GP Global has filed criminal complaints against some of its employees in Sharjah and Fujairah who are alleged to have worked with ‘external entities’ to commit fraud against the company and its customers.
According to Reuters, a letter has been sent to the company’s clients by its legal representative, Salam Advocates & Legal Consultant which provides some details of the alleged fraud which was uncovered after an internal company investigation.
As reported by Reuters, in the letter, Arun Abraham, partner at the UAE-based law firm explained that: ‘Few employees have colluded with external entities using the Covid-19 (lockdown) and work from home arrangement to defraud the company and its customers.’
The letter notes 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).’
A further detailed investigation into the circumstances of the alleged fraud is said to be underway.
The disclosure of the alleged fraud by some of its UAE-based employees follows on from GP Global’s statement on 20 July in which it said it had embarked on a financial restructuring exercise. It noted that it had been ‘unable to get full support from a few financial institutions recently’ and it strongly refuted rumours about its financial position.
‘We are being targeted by vested interests who do not wish to see us succeed and grow higher and higher,’ said the company.
Describing itself as being the target of a misinformation campaign, GP Global said that it ‘strongly and vehemently denies all such rumours and is being made a victim of blatant lies, by spreading of totally false and factually inaccurate information by these vested interests.’
‘The company also took to Twitter on 20 July to deny media reports that its Hamriyah and Fujairah terminals had been shuttered by creditors. The terminals are 'not sealed', it said.
Bunkerspot has approached GP Global for comment.