Trial opens in major employment fraud case

TDT | Manama

Email: mail@newsofbahrain.com

The First High Criminal Court has begun hearings in the trial of five defendants — two men and three women — accused of orchestrating a large-scale employment fraud through two bogus companies.

According to prosecutors, the scheme enabled 55 fake employees to be registered between 2022 and 2024, allowing the group to unlawfully collect BD3.2 million in social insurance benefits.

During the latest session, the defendants denied all charges.

Contracts

The third and fourth defendants argued they were unaware the employment contracts were forged, while the second defendant claimed he is illiterate and unable to use a computer.

Several defense lawyers appeared in court. Attorney Hamad Boushlaibi submitted a memorandum seeking his client’s acquittal, while lawyer Fatima Al-Mutawa, representing attorney Sharifa, requested additional time to review documents and prepare her defense.

The court adjourned the case until September 28.

The case was uncovered after the General Authority for Social Insurance flagged irregularities during routine inspections.

Investigators found that the companies had submitted falsified contracts to register employees, enabling them to claim unemployment benefits and lump-sum payouts.

Officials discovered that the firms had no physical presence at their listed commercial addresses.

Further scrutiny revealed repeated signatures on multiple contracts and uniform salary structures — BD350 for secondary school graduates and BD600 for university degree holders — regardless of role or experience.

A captain from the Anti-Corruption Crimes Directorate testified that the companies were fictitious entities created solely to defraud the social insurance system.

According to his testimony, the first and second defendants recruited individuals as “ghost employees,” arranging for them to receive BD350 in monthly wages. Workers were instructed to keep BD50 and return the remainder to the prime defendant or his associates.

Through this scheme, the defendants allegedly secured unjustified social insurance benefits, including unemployment allowances and fabricated service credits.