"The BBC subsequently auctioned Khashoggi's Morakot shares, apparently infuriating him. His dispute with Saxena became so heated, the court heard, that Saxena sent an IRA hit squad to the home of Khashoggi's daughter to get him to back off.Saxena has since been at pains to re-establish the relationship."
THE PEACE-MAKER
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SAXENA FLEW TO VANCOUVER on May 23, 1996, entering on a visitor's visa issued four days before the central bank assumed control of the BBC. Shortly after his arrival, Saxena applied for landed immigrant status through Canada's Investor Immigration Program. Starting in 1992, Saxena and Krirk-kiat had acquired two shell companies listed on the Vancouver Stock Exchange and used them as vehicles for investment and acquisitions in North America. Through Asean Holdings Inc., Saxena and Krirk-kiat acquired Doppler Industries Inc. which operated a chain of computer stores in Vancouver, Calgary and Seattle. It would suck some $11 million out of them before folding earlier this year. Through Quadrant Financial Corp., they were involved in a Czech leasing company and negotiating to acquire a New York brokerage firm. All that was threatened by the Thai criminal investigation and Saxena's arrest in Canada on July 7, 1996.
Immediately following his release on bail, Saxena began negotiating with Thai authorities. At the same time he decided to make peace with Khashoggi, who was angry that Thai authorities had seized his stock in several Thai companies, put up as collateral for his massive loans with the BBC. In January 1997, the Vancouver court was told, Saxena marshalled a team of crack bodyguards to accompany Richard and William Daggenhurst to Bangkok. The British brothers were CEO and CFO, respectively, of Morakot Industries, the cooking oil firm Saxena cronies had bought in 1994, and in which Khashoggi held shares.
The idea was to convince Morakot officials, the bank and Thai regulators to return the shares to the powerful Saudi arms merchant. The trip ended in disaster, the court heard, when the brothers were given 24 hours to leave Bangkok - or else. The BBC subsequently auctioned Khashoggi's Morakot shares, apparently infuriating him. His dispute with Saxena became so heated, the court heard, that Saxena sent an IRA hit squad to the home of Khashoggi's daughter to get him to back off. Saxena has since been at pains to re-establish the relationship.
In Vancouver, Saxena continued to live it up. On a daily basis, the court has heard, he lunched loudly for hours at the elegant 1066 Hastings restaurant, and celebrated nightly at the city's priciest establishments, including his private box at GM Place stadium for basketball and hockey games. Indeed, it seemed all was wine and song for Saxena until January 1998 when it emerged he was planning to flee Canada using a fake passport.
The phony document, No. SB 102459, bore Saxena's Indian likeness over the name Jovanovic Dragoljub, a casualty of the Bosnian war. Saxena paid Mike Andric, a Yugoslav soldier of fortune, $13,500 to get it. After Saxena's arrest, the court heard that Andric's wife ripped up the passport and flushed it down the toilet. Saxena was re-arrested, his bail revoked and he was jailed until Judge Oppal ruled he could live in his condo; Saxena's lawyer had argued that house arrest would cost taxpayers less money.
NO END IN SIGHT
It has been two years since Saxena fled Thailand in the wake of the banking scandal. Krirk-kiat faces the most charges of any BBC suspect, since his signature appeared on most of the doubtful loans. So far, he has spent only one night in jail.
Hammond is today full of regrets for ever getting involved with Saxena. But he only decided to break with the renegade banker after police arrived at his office March 10, 1998, and charged him with obstruction of justice. The following day Saxena fired him. Hammond says he was glad the chaos of the previous years had ended, "even if I didn't see it coming." Charges against him were dropped a few days after he finished testifying.
Saxena's plans to found a mining empire in Sierra Leone are in tatters. His financing of London-based military consultants, Sandline International, has sparked a political furor that threatens the future of British Foreign Minister Robin Cook. Sandline shipped 35 tons of weapons to Sierra Leone in apparent violation of a U.N. weapons embargo. The operation was funded by Saxena in exchange for diamond and mineral concessions, Hammond says. A British inquiry will report imminently on the involvement of its officials with Sandline and its role in the February counter-coup that re-installed Kabbah as president.
The BBC has traced and frozen bank accounts around the globe containing perhaps as much as $135 million, Saxena's lawyer Russ Chamberlain says. Money allegedly channeled into the pockets of his co-accused is being similarly hunted. In India, Saxena is enmeshed in ongoing investigations into alleged influence-peddling by tantric guru Chandraswamy, former prime minister Rao's favorite political adviser and sorcerer.
British Columbia Supreme Court Justice Frank Maczko once hoped to finish Saxena's extradition hearing by June 5. That became impossible after threats to Hammond's life in late May. Security precautions forced further delays in the proceedings. No decision is expected until late October. After that, there could be a lengthy appeal process. As Judge Maczko said: "It's no secret Saxena would rather spend years in a Canadian jail fighting legal battles than spend one minute in a Thai prison." Now that he is living in his condominium overlooking the yachts and beautiful people, he's in even less of a rush. |
