Courtroom battle looms in Deyaar saga

COURT DATE: The case against Shahin and other Deyaar employees is likely to go all the way to court, Al-Shaikh said. (ITP Images)

The legal case against the former chief executive of Dubai developer Deyaar appears likely to reach the courtroom, the firm’s chairman said on Sunday.

Nasser Bin Hassan Al-Shaikh told newswire Bloomberg Dubai Public Prosecution, which is investigating financial irregularities at the firm, is preparing to take the case to court.

“I think they are finalising their investigation now,” Al-Shaikh said in an interview at the World Economic Forum (WEF) in Sharm El Sheikh, Egypt.

“From the looks of it, it will go to court, we have enough evidence to take it to court."

News of the investigation broke on April 17 when Deyaar informed the Dubai Financial Market (DFM) that then CEO Zack Shahin had been detained for three weeks and had subsequently resigned his position.

Shahin and two other officials at the company, Dubai's third-biggest developer by market value, are being detained and questioned in connection with alleged fraud.

Two Deyaar board members have also resigned.

According to unconfirmed media reports, the Public Prosecution is investigating company fraud valued at 120 million dirhams ($33 million).

A fourth person had previously been detained by the Public Prosecution, but it is unclear whether the detention is ongoing.

Dubai Attorney General Essam Al-Humaidan said earlier this month that more arrests may follow from the investigation.

According to Al-Shaikh, the probe will result in stronger governance going forward and will be a very good lesson for all public companies in the UAE.

Al-Shaikh also told Bloomberg Deyaar will start at least two projects in Saudi Arabia this year and is in the early stages of evaluating Egypt, Jordan and Syria for opportunities.

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.

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READERS' COMMENTS

More fruedelant CEO should be prosecuted
Posted by Chinkiz Khan, Bishkek, Kyrgyzstan on Sunday 15 June 2008 at 22:56 UAE time

Al Eriefi Marina tower saga is still lingering in the land department in Dubai...

the company has sold the tower after 2 years delay with out the consent of the apartment owners nor took permission from the proper authority....the sudden sale took place one week after they were asked by the land department to review their financial records..

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