Court orders fresh probe into Dh1.8b fraud charge

Dubai: A Dubai court has ordered prosecutors to reinvestigate alleged fraud, which led to a Dh1.8 billion loss to Dubai Islamic Bank (DIB).

After nearly two years of litigation, the Dubai Court of First Instance's Presiding Judge Hamad Abdul Latif Abdul Jawad yesterday referred DIB's case file back to the Public Prosecution for a reinvestigation of the charges of deliberately causing a loss of $501 million (around Dh1.8 billion) worth of public funds belonging to DIB and concealing fraudulent operations.

"The court decided to refer the case to the Dubai Public Prosecution [DPP] to hold fresh investigations in the crimes of causing loss in public funds and obscuring the embezzlement of DIB's money and using it unlawfully," decided Presiding Judge Abdul Jawad.

The court reached Monday's decision on the request of advocate Dr Habib Al Mulla, who is defending one of seven suspects [five businessmen and two ex-DIB officials charged with defrauding the bank of Dh1.8 billion between 2004 and 2007].

Arraignment sheet

The court based its decision on article 17 of the Criminal Procedures Law which stipulates that a court has the right to refer a case back to prosecutors for a reinvestigation under circumstances such as when there are suspects who were not litigated and/or charged in the arraignment sheet and/or when there are crimes/misdemeanours [related to the case] which were uninvestigated.

Presiding Judge Abdul Jawad considered that DPP did not investigate the crimes of deliberately causing loss in public funds and covering up the embezzlement of public funds and spending it unlawfully.

Moreover, DIB's claimant in civil right advocate Essam Al Tamimi asked the court to dismiss Dr Al Mulla's request.

The judge rejected the suspects' requests for bail.

During yesterday's trial, Dr Al Mulla [represented by lawyer Eman Al Asadi] lodged an official plea in which he asked the judges' panel to open a criminal case against DIB's ex-chairman [2001-2008], and three of the bank's managers for collaboratively concealing fraudulent operations which led to the alleged loss.

Dr Al Mulla claimed that between 2001 and 2008, the bank's former chairman, the head of the financing commercial operations' team, the operations' manager and risk management's chairman conspired to cover up fraudulent operations, which the suspects have been charged with committing.

DPP's representative Senior Prosecutor Shoaib Ahli asked the court to issue its ruling in the next hearing when it reconvenes. Instead, Presiding Judge Abdul Jawad referred the case back to prosecutors.

Dr Al Mulla argued earlier: "I request the court's permission to take legal action against DIB's former chairman and the three managers because they caused damage to my client [DIB's ex-financing manager, U.H., a Pakistani].

Groundless report

"They [allegedly] conspired and remained silent to what prosecutors described in the charge sheet as ‘fraudulent operations and defrauding DIB of Dh1.8 billion'. Their [alleged] cover up led to charging U.H. with crimes he didn't commit."

Dr Al Mulla accused the Financial Control Department's Egyptian auditing director, M.M., of being negligent and issuing a "baseless, unfounded and void report".He argued: "M.M. personally benefited by issuing such a ‘groundless and untrustworthy report' because the alleged fraud happened during a period in which he was responsible for auditing DIB's finances. In his incompetent report, he deliberately covered up for the real parties, responsible for the loss [borne by the aforementioned managers].

Prosecutors had earlier charged three businessmen, a Turk fugitive, A.I., C.M. and R.L. — both British — with defrauding DIB using fabricated documents of bogus transactions which they submitted to the bank to finance their projects."