Businessmen challenge asset freezing by EU

US: Two businessmen suspected by the US of funding al-Qaeda began an EU court action yesterday over the freezing of their assets…

US: Two businessmen suspected by the US of funding al-Qaeda began an EU court action yesterday over the freezing of their assets.

Saudi multi-millionaire Mr Yassin Kadi and Somali-born Swede Mr Yusaf Ahmed Ali petitioned the EU's Court of First Instance for the right to judicial review of the decision imposed in December 2001, three months after the September 11th attacks.

Lawyers for the two say they are victims of arbitrary measures based on erroneous secret evidence, thus depriving them of their rights to property, reputation and due process of law.

"Is it the law of the European Union that Mr Kadi's funds can be frozen on the ground that he is a supporter of terrorism without him having access to a court to challenge the substance of that decision?" his lawyer, Mr David Pannick, asked the court.

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At issue is whether people subject to a freeze decided by the UN Security Council on the basis of a US list and implemented in EU law have a right to legal redress in Europe.

Mr Kadi denies any connection with Osama bin Laden or al-Qaeda.

The European Commission and the EU's Council of Ministers have argued they had a duty to implement UN Security Council resolutions. - (Reuters)