DIFC to sue ex-managing director, news report alleges

8 July 2010

The former managing director (MD) of the Dubai International Financial Centre (DIFC) is being sued by the institution over the payment of unauthorised bonuses, a newspaper report has claimed.

According to the Financial Times, which cited court documents as a source, the lawsuit against Bisher Barazi stated that he worked with DIFC governor Omar bin Sulaiman to authorise “unlawful” bonuses of $1.2 million and $3.3 million for the pair.

The institution alleged that they received the bonuses from the investment arm of the DIFC after providing misleading financial statements showing that the unit generated income of Dh60 million ($16.3 million).

However, the DIFC actually recorded a net loss of Dh80 million during the financial year 2007.

Mr Barazi told the news provider he would not comment on the matter “due to the ongoing legal proceedings”.

The allegations against the former-MD are part of a counterclaim brought against him after he claimed that the DIFC had neglected to pay him salary and benefits despite repeated requests.

Mr bin Sulaiman was released from jail earlier in the year after he repaid Dh51.5m in May.

He was arrested by the authorities in March as part of an investigation into financial irregularities among real estate and finance companies in the Middle East.

By Jim Ottewill

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