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Jailed company owner to pay over Dh215m
An owner of a local company, who breached the contract signed between his firm and another institution has been sentenced to three years in jail by the Abu Dhabi Criminal Court.
The man has also been ordered to pay Dh107.7 million to the company and has been slapped with a fine of Dh107.7 million to the court.
Last year, the court had convicted the defendant, in absentia, of fraud, and issued the same verdict. However, the convict gave himself in and contested the ruling, after which he was prosecuted.
According to records, the Public Prosecution in Abu Dhabi accused the defendant of deliberate fraud, and not committing to the specifications agreed for the supply of 1,200,000 access cards to an entity in the country.
The complainant struck a deal with the company of the defendant to supply three million access cards, provided that the supply will be made in five years at a cost of Dh147 million.
Several security specifications were given for the cards so only employees could access the company building. The defendant nominated a specialised European company to design and produce the cards.
The defendant had supplied 802,000 cards compliant with the agreed specifications in the contract, but he then began to supply cards which were not in conformity with the specifications.
It then came to light that the cards were produced by a Middle East factory. The complainant refused to receive the new consignment due to the poor security specifications, after earlier handing the defendant Dh1,010,000 of the total value of the contract.
The defendant confessed to changing the European factory to a Middle East one, without referring the matter to the complainant, arguing that the European factory had demanded him to pay the value of the contract in full, and in advance. He said this led to the deterioration of the relation between the two, which prompted him to strike a deal with the second factory in the Middle East.
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