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Has Abraaj truly mismanaged yet another fund?

According to a new report by Bloomberg, Abraaj is under scrutiny once more for mishandling yet another fund. This time, the Private Equity IV Fund is in question.

Yet another fund mishandled

A letter seen by Bloomberg News detailed that investors in a $1.6 billion Abraaj Group fund said the company owes them at least $300 million. The disgruntled investors have also asked for the firm to be removed as the fund’s manager. They are seeking to stop paying management fees, citing breach of duties to the fund, according to the letter dated August 13, Bloomberg reports.

READ: Who’s owed what, and 7 things you need to know about Abraaj

After a review by Abraaj’s accounting firm Deloitte in June, the Private Equity Fund IV was found to be owed $94.6 million by the troubled firm. The investors’ estimates, however, put the amount owed at almost triple that number, at around $300 million.

The investors’ council has apparently “run out of patience,” the letter explained.

The ball is in liquidators Deloitte and PricewaterhouseCoopers’ (PwC) court. If they are unable to reach an acceptable agreement with the two firms, investors are going to turn to legal action to reclaim their lost capital, Bloomberg explained. The two firms were supposedly appointed on June 18, and according to the investors “insufficient progress” has been made to cut their losses caused by Abraaj’s “mismanagement and apparent fraudulent activity.”

READ: $1bn healthcare fund separated: The source of Abraaj’s problems resolved?

Abraaj is frequenting legal courts

If investors go through with their threat and take the case to court, it wouldn’t be the first time Abraaj’s affairs are discussed in front of a judge this month.

Back in July, the private equity firm’s founder Arif Naqvi was involved in a bounced cheque case. Tomorrow, the UAE court will issue judgment on the instance of a second bounced cheque. The first was worth $48 million, while the second is worth $217 million, all owed to the same party: co-investor Hamid Jafar. The total sum owed to him is $300 million.

Judgment was supposed to be issued yesterday, but the case has been adjourned to Tuesday.

All of the company’s troubles started in February when they were suspected to have mishandled a $1 billion health care fund. Once proof had been indeed discovered, the company filed for liquidation after a string of controversies.

RELATED: The DFSA hammers the final nail in the coffin for Abraaj