UPDATE 1-Bahrain's Alba chases losses from alleged fraud

GENEVA Oct 25 (Reuters) - Aluminium Bahrain (Alba) said on Tuesday it was taking legal action to recover losses stemming from alleged fraudulent contracts involving businessman Victor Dahdaleh.

Britain's Serious Fraud Office (SFO) arrested Dahdaleh on Monday in the UK and charged him with corruption offences relating to contracts for the supply of aluminum to Alba.

The contracts were for supplies of intermediate product alumina, shipped to Bahrain from Australia, and for the supply of further goods and services to Alba, according to the SFO.

"Today marks a critical turning point in the investigation that began nearly five years ago. The conduct of Victor Dahdaleh, Alcoa and others resulted in substantial losses to Alba and its shareholders," Mahmood Al-Kooheji, Alba's chairman said in the statement.

"Our aim, from the start, has been to recover the very large amounts of money that were unlawfully taken from Alba and from Bahrain by these corrupt activities. We intend to accomplish this goal," he added.

Alba gave no estimate of the company's losses but said to date it has recovered more than US$30 million from European companies.

Alcoa declined to comment on Alba's statement, given ongoing investigation and litigation.

Alba said it has filed a civil suit seeking damages against Dahdaleh, Alcoa , and a group of other related individual and corporate defendants in the U.S. District Court in Pittsburgh, Pennsylvania.

The company also revealed it filed a suit in December 2009 against the Japanese trading company Sojitz Corp in the U.S. District Court in Houston, Texas, in connection with bribery allegations linked to the sale price for finished aluminium sold by Alba.