Kuwait’s Agility, France’s Orange file another claim against Korek director

A joint venture of Kuwaiti logistics firm Agility and France’s Orange, have filed another claim against a director of Iraqi mobile telecoms operator Korek, alleging undisclosed self-dealing and interests.

Agility and Orange acquired a 44 per cent stake in Korek Telecom Company in 2011 via a vehicle that also includes prominent Iraqi Kurdish businessman Sirwan Barzani and other locals among its shareholders.

Agility and Orange’s stake is held via their joint venture company Iraq Telecom. Together they have invested around $1bn in Korek.

The claim by Iraq Telecom, filed in the Dubai International Financial Centre Courts and seen by Reuters, alleges that a director of Korek, Raymond Samir Zina Rahmeh, “has been engaged in self-dealing on a massive scale and has a number of undisclosed interests that have resulted in exorbitant loss and damage to the company and, through its shareholding in the company, the claimant.”

Korek International Management, the company through which Barzani and other local shareholders hold a stake in Korek’s holding company, said in an email that the proceedings were unfounded and that Rahmeh rejected all the claims against him.

Iraq Telecom last month filed another claim against Rahmeh and two other directors, alleging mismanagement and misappropriation of millions of dollars. That claim was also rejected by Korek International Management.