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Discuss this article (6 Comments)Anti-corruption drive reveals $950m stolen
by This email address is being protected from spam bots, you need Javascript enabled to view it on Wednesday, 19 August 2009
UAE DIRHAM: Some AED3.58bn has allegedly been stolen or used as bribe money.
Dubai anti-corruption investigators have revealed that AED3.58bn ($950m) has allegedly been stolen or used as bribe money by executives from some of Dubai’s leading real estate and financial firms.
According to a report in the National, public prosecutor files shown to the paper on Tuesday reveal the extent of efforts by the authorities to rid Dubai businesses of corruption.
Documents revealed that a total of 11 investigations or court cases are currently underway and 34 executives are either in court or due to appear.
The biggest case involves Dubai Islamic Bank, which officials say has been defrauded of AED1.82bn, the paper reported.
A case involving the CEO of Al Boom Holdings, who has been charged with defrauding investors of more than AED900m, is the second biggest.
“Investors will be able to feel more confident that they are transacting in a fair, transparent and accountable environment,” said Lisa Dale, a partner at firm Al Tamimi & Company told the paper.
The anti-corruption drive, which was launched in March 2008, comes on the back of a series of high-profile cases involving senior managers of well-known Dubai companies, including Nakheel, Sama Dubai, Istithmar World, Tamweel and Deyaar Developments.
READERS' COMMENTS
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Estimates are well above
Posted by Paolo L, Verona, Italy on Wednesday 19 August 2009 at 13:34 UAE time
It's time that you come out with the truth and with solutions. There are many more billions of AED, which 10-20-30,000 investors paid to all kind of real estate companies, most of which are hardly progressing. Let say it's not stolen, but simply under their custody. If you don't have the courage to admit your mistakes and find ways for a real solution soon or later this unique world scandal will blow up in your face and destroy the good images of Dubai.
Posted by Paolo L, Verona, Italy on Wednesday 19 August 2009 at 13:34 UAE time
It's time that you come out with the truth and with solutions. There are many more billions of AED, which 10-20-30,000 investors paid to all kind of real estate companies, most of which are hardly progressing. Let say it's not stolen, but simply under their custody. If you don't have the courage to admit your mistakes and find ways for a real solution soon or later this unique world scandal will blow up in your face and destroy the good images of Dubai.
eh?
Posted by James, Duabi on Wednesday 19 August 2009 at 13:11 UAE time
Original Joe: "Every company mentioned is a Dubai company and no Abu Dhabi companies. What is Abu Dhabi doing "right" that Dubai has been doing "wrong"?"
Am I missing something here Joe? This article clearly states that these are Dubai anti-corruption investigators, so it follow that the companies listed would be Dubai companies. unless I am being just far too logical....
Posted by James, Duabi on Wednesday 19 August 2009 at 13:11 UAE time
Original Joe: "Every company mentioned is a Dubai company and no Abu Dhabi companies. What is Abu Dhabi doing "right" that Dubai has been doing "wrong"?"
Am I missing something here Joe? This article clearly states that these are Dubai anti-corruption investigators, so it follow that the companies listed would be Dubai companies. unless I am being just far too logical....
Original Joe
Posted by Mart, Dubai. UAE on Wednesday 19 August 2009 at 12:05 UAE time
"Every company mentioned is a Dubai company and no Abu Dhabi companies. What is Abu Dhabi doing "right" that Dubai has been doing "wrong"?"
Frauds are like rocks in the sea. They only become visible when the tide of money goes out.
These frauds were all going on whilst Dubai was swimming in money - but the tide was in - so it did not matter. If one bought an apartment off-plan one did not care that the developer had not used the money to build it, but instead had spent it on marketing yet another development that wasn't built. People did not care, because their unbuilt apartment had doubled in price.
It is only when the tide of money goes out, and prices are falling that these people start caring about the fact that their money has been taken and that the apartment has not been built.
The same happened during the dotcom boom. Who cared if they'd spent their life's savings on a company that was making a massive loss selling dogfood online? The shares doubled in value - so who cares how much money they lose on their crazy idea? The gullible investors only start shouting "fraud" when the stock price collapses.
Similarly if I give 100,000 dirhams to someone to buy Google shares, and instead he buys Microsoft shares do I object? If he actually made more on Microsoft shares, almost certainly I will not! But if he lost me a fortune, I'd be claiming theft/fraud, etc.
Abu Dhabi is in better financial shape, there is more oil money there, and property prices are holding up a little better - so there isn't quite so many people shouting "fraud".
Posted by Mart, Dubai. UAE on Wednesday 19 August 2009 at 12:05 UAE time
"Every company mentioned is a Dubai company and no Abu Dhabi companies. What is Abu Dhabi doing "right" that Dubai has been doing "wrong"?"
Frauds are like rocks in the sea. They only become visible when the tide of money goes out.
These frauds were all going on whilst Dubai was swimming in money - but the tide was in - so it did not matter. If one bought an apartment off-plan one did not care that the developer had not used the money to build it, but instead had spent it on marketing yet another development that wasn't built. People did not care, because their unbuilt apartment had doubled in price.
It is only when the tide of money goes out, and prices are falling that these people start caring about the fact that their money has been taken and that the apartment has not been built.
The same happened during the dotcom boom. Who cared if they'd spent their life's savings on a company that was making a massive loss selling dogfood online? The shares doubled in value - so who cares how much money they lose on their crazy idea? The gullible investors only start shouting "fraud" when the stock price collapses.
Similarly if I give 100,000 dirhams to someone to buy Google shares, and instead he buys Microsoft shares do I object? If he actually made more on Microsoft shares, almost certainly I will not! But if he lost me a fortune, I'd be claiming theft/fraud, etc.
Abu Dhabi is in better financial shape, there is more oil money there, and property prices are holding up a little better - so there isn't quite so many people shouting "fraud".
investors are birds of a feather
Posted by Mohamed on Wednesday 19 August 2009 at 11:30 UAE time
“Investors will be able to feel more confident that they are transacting in a fair, transparent and accountable environment,”
Investors & tourists are like birds of A feather, once you scare them they'll fly away and don't ever come back ;)
Posted by Mohamed on Wednesday 19 August 2009 at 11:30 UAE time
“Investors will be able to feel more confident that they are transacting in a fair, transparent and accountable environment,”
Investors & tourists are like birds of A feather, once you scare them they'll fly away and don't ever come back ;)
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