Firms in Qatar worried by scammers

The latest “scam”, in which the operators of a trading firm allegedly defrauded some suppliers to the tune of millions, has shaken the confidence of several business houses, it is learnt.

Reacting to a Gulf Times report on Saturday about how the firm allegedly cheated suppliers linked to the construction and related industries, some of those who had burned their fingers in similar cases said that the absence of effective business rules allowed fraudulent operators to carry out their activities without any difficulty.

Recalling his company’s “bitter experience”, a well-known entrepreneur who declined to be identified said that if effective rules were put in place to check the activities of fraudsters, business activities could be transacted smoothly in the local market.

Another businessman who requested anonymity said that the latest “scam” was not an isolated case and warned that such things were bound to happen again in the coming days in view of the growing requirements of the local construction industry.

He claimed that no action had been initiated against those responsible for similar frauds over the last few years, which emboldened tricksters to indulge in such acts time and again.

Sources in the industry felt the “lack of experience and professionalism” in businesses also contributed to the rise in cheating cases.

“How could one advance goods on long-term credit to groups that have no track record in the local or regional businesses?” asked a builder, who had escaped being a victim to a similar fraud some time ago.

When a company approached the businessman with a supply order, he immediately demanded post-dated cheques with a three-day grace period as they had placed no orders earlier.

“Realising that their strategy will not work with our company, their representatives did not place any orders with us,” said the builder, who is also a supplier of sanitary equipment.

The firm had allegedly duped many business houses to the tune of a few million riyals about three years ago.

The activities of many business houses and contracting firms have been hit hard by “delays” in receiving payments for the work done and many of them are forced to place orders on long-term credit.

These situations facilitate the entry and smooth operations of tricksters in the market, say sources.

In the latest incident, the New Wakrah-based firm is accused of duping not only stakeholders in the construction industry but also several others, including those supplying foodstuff.

One of the “victims” said that the scam operators appeared to be “too smart” in their dealings and always moved in expensive vehicles.

Enquiries found that the alleged mastermind often indulged in namedropping top businessmen, citing his “good personal contacts” with them, which convinced suppliers to provide goods to the company.

While the “victims” have no major hopes of recovering their money, some have approached the local police to track down the operators.

Gulf Times | Photo by MR ST QL Flickr Group