‘Central Bank Alerted’

Lawyers seek forensic audit in BD6 million fraud case in ongoing trial

TDT | Manama

Email : editor@newsofbahrain.com

A defence lawyer in the trial of four executives accused of embezzling more than BD6 million in investors’ funds told the court that his client had informed the Central Bank of Bahrain about irregular financial transactions before the alleged fraud was uncovered.

Lawyer Abdul rahman Ghanim, representing the third defendant, said his client had sent an email to the Central Bank’s Credit Director reporting illegal activities by the company’s owner and requesting an investigation. The defence asked the court to summon the bank official who received the message to testify.

Courtroom Requests

The revelation came during the second hearing of the case against the investment company’s owner, its CEO and two board members, all facing charges of fraud, forgery, embezzlement, and money-laundering. Lawyers for the defendants requested the appointment of a forensic accounting expert to review financial records and sought the summoning of several witnesses, including the investigating officer.

Eman Al-Assar, counsel for the second defendant, said her client’s testimony had been taken via video call and requested a copy of the recording. She also asked that an accounting firm be appointed to prepare an independent report.

Prosecution Response

The Public Prosecution replied that the expert report already attached to the case file was prepared by a neutral accounting firm appointed by the Central Bank of Bahrain and that it remained valid evidence. It added that, even if the alleged email existed, it would have no bearing on the case since the third defendant had already confessed during interrogation to approving two fraudulent transactions.

According to investigation reports, the company’s owner engaged in suspicious financial activities, including issuing fake cheques, withdrawing and depositing funds without justification, and misusing investor money through fictitious deals. The prosecution said the remaining defendants enabled the transactions by approving them without disclosing their true nature.

The court has adjourned the case to review the defence requests for additional expert testimony and witness summonses.