Gang seizes Dhs6 million via an error in licence renewal system - GulfToday

Gang seizes Dhs6 million via an error in licence renewal system


Photo has been used for illustrative purposes.

Mohammed Yaseen, Staff Reporter

Four Asian employees stood before the Criminal Court of Dubai over the charge of seizing Dhs6 million from the Department of Economic Development by making use of a loophole in the system of licence renewal.

The case dates back to June last year, when the Assistant Executive Director at the DED-Dubai filed a complaint after discovering a manipulation in the renewal of a number commercial licences issued by the DED and as result Dhs6 million was found missing from the system. It was the cost of renewal of those licences, he added.

The internal audit department discovered that people had logged into the system and renewed the commercial licences for a number of establishments through service offices by paying 10 per cent of the renewal value, followed by printing out the licence and delivering it to the owner of the establishment, and then cancelling the transaction after printing.

A police officer stated that the investigations showed the defendants exploited an error in the electronic system of the DED and carried out transactions in their favour. They paid only 10 per cent of the renewal value of commercial licences and kept the rest of the amount after cancelling the commercial licence for their own benefit, the officer added.

Recently, the Dubai Criminal Court sentenced a Gulf citizen to one year in jail to be followed by deportation. The Gulf citizen was convicted of stealing Dhs1 million from an Asian by coercion in a fake bag deal.

The court also referred another individual to the Court of Misdemeanour on charges of illegally appropriating money from others.

The case dated back to last June when the victim signed a Dhs1 million bag deal with the defendant, provided that the money would be paid in cash in the defendant’s office based on a date to be agreed on by both parties.

The victim testified that he agreed with the defendant on a deal to buy bags, provided that $511,000 would be transferred to the defendant’s account and Dhs1 million paid in cash. On the agreed date, the victim and his partner came to the defendant’s office but the defendant called them to change the place of the deal. The victim and his partner then moved to the new place, where two African were waiting for them, one of whom was in private security uniform, to guide them to the new place.

When the defendant enquired about the money, the victim told him it was in a handbag. The defendant snatched the handbag and ran away.

Related articles