Saudi Arabia’s ombudsman said Wednesday he has launched an investigation into a former official who helped a Saudi investment authority obtain $10.8 billion in debt from investors who did not have the necessary funds.
The ombudsman’s office said in a statement that Sheikh Hamad bin Abdulaziz Al-Khatib is investigating the former official, who was in charge of the ombudsman office in the kingdom’s finance ministry.
He declined to provide details.
Saudi Arabia’s state-owned oil company, Saudi Aramco, and the Crown Prince and other senior officials are the owners of the kingdoms state-controlled Aramco.
The kingdom’s state investment fund, known as the Kingdom Investment Fund, said last month it had raised $6 billion in capital, making it the world’s second-largest sovereign wealth fund.
The fund was founded by Prince Mohammed bin Salman, who is the crown prince and heir apparent to the throne.
The fund is responsible for managing the kingdom, including the country’s vast natural resources and defense.
The Saudi Investment Authority oversees Saudi Arabia, one of the worlds wealthiest countries, and oversees all the countrys central bank.
King Salman appointed a group of high-level officials and private sector executives to help manage the fund’s operations, including its investments in companies such as Saudi Aramcos, the Saudi Arabian state-run oil company.
The Saudi Investment Agency has said the funds holdings were for economic purposes and did not include the sovereign wealth funds.
The ombudsman has been investigating allegations that the Saudi Investment Fund misused funds.