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Dubai bank sets aside cash amid fraud probe

Dubai bank sets aside cash amid fraud probe

Dubai Islamic Bank said Tuesday it has foreclosed on a real estate project and set aside cash to help cover losses after court papers indicated the bank was the victim of a half-billion dollar fraud.
Documents filed with the Dubai public prosecutor's office and reviewed by The Associated Press name seven businessmen allegedly involved with the crime, which is said to have cost the bank $501 million.
The suspects include three Britons, two Pakistanis, one Turk and one American.
The amount of the alleged fraud is far larger than in two other cases that have been referred to court since the booming Gulf city-state launched an anti-corruption investigation last year.
The prosecution's notification lays out a variety of charges against the suspects, which include fraud, forging documents and bribery.
Officials at Dubai Public Prosecution could not be reached for comment.
In a statement, Dubai Islamic Bank said it had exposure of about $330 million to a company named CCH linked to some of the suspects in the court papers.
Besides the $135 million in impairment provisions it has set aside to help make up for its losses, the bank said it has foreclosed on a 20 million square-foot development known as The Plantation on the outskirts of Dubai.
It said it is continuing to pursue other assets abroad "through the appropriate legal channels," and expects to be able to cover its losses even with the economic slump.
"We are pleased to close this chapter and focus our complete attention on meeting the needs of our clients, shareholders and other stakeholders," Chief Executive Abdulla al-Hamli said.
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AP Business Writer Tarek el-Tablawy in Cairo contributed reporting.


Updated : 2021-03-03 08:12 GMT+08:00