Dubai Islamic says financials unaffected by corruption probe

NO IMPACT: Dubai Islamic said its financial position would not be affected by the police investigation. (Getty Images)

Dubai Islamic Bank (DIB), the Gulf's third-largest bank that complies with Islamic law, said on Wednesday a police investigation into a former employee would not impact the bank's financial position.

The statement came after media reports its former vice-president for structured finance Rifat Usmani and six others were under investigation for corruption charges.

"Dubai Islamic Bank advises that there is an investigation by the Public Prosecution in Dubai of a former employee of DIB, Rifat Usmani and others," the lender said in a statement on the bourse website.

The case follows a recent probe into alleged financial irregularities at Dubai Islamic Bank's affiliate, Deyaar.

"We are yet to determine what the charges are against him," Usmani's lawyer, Michael Diaz told newswire Reuters from Florida on Tuesday. "We have been denied access to our client."

Dubai Islamic assured its shareholders that the investigation would have "no impact on the financial position of the bank".

It gave no further details about the investigation, adding that it reserved the right to refrain from further comments so as not to affect the investigation.

Shares of Dubai Islamic closed higher for the first time in four days on Tuesday, rising 0.33 percent. The stock has fallen more than 3 percent since June 8.

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READERS' COMMENTS

** financials unaffected by corruption probe
Posted by karpakarajan, abu dhabi, united arab emirates on Saturday 14 June 2008 at 09:06 UAE time

A depression of 3% after a chain of "details yet to be disclosed" probe is not a significant issue.

Either investors are senseless to the issue; or the issue is too trivial against the other strengths of the Bank.

Only time will answer.

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