Bankers and lawyers informed Congress that the Saudis issued a threat of 20 years imprisonment to anyone who cooperates with the ongoing investigation into the merger of PGA Tour-LIV Golf. This revelation came to light during a hearing held by the Senate Committee on Homeland Security and Governmental Affairs’ permanent subcommittee on investigations on Tuesday.
During the hearing, investment banker Michael Klein from M. Klein & Company stated that Saudi Arabia’s Public Investment Fund (PIF) took legal action against its advisers in a Saudi court to prevent them from providing information to the United States Senate committee. Klein, a top adviser to the fund, informed Congress that violating the court order resulting from the lawsuit could lead to a 20-year prison sentence for executives and their staff.
According to Bloomberg’s Mackenzie Hawkins, US lawmakers criticized the advisers for their lack of cooperation, as they have only provided a small portion of the documents requested in a congressional subpoena. Rich Lesser from Boston Consulting Group, another adviser to the PIF, explained that the PIF considers the disclosure of information regarding BCG’s work for them as a violation of Saudi law, which imposes severe criminal penalties, including up to 20 years in prison.
Senator Richard Blumenthal expressed his astonishment at American companies accepting this claim and allowing the Saudi government to dictate what information can be provided to the subcommittee. He also criticized their use of this claim as a justification for refusing to comply with a congressional subpoena.
Senator Ron Johnson, another member of the subcommittee investigating the merger, echoed Blumenthal’s sentiments. While he sympathized with the position of the consultants, he emphasized that Saudi claims of sovereign immunity hold no weight in this inquiry. He stated that any foreign entity wishing to conduct business in the US must abide by US law and be responsive to congressional subpoenas.
Based on the testimony given during the hearing, it appears that there is still a significant amount of work to be done before the official merger of the LIV Golf and PGA Tour can take place.
According to the Source brobible.com