DIFC sues former investment MD

DIFC sues former investment MD

Seeks return of $1.2 million in ‘unlawful’ bonuses, says report.

July 7, 2010 9:39 by Samuel Potter

The investment arm of the Dubai International Financial Centre is suing its former managing director for the return of $1.2 million, reports the Financial Times.

The money sought was paid in “unlawful” bonuses, according to court papers. The newspaper says the allegations provide a rare insight into “an official anti-corruption campaign and include details of the claims against Omar bin Sulaiman.” Former governor of the DIFC, Sulaiman, was detained in March on embezzlement charges but was released in May after repaying AED 50 million. He remains under investigation.

According to the report, DIFC Investments made the allegations in a defense and counter-claim to a breach of employment claim brought against it by Bisher Barazi, the former MD of the firm. The Financial Times says he resigned in December after repeated requests for payment from DIFC went unheeded.

The paper goes on to say that, in the court documents, the DIFCI claims Barazi conspired with Sulaiman in early 2008 to unlawfully authorize “investment bonuses” of $1.2 million and $3.3 million respectively. The DIFCI says Barazi misrepresented that the company had made an income of AED 60 million in 2007, when in fact it had lost AED 80 million.

Barazi declined to give the paper comment “due to ongoing legal proceedings.”