GP Global Uncovers Employee Fraud in UAE

by Jack Jordan, Managing Editor, Ship & Bunker
Thursday July 30, 2020

Trading company GP Global has uncovered fraud by some of its employees in the UAE, according to a letter from its legal representatives.

The letter, from UAE-based Salam Advocates & Legal Consultants to GP Global's clients on behalf of the company, said criminal complaints have been filed against some employees in Sharjah and Fujairah, according to a copy of the document seen by Ship & Bunker.

A spokesman for GP Global was not available for comment when contacted by Ship & Bunker Thursday.

"[A] few employees have colluded with external entities using the Covid-19 locked down situation and work from home arrangements to defraud the company and its customers," the law firm said in the letter.

"The preliminary assessment of the situation is that the fraudsters manipulated records that switched the cargo under the custodianship of GP with those goods financed by various banks and under [collateral management agreement]."

Further investigations are still ongoing.

Last week GP Global issued a statement announcing a "financial restructuring exercise to combat the challenges that have arisen due to a global economic meltdown amid the ongoing C-19 pandemic."

"While there are several rumours about the financial condition of our group floating around, we would like to reiterate to and assure our partner and stakeholders, that as a highly reputed organisation we are being targeted by vested interests who do not wish to see us succeed and grow higher and higher," the company said in the statement.

"The group 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."

It is unclear whether the rumours the company was referring to last week relate to the fraud announced in this week's letter.