Business | General
Another CEO under probe in Dubai
High-profile executive latest to be hit by allegations of corruption in Dubai.
- By Saifur Rahman, Business Editor
- Published: 23:42 August 21, 2008
- Image Credit:
Dubai: A top official of a government-owned company is the latest high-profile business executive to face allegations of corruption.
Abdul Salam Al Merri, chief executive of the Lagoons - a real estate project by Sama Dubai, a Dubai Government-owned developer - is under investigation, Gulf News has learnt.
"We just came to know that he has come under investigation," a source close to Sama Dubai told Gulf News yesterday.
Sama Dubai - part of Dubai Holding, an investment arm of the Dubai Government - has nine projects under way currently at a total estimated value of Dh140 billion.
Asked about the probe, a top Sama Dubai official told Gulf News: "We are not a police organisation. You should check with the Public Prosecution."
But he neither confirmed nor denied that any investigations had taken place. "We have internal auditing system in place," he said. "I cannot say anything beyond this."
Baseless rumours
A senior official of the Dubai Public Prosecution also neither confirmed nor denied a probe of the Lagoons executive.
Commenting on reports of the investigation, he said: "Some of them are baseless, others are based on rumours being circulated among the public. However, this does not deny the fact there might have been some investigations."
Also yesterday, Zawya Dow Jones reported Al Merri is one of four officials of Sama Dubai being probed.
"Four employees of Dubai-based real estate developer Sama Dubai have been arrested and are being questioned by Dubai's Public Prosecution on allegations of bribery and mistrust, according to documents seen by Zawya Dow Jones," the news agency said.
The development comes amid a determined government crackdown on bribery and corruption, mostly in the real estate sector. Some analysts believe the crackdown has brought market indices down.
Investor confidence has been shaken in recent days by a string of reports of alleged corruption in real estate and associated companies.
Real estate indices shed 2.48 per cent and 4.17 per cent in Dubai and Abu Dhabi respectively yesterday, with heavyweight Emaar Properties closing at a 40-month low at Dh9.39, down 2.29 per cent on the day's trading.
Zero-tolerance policy
The investigation into the Sama Dubai officials comes a week after two leading companies, Tam-weel and Nakheel, faced similar accusations.
Tamweel yesterday confirmed a probe was ongoing against its former chief executive and current board member, Adel Al Shirawi, and its former head of Investments, Feras Kalthoum.
The two are being investigated for "potential irregularities", Tamweel said in a statement.
Industry sources hinted that more heads are expected to roll. The Dubai Government this week announced a zero-tolerance policy against corruption.
Sama Dubai, once known as Dubai International Properties, is Dubai Holding's international property investment arm. Its portfolio includes a number of master-planned developments in Oman, Morocco, Turkey and Qatar.
- With inputs from Gaurav Ghose, Financial Features Editor and Bassam Za'za', Senior Reporter
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