Ex-Tamweel duo in police probe

Dubai: Two senior Dubai executives, Istithmar vice-chairman Adel Al Shirawi and chief financial officer Feras Kalthoum, are under investigation over alleged financial irregularities at their former company, Tamweel.

The investigations are one of the strongest signs yet the government is cracking down against corruption in the corporate sector.

Al Shirawi is former chief executive officer of housing finance provider Tamweel; Kalthoum is its former head of investment.

In a statement to Gulf News on Thursday, Tamweel said it had not received a formal notification of any such investigation by Dubai's public prosecution.

Al Shirawi remains a member of Tamweel's board of directors.

Istithmar World confirmed the two were being questioned in connection with their previous employers.

"Istithmar World acknowledges reports that Adel Al Shirawi and Feras Kalthoum are being questioned on certain alleged charges related to their previous positions at another company," the company, which is part of Dubai World, said in a statement.

Istithmar World is not under investigation.

Fearing a negative fallout from the investigation, the Dubai stock market-listed firm said such a development would not have an impact on its profitability.

"The company also wishes to reassure its shareholders and investors that these reports of an alleged investigation, if proven, will have no impact on the future profitability and financial strength of the company," Tamweel said in a statement

Bloomberg News reported that Al Shirawi is being investigated for alleged embezzlement and mistrust while at Tamweel.

The news agency quoted Saleh Hamed, head of Bur Dubai police, as saying that Dubai police have referred the case to the emirate's public prosecution office.

Top law enforcement officials were unavailable for comment.

Yesterday, Tamweel's shares closed at Dh6.11, down 5.7 per cent on Wednesday's session.

Since rumours of an investigation into the company began last month, the company's shares have dropped 26 per cent.

The investigation into the former Tamweel executives is just the latest in a series of investigations that have enveloped high-profile companies.

Zack Shahin, a former chief executive of Deyaar, a real estate company and part of Dubai Islamic Bank, was held over alleged financial fraud.

The case is still under investigation.

Abdul Aziz Sager, chairman of Dubai-based think tank Gulf Research Centre, said these cases show Dubai wants to be transparent for business and also wants to send out a signal that people in high places must be clean.