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Discuss this article (2 Comments)Deyaar seeks to reassure investors
by This email address is being protected from spam bots, you need Javascript enabled to view it on Thursday, 01 May 2008
CHAIRMAN SPEAKS: Dubai property developer Deyaar has broke its silence over an investigation into alleged financial irregularities within the firm.(ITP Images)
Dubai property developer Deyaar has broke its silence over an investigation into alleged financial irregularities within the firm, in a bid to reassure company investors.
In a statement to Dubai Financial Market on Thursday, Deyaar Chairman Nasser Bin Hassan Al-Shaikh said the current investigation by Dubai Police and the Public Prosecution would have no impact on the future profitability of the company.
“While Deyaar cannot provide specific comment on this ongoing investigation, so as to not jeopardise it, the company also wishes to restate its full confidence in the judicial system in Dubai and the UAE. Deyaar continues to provide its full cooperation to the relevant authorities…and to act in the best interest of its shareholders,” Al-Shaikh said.
The incidents in question had occurred in the past and had already been reflected in the company’s historical financial disclosures, he said.
The company was confident that the outcome of this investigation will lead to “greater clarity” in the general business procedures of companies listed on the Dubai Financial Market, he said.
Al-Shaikh did not offer any further details about the case. Deyaar's shares on the DFM closed at 2.25 dirhams on Wednesday, 27% below their 52-week high.
Four people have so far been detained over alleged financial irregularities at the developer, after the first arrest of Deyaar CEO Zack Shanin who remains in detention and has since resigned.
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.
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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advertising!!!
Posted by natasha on Thursday 1 May 2008 at 20:53 UAE time
It was bad enough that the advertisments appeared in the middle of your stories and had music with them etc.... but its worse now that an advertisment for The Nation appears in your face as your reading, and there is NO OPTION to close it! If this type of advertising continues - i will surely be removing myself from this service. If others follow - there will be a smaller readership - and ultimately the advertisers will not pay as much - and will leave you in time... i suggest you revisit your advertising procedure before it gets really frustrating for everyone.
Editor's Reply We agree, and we are looking at ad sizes to make sure this does not happen again. Commercial realities make advertising a necessity - it's what allows us to publish up to the minute news for you - and to keep on improving our services. However, the site must at all times be readable, and some ad formats are making that challenging.
Posted by natasha on Thursday 1 May 2008 at 20:53 UAE time
It was bad enough that the advertisments appeared in the middle of your stories and had music with them etc.... but its worse now that an advertisment for The Nation appears in your face as your reading, and there is NO OPTION to close it! If this type of advertising continues - i will surely be removing myself from this service. If others follow - there will be a smaller readership - and ultimately the advertisers will not pay as much - and will leave you in time... i suggest you revisit your advertising procedure before it gets really frustrating for everyone.
Editor's Reply We agree, and we are looking at ad sizes to make sure this does not happen again. Commercial realities make advertising a necessity - it's what allows us to publish up to the minute news for you - and to keep on improving our services. However, the site must at all times be readable, and some ad formats are making that challenging.
Deyaar Situation
Posted by Lee, Dubai, UAE on Thursday 1 May 2008 at 10:31 UAE time
So far this all sounds like a movie script...
There is possibly a big conspiracy involving many employees/executives who thought they could rip off Deyaar for a lot of money. If it turns out to be true why would these executives think they could get away with it?
I assume Deyaar has its books audited by a reputable 3rd party? It also seems to me that anyone involved would have done a runner by now and left the country but after the CEO was arrested there have now been 3 more arrests.
It seems strange that if someone is guilty they would hang around Dubai "hoping" not to get caught when their partners in crime are being taken in for questioning. None of this makes a lot of sense to me....and now the Chairman of Deyaar says these events would have no impact on future profitability.
What about the past profitability of the company??? Hmmm?
Posted by Lee, Dubai, UAE on Thursday 1 May 2008 at 10:31 UAE time
So far this all sounds like a movie script...
There is possibly a big conspiracy involving many employees/executives who thought they could rip off Deyaar for a lot of money. If it turns out to be true why would these executives think they could get away with it?
I assume Deyaar has its books audited by a reputable 3rd party? It also seems to me that anyone involved would have done a runner by now and left the country but after the CEO was arrested there have now been 3 more arrests.
It seems strange that if someone is guilty they would hang around Dubai "hoping" not to get caught when their partners in crime are being taken in for questioning. None of this makes a lot of sense to me....and now the Chairman of Deyaar says these events would have no impact on future profitability.
What about the past profitability of the company??? Hmmm?
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