Dark influence campaigns, a President’s son, and a struggling Gulf economy: Mark Williams, Maria Lazareva and Kuwait’s Port Fund

When Mark Williams, an investment manager for an otherwise obscure Kuwaiti investment vehicle, took the stand this week in the Cayman Islands, an international scandal characterised by opaque lobbying firms and subversive influence campaigns was once again thrust into the public eye.

The cast in this story is blockbuster: the son of President George H. W. Bush hired to speak for a hot-shot female Russian CEO now hiding in the Russian embassy; the wife of former British Prime Minister Tony Blair calling for her release; a port in the Philippines changing hands for up to $500 million more than advertised. And underneath it all, the citizens of a small Gulf country, now under bombardment from Iran, who have paid the price for the drama.

Our story starts with the disappearance of nearly $500 million from the sale of Clark Global City, a freeport in the Philippines. The sale of the asset by the Port Link, an investment vehicle ultimately set up by Kuwaiti firm KGL Investment, was disclosed to its investors at approximately $500 million; but Philippine filings, and the local press, reported the price closer to $1 billion.

When challenged on the stand, Mark Williams, who wholly owned the Port Link via a Delaware-incorporated company Port Link Holdings USA, dismissed the allegations as the akin to the notorious unreliability of the “British tabloids”.

But when confronted with evidence of supporting the $1 billion claim in court, Williams admitted “there is a discrepancy there”. He later admitted “they could have done a better job” of reporting the sale price, referring to the fund.

Williams further stated that he couldn’t recall the specifics relating to the payment of Port Link invoices and failed to recount the details of transaction fees raised to fund kickbacks for KGLI. As Port Link owner, Williams had oversight of these transactions but could only recall "a lot of confusion and an overpayment” related to the amount when questioned at trial.

This apparent confusion is at the heart of the ongoing case between Kuwait Ports Authority and the Port Link, which is being heard in the Grand Court of the Cayman Islands. As background, the Port Link was the General Partner of the Port Fund, a private equity fund purportedly set up to invest in international port and logistics projects.

The Port Fund’s sponsor was a company called KGL Investment, whose Russian CEO Maria (Marsha) Lazareva is the star of a nearly decade-long influence campaign that draws together members of the American, British and Russia elites.

In 2017, Lazareva was arrested and imprisoned on two separate charges of embezzlement for her role in The Port Fund. She was released from prison after posting bail, and both convictions were later quashed. However, in 2019 Lazareva was convicted for money laundering and the embezzlement of Kuwaiti public funds, receiving two sentences totalling 22 years’ hard labour. Yet rather than serve her sentence, Lazareva fled to the Russian Embassy in Kuwait City, where she is still believed to be hiding from authorities.

Reports submitted under the US Lobbying Disclosure Act (LDA) reveal that over $3.5 million has been spent since 2019 on an international lobbying and public relations campaign to release Lazareva and overrule court decisions.

When questioned about the campaign at trial, Williams maintained that lobbying campaigns were carried out “for the fund”, and not for Lazareva or personal benefit, and defended press releases and conferences focused on Lazareva’s imprisonment, instead stating that they were Port-Fund related. From Williams’ perspective, Lazareva’s release was a beneficial by-product of such campaigns.

Lazareva’s star-studded line-up of advocates include Neil Bush, the son of George H.W. Bush, who liberated Kuwait in 1991, Cherie Blair, wife of the UK’s former Prime Minister Tony; Alex Carlile, a member of the British House of Lords; and former FBI Director Louis Freeh, who have all publicly expressed their support for Lazareva.

The latest trial brings an additional dimension to the case. In 2019, the Port Fund was served with a $57 million lawsuit in the DIFC courts. Importantly, the claimant was The Port Fund’s own investment manager, controlled by Lazareva and her business partner Saeed Dashti, known as EMPEML. The Port Fund did not contest the claim, and EMPMEL was awarded the full sum.

The claimant in the Cayman Islands case argues that the DIFC lawsuit was a fraudulent mechanism to misappropriate funds which were owed to The Port Fund’s limited partners. Among the limited partners were two state entities, the Kuwait Ports Authority and the Public Institution for Social Security, meaning the money can ultimately be traced back to tax and pension contributions made by the Kuwaiti people.

The tragedy in this case is that the real victim is not KPA, its Board of Directors, or indeed the Kuwaiti government; it is rather the Kuwaiti people, who are living in a country undergoing long-term economic pressures.

Under budgetary constraints, the Government has not decided to review its spending to continue providing essential services to Kuwaitis; it has rather targeted Kuwaiti citizens themselves through a well-reported but often forgotten denationalisation campaign that is stripping life-long Kuwaiti citizens of their birthright.

The people of Kuwait are only asking for what most of us take for granted - the guarantee that the rule of law be allowed to run its course without interference or prejudice. The lobbying and influence campaign conducted on behalf of Maria Lazareva is a worrying signal for the future of global justice.