A parliamentary probe into the financial affairs of Bahrain's sovereign wealth fund could be launched on Tuesday (April 21) amid allegations of mismanagement.

Bahrain Mumtalakat Holding Company oversees a portfolio of 36 companies including Aluminium Bahrain (Alba) and Gulf Air, said a report in the Gulf Daily News (GDN), our sister publication.

Its chairman, Transportation and Telecommunications Minister Kamal Ahmed, appeared before MPs last week to urge them to stop portraying the fund as "corrupt".

He accused MPs of confusing the public with claims about Mumtalakat's status and said many of the companies within its portfolio were profitable.

Losses at Gulf Air had been reduced by more than 75 per cent over the past three years, he said, adding that losses at Edamah (the fund's real-estate arm) were "just on the books" and caused by the government taking back land for investment projects.

However, when parliament's general-secretariat met yesterday its members called for a probe to be set up - referring the matter to next week's weekly session along with a tentative list of suggested members.

Mohammed Al Ahmed, one of the eight MPs who had originally suggested the formation of the probe, said "major violations" at Alba, Gulf Air and other companies allegedly revealed by the recent Financial and Administrative Audit Bureau report had to be looked into.

"Parliament's financial and economic affairs committee has recommended that the minister gets grilled," he said.

"The issue is bigger than two companies, despite one being a major contributor to profitability and the other losses - the matter revolves around Mumtalakat's financial and administrative status.

"We know that Mumtalakat has seen profitability, but it is not actually in profit due to the loans that have been taken out and have to be repaid.

"Besides, Edamah has lost lands worth BD250 million ($658.5), without being compensated," he pointed out.

Al Ahmed described Mumtalakat as an example of "chaos and improperness".

"We want exact numbers on profitability, risk management and investment, administrative affairs and financial dealings," he said.

"This is to ensure that the decisions taken have been of value, otherwise they will be considered a waste of public money." - TradeArabia News Service