Court hears of Dh1.8 billion fraud against Dubai Islamic Bank

New documents reveal the involvement of at least two of the accused in a case related to alleged swindling of Dh1.8 billion at Dubai Islamic Bank (DIB), the Dubai Criminal Court heard.

The seven accused in the case include AE (a Turkish citizen), CM, RL and AF (British citizens), RO and OM (Pakistanis) and ZO (an American). They are charged with embezzlement of other people's funds, criminal complicity, forging an official document and using it.

The court heard new testimony from Mohammed Mustafa Hussein, an expert in financial audit at the Dubai Ruler's Office.

He said new documents prove that RO and OM and the rest of the accused are guilty.

The Public Prosecution asked him to prepare a report based on the new evidence that reveals how RO and OM defrauded DIB by presenting bogus purchase bills via CCH, a financial brokerage firm owned by AE, and a bank agent that offers credit facilities.

Hussein said he discovered that CCH gave credit facilities to companies belonging to the other defendants after those firms presented the bogus bills.

DIB transferred the funds to CCH, which, in turn, sent them to CM, RL and AF.

The Dh65 million amount went to a project called "Plantation", which was 70 per cent owned by AF and 30 per cent by CM and RL, at Dubailand.

In exchange, RO, a former deputy finance manager in charge of projects, was given a plot of land at less than the market price and a Dh15m villa by AF.

This was done as a contract between RO, the buyer, and AF, the seller.

Hussein said Plantation paid 15 per cent of the villa's value, or Dh735,000, adding that new documents he found included a Plantation contract saying that financial commitments to RO were paid by CCH.

In previous sessions, the court heard the testimony of DIB's former deputy executive of business services, Abdullah Obaid Baqi, who said bank officials failed to take proper measures regarding the fraud that took place in July 2007.

The court has adjourned the case until December 10.

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