Taqa's former CEO sues firm for $460m

Abu Dhabi National Energy Company's (Taqa) former chief executive has filed a lawsuit against the company, alleging that it forced him to sign a severance agreement "under sever duress" last year and he was threatened with arrest and imprisonment if he did not comply.

Peter Barker-Homek, the former Taqa CEO, alleged this in a suit filed by his attorney in the US District Court.

Barker-Homek accused that he was forced out last year after he "tried to put a stop to the kickbacks, bribery, accounting fraud and corruption."

In the lawsuit, the former CEO alleges that he tried to put a stop to several inappropriate practices at the company.

He alleges that Taqa was inappropriately carrying the assets and liabilities of an affiliated company on its balance sheet.

Barker-Homek also alleges in his suit that board members inappropriately asked him to steer business to outside companies, in one case because of an alleged kickback scheme involving leased cars. Barker-Homek's suit doesn't include specific details of the various alleged schemes.

Barker-Homek "declined to enter into a deal with an Indian computer company that would give kickbacks to Taqa executives," he said in his complaint. The Indian company "later admitted to a massive fraud scheme," he said in the suit.

The former Taqa CEO is claiming damages for "humiliation, anxiety, severe emotional distress, worry, fear, and injury to his reputation, in excess of $50 million, plus exemplary damages of $50 million, or according to proof at trial," the filing states. Barker-Homek seeks at least $460 million in compensatory and exemplary damages.

Taqa is listed on the Abu Dhabi Securities Exchange with 75 per cent controlled by the Abu Dhabi government. Its shares have fallen about 27 per cent since mid-October.  It has assets over $24.5 billion and had revenue of $4.4 billion in 2008.

In a reply to the accusation, Taqa said it "takes any challenge to its reputation extremely seriously and will defend itself vigorously and the individuals named against the spurious allegations made in the filing," it said, adding that it will "respond to the filing in due course through the appropriate legal channels."

Taqa said on October 16 that Barker-Homek had stepped down and had been succeeded temporarily by the company's former deputy general manager and general counsel, Carl Sheldon. At the time Barker-Homek said he had "decided to pursue other career ambitions."