Deyaar backs Dubai corruption crackdown

CRACKDOWN BACKED: Deyaar's chairman has pledged his support to the Public Prosecutor's fight against corruption. (ITP Images)

The chairman of Deyaar Development, whose former CEO is being investigated for alleged fraud, has publicly backed Dubai's zero tolerance pledge on corruption.

Nasser bin Hassan Al-Shaikh said in a statement on Sunday, the same day Deyaar appointed a new CEO, that upholding the highest standards of corporate governance and transparency "is critical to the long-term success of both companies and governments".

"On behalf of Deyaar, I offer our complete commitment to contributing to this mission of maintaining and enhancing the emirate's global reputation for best practice corporate governance, which has proved central to Dubai's enduring legislative and economic success story," Al-Shaikh said.

The Dubai public prosecutor said on Sunday the government will continue to have a strict stance against corruption and will prosecute violators to the extent of the law.

His comments follow the questioning of several senior executives at a number of high-profile Dubai real estate companies on suspicion of exploiting their positions to make illegal profits.

Last week mortgage lender Tamweel's former chief executive Adel Al Shirawi and head of investments were named as part of an investigation for alleged wrongdoing, and Nakheel confirmed one of its staff was also being questioned by police as part of a bribery probe.

UAE markets gained in early trading on Monday after the public prosecutor said fighting corruption is a top priority.

Abu Dhabi's benchmark was up 0.33 percent to 4,548.80 points and Dubai's, which was mostly unchanged at the open, gained 0.45 percent to 5,011.07 points at 0618 GMT.

Shares of Tamweel, which have lost nearly a quarter of their value this month, added 2.56 percent. Emaar Properties rose 0.62 percent. In Abu Dhabi, Aldar Properties gained 2.9 percent.

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READERS' COMMENTS

Corruption
Posted by Robbie Rodgers, Dubai, United Arab Emirates on Monday 18 August 2008 at 11:05 UAE time

I understand that corruption takes place in business all around the world.

But exactly how many top level executives are under investigation in Dubai now? And all related to the property industry. And the big companies at that.

If that is what is happening at the big players, can you imagine what might be taking place in the smaller, less visible companies?

Not only is the industry facing negative reports of an impending downturn in prices, but now buyers are faced with the notion that there is corruption taking place at the very highest levels of the organization.

How many more people will be 'investigated'?

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