Tamweel says it's not under investigation

CORRUPTION PROBE: Tamweel said the investigation is limted to Al Shirawi (pictured) and Kalthoum. (ITP Images)

Dubai-based Islamic mortgage lender Tamweel is not under investigation by the public prosecution as part of a corruption probe in which two former senior executives have been detain, the company said on Thursday.

Tamweel said that "to the best of the company's knowledge" the investigation was limited to former chief executive Adel Al Shirawi and former head of investments Feras Kalthoum and will not hit profits.

"...there is no investigation into the activities of the company itself." Tamweel said in a statement.

"Tamweel therefore reassures its shareholders and sukuk holders that this investigation has no negative impact on the profitability and operations of the company."

The statement follows comments made by chief financial officer Gaurav Agarwal earlier in the week in which he said Tamweel has no plans to change its 2008 profit growth target and that the possibility that an investigation could lead to cash losses was "remote".

Since the beginning of the month Tamweel's share price has dropped 22.63 percent to Wednesday's close.

The investigation into Al Shirawi and Kalthoum was first made public last week by Tamweel's biggest shareholder Istithmar World, part of a broad corruption crackdown by the Dubai government.

State-owned developer Nakheel has also confirmed one of its staff is being questioned by police and analysts say there is more to come.

Investigations are also underway into former employees of Deyaar Development, including its former CEO, and Dubai Islamic Bank.

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