Fourth arrest confirmed in Deyaar probe

INVESTIGATION CONTINUES: A fourth person has been arrested in the probe into financial irregularities. (ITP Images)

Four people have now been detained over alleged financial irregularities at Dubai developer Deyaar, although formal charges have yet to brought in the case, a Public Prosecution source confirmed on Tuesday.

The source told ArabianBusiness.com a fourth person was arrested on Tuesday in connection with the investigation, but could not confirm earlier media reports the person is also a company employee.

The Public Prosecution has also extended former Deyaar CEO Zack Shanin's detention period by one month, the source said.

More arrests could follow, the source said.

“Investigations are still underway, but we expect to lay charges later. It takes time. We are investigating reports one by one and Deyaar is also investigating,” the source said.

The other arrests in the case are a Lebanese sales manager who was detained on Monday, and an Indian national who was detained on Wednesday.

RELATED: Third arrest in Deyaar probe

RELATED: Deyaar scandal escalates with second arrest

Public information is scarce on the high-profile case, which broke on April 17 when Deyaar informed Dubai Financial Market (DFM) that Shahin had been detained for three weeks and had subsequently resigned his position.

RELATED: Deyaar CEO detained, faces investigation

Deyaar has refused to comment on Shanin’s arrest or the investigation.

According to media reports, the Public Prosecution is investigating company fraud valued at 120 million dirhams ($33 million), but this is unconfirmed by both the Public Prosecution and Deyaar.

At a meeting of Deyaar's board of directors on April 20, members Hussein Hassan Mirza Mohammed Al-Sayegh and Sultan Ahmad Khalfan Al-Ghaith also resigned, the company said in a statement without saying why. Abdullah Ali Al-Hamli and Butti Abdulla Al-Jumairi replaced the two directors, Deyaar said.

RELATED: Deyaar confirms two directors resign

Deyaar, an affiliate of Dubai Islamic Bank, develops, rents and manages properties and operates according to Islamic law, or sharia, which bans borrowing or lending on interest.

The firm reported a first-quarter profit of 202 million dirhams ($55.01 million) with revenue in the quarter hitting 460 million dirhams.

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READERS' COMMENTS

The name and nationality of the fourth detainee
Posted by Fadi, Dubai, United Arab Emirates on Tuesday 6 May 2008 at 07:54 UAE time

Why haven't you published the name and the nationality of the fourth detainee???

You still were not able to confirm his identity!

Come on, if you can be fully and fairly transparent, better not be transparent at all.

If Dubai wants to become what they claim they want it to become, things have to change around here and favouritism and racism have to be abolished.

Editor's Reply The fourth person has not yet been identified, and so we are not able to provide these details. We are following up on this story and as soon as we are able we will release this information.

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