Dubai court orders ex-audit director to repay Dh8.6m after misuse of 607 SIM cards

Dubai: A Dubai civil court has ordered a former internal audit director at a government-owned company to repay more than Dh8.6 million after holding him legally liable for embezzlement of public funds, deliberate financial harm to his employer and laundering illicit proceeds through overseas financial channels.

The Dubai Court of First Instance ruled that the defendant must pay Dh8,647,061.34, together with 5 per cent legal interest calculated from the date the judgment becomes final until full settlement, in addition to court fees, expenses and legal costs.

According to court records, the defendant served as Director of the Internal Audit Department from 2006 until his termination in December 2024. His role authorised him to request mobile SIM cards from the finance department for use in testing the company’s electronic systems.

Investigations showed that approximately 607 prepaid SIM cards were issued under his authority, each loaded with balances reaching up to Dh950, allowing them to be used for online purchases through digital platforms including Google Play and Apple Store. The cards could also be recharged without requiring direct supervisory approval — a control weakness the court found was later exploited.

The violations came to light in September 2024 after the company’s revenue audit and security incident response teams detected recurring, high-value digital transactions linked to accounts managed by the internal audit department. An internal investigation subsequently revealed that more than 600 SIM cards had been systematically used to carry out thousands of electronic purchase transactions over several years.

Technical and financial investigations conducted by Dubai Police confirmed that nearly 25,000 online transactions, valued at more than Dh8.6 million, were executed through two mobile applications operated and controlled by the defendant.

One application was linked to a private company registered overseas and owned by him. Authorities found that proceeds generated from the transactions were initially deposited into company accounts before being transferred to the defendant’s personal bank account in the UAE and later remitted abroad to accounts held in his name, as well as accounts belonging to his spouse and other associates.

During questioning before Public Prosecution, the defendant admitted exploiting transaction limits of approximately Dh300 per purchase, enabling him to conduct a large volume of transactions while avoiding immediate detection. Expert technical reports confirmed that prepaid balances from company-issued SIM cards were used to execute 24,988 transactions between 2016 and October 2024, identifying him as the ultimate beneficiary of the funds.

Following his criminal conviction before the Dubai Criminal Court, the civil court independently assessed police investigations, financial documentation and expert evidence, concluding that the defendant’s conduct directly caused financial losses and deprived the company of the lawful use and investment of its funds.

The court therefore ordered refund of the misappropriated amount, payment of compensation and statutory interest, and coverage of litigation expenses, bringing the total financial liability to more than Dh8.6 million.