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Sheikh issues writ over BCCI fraud

John Willcock
Monday 10 January 1994 19:02 EST
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SHEIKH Khalid Bin Mahfouz, former chief operating officer of National Commercial Bank of Saudi Arabia, issued a dollars 10.5bn ( pounds 7.2bn) writ yesterday against the Abu Dhabi Investment Authority (ADIA) and Ghanim Mazrui, a government official in the emirate, over their role in the BCCI saga, writes John Willcock.

The writ alleges that 'Mazrui and ADIA were knowingly parties to the carrying on of the business of BCCI SA with intent to defraud creditors' and that 'Mazrui was guilty of misfeasance and breach of fiduciary or other duty'.

Sheikh Mahfouz is retaliating against a dollars 10.5bn legal action brought against him by the liquidators of BCCI, Touche Ross. The sheikh also wants a say in the compensation deal for BCCI creditors being negotiated between the liquidators and Abu Dhabi, which owns 77 per cent of BCCI.

A spokesman for the sheikh said: 'Mr Mahfouz is . . . suing neither the royal family nor any sovereign government but simply a powerful group of businessmen.'

The trial begins today of Mohammed Baqi, former managing director of Attock Oil. It is alleged that Baqi signed false audit confirmations to non-existent loan accounts and bogus charges levied on accounts in BCCI books.

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