Dubai-based developer Habtoor Leighton Group (HLG) has launched legal action against a powerful member of the Qatari royal family after his company suddenly cashed in $100m worth of performance bonds claiming unfinished work on a construction project in Doha. HLG argues the unexpected cashing in of the bonds, which are held by a bank as security against contracted work, was “illegal and unethical”.
The developer claims it is owed more than AED1bn ($272.25m) by Sheikh Faisal bin Qassim Al Thani’s company Al Faisal Holding for completed work. “He’s electing [instead] to cash the bonds; it’s something I consider illegal and unethical,” co-owner Khalaf Al Habtoor, who is chairman of Al Habtoor Group, told Arabian Business.
Its $325m contract involves constructing five hotels – branded Renaissance, Marriott, Shangri-La, Rotana and Merweb – connected to the massive Doha City Centre Mall. Al Habtoor said there was no reason for Al Faisal Holding to claim the bonds. “I’m 100 percent sure that HLG has been legitimate. No respect has been shown to the management of HLG and to the work they have done for Sheikh Faisal, unfortunately,” he said.
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