DIB defendants denied bail

DUBAI — New charges added to the modified arraignment sheet of the Dubai Islamic Bank $500 million case were read on the defendants present in court on Sunday. Only five out of seven were present, and they all pleaded not guilty.

By Mary Nammour

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Published: Tue 26 Oct 2010, 12:24 AM

Last updated: Mon 6 Apr 2015, 4:34 PM

The Presiding Judge Fahmi Mounir Fahm of the Court of First Instance denied them bail and adjourned the hearing to November 28 to listen to the testimony of an auditor in the Financial Control Department of the Ruler’s Court.

New charges were in particular framed against two defendants who were former DIB managers.

They are accused of facilitating the $500 million fraud by taking advantage of their posts. They are now also accused of damaging public funds (as the government owns 30 per cent of DIB) being assigned with a public service. In return, they allegedly collected $950,000 and $750,000 worth of bribe.

In the session, defense lawyer Dr Habib Al Mulla, who represents one of the accused — a Pakistani and former executive of the bank — requested that the case file be returned to the Public Prosecution for more investigation.

Earlier, Al Mulla presented the court with a plea in which he announced that he is going ahead with a civil lawsuit against former high-level executives of the bank including the Chairman of the Board, the director of the Commercial Operation finance team, the head of the Credit Department and the head of the Risk Management from 2001 to 2008.

In his civil case, the lawyer claimed to hold these ex-senior executives accountable for the damage, worth more than Dh1.8 billion, which the bank incurred. A former deputy manager in the finance department and a former executive manager of the bank, both Pakistanis, were accused of collecting bribes to the tune of thousands of dirhams for facilitating bogus transactions and abetting in cheating the bank.

According to court records, three other defendants — a Turkish owner of CCH (a private finance brokerage firm) and who is at large, and two British businessmen managed to defraud the DIB of more than $500 million (Dh1.8 billion). An American businessman, also sought by the authorities, is charged with allegedly swindling the bank of more than Dh7 million.

Another British businessman has been charged with criminal complicity as he allegedly conspired with the first three defendants to cheat the bank.


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