UAE oil trader GP Global uncovers fraud among employees
United Arab Emirates-based oil trader GP Global has
uncovered fraud within the company and filed criminal complaints against some
of its employees, its legal representative said in a letter to the company’s
clients on its behalf.
“Few employees have colluded with external entities using
the Covid-19 (lockdown) and work from home arrangement to defraud the company
and its customers,” Arun Abraham, legal consultant and partner at UAE-based
Salam Advocates & Legal Consultants said in the letter reviewed by Reuters.
Salam Advocates were advising GP Global on “the internal
investigation that was underway,” Abraham told Reuters, confirming that the
letter had been sent out to some of GP Global’s clients last week.
Based on preliminary investigations, “criminal complaints
have been filed against few employees in Sharjah and Fujairah,” Abraham said in
the letter.
The internal investigations revealed that “the fraudsters
manipulated records that switched the cargo under the custodianship of GP with
those goods financed by various banks and under CMA (collateral management
agreement),” according to the letter.
A detailed investigation is continuing on the methods of the
fraud, “the individuals and entities involved, and the impact of the fraud” on
GP’s business, the letter said.
GP Global, a supplier of marine fuels worldwide with offices
in Europe, Asia and America, did not immediately respond to a request for
comment.
On July 20, GP Global said that it had undertaken a
“financial restructuring exercise” after it failed to “get full support from a
few financial institutions recently”.
GP Global had also said recent market rumours questioning
the company’s financial condition were “blatant lies” being spread by “vested
interests” and assured stakeholders its business was operating normally.
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