’s plan for an initial public offering of its oil company, Energy and Industry Minister Khalid Al-Falih said on Thursday.

“I am in touch with many foreign investors, everybody understands that this is a very limited domestic affair,” Al-Falih told reporters on the sidelines of the Bonn climate conference. “The government is simply cleaning house for something that is way overdue”.