Abdulla brothers to repay $165m over 18 months

PAYMENT PLEDGE: Former Damas CEO Tawhid Abdulla.

UAE jewellery retailer Damas International on Wednesday announced that the three Abdulla brothers have given a formal commitment to repay $165m they owe the company over the next 18 months.

The payment schedule is part of the formal settlement agreement between the Abdulla family and Damas, in respect of the repayment of unauthorised transactions that led to the resignation of Tawhid Abdulla as CEO last month.

The Abdulla brothers have undertaken to pay $55m within 6 months; an aggregate of $110m within 12 months; and the total within 18 months.

The company added that should auditors PricewaterhouseCoopers (PWC) discover further unauthorised payments as part of their investigations, repayments would need to be paid within two years.

The Abdullah brothers produced a list of assets that are potentially available for liquidation to be converted by them into cash to meet their obligations.

These included real estate investments in the Middle East and North Africa (including a number of residential and commercial buildings and units in the UAE) and an investment in a shopping mall in Turkey.

As part of the settlement agreement, the Abdulla brothers have also pledged 350 million of their shares in the company that would be transferred in whole or in part back to the company in the event of the terms of the settlement Agreement are breached.

Last month, PWC was appointed by the board of the company as an independent auditor to examine unauthorised transactions conducted by former CEO and MD Tawhid Abdulla.

The appointment of PWC follows the formation of a separate committee to examine the transactions in detail.

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READERS' COMMENTS

Dawood
Posted by Amira Smith, Dubai, UAE on Thursday 5 November 2009 at 17:48 UAE time


What is wrong with you?! "Mistakes happen!" We aren't talking about a slight slip of funds but $165m worth of unauthorised transactions. That is not small change - and it is completely irrelevant whether he is a nice person or not; the fact is that he has taken money that rightfully belongs to the company's shareholders.
Where is Nasdaq in all this? Why has DIFC not come forward and launched an investigation? This is not something that can be brushed under the carpet if Dubai ever wants to be taken seriously as a financial centre. There would be an outcry if this had happened in the UK, Hong Kong or any other significant financial hub- it is unbelievable that this has been taken so casually. And what about the interest on said $165m? Is that being paid back too? This company has cheated its shareholders out of money! There should be a significant fine!

integrity
Posted by dawood, London on Thursday 5 November 2009 at 14:54 UAE time


having known the abdullah brothers personally, i am confident in their ability to pay back as per the schedule. They are a self made family and do business with the utmost honesty and integrity.

Mistakes happen, i am sure it was very Mr. tawhids intention to do any fraud. I believe we should give them the benefit of doubt and help them overcome this obstacle.

I extend my full support to Tawfique abdulla, tawhid abdulla and tamjeed abdulla.

God bless us all.

unbiased law and rules
Posted by layman, Dubai, UAE on Thursday 5 November 2009 at 09:49 UAE time

Its a clear mis appropriation of funds of the company. It has to be investigated as per law and the guilty deserves a punishment as per law and as per the company rulues.

I wish the law will prove unbiased and no one interferes in the legal process to save them.
Ram

repayment
Posted by ahmed on Thursday 5 November 2009 at 09:04 UAE time

good news..though..isnt it all too good/too sweet?...a CEO of a public listed company caught...says sorry, i will repay back, please forgive me...board accepts apology...says please be a good boy and dont do it again...and we all live happily ever after...

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