The prepaid SIM cards were used for digital purchases on Google Play and the Apple Store.
Dubai: A Dubai civil court has ordered a former internal audit director at a government-owned company to repay over Dh8.6 million after finding him legally responsible for embezzling public funds, causing deliberate financial harm to his employer, and laundering illicit proceeds through overseas channels.
The Dubai Court of First Instance ruled that the defendant must pay Dh8,647,061.34, along with 5 per cent legal interest from the date the judgment becomes final until full repayment, in addition to court fees, expenses, and legal costs.
Abuse of Position and Corporate Authority
Court records show that the defendant served as Director of the Internal Audit Department from 2006 until his termination in December 2024. In this role, he was authorised to request mobile SIM cards from the finance department for use in testing the company’s electronic systems.
Investigations revealed that around 607 prepaid SIM cards had been issued under his authority, each loaded with balances of up to Dh950, enabling their use for online purchases on platforms such as Google Play and the Apple Store. The cards could also be recharged without direct supervisory approval—a control weakness the court found had been exploited.
The misuse came to light in September 2024, when the company’s revenue audit and security incident response teams detected repeated high-value digital transactions linked to accounts managed by the internal audit department. A subsequent internal investigation uncovered that more than 600 SIM cards had been systematically used to carry out thousands of electronic purchase transactions over several years.
Police Investigations Uncover Structured Financial Scheme
Technical and financial investigations by Dubai Police confirmed that nearly 25,000 online transactions, worth over Dh8.6 million, were carried out through two mobile applications operated and controlled by the defendant.
One of the applications was linked to a private company he owned and registered overseas. Authorities found that proceeds from these transactions were first deposited into the company’s accounts before being transferred to the defendant’s personal bank account in the UAE, and later sent abroad to accounts held in his name, as well as to accounts belonging to his spouse and other associates.
During questioning before the Public Prosecution, the defendant admitted to exploiting transaction limits of about Dh300 per purchase, allowing him to conduct a large number of transactions while avoiding immediate detection. Expert technical reports confirmed that prepaid balances from company-issued SIM cards were used to execute 24,988 transactions between 2016 and October 2024, identifying him as the ultimate beneficiary of the funds.
Court Ruling and Financial Liability
Following his criminal conviction in the Dubai Criminal Court, the civil court independently reviewed police investigations, financial records, and expert evidence. It concluded that the defendant’s actions directly caused financial losses and deprived the company of the lawful use and investment of its funds.
The court consequently ordered the defendant to refund the misappropriated amount, pay compensation and statutory interest, and cover litigation expenses, bringing his total financial liability to over Dh8.6 million.
