Abdulla brothers pledge to repay Damas money

(Getty Images)

Dubai jeweller Damas International Ltd on Sunday said that two executives and the former chief of the company have pledged to repay nearly $165 million "unauthorised transactions" that led to the chief executive's departure.

Nasdaq Dubai-listed Damas recently appointed Hisham Ashour, the former deputy chief executive, to replace Tawhid Abdulla after "unauthorized transactions" for nearly $165 million were discovered.

"The three Abdulla brothers have signed a formal settlement agreement with the company in which they have committed to repay in full and in cash the full value of the transactions under review," according to a statement posted on the Dubai website.

One of the former chief executive's brothers is current Damas chairman Tawfique Abdulla.

Damas set up an oversight committee on October 12, which has been "in discussion with members of the Abdulla family to identify which of their assets may be available to be transferred to the company under the existing creditor arrangements of the Abdulla family and to perform a valuation of such assets".

Damas' chief executive Hisham Ashour said the "business fundamentals remain strong as will be apparent when we announce our results for the first half of 2009 in November". (Reuters)

Print | Email | Discuss this article

| Share |

READERS' COMMENTS

shame on the ex ceo
Posted by rossi on Tuesday 27 October 2009 at 19:56 UAE time


"they have committed to repay in full and in cash"

So,which version is it?The one above or the one below.

"to identify which of their assets may be available to be transferred"

I agree with rashid btw.This company is broke and don't have funds to pay debts.First they say they will pay in cash and right after say they will bring "assets".
Oh,and one more little question.Is the former ceo sleeping comfortably in his house or he is held where he belongs...

Fraud / Investigation?!?!?!
Posted by POP, Dubai, UAE on Monday 26 October 2009 at 15:34 UAE time


Why is there not a formal investigation into these alledged mis-practises by the family members?

Surely as a quoted company, Nasdaq-Dubai should be instigating formal, thorough and transparent review on what went on here.

Position and privilege should be no smoke screen behind which Board members of publicly quoted companies can hide behind.

What Interest ?
Posted by rashid, Dubai, UAE on Monday 26 October 2009 at 15:30 UAE time


Mounir, Question of Interest will come if they pay the capital !
As it is very clear they have no money and if they had they would have paid by now instead of dragging this issue.
Only option out is that the brothers will transfer the (non performing/toxic) assets to company at historic prices....

interest?
Posted by Mounir, abu dhabi, UAE on Monday 26 October 2009 at 14:42 UAE time


are they going to be repaying the 165 million PLUS interest? Or did they just go on a massive shopping spree on 'loaned' money with no interest?

Click here to post a comment

Add your Comment All posts are sent to the administrator for review and are published only after approval. ArabianBusiness.com reserves the right to remove any comment at any time for any reason. Please keep your responses appropriate and on topic. Arabian Business would like to point out that only comments relevant to the story will be published. Any containing personal insults or inappropriate language will not be approved.
Name *
Remember me on this computer
Email *	(Your email address will not be published)
City
Country
Subject *
Comment *
Notify me of further comments
Enter the words above *
Please click post only once - your comment will not be published immediately.

MORE FROM ARABIANBUSINESS.COM