Corruption 'unusually high' in Dubai - police chief

CORRUPTION CASES: Dubai' police chief Dhahi Khalfan Tamim. (Getty Images)

Corruption at Dubai's state-linked companies is unusually high, the emirate's police chief said on Thursday, but tough new penalties introduced this week could help curb fraud.

Dubai, which shocked global markets in November with a request to delay $26 billion in debts linked to flagship firm Dubai World, has ramped up an anti-corruption drive in recent weeks.

The emirate has seen a series of high-profile fraud cases since 2008 involving top executives at government-related firms like property developers Nakheel and Dubai Properties, as well as Dubai Islamic Bank.

"Something is unusual. We have never had such a high number of people involved in corruption," Dhahi Khalfan Tamim, who also heads the Dubai government's budget committee, told Reuters.

A law issued on Tuesday has the power to impose prison terms of up to 20 years on offenders as the emirate tightens financial rules in the wake of its debt crisis.

Tamim said the law "comes at the right timing (because) for the first time there is a problem of a significant size."

Under the law - which allows for offenders to be set free upon repayment of any stolen funds, or settlement agreements - authorities can reclaim stolen public or private funds.

Tamim said police had drawn "a list of more than 60 people mainly from government-linked companies" who are under investigation, adding no-one on the list was from a government department.

"The chaos is all coming from the (government-linked) companies," he added.

"We never had this conduct in our government practices. But at government-linked companies, some thought there was a large scope for a lack of discipline."

The law is among a raft of measures introduced by Dubai, one of seven emirates in the UAE, in the wake of its debt bombshell on Nov. 25.

Earlier this month, Dubai issued a law requiring government departments to transfer their revenues to the treasury in a bid to regulate government departments' public spending and control government revenues. (Reuters)

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READERS' COMMENTS

Corruption
Posted by PM, Muradabad, India on Monday 4 January 2010 at 08:37 UAE time


It is good that govt has recognized it and acting fast. As stated by other readers, you cannot set free someone because he/she has undone he/her previous illegal act after enjoying all the benefits of stolen amount until it was discovered. Cost of those illegal activities were not just restricted to that particular entity but whole economy has born the cost directly or indirectly. Probably govt needs to relook at these clauses again.

As observed all investigations are restricted to only the transactions done in Dubai. What about all overseas transactions/investments, where significantly high and unjustifiable goodwill/premiums were paid, out of public funds, to acquire those assets.

Pay money back?
Posted by mohddxb, Dubai, UAE on Sunday 3 January 2010 at 09:55 UAE time


they should also require payment of interest on these funds, to deter offenders from saving the stolen funds just in case they get caught.

This will actually encourage corruption
Posted by tehsin123 on Saturday 2 January 2010 at 14:28 UAE time


As ex-pat said, "try next time", this law will encourage corruption. If I understood it correctly, why will someone not try to siphon out money if he or she thinks that only penalty for such try is the same what you steal. Am I on right page? I think it is more of a reward rather than punishment. Just confused!

corruption high in Dubai
Posted by bewildered of dubai, dubai, u.a.e on Saturday 2 January 2010 at 11:24 UAE time


good at least to see and hear some transparency from Dhahi Khalfan
but hard to understand why they will make his job harder by releasing all those who repay their ill-gotten gains so they can benefit from the mistakes that got them caught in the first place and get away with it next time. Where is the deterrent factor in this?

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