Quebec’s Caisse Halts DP World Deals Amid Epstein Revelations
Recent revelations regarding DP World Ltd’s leadership have prompted Quebec’s Caisse de dépôt et placement du Québec to halt its dealings with the logistics company. This decision comes after details emerged linking DP World Chairman Sultan Ahmed bin Sulayem to the controversial financier Jeffrey Epstein.
Details of the Suspension
The Caisse’s spokesman, Jean-Benoît Houde, stated that the pension fund is pausing further investments until clarification on the situation is provided by DP World. The Dubai-based company is a significant player in global logistics, operating across more than 69 countries.
DP World and Jeffrey Epstein
Documents released by the U.S. Department of Justice indicate that Sulayem had a relationship with Epstein that included both personal and business exchanges. Notable communications detailed messages where Sulayem discussed explicit topics with Epstein, even after Epstein’s 2008 conviction for sex crimes.
Investment Background
- The Caisse has a long-standing partnership with DP World, involving investments totaling billions.
- In 2016, they announced a $5 billion investment vehicle focusing on global port and terminal investments.
- The Caisse acquired a 45% stake in two Canadian container terminals for $865 million.
- In 2022, they committed $6.3 billion to three major assets in the United Arab Emirates.
Implications for Current Projects
One critical aspect of this suspension is its potential impact on the Port of Montreal’s new container terminal project at Contrecoeur. This project has been classified as a national priority and is subject to ongoing governmental support, with Ottawa and Quebec pledging a combined $280 million towards the estimated $2.3 billion total cost.
Future of the Contrecoeur Terminal
The development agreement for Contrecoeur was made between DP World’s Canadian unit and the Montreal Port Authority, outlining a 40-year operational plan for the cargo facility. It is unclear how the recent developments will affect the project’s financing and execution.
Montreal Port Authority spokeswoman Evelyne Déry expressed anticipation regarding the clarity of the situation, acknowledging the Caisse’s request for more information. The situation reflects broader concerns regarding reputational risks for partners involved with DP World.
This unfolding scenario highlights the careful consideration that institutional investors must take regarding their partnerships, further emphasizing the need for due diligence in navigating complex corporate relationships.
