Prosecution eyewitness statement strengthens case of the defendants

DUBAI — The Dubai Court of Appeal yesterday listened for more than two hours to Sultan Abdullah Al Ali, the member of the investigation committee of Dubai Financial Markets. Sultan Abdullah is also the third eyewitness of the prosecution in the case of dealing in bogus shares of the Dubai Islamic Bank. The statements of this eyewitness were not different from the two former eyewitnesses Issa Kathem and Sultan Al Shayaa.

By Mohsen Rashid

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Published: Tue 14 Mar 2006, 10:23 AM

Last updated: Sat 4 Apr 2015, 7:29 PM

The lawyers of the defendants expressed their satisfaction and optimism because the statements of the third prosecution eyewitness helped boost the case of the defendants. The third eyewitness replied to the questions of the defence lawyer and defined the bogus deals as they happened through the selling and buying of shares several times between two confined parties and according to limited prices. The eyewitness confirmed that the documents and papers of the case proved that the defendants were never involved in bogus deals.

The defence lawyers said that the eyewitness had mentioned that the shares of the Dubai Islamic Bank were very active, but the level of rise in share value did not exceed the maximum level, which helped the situation of his clients (defendants). The lawyers also said that most of the answers of the eyewitnesses were very negative. They added that the statements focused on the defendants making bogus deals in cooperation with the brokers’ office and its representatives, aimed at creating a positive atmosphere to convince traders that the bank shares were shooting up.

The lawyers denied any such accusations and emphasised that the deals — which occurred on August 27 and 28 last year — were very serious and normal and complied with the system of the Dubai Financial Market. They based their defence on the fact that the Dubai Financial Market accepts deals without any ceiling and there is no objection to the investor owning and obtaining millions of shares. Referring to the August deals, the lawyers said they were huge deals as compared to previous ones.

The main defence lawyer also added that the management of the Dubai Financial Market approved of the deals, which ran on August 27. It meant that if there were any violations, the market monitor was supposed to intervene and stop the dealings. Besides, the operations that happened on August 28 were under the supervision and with the approval of the market monitor. The lawyer added that the monitor gave his approval to increasing the credit ceiling for the mediator in a step aimed at meeting the growing requests for the shares of the Dubai Islamic Bank.

The defendant said that the credit ceiling of the mediator was about Dh70m, and he had submitted a bank guarantee to the market. He added that on August 28, he submitted a request to increase the bank guarantee to Dh250m, and another request to decrease it to Dh200m, which proved that the bank guarantee of the mediator relied on the activity of the market which was fluctuating up and down.

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